How do leaders in your industry increase the value of their product and do so economically? Through licensing and securing their applications.
There are many routes when it comes to licensing applications such as, software-based, hardware-based, and cloud-based licensing, but one of the most economical options is hardware or dongle-based. With software-based and cloud-based models you are charged an upfront installation fee as well as ongoing, per license fees. Where with dongle-based licensing only requires one payment for the purchase of the hardware which controls all licensing.
With the implementation of hardware-based licensing, you have the capability to increase your software’s value in these three ways:
Lower start-up costs
Through creative licensing of your application, you can offer less robust, less expensive versions of your application, thus lowering the start-up costs for potential customers. While lowering start-up costs may seem counter-intuitive, with a lower barrier to entry, your software can appeal to a greater audience and generate more revenue.
Diversify your product offerings
By implementing one of many different licensing strategies, you allow customers to tailor the software they purchase to fit their specific needs. Everyone wants to feel like they are getting a deal, and by allowing customers to pick and choose only the options they need, they can see how much they are saving by only paying for their specific needs. Thus, making your product more appealing to a greater customer base.
Increasing your Market Share
You might not even realize that you are losing potential customers because they don’t want to purchase the whole software bundle, they may only want one feature, or perhaps one capital expenditure is too expensive. Either way, with lower start-up costs and diversified product offerings, you are able to tap into a more diverse set of potential customers and increase your market share.
Dongle based licensing and security is an economical way to create value for customers through diversified product offerings and lower start-up costs. By appealing to more customers, you are sure to increase market share and increase revenue.
About the Authors
Conner Zinanti graduated from Metropolitan State University of Denver and currently working as the Sales Specialist for KEYLOK out of Lakewood, Colorado. Providing unique hardware-based licensing and security strategies to small mom and pop shops all the way up to fortune 500 companies.