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Developing Software: How Can You Monetize it?

Developing Software

For any software development company to succeed, it’s crucial to implement the right software monetization solution that enables them to remain as competitive as possible while maximizing profits from their digital intellectual properties. Of course, any experienced developer knows how much work goes into creating new applications and programs. But regardless of how well-designed and functional they are, it will be for nothing if they cannot extract the most value from their offerings. To that end, here are a few effective and practical ways to monetize your software. 

Leverage in-app purchases

Frequently used in smartphones and video game consoles, developers use in-app purchases to provide new content, additional features, in-game currency, and other services for a fee. For example, certain mobile titles may require an additional payment for coins and gems to purchase items from the video game instead of earning them over time. This monetization approach can be practical, as companies can draw in more interest by making their software accessible while charging for specific features that would otherwise be locked out.

Selling a license for software applications 

A traditional method of software distribution is selling the license to use them, with the most common being the perpetual license. Charging the end-user one-off fees for the license in perpetuity—hence the name—may be an old monetization practice but an effective one to this day. With this model, software publishers and application developers put a price on their respective digital products that customers must pay before they can start using the program. The downside of this strategy is that vendors only get a single revenue hit. Another issue of the license is its limitation on maintenance and support-related matters.

This is where the subscription model comes into play. As its name implies, it involves recurring payments for access to an app and its services until the subscription is canceled. However, not all apps are suitable for this monetization method. The product will need to warrant its monthly or yearly subscription by providing professional insight or expert services. If successful, the model can guarantee you a steady revenue stream.

Using advertisements 

Another popular method of monetizing software is by embedding it with advertisements. This particular model works especially well when in combination with subscriptions or in-app purchases. One example is offering an app on different payment tiers, such as having the first be free but with compulsory ads, while the other is with a recurring payment but ad-free. Offering software for free and with ads will not only attract more users and increase downloads, but it will enable you to continue monetizing the app and help you generate profit.


An essential foundation of any software business is its monetization strategy. To effectively monetize software solutions, their distribution to the end users must be defined, configured, and controlled. It’s also crucial to find the appropriate strategy for the application or program and manage their license to add more value to consumers on a recurrent basis to maintain an ongoing stream of income.

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