As humans begin relying on technology more and more, it is only natural that the software associated becomes more popular as well. This is why the market for software as a service and product is growing so rapidly. Technology is becoming more prevalent and advanced, meaning more software is being introduced with more uses. In order to make money off of software, developers typically charge a download or subscription fee from users. Some experts believe that this business model is not sustainable for the long term, but others disagree. There are many reasons to invest your money into software, and with some research and a little luck you may hit the jackpot. Here are some of the top reasons you should invest in software products.
Lifestyle
As mentioned before, society is becoming more digitized and technology is becoming more important in our daily lives. With the added importance of hardware comes the added importance of software. New software is being developed and released at a rapid rate, covering many different aspects of live ranging from fitness to entertainment. These lifestyle changes don’t seem to be slowing down either, as more devices are now being made with the ability to harbor software. Watches now have handy applications to track your fitness and sleep while phones, tablets, and computers are littered with software. Software is beginning to dominate our daily lives, and it doesn’t seem like that will change any time soon.
Market Trends
Market trends are shifting to focus more on software as a service rather than large bills and payments. One perfect example of this is the entertainment and television industry. People have begun cutting their cable cords in favor of software like Netflix and Hulu. Not only are these options much cheaper than a massive cable bill, but they also provide lots of content, including original shows and movies. In the fitness industry, software has made tracking your calories and exercise easier than ever, making expensive diet plans and programs moot. Software offers users a lot of content at a much cheaper price, making them very attractive for users and even more attractive for investors.
More Revenue
One of the best things about software as a service is their business model allows you to maximize revenue from the product. Having a subscription allows you to generate a recurring monthly revenue that typically wouldn’t be available if your software was made for a one time purchase. For example, if you offered print shop software, then charging a monthly fee of $5 for your print shop app will allow you to receive more revenue over time than a simple $15 download fee. In addition, a $5 fee seems much more accessible to customers than a much larger $15 fee. This means that your long time customers can provide you with revenue long after the time of the initial download. Not only does this improve your bottom line, but it also provides you with the necessary funds to improve your software. If you’re going to use a subscription based model, then some of those funds have to be allocated to improving your software and introducing new features. This allows you to deliver an evolving product, which in turn will entice new customers and increase revenue even further.