So, you've just finished your project in record time (thanks to Codebots) and you're wondering where to go from here. Software development can be an expensive journey and those bills don't just go away. It's easy to see why the first step for most after completing a project is usually to monetise. While there are a number of ways to monetise, some types of software licensing are growing in popularity among project owners as a method of monetisation.
So, what's become the new norm? On demand, subscription based licenses. A subscription based model allows users to purchase a subscription for a defined period of time (generally on a monthly or annual basis). There might be pre-conditions for the particular licensing agreement. For example, in order to qualify for the â€˜Basic' plan you must have less than 500 users. As soon as you eclipse those conditions, the licensing agreement ensures you move to the appropriate plan.
This has two advantages. Firstly, users only pay for what they need. It would be strange to think a huge multinational company using Xero could pay the same as a local convenience store owner.
Secondly, it fits perfectly with SaaS solutions. Instead of selling/licensing your software for $x upfront you license it out on a monthly basis. This ensures a constant stream of revenue from each user. It's also much less intimidating. Would you rather pay $5,000 upfront or $200 per month. Obviously there's a chance users will drop off, but there's also a chance they will become lifetime consumers. At the end of the day it comes down to the quality of your software and the problem it's solving.
Some software licenses are based on specific use-cases. For example, site licenses allow unlimited use from a single location (eg. company HQ). Contrast this to workstation licenses which allow unlimited use from a single designated device. Concurrent use licenses allow unlimited use in terms of locations and devices but cap the number of concurrent users who can access the software using your license.