Revenue streams

[TigerSoftware]

I have been reading a book called Software That Sells.

It is pretty good and it has a list of ways to make money with your software products.

Here is the list in the book.

Core Products (the standard software program)

Upgrades (new enhancements)

He later states that upgrades are typically charged 60% of the retail price.

Maintenance Contracts (charging for support has become a norm in the industry, especially for free/open source programs)

He later states maintenance is typically charged no more than 30% of the retail price.

Add-ons (extensions of the original core product)

Lateral Developments (repositioning core product for other markets)

Custom Made Developments (modifying for specific customer)

Consultancy

Bulk/Original Equipment Manufacturer (OEM) licensing deals


I would also like to add that you can create additional revenue by offering different variations of the same core product.

Standard ----> Professional version

I talk a little bit about a sales funnel from one product here:

http://tsbexpress.com/tsblaunch/?p=1


We can do almost all of that with TSB besides the Add-ons.




Thomas

[MikeM]

Here is a sales funnel I just finished setting up, well not quite finished, but 90%.

I am giving away a free version of Domain Tracking Software at:

http://domaintrackingsoftware.com

Once they have confirmed their email, they are presented with an option to update the Domain Tracking Software from single user to a multi user network version for a small price of 12.95 or something like that. If they don't want it, they just download the single user version.

So now they are in my email list. In 5 days, I contact them to see how they are doing and prompting them to use the software, and giving my support link. In another 5 days I contact them again to see if they are using the software and to remind them we have a multi user version at a great price. I also start to lead in with the full version of ebiz tracker, letting them know domain tracker is only 1 of the more than 20 modules in ebiz tracker. No hard push here, just information. Then in 3 days, I start letting them know the benefits of the full version of ebiz tracker, listing all the modules for them. Then probably once a week I'll contact them with the full details of one module per email, so I should be able to create at least 20 more autoresponders. If they haven't bought by then, they probably aren't going to :)

In one of the emails, I may ask them if there is some reason they haven't bought and maybe offer a discounted price for the single user and then work on upgrading them to the multi user.

And by the way, I just sold my first multi user copy last night for 127.00. The single user is priced at 67.00 for now. I may raise that in a bit once a few more copies go out.

[TigerSoftware]

In one of the emails, I may ask them if there is some reason they haven't bought and maybe offer a discounted price for the single user and then work on upgrading them to the multi user.

And by the way, I just sold my first multi user copy last night for 127.00. The single user is priced at 67.00 for now. I may raise that in a bit once a few more copies go out.


Woohoo!

That is what I like to hear and great sales funnel.

You can create different price points for purchasing several licenses at one.

I always take the normal retail price of one license and then figure out what it would cost at that price point if they purchased 5 and 10 licenses.

Then I discount the 5 and 10 licenses to make it a better offer.


Great job Mike!


Thomas


P.S. I will be raising the price for TSB Express and it will be a yearly recurring charge. I am hoping to give TSB users the same functionality when I sort out the refund stuff.