Memes are great, but they are even better when they highlight a relatable real-world struggle and how to solve it. If you are selling a software application at a one-time price, this meme might have done just that.

One-time prices are a common way to begin selling a software application. A customer pays once, you send them the code, and you laugh all the way to the bank. Or do you?

The thing with one-time prices is that you not only lose control of your precious software product, but more importantly, you lose out on tons of revenue in the process. Subscriptions are today a preferred choice in the software industry, and it’s easy to see why:
‍

• You can get more customers since the steep one-time price is sure to scare away cautious users who would not mind paying the smaller subscription fee to try it out.
  ‍
• You get a predictable monthly revenue stream, making it easier to plan your monthly budgets compared to guessing how many sales you will get next month.
  ‍
• You can easily create pricing plans, charge customers for the actual usage of your product, and indeed laugh all the way to the bank on the days heavy users pay their monthly fee.
  ‍

The truth is, many software companies find themselves stuck in the one-time pricing model. The good news is that the one-time price hurdle is far from unbeatable, and implementing subscriptions and pricing plans is today easier than ever!

This blog will cover how switching away from one-time payments can unlock more revenue and provide a 3-step guide on how you can implement subscriptions and other advanced pricing models by outsourcing software licensing, so you can grow faster and protect your revenue stream.

‍

Unlocking Revenue with Subscriptions

Firstly, subscriptions are often preferred over a one-time payment since they significantly lower the upfront cost for your customers. Most people do not have $50,000 in liquid cash to spend on a car, but they might be able to afford $500/month.

You can also create different pricing plans to attract different kinds of customers. A basic pricing plan can be sold for a small subscription fee for users who will only use the basic functionality of your application. It is then possible to charge extra for an unlimited pricing plan with all features at a higher price.

You can even charge customers every time they use a specific feature in your application, which is called the usage-based model. For example, image editing software could charge customers a fixed fee for each image that was edited. This enables you to charge customers in exact relation to the value they receive: The more they use the product, the higher the price will be, but they will also get more value from it!

Implementing Pricing Models with Software Licensing

So, how do you implement these pricing models? The answer is software licensing:

When a software application wants to prevent unauthorized users from entering the product, a software licensing system saves the day by requiring the user to enter a license key string (or username and password) to enter the application.

This is how software licensing systems help you set up pricing models:
‍

• If a customer stops paying the subscription fee, the licensing system can simply deny the customer access to the product.
  ‍
• If a customer on the basic pricing plan enters their license key string, the system locks the more advanced features of the application.
  ‍
• The system also tracks the usage of certain features, can restrict over-usage until the customer pays more, and can give you valuable usage analytics.
  ‍

Great, so how do you implement a software licensing system? Well, you could code it yourself, but many companies today quickly dismiss that idea and instead outsource licensing to experts. This answer I got in a customer interview summarizes it well:

‍

Question (Devolens): "Did you ever think about coding your own software licensing system internally?"

Answer (Customer): "Yes, we did… For about five minutes. We then concluded that it would be a massive undertaking, and we would rather spend that time and money on our own product."

‍

Here are some other benefits to outsourcing licensing to experts:
‍

• Automation - Instead of manually creating and keeping track of licenses, you can automate the entire process from payment to distribution to license validation.
  ‍
• Integrations - Devolens integrates with leading payment providers and CRMs so you can connect licensing with your other tools and ecosystem.
  ‍
• Dashboard and API - With Devolens' cloud-based dashboard and API for license creation, management, and analytics, you can effortlessly implement advanced licensing features.
  
  
• Pricing Models - Out of the box, you can implement revenue-increasing pricing models such as usage-based subscriptions, seat-based pricing plans, and even offline licensing.
  ‍

All of the above-mentioned points make outsourcing a much more scalable, growth-allowing approach than doing it yourself, so you can quicker unlock more revenue and grow.

‍

Devolens - Your Licensing Helper

It is easier than ever to give outsourcing a try. Here is a simple 3-step guide that tells you how to get started for free in Devolens:
‍

1. Create a Free Devolens Account: Our SaaS-like dashboard is where the licensing magic happens! Devoles is always free during the testing and implementation phase, so you can get started at your own pace.

‍

2. Add Client API: We have open-source libraries in all major programming languages that you can add to your project for seamless interaction with our Web API.

‍

3. Add a Code Snippet: All you have to do in your own code is to paste a short code snippet for license creation and verification.
   ‍

We have comprehensive documentation guides and videos in your programming language, so you can set up licensing within minutes.

Sign up for free today if you are ready to unlock more revenue and grow faster with pricing models!