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Pricing Options for Software
from:When you buy or sell software, much of the time you are dealing with a software license in one form or another. These licenses offer different levels of benefit to the end user such as how many computers the software can be installed on, how long the license is good for, and various other benefits. If you are marketing software, you have several options from which to choose as to how you price the software. We’ll discuss a few of them here.
Subscription
Some Internet marketers license software by the month and subscribers pay a monthly fee in order to continue using the software with the option to cancel at any time. Upon cancellation, either the software no longer works at all or no new content can be created using the software. Some marketers offer a yearly option and often discount the price when an entire year is paid for up front.
Outright Purchase
Much of the software sold over the Internet and in brick and mortar stores is sold as an outright purchase. The customer simply buys the software and is free to use it from the point of purchase on. You may decide to sell your software this way as well. Look at software that is similar to yours to see how others are selling theirs. Much of the software sold this way involves simple programs that are designed to do one thing. This isn’t true of all software though. Many complicated programs as well are sold as outright purchases.
Training, Support, and Upgrades
Sometimes, software designers make more money from add-ons like training, support, and upgrades than they do from actually selling the software. You’ll want to carefully consider this option though, because most consumers expect support to be included in the price of the software, at least for a certain period of time. Also, upgrades are often included at no extra charge, although that is not always the case. Training is often provided on a one on one basis or through special group events for a specified fee.
Versions
Software is often sold by the version. That is, there may be different versions of the same software that is sold at different prices. Microsoft sells some of its software this way. You’ll find home and business versions and also student versions of some of its most famous software. Of course, the price is different for each version, with the most expensive version having the most features. You’ll see the same kind of versioning offered by Internet marketers who have designed their own software as well.
As you can see, you have quite a few options when it comes to pricing and marketing your software. It will take careful consideration and market research to decide which option is the best one for you.
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