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Question about selling software I created.

by andyglive
13 replies
Hey all,

This is one of my first posts! Glad to be a part of this innovative community.

Here's one of my first questions for you guys. I have a proprietary piece of software that I built that helps internet marketing service providers reach prospective customers in a very unique way. I've tested it and validated it myself and it works! Now I'm thinking of licensing it or selling copies of it so that I can start making some $$$.

1. What route makes the most sense? Licensing? Outright selling?

2. How would I even go about "packaging" this up and preparing it to sell to multiple parties? This is an area I'm not too knowledgeable in.

3. How do I come up with a price point?? One of the most difficult things for me currently is valuating this product.

Thanks in advance! Sorry if this isn't the right place for this question. If it's not, let me know and I'll glady repost it in the proper forum.

Cheers!
#created #question #selling #software
  • Profile picture of the author Tom Addams
    Hey Andy,

    I have some experience in this arena.

    1. You'll make more money with a monthly fee.

    It depends on the software, though, and the market. Look at your competitors. What do they do?

    2. Add monthly recurring to your software downloads and a recurring membership area account. Alternatively, just use any number of digital processors for one-time sales.

    3. Look at your competition. Either offer something better at the "same" price or penetrate (my preferred route) with a lower price.

    I can get more specific if you like. That's just an overview.

    Oh . . . and welcome to WF!
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    I Coach: Learn More | My Latest WF Thread: Dead Domains/ Passive Traffic

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    • Profile picture of the author andyglive
      Originally Posted by Get Rich Methods View Post

      Hey Andy,

      I have some experience in this arena.

      1. You'll make more money with a monthly fee.

      It depends on the software, though, and the market. Look at your competitors. What do they do?

      2. Add monthly recurring to your software downloads and a recurring membership area account. Alternatively, just use any number of digital processors for one-time sales.

      3. Look at your competition. Either offer something better at the "same" price or penetrate (my preferred route) with a lower price.

      I can get more specific if you like. That's just an overview.

      Oh . . . and welcome to WF!

      Hey, thanks! This info is super helpful. Can I PM you and discuss further? Thanks for the warm welcome...
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      • Profile picture of the author dad2four
        Never makes sense to me. If you have software that makes you money, why wouldn't you just use it?
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        • Profile picture of the author onSubie
          Originally Posted by dad2four View Post

          Never makes sense to me. If you have software that makes you money, why wouldn't you just use it?
          Lot's of companies make money selling software. It makes no sense for most software companies to change their business model from a software developer to a service provider.

          This software helps find customers. That could be helpful to many businesses who would pay for a solution to problems of finding and tracking contacts.

          You need to open your mind and eyes to opportunities in the market place.

          No point shooting down a business model just because you don't understand it...
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          • Profile picture of the author andyglive
            Originally Posted by onSubie View Post

            Lot's of companies make money selling software. It makes no sense for most software companies to change their business model from a software developer to a service provider.

            This software helps find customers. That could be helpful to many businesses who would pay for a solution to problems of finding and tracking contacts.

            You need to open your mind and eyes to opportunities in the market place.

            No point shooting down a business model just because you don't understand it...
            My thoughts exactly. The tool works amazing for my own purposes but the tool itself works and provides value in an infinite amount of spaces.
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        • Profile picture of the author andyglive
          Originally Posted by dad2four View Post

          Never makes sense to me. If you have software that makes you money, why wouldn't you just use it?
          I will continue to use it for my own purposes but the software can benefit people in other spaces. That's why I want to license it.
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  • Profile picture of the author Ben Holmes
    Doesn't matter whether you license it, or sell it outright, you'll not earn very much until you've demonstrated how much money you can earn by using it.

    Just my two cents worth...
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    • Profile picture of the author TotalWebsiteControl
      Originally Posted by Ben Holmes View Post

      Doesn't matter whether you license it, or sell it outright, you'll not earn very much until you've demonstrated how much money you can earn by using it.

      Just my two cents worth...
      This is correct. But i would probably just sell it outright.
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      • Profile picture of the author andyglive
        Originally Posted by Ben Holmes View Post

        Doesn't matter whether you license it, or sell it outright, you'll not earn very much until you've demonstrated how much money you can earn by using it.

        Just my two cents worth...
        Originally Posted by ShoeNickel View Post

        This is correct. But i would probably just sell it outright.
        Great points. I do have a monthly revenue average calculated so I have a pretty solid number as to what this tool can earn. Where do I go from there?

        Thanks for your help!!
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  • Profile picture of the author Janice Sperry
    You are asking some of the right questions but you need help from someone experienced and that has a complete understanding and possibly testing of your product.

    You may want to check out the Joint Ventures section.

    If you have a good software product why not team up with someone that already has a lot of launching/marketing experience? It may seem like you will not make as much money that way. However, you will get your product to the market much faster and will likely sell/license/SaaS (whichever way you decide to go) much more than you would as a newbie.

    If you don't find the right fit in the JV section you could also place an ad to hire someone to help you.
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    • Profile picture of the author andyglive
      Originally Posted by Janice Sperry View Post

      You are asking some of the right questions but you need help from someone experienced and that has a complete understanding and possibly testing of your product.

      You may want to check out the Joint Ventures section.

      If you have a good software product why not team up with someone that already has a lot of launching/marketing experience? It may seem like you will not make as much money that way. However, you will get your product to the market much faster and will likely sell/license/SaaS (whichever way you decide to go) much more than you would as a newbie.

      If you don't find the right fit in the JV section you could also place an ad to hire someone to help you.
      This is great advice Janice! I've always been intrigued by the SaaS model...that space is growing like rapid fire. Sometimes I wonder though if I want to go through the billing/admin work of running a SaaS versus just packaging it up and selling licenses outright. What are your thoughts?

      Also, can I not join the JV subforum without paying a fee?
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  • Profile picture of the author andyglive
    Hey all, bumping this to hopefully get some more feedback!
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