How to Price Software – Part 3 | Software Pricing

Where Does a Pricing Model Fit?

Companies have problems when they try and develop a Pricing Model because it is complex and intertwined with other activities. Furthermore, today’s Pricing Model needs to continue to work well over time as the company and its offerings evolve.

This is especially problematic with software companies because most of the Pricing Models they develop work for only a short time.

To make sure the Pricing Model works over time, integrate it into a more comprehensive Monetization Model. Such a model separately addresses how products are licensed and what is being delivered before getting into pricing.

If you haven’t defined the offering or how you are going to charge for it, how can you determine the amount a customer should pay?

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How to Price Software – Part 3.