We live in a fast-paced time and the tech world is evolving and changing constantly, there are new additions and breakthroughs being made every day. Lately, there is so much we can do with our gadgets, and these have been enabled by new software with unique uses and abilities. This software can be revolutionary and change the way do things, and it can also be life-changing for the software developers and companies who come up with it through software monetization. But to understand how one can benefit from it, you must first understand the process of how software is moved in the market, marketed, and sold well.
Software monetization is the process through which individuals or companies get maximum value from their software and they are able to generate revenue which is mainly by:
- Selling or renting the software or application.
- Selling or renting added services that are needed to function or operate the software you have provided such as in-app services, selling ad space, etc.
- Preventing unauthorized use of the software through anti-piracy measures as well as IP protection.
Permission and Protection of software
Another key element that plays a huge role in the success of software monetization is managing permissions to use your software and ensuring the protection of your software. It is crucial that you prevent unauthorized use or distribution of your intellectual property, i.e., your software. This will help control, unwarranted distribution, or replication of your software through piracy control. Do set clear guidelines regarding permissions to use your software too and always state what users or other vendors can and cannot do in the terms of use.
These are not just crucial in terms of effective monetization of your software, rather permissions and protection of software also keep the integrity of your software upheld.
If you are selling or renting the use of your software, using software licensing is a great way to provide protection for your software. It will have an agreement between both parties about how and when the software can be used and mentions restrictions imposed on the software.
Software Copyright
Copyrights protect one’s work from being used by someone else’s as theirs. Software copyright is slightly different. It is legal protection for codes that make up software. It is meant to be machine-readable and is used by software developers to prevent people from copying or using their intellectual property in undesirable ways. In the case of software copyright, even adapting versions of the original can be considered an infringement.
How to get the best out of software monetization?
- Understand the market and consumer behavior trends:
Getting successful software out there is all about understanding the market and consumers. You will only make revenue if people are interested or want to invest in your software. You also want to ensure that what you come up with is compatible with the devices of the time. So, make sure you’re developing something people want to bet their horses on! - Protecting intellectual property
Get familiar with various modes of IP protection such as trademarks, and NDAs and include the IP terms and conditions on your software in the usage terms and conditions. If someone copies your software idea, you can file for infringement; but there is more. You or your company’s logos, website domain, and names are all intellectual property too. You can easily monetize on those elements apart from the software. For instance, if your software ‘XYZ’ is a popular name and a stationary company wishes to use the logo and name on their items, they will have to reimburse you for its usage. Hence think big and wide.
- Pricing strategy
The core of software monetization is getting in more revenue to make profits and so be clever about communicating the value of your products through the prices. Select the most appropriate pricing model to get the best deal. For example, if it is mass user-centric software such as a game, it could be best to in-app purchases, paid upgrades, or advertisements of free versions for service-based software, you could offer free usage with limited features or give a limited time period of use. For software that caters to a niche and has been used, you could license or sell it to the highest bidder. Find out what pricing strategy suits your software.
Conclusion
Software monetization can be a great way to generate revenues. However, it is often easier said than done. There are many things one has to be careful about and give thought to ensure that it is protected, and you continue to have rights over it.
