How to monetize your application - Revenue models
Many people have asked us how they can monetise the software projects they are working on. Our quick answer is usually - There are a lot of ways to make a lot of money. Here are some of revenue models you can adopt with your software;
LICENSING - You charge a customer once for installing your software. It is widely used for on-premise systems like most Accounting systems.
AVERTISING - Do you consider your application will have huge traffic? You can make money by selling advertising space in your application.
WEB/ DIRECT SALES - The old-fashioned revenue model made new, web sales and direct sales involve payment for goods or services through a digital medium. This is best for eCommerce brands.
SUBSCRIPTIONS – Here the customers pay a per-user fee. It is versatile and promises recurring revenue.
TRANSACTION FEE - Your company charges a commission based on volume for enabling or executing transactions.
MARK UP – It is as simple as ; take the cost of goods you just bought, mark it up X%, and make a profit margin on the original purchase. Examples are Jumia, Amazon
PAY PER USER – Here you give a customer potentially unlimited access to a range of features while charging them only for the services they use. It is suitable for B2B products.
DONATION - Relying on the donations of regular users is a common revenue model for nonprofits, online media (youTubers), Kickstarter.
AFFILIATE - This works by promoting referral links to relevant products and collecting commission on any subsequent sales of those products.
ARBITRAGE – Here you buy in one market and simultaneously sell in another market, at a higher price, what you just bought, pocketing the temporary price difference. Think cryptocurrency and forex trading.
COMMISSION – This transactional revenue model involves a middleman charging commission for each transaction it handles between two parties or for any lead it provides to the other party. E.g independent music distributors
DATA SALES - In the data sale revenue model, data is sold directly to a consumer or business customer. If you are not paying for it, you’re the product.
Collaborate with @easy software ltd for help in creating a thriving business from your big audicous ideas.