All software vendors want to make high quality, reliable software for their customers. It’s also important for these software companies to make enough profit that will allow them to continue making great products.
But people these days have come to expect that software is free. They are often deeply suspicious of paying for products, even those with sterling reputations and reviews. They want to have their cake and eat it too.
Here we have a conundrum. How are software companies expected to make a sufficient income in this environment?
Common Monetization Tactics
Often times software vendors will place advertisements within their software experience so that they can make an income even if users don’t buy the software outright. This is a common tactic that can be used successfully if leveraged properly.
However, many software companies go overboard and bombard their customers with advertisements throughout the entire software experience. The vendors are motivated to place more advertisements to make up for the revenue they receive up front. This often leads to a negative user experience that subsequently results in poor reputation, and high churn rates.
Another method to monetize free software is to set a time limit during the software experience so that users must pay after that time expires. You’ve probably seen many of these ‘free for 30 days’ offers, and other offers of this nature.
While this can also be an effective monetization strategy for some software companies, it is not right for all. Some software products require more time to understand their full value, and so they need to convince their potential customers beforehand that their product is worth a purchase.
A third strategy, and one that we clearly advocate, is software installation and download monetization.
Leveraging Software Downloads for Monetization
Software installer monetization is a tricky area for any company, and making sure that you get paid for downloads is even more important. Especially in order to maintain a steady stream of income from these efforts and capitalize on users beyond the sales point. When downloading and installing software consumers can be enticed by advertising and other efforts, but there are specific tricks to increasing conversion rates and really making money from these efforts, whether providing free software or a paid product.
Including advertising with the download or installation window will provide a distraction for customers while they are waiting, and also help companies make extra money off the process. Key advertising monetization allows companies to target specific interests, or introduce gamification to the process by interacting with customers more.
One of the most successful ways to monetize software installation and downloads is to know what users are interested in, and offer them high-quality advertising based on those interests. From like software to unrelated topics, a company doesn’t know what its customers are interested in until it actually gathers some data on it. Installer analytics will provide critical background on users and their habits, and allow firms to enhance their monetization efforts based on that data.
Offering unique software products that users can pay for will also provide a key way to entice them to spend more money. The integration of customer data will allow firms to examine their user base more accurately – through analytics – and establish more effective bundling offers based on that information. This will allow firms to target key demographics without investing additional funds into advertising or other efforts.
While three separate methods of monetization, these techniques are best used in conjunction with one another, such as through installCore‘s high-quality installer program, to optimize monetization efforts and ensure a company is getting the most out of its website and software installation program. Businesses need to do more than present an opportunity to customers, they need to engage them with high-quality ads targeted directly for individual interests. These efforts will ensure that a firm is getting the most return on any purchase or free download, and improving the customer experience at the same time.