Making money as a software development company can be pretty easy or extremely difficult, depending on a series of choices and business ethics that the software created by that company adheres to. Depending on what kind of product the company is developing, they can opt to either make money off of it instantly, over time, or based on the number of people that will eventually download and install the software. This article goes over the top ways in which software can be monetized and also the top proven, successful ways in which software development companies managed to find the best results in a fluctuating market.

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Freemium Software

This is the type of software that sees more and more spotlight as of the past recent years. The reason for this is because it has proven to be the most effective way in which the developers can offer quality content (in most cases) while also getting a guarantee that they will see some form of revenue come back to them. In a freemium model, money is made through purchases that happen within the software. The software itself is free to download and install, but it only comes with a limited number of characteristics. Those who want the extra stuff must pay. Freemium is also called “in-app purchase”.


Ever wondered how websites make their money? A large part to play in the way they ear revenue is advertisement. By partnering with ad providers, they are able to earn revenue off of ads that play on the website. The revenue relies heavily on the actual number of people that watch the add and don’t skip it or block it with add blocker. The same principle is applied to in-app advertisement, another method of making money off of software. In this software business model, the software itself is once again, free. But it comes with some form of advertisement, usually a banner placed at the bottom of the screen. For those trying to enjoy the app, this can be quite annoying and distracting. Apps that come with in-app ads also offer a premium version of the app. Usually there are some small features thrown into the premium version but most of the times the premium version just means that you pay to have a version of the software that doesn’t come with ads.

Promoting Other Software And Content

Those that have installed software might have noticed that some times, the installer comers with an included feature such as downloading a new browser or checking out a website. These things are included in the software’s installer and follow pretty much the same guidelines as the ad system. It’s referred to as pay-per-install and it required the app makers to strap a special analytic tool onto their product. This will allow the tracking of the software and record how many installs have taken place so that the appropriate revenue may be expected.

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