How to monetize your software successfully
Erick Schmidt, former Google CEO said, "Revenue solves all problems." In business, this holds mostly true. But in order to get those gains, there is some work to be done.
Understand market trends
Each software has a unique monetization strategy that works best for it. If one strategy worked in a particular market, it doesn't mean the strategy will work in another. To stay ahead, maximize and earn new revenue, understand market trends to find the right approach.
Protect your intellectual property
To avoid infringement on your intellectual property, familiarize yourself with various modes of IP protection such as copyright, trademarks, and NDAs. Include an IP clause in your software terms. Understanding IP protection will help decide which software monetization strategy to employ.
Leverage customer feedback in product development
Research shows 52% of consumers prefer businesses to take action on customer feedback. As one of the vital aspects of your software development, software companies are encouraged to engage directly with the clients about their experience using the software. Use this feedback to decide on the best software monetization strategy to use.
Track revenue performance
Analyzing and improving sales and marketing efforts using revenue as the base indicator reveals which software monetization strategy drives the most revenue. Revenue Performance Management (RPM) will guide you in achieving ROI and accelerated top-line growth
Adjust your pricing strategy regularly (and talk about it!)
While pricing is the most overlooked component in business, monetization is the top influencer for client acquisition and retention. Price adjustments directly affect all business aspects. Therefore, when you adjust your product's prices, be sure to communicate to your existing and potential clients.
Rinse and repeat
Suppose you don't get it right the first time, no worries. You'll get through MVP1, MVP2, or more until new information on the software becomes scarce, resulting in a stable product through pivoting. If one of the software monetization strategies doesn't work, start again. Test until you achieve the desired results.