5 Essential Strategies to Boost Software Revenue through Licensing

By Mike Wozniak  |  Software Licensing Tips

Posted:  January 23

You have put a lot of hard work into writing your software, so you want to get the best return for your efforts. A licensing system will help protect against theft, and we all know that you would rather have a customer pay for your software than steal it.

Did you also know there are other ways to increase your software’s revenue when using a licensing system? Here are some ideas to consider:

  1. Increase exposure to potential and existing customers – Not only can you gain new customers by offering trial versions of your software, but you can also earn additional sales by offering free trials of additional features and converting them to purchases. Often the best source of new license revenue is found within your existing customer base.
  2. Lower barrier to entry and increase long term revenue – Many large companies have permanently switched from offering perpetual, non-expiring licenses to requiring customers to purchase subscription licenses with a lower ongoing price that automatically renews. More people can access your software with this lowered barrier to entry, and continual never ending payments can increase total revenue over time.
  3. Bundle software maintenance with subscriptions – Choosing a subscription licensing model allows you to bundle software maintenance in the price. The ongoing payments can provide continued access to your software, including all updates and support. You can enjoy the associated cost reductions by supporting only paying customers and keeping customers on the latest version of the software.
  4. Meet varied customer requirements – Every user within a company may have different needs. A licensing system allows you to get very creative, so try creating license classes that are specific to each user type. You can offer different versions of your software, such as “Lite,” “Standard,” and “Premium” using your single installer. Control access to specific features or modules in the same application to simplify installations and offer customers more purchase options. Satisfy customers’ needs by combining any or all of these popular models such as pay-per-use, pre-paid tokens/credits that are consumed, and pricing tiers based on the number of users or records in a database.
  5. Validate maintenance renewals before allowing updates – A licensing system is a useful tool to ensure that your customers only use the software version for which they have paid maintenance fees. For example, a full-featured trial version that is freely downloadable from your website might be an open door through which a customer with lapsed software maintenance can get access to a newer version of the software. You can force customers to purchase maintenance renewals by encoding the support expiration date in the license and the software build. Your customers must then remain current with their maintenance payments in order to access the releases.

The SoftwareKey System is power packed with features including software protection, Electronic License Activation and Management allowing you to reduce costs and increase your revenue. Are you leveraging the power of license automation to save time and increase your company’s growth?

Contact us today and speak with one of our licensing experts to discover what the SoftwareKey System can do for your bottom line.

About the Author

Mike Wozniak is the founder of SoftwareKey.com and responsible for marketing, content and product strategy. When he isn't plotting new ways to help customers solve licensing and business automation challenges, he likes to travel and entertain guests who come to visit the Orlando area.

Mike Wozniak


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