If you are thinking about developing and selling a software application in your vertical market, you need to give some thought to the revenue streams you will build into it. For most people at this stage, they are thinking simply that they will build it, and people will buy it. This is the “one and your done” business model. But there are actually about six different revenue streams you could consider as you build your vertical market software application for the business world.
These six revenue models are explained in my book, “EasyApps! How to Make Money Selling Applications made with FileMaker”, and are briefly described here:
1. One-time purchase
In the one-time purchase revenue model, your customer will purchase the software once. Your revenue stream will include continuous marketing of your software product to new customers.
2. Customization
In addition to a one-time purchase, you could offer customization of your software product. Some clients would purchase your software as is or they could upgrade to a customized version specifically for their business.
3. Subscription
Subscription revenue streams provide a steady stream of revenue for you while providing the software product to your client. Instead of purchasing your software product outright, your customers could purchase the right to use on a monthly basis providing on-going revenue for you.
4. Per Usage Model
Consider a price per usage model. Your client would not purchase your software and own it. Rather, you would charge your clients for each use of the software.
5. Training Model
In addition to selling your software product, you could also use the training model for revenue. Developing training products and services can not only help your clients with their new software purchase, but keep your revenue flowing.
6. Freemium Model
What is freemium? Freemium is a pricing strategy in which you would offer your basic software free of charge. Instead, you would charge for proprietary features, functions or virtual goods.
If you want help with your idea, feel free to contact us, or check out our products.