Bundled software – software packages that contain several individual programs – are a great way for developers to increase their exposure, improve their portfolio, and earn more money.
So how exactly does bundled software appeal to consumer psychology? And how can you use bundles to get more from your customers?
Use Bundles to Control Supply and Demand
Supply and demand, the age-old economics terms, refer to the volume of available product versus the consumer’s desire for that product. Generally, supply and demand work together with the marketplace’s competition to set a product’s price – in this case, a software bundle.
But, for quite a while, marketers have been manipulating the perception of supply and demand to alter the price of a product. If you artificially limit supply, then you can increase the demand and the price. And if you are able to generate demand, you can increase the price.
Software bundles are mechanisms that automatically make use of certain marketing concepts to manipulate both supply and demand. But by setting artificial limitations and by taking advantage of the benefits that bundling offers, you can affect both factors.
At first glance, supply may not seem to have anything to do with software bundles, since digital goods can be reproduced on-demand, ad infinitum.
And though physical supply, manufacturing, and the supply chain have no effect on the price of a product, demand – along with the production costs – do have an effect on the price.
Using Scarcity to Increase the Perceived Value
To get around this, marketers and advertisers have long been using artificial scarcity to affect the pricing and order volume of products. By placing a limitation on your product, you increase its perceived value, with the goal of increasing the demand for the product.
Short-term bundling is a tactic frequently used by companies such as Envato, a marketplace for digital goods. By discounting prices and only offering bundled content for a limited time, they increase conversions and revenue.
Here are a couple examples of limitations you can use to enhance the value of your bundle in the customer’s eyes:
Use deadlines. A limited time offer works, because customers know that the price tag will go up after a certain period of time. If you drop the price of your bundle for a limited time, or only offer the bundle for a fixed time frame, you’re automatically creating scarcity and demand.
Only offer your product in a specific bundle. Even if a smaller piece of software, such as a plugin or extension, can’t stand on its own, it may look more valuable if it is only available as part of another software bundle.
Only offer a set quantity. If you advertise a limited edition bundle to a set number of customers, then they are guaranteed something unique. The artificial limitation of supply and the principle of scarcity drives up demand, and can also drive up the price.
Play Up the Social Proof
In addition to scarcity, social proof is another marketing concept that affects consumer demand. Social proof refers to the idea that the reputation of a product, service, or company can be improved by the quality of the companies associated with it.
In the same way that a man is judged by the company he keeps, a company is also judged by the company it keeps. When you bundle your software, your software, your work, and your company gain the social proof associated with your partner companies.
Even if your company is completely new, you will gain a measure of authority, not to mention market exposure, simply by including your software in a bundle.
For instance, a lone plugin on a basic website doesn’t have as much social proof as a plugin that is part of a complete suite of products being offered by ten different partner developers.
The perceived increase in value, then, will warrant a price increase.
Exclusivity
Closely tied to the idea of social proof and artificial scarcity is exclusivity. By placing quantity limitations or limited time frames on your bundle, you will also promote the idea that your bundle is “exclusive.”
With this concept, consider the VIP table at a fancy restaurant or club. The VIP table or the scarce software bundle appeals to the self-esteem of the user, who wants to be part of the in-crowd. Limited editions, baseball cards, and so forth are all examples of exclusivity in action.
By creating a unique software bundle, in one sense you are automatically creating an exclusive product, simply by packaging together a handful of other products that already exist.
Bundling is a staple marketing and monetization tactic that every developer should test. With a little artificial scarcity and a bit of marketing finesse, you can use software bundles to work “supply” to your benefit, generate demand, and earn more money.
Software <a ” target=”_blank” rel=”noopener noreferrer”>monetization has become a stumbling block to many software developers: the market is saturated with competition, there are many high quality programs available for free, and consumers are less and less inclined to pay for products they have never tried.
To keep up with the ever-changing landscape of online marketing, app developers and software publishers are turning to other monetization models that enable them to both compete and generate revenue. While most of these models operate using advertising or affiliate sales as their essential form of income generation, software monetization models take several forms.
Charging for the End Product
Charging end users for the final piece of software is one of the oldest software monetization models. It has worked since computers became mainstream, and it still works today. In this model, app developers and software publishers simply set a price for their product, and require users to pay for the product before using it.
This approach works well with developers and publishers who have a successful line of products or a recognizable brand. Charging for products can generate a great deal of income for the right product or publisher, but this method also has some drawbacks.
For unknown publishers, or publishers without a great deal of marketing resources, this approach can be quite difficult. As mentioned above, the software market is saturated with software that is free and cheap. Why pay for an app when you can find a similar one for free?
To succeed with this software monetization model, app developers often must have marketing resources, brand recognition, and/or unique product features that set them apart from the competition.
Free Trial with Advertisements
This model can work in conjunction with priced products. By offering users a free trial, publishers can give users either a partial or complete product that can still generate revenue through advertising. One common approach involves reserving certain features for the paid version of the product; another approach involves offering paid versions that come without advertisements.
In either case, this model offers both marketing and monetization benefits. By offering a product for free, users don’t experience the same hesitation over whether or not they should purchase a product. This can increase downloads and market share, while simultaneously putting a revenue-generating piece of software directly in the hands of the target audience.
On the downside, however, a free trial or ad-supported version may not end up generating as much income as a paid app or program. Users have become so desensitized to advertisements that, when done incorrectly, ads can go unnoticed. And users who are satisfied with the features offered by a trial version may never end up paying for the final version.
This model works better with certain types of applications. Games, for example, often work well by hooking the player for free and then requiring payment if people wish to continue playing.
Pay-Per-Install
Pay-per-install (PPI) software monetization models are an excellent way for developers or publishers to generate revenue, reach larger audiences, and partner with other industry leaders. It works by promoting advertisers’ products during the installation process.
Instead of advertising inside an application or offering a partial product such as a free trial, app developers can use this model if they wish to distribute complete products. This can improve the user experience while still generating revenue for the developer. Free software programs can also increase the total number of downloads, which can increase the market share.
Bundling
Bundling refers to packaging multiple programs, tools, or applications together into one suite. Add-ons, application extensions, and plugins are good examples of products that may benefit from bundling. Developers who have developed complete programs or products can also enhance their offer by bundling their products together with those belonging to a third party.
This software monetization model helps increase market exposure by pooling multiple audiences. And if the publishers charge for the final product, the developers and publishers can share the revenue.
Software bundling is an excellent method for developers who have designed tools that work well with other applications. Bundles often offer a higher value to the end user, so end users may be more likely to pay for the final product.
Advertising In Apps
In-app advertising has become one of the most common software monetization models. Developers competing in an oversaturated app space will often choose to offer products for free, but include advertising inside the app to generate revenue.
This can be beneficial from a marketing perspective, since users are more likely to download free apps than paid apps. And in-app advertising does offer a sustainable method of monetizing programs.
Some advertisements, such as tacky display ads, often go ignored, due to “banner blindness.” Done correctly, though, in-app ads can be contextualized and integrated as a seamless part of the app experience.
There are quite a few software monetization models, ranging from a priced end product to advertising-powered approaches. Regardless of which method developers and publishers choose, offering value to the end user will always be the most sustainable long-term monetization model. A successful software monetization strategy is one that offers value and integrates well with the user experience.
In terms of Windows software distribution, downloads and monetization aren’t as hard as you may think. For years, developers have run up against a wall when trying to distribute, deploy, and monetize their software. How do you acquire more users? How do you find better users? How do you make money from them?
Fortunately, developers such as the team at CodeFuel have developed pay-per-install smart installers as part of their line of distribution and monetization products. Total monetization platforms offer distribution and monetization solutions to meet the needs of developers around the world. If you’re looking for a simple 5-step solution to increasing your distribution, read on.
1. Find a Smart Installer
What do you do when everyone else is using a smart installer? Sounds like you’d better get one too. In terms of windows software distribution, downloads go up which means improved distribution.
If you’re using an old-school installer or home-baked script, you may want to reconsider. Here are some reasons that old-school installers just don’t cut it:
They’re slow – Old downloaders and Windows installers can’t keep up any more. They can be bulky and contain the complete file set needed by the installer. These days, users just don’t have the patience to sit around and wait for giant files to download, extract, and prepare themselves for use.
They’re boring – Yes, boring. Who wants to stare at a slow-moving progress bar? It didn’t take long for the gaming industry to realize that they could fill that time with screen shots, teasers, and tips. And it didn’t take long for the software industry to realize that that space could be filled with money-making advertisements.
They don’t increase distribution – Distribution and deployment are sometimes used interchangeably, but they shouldn’t be. Deployment refers to the technical aspect of installation, while distribution refers to the dissemination of your product. Smart installers work as advertising solutions to help you increase your reach and your customer base.
2. Promote in the Installer
Promoting your own work is key to increasing your reach. And increasing your reach is key to increasing your revenue. Using smart installers to advertise is just smart business, because you’re building an audience from users who are already interested in software.
Used in this way, smart installers help you solve one of the biggest hurdles facing developers: distribution.
Promoting partners’ work through the same installer doesn’t solve a distribution problem so much as it solves a revenue problem. But with the right smart installer, you can solve both. So why wouldn’t you?
3. Bundle with Partners
Partners are called partners for a reason. They work together towards a common goal. When you bundle your software with partners, you’re combining your audiences, which helps you increase your reach. Your brand will gain increased exposure as well. So in addition to increased downloads, your company will increase its market presence.
Bundling, of course, also gives you an opportunity to monetize through revenue-sharing. You can take smaller tools that wouldn’t otherwise earn income and integrate them into a bundle. Even if the revenue potential is small, it’s a great way to build your network and gain more industry share.
4. Brand Your Installer
Smart installers are made to be branded, and brands are key to building recognition in the eyes of potential customers. The right smart installer will allow you to customize it to your logo, content layout, and color scheme.
Old, flavorless installers that aren’t customizable just don’t give your brand the exposure it needs to grow. These installers don’t help you meet distribution goals and they don’t help you stand out from the crowd. The last thing users want is a flavorless installer from a forgettable brand.
5. Customize Customer Journeys
Last but not least, you’ll need to customize the installation pathway. It’s not only an advertising funnel to help you show the right offers and monetize more effectively, it’s a great way to improve your customer relationships.
And relationships are what distribution and marketing are all about. The more downloads you get, the more customers you’ll be able to market to over the long term, and the more you’ll be able to increase your market share.
Yes, conversions on offers is important to any developer, because that’s how you make money. But expansion and growth are vital.
Since smart installers handle all the technical aspects of deployment, it’s not hard to see why they’re taking over the marketplace. They’re becoming more and more common for developers and software publishers, especially since they are so easy to use and integrate.
Anyone not using a smart installer for Windows software distribution and downloads just won’t be able to keep up. Are you ready to get started?
You created a great application; it has amazing features, is easy to use, and bug-free. Now you need to let the world know about it!. Send your software out to market requires careful planning and the right tools to make your application stand out. This guide will give you what you need to know to effectively market your software.
What is software marketing?
Software marketing is the group of tools and methods used to promote, advertise and increase the distribution of a software product.
Any software you develop you’re bound to have competition, if not right away, shortly after launch. For an application, with the millions of apps populating the app stores, the task of drawing attention (and sales) to your application gets harder.
There are many methods to market software, but the most popular is inbound marketing, a way that aims to draw customers in a natural way by appealing to their intent and interests. A characteristic of inbound marketing is that focuses on provide value, a real benefit for the user.
Outbound marketingis geared to a general public without or with minimal targeting involved. For example, online banners, text ads can be forms of outbound marketing. Usually, for software campaigns you’ll find a mixture of both methods.
Why Develop a Software Product?
Many organizations will hesitate to see the value in developing their own software product, such as an application or widget. In reality, there are a number of reasons why develop an app or software product can increase your bottom line.
Users want access from anywhere, anytimeThe digitalization of our world means your users want to reach your company online at anytime. Take for example, banking accounts. Account management applications went from a “nice to have” feature to an essential add on for any bank.
A custom app or software can solve specific business problemsThe app is tailored to what your users need, and addresses your brand’s specifications. It solves a specific problem for your users, increasing their engagement with your brand.
Because your software is unique, it will have features that are not available to other organizations in your industry.
Most software applications reduce your workloads by allowing users to self-service. Otherwise time consuming or tedious tasks for your staff, can be now carried out by the users. This frees your staff to focus on more core-business tasks.
While developing your proprietary software may seem more costly than simply buy an off the shelf product, in the longer term you end saving costs. You are investing in your own business model and can even market the solution.
The App Market
Want to know more about the applications market? Here are some mind-blowing statistics:
According to Statista, the total revenue in the app market will reach $437.80 bn in 2022.
The revenue is growing at a CAGR 2022-2026 of 6.58%
The top segments by revenue are Books and reference, Entertainment, Business and Education.
Application marketplaces statistics for 2022
Apple and Chrome store are the most popular application marketplaces where you can market your new app. The app economy is based largely on these two platforms.
Here is some data on application marketplaces for 2022:
Google play store statistics
Google Play has $2.39 million apps and over 400,000 games
Free apps are 96% of the Google Play Store
Games are 15.6% of the Google Play Store.
Apple store statistics
Apple App Store has 3.6 million apps and almost a million games.
Games are close to 22% of the app store
Free apps are 92% of the Apple App Store.
Other app stores
Recently, both companies added more entry-barriers to developers, and disabled millions of applications from their stores, in order to improve quality and data privacy.
This situation drove some organizations to look into alternative app stores, such as the Windows Store, and China’s own app stores, like MyApp and Huawei App Market.
How To Monetize Your Software With Monetization Platforms
Monetization platforms are an excellent way to increase your software revenue. They monetize your software for you, so you can focus on your core business. These platforms, such as CodeFuel, both monetize and promote the application and software.
So, how do you leverage monetization platforms to your advantage? Here are some steps you can follow:
1. First, choose the platform
When choosing the right solution for you there are a number of factors you need to consider:
What are the features and benefits of the platform?
Some of the features you may check include:
Monetization
Promotion
Multiple advertising options
Analytics
Advanced API
Cross-platform compatibility
Integration with existing solutions
2. Check it includes the right tools for the job
Besides features, there are some tools that can help you monetize your software or app:
Search monetization
Targeted advertising
Advanced analytics
3. Evaluate and improve
After you choose your monetization platform, picked the right tools and started your campaign, you need to monitor and test how it is doing.
Leading monetization platforms come with the analytics feature that make this task easier. Track conversions, downloads and abandonment rates. So you can optimize your application functions, usability and features. You can use your monetization platform to develop the entire conversion funnel automatically.
4. Promote your software
That’s a key part of an effective monetization platform. Leading platforms such as CodeFuel, integrate with ad networks and pay-per install networks, which will promote and advertise your software in the relevant media your users frequent.
Ways To Make Money With Your App
Selling The Application
Charging users for the application or software is one of the earliest software monetization models. App and software developers and publishers set a price for the product and users to need to pay if they want to use it.
This method works best with publishers with an already built brand and audience. Unknown publishers can have difficulty justifying the user the need to pay for the app. After all, there are thousands of free applications.
Freemium
You may recognize this monetization model by its other name: “in-app purchases,” as it is one of the most popular. How does it work?
You offer your software or app for free but with limited features. Users that want access to extra features must pay to access them.
Games use this quite frequently and very successfully. For example, gamers who want certain power-ups may purchase those extras for real money.
This allows developers to distribute software for free, vastly increasing the number of downloads. But developers still make money in the process. Though turning freebie-seekers into paying customers can be tricky, the effort often pays for itself in dividends.
In-app Advertising
This is another standard monetization model, which you’re probably familiar with. Ads are placed inside apps, either on a piece of the screen real estate or between screens (interstitial ads).
These ads earn income per thousand views or per click. Revenue then varies based on the ad network, the type of ad being displayed, the audience, etc.
This monetization method is second in popularity to the freemium model. And these two methods are sometimes combined: users can pay to remove ads, for instance.
To earn money with in-app or in-software advertising, you need a lot of users for your app. A more significant percentage of users convert on advertisements than on freemium upgrades, but the revenue per conversion is less.
Paid Products
With so many free apps and software programs online, it’s hard to get people to purchase an app. Customers who will spend five dollars on a latte won’t spend two dollars on an app. And, chances are, you’ll be competing against an app that’s free or freemium.
However, when you’ve got the clout, marketing resources, or market share, this is a top monetization strategy. If, for example, you’re the only company offering a niche product, then charging for the product may make sense. Also, if your company already has a reputation and a solid following, you may be able to charge for a piece of software or an app.
Game sequels or high-quality products are examples of software programs that may benefit from this approach.
Paid per Install
Pay-per-install is trending as one of the most effective advertising, distribution, and monetization methods.
This approach is ideal for making money with software distributed on desktop platforms. CodeFuel’s InstallFuel, for instance, supports Windows and Mac OS X. There are also options for mobile developers.
You integrate your software with a smart installer to monetize with a pay-per-install program. The best intelligent installers aren’t just scripts. However, they’re complete platforms that allow you to customize the installer to meet your needs.
You can tailor the look and feel of an installer, pick and choose the products you promote, and advertise your software through the network’s partners. Analytics gives you a 360-degree view of downloads, conversions, and more.
Affiliate marketing
Affiliate marketing isn’t just for websites. Developers can design software and apps around affiliate deals. This can be one of the most lucrative ways to make money from an app or software program. But it can also be challenging and limiting.
In other words, if you want to develop a software program and earn money from affiliate deals, you’ll need to design your software for that purpose.
Travel apps and websites are good examples of affiliate marketing programs to earn money. Websites such as Orbitz and apps such as Hipmunk are simple to travel programs, but each sale earns developers a commission.
As you can probably guess, this can be a virtual cash machine once it’s up and running. But it’s also tough to integrate it with a pre-made software program or app. A language-learning app or video game may better suit in-app advertising or a freemium model.
These are the top five monetization models, though other creative methods of earning revenue include selling analytics or code. Subscription models, when appropriately implemented, can also be a lucrative method of earning revenue.
The significant benefit of all these models is that they operate relatively independently. Once you have an app up and running, you only need to tweak your monetization program and update your app from time to time. Developers can stack up to their apps over the long run: the more apps you release, the more money you’ll make.
All You Need to Know About Software Bundles
Software bundling is a great strategy to reach more users for your software and meet your business goals. How does it work?
You choose another company with a recognized brand or a successful (complementary—not competing) product and negotiate a partnership. When users download the product, they also download yours, getting a deal.
What are the benefits of software bundling?
More Downloads
When you partner with a recognized brand with a solid client base, you drive downloads to your software. Because the other company will promote their software, you’ll benefit from the combined efforts of promoting the bundle.
You will also get more downloads because your clients will feel they get a two-for-the-price-of-one deal. Most bundle strategies offer the package at a better price than the two solutions on their own. Other strategies offer unique features not included in any of the separate tools.
Increased Reach
Creating a bundle also extends the reach of your product since your audience will include your partner’s client base. The other brand’s clients will know about your product via their email lists, social media channels, or website. Additionally, when the news about the bundle spreads, you can attract a wider audience.
More Sales
Finally, more downloads mean more sales. But this is not the only benefit. Users that download the bundle will know your brand better and may become interested in other products you have to offer. Finally, the expanded brand awareness can translate into more sales in the future.
Tips To Increase Your Software Downloads
Developing your software product can bring significant revenue for your company if you do it right. An effective development and marketing plan can help your success. Here are some best practices and tips to increase software downloads.
Build a product that brings value to users
If you want to increase your software downloads, you need to create a good software package that solves your target audience’s needs.
Some best practices you may want to follow include extensive testing to ensure the usability and performance of your application, and refine targeting to adjust your software accordingly.
Focus on your marketing
Carefully target your marketing efforts to your audience. Produce content and ads that specifically target to your audience’s intent and needs. The more tailored your marketing, the higher its effectiveness. Creating a buyer persona can help pinpoint your marketing further.
Run PPC Ads
Monetizing through ads, specifically pay per click advertising (PPC) can be a very effective way to increase your sales. PPC is cost-effective since you only pay for ads the users click on. Google Adwords, Bing and monetization platforms like CodeFuel, can help you place your ads exactly where your users are.
Include a smart installer
How fast your application downloads is key to your users’ experience. If the download takes too longe, users may bounce and look for another solution. By including a smart installer, you can make the download process more effective. Not only your downloads will go faster, but you can use it to monetize your software.
9 Ways to Improve Your Software Monetization
1. Focus on your niche, then build your conversion funnel.
Your audience is unique to your business, and they usually prefer some online media channels above the others. Figure out the type of websites and social networks they visit, and map your niche. Then, you can build a conversion funnel based in solid data.
2. Trust the numbers
We cannot stress enough the importance of basing your marketing efforts in hard data. Everybody, including experienced marketers have opinions and biases. Basing your marketing and advertising decisions on a hunch or what you think it may work for a campaign, it can be inaccurate. Data-driven decisions, based on analytics and user testing can help you find what your audience really wants and how to give it to them.
3. Test, test, test.
Your audience’s interests are always changing, so keep up with their dynamic demands requires adapting constantly. What can you test? Your product design and usability, your user experience, based on the latest user trends. Also test your ads with A/B testing. The data you collect will help you refine your product and pinpoint it to your target audience.
4. Personalize as much as possible
One of the key of a great user experience is personalization. When you develop an app or an extension you can gather user data (under consent). This data can help you understand what your users want, refine and personalize not only your application but your marketing efforts as well.
5. Understand how digital advertising works
The digital world is always evolving, and you should be aware of the latest news so you get an advantage. Learn which monetization options are the best for your product and audience. For instance, you may use an ad network to promote your software or you may use a more complete monetization platform such as CodeFuel to monetize your application.
6. Use display and native ads
Display advertising is increasing. According to eMarketer research, the digital display spending from programmatic advertising, will include 90% of all digital ads in 2022. This means a 29% increase from 2020. You should take advantage of this to use display advertising for your own benefit. Display ads integrate more naturally with your application and your content, enhancing the user experience.
Monetization and promotion platforms such as CodeFuel, enable you to centralize your marketing efforts from a single solution. This reduces your marketing costs, enables you to forecast your ROI and gives you insights to optimize your product and strategy.
8. Automate
Automation is the mark of an effective digital marketing strategy. It is useful for tedious and repetitive tasks that can hinder your productivity. Automation is also useful to keep up with the dynamic digital marketing landscape. What can you automate?
Content posting on different media channels.
Collecting data for analytics.
Real-time bidding
Optimizing campaigns.
9. Check out your competitors
It is always useful to know what your competitors are doing. Track your competition, after all, they cater the same audience. Automated data collection can help you understand what is working for them so you can replicate for your business.
Streamline and maximize your income with Codefuel
Promoting and monetizing your software can be a hassle if you want to do it by yourself. That’s where CodeFuel comes to help. CodeFuel is a complete, all-in-one monetization platform that you can leverage to maximize your income as a software publisher.
The platform uses machine learning and advanced analytics to deliver contextual, intent-based ads to users, enhancing your user experience. By improving the experience, your brand gets more exposure and engagement, increasing conversions and downloads. Advanced monitoring and analytics makes tracking performance and metrics a breeze. Start monetizing with CodeFuel today, sign up.
It’s exciting times at CodeFuel. Not only have we just launched our brand new look website, but we are also proud to release our new monetization video.
The video starts with the question: “What on earth is monetization?” and then quickly takes you on a whirlwind ride showing you how to monetize software or apps.
On top of trying to be the next Steven Spielberg, we at CodeFuel have been busy redesigning our website, which includes a new logo, new look, and feel, as well as lots of new information from the industry’s leading software monetization platform.
Our website includes a new How it Works section, explaining just how we can help you can make money with your software. This section includes information on how simple it is to monetize your app or software. Simply, sign up at CodeFuel and one of our monetization experts will be in touch to discuss your business needs.
Once you have selected your preferred monetization solution our tech team will guide you through the simple integration process. Then once deployed, you’ll receive monthly payments. CodeFuel offers a range of business models including Pay Per Install and Revenue Sharing.
Software Monetization Solutions
CodeFuel provides software monetization solutions for developers, publishers and advertisers worldwide, empowering digital businesses to make more revenue from installs, traffic, display ads, and search.
Our suite of free monetization solutions includes InstallFuel, a smart installer that offers targeted recommendations during installation, and MobileFuel, a new set of monetization solutions for Android app developers – including in-app search feeds that can be easily integrated to fit apps.
SearchFuel is a range of customizable search boxes and other search-based monetization tools. CodeFuel’s search tools are enhanced by its long-term relationships with major search engine providers including Microsoft’s Bing, with which Perion recently signed a new three-year agreement.
Monetize, Optimize, and Analyze
If all this wasn’t enough, the new site also boasts a new cloud-based Control Center that serves as an analytics hub for developers, providing detailed data on revenue, traffic, and installs, as well as real-time reports and A/B testing.
The Control Center also features an updated user interface, revenue analysis, and performance by applications, customizable dashboards, and a campaign manager feature to optimize product inventory and manage capabilities.
