Blog Entry

Mar 23
2012 

The Top Five Barriers to Software Monetization Success

We recently ran an article on our software monetization channel that discussed the common barriers that prevent ISVs from building an effective monetization strategy.    Are you looking to improve or even define your software monetization plan? Here are five barriers that you should prepare for:

  1. Control
    Control is twofold. Preventing the unauthorized use and distribution of your application protects revenue by ensuring all use of your application is paid for. Equally important is your ability to protect the source code of your application from being exposed to accidental or malicious parties alike in order to prevent code manipulation and reverse engineering. Keeping the product usable and efficient, while providing maximum protection of your valuable IP, can become a big problem for ISV’s if not considered early in the development and software licensing process.
  2. Pricing and Packaging
    Providing an effective pricing and packaging strategy can make or break your bottom line.  Does your solution offer flexible ways for end-users to both consume and pay for your offerings? If not, it should.  Ready for the cloud? If not, get ready by reading this article on how to architect your saas application.
  3. Flexibility
    How agile is your software? New software releases with frequently updated features are an inevitable part of the product lifecycle.  Your end users expect software to easily keep pace with current feature trends in functionality and usability.  They also expect their investment in your software to be leveraged across various disparate platforms, and ISVs who achieve this will have the elusive competitive edge.
  4. Back Office Management 
    Keep it simple.  Streamlining the back office operations for an ISV doesn’t need to be complicated.  With the right entitlement management tools, functions like usage tracking, activation, and product delivery are streamlined within existing systems.  Bottom line? A better end user experience and happier customers.  Oh, and a bigger bottom line.
  5. Insight 
    Show me the data! To effectively monetize your software, you need to get a handle on the numbers.  For example, don’t just offer trials, but use feedback and metrics from trials to identify and repair potential product issues.  Leverage usage reporting to you to make informed decisions, and you will be running a more efficient and profitable business for years to come.

These are just some of the common barriers that keep ISV’s from making the most of a software monetization strategy.   Have we missed one that you’ve faced?  Let us know.

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