When you’ve invested time and money into creating great software that adds value to your business, you don’t need to keep it to yourself. Licensing your software can be a valuable new, ongoing and PASSIVE revenue stream for your business.
Because the companies we work for retain all the IP relating to their software development, we’re already seeing several clients work in this way. Of course, they had to overcome several perceived barriers which they thought stood in their way:
- Aren’t I giving away a competitive advantage?
- Won’t I be burdened with bug fixes and user issues?
- Will it be more hassle than it’s worth and detract from the day job?
In most instances, these issues do not need to hold you back. RGS IT Director Simon Crump explains why:
Aren’t I giving away a competitive advantage?
“Not really. For most businesses these days, a good technology solution is part and parcel of their overall offering. Customers expect digitised ways of working, so tech is a very difficult thing to try to compete on.
“The way to build a competitive advantage is to do things better than other businesses, tech is just one part of the overall approach. Even if you have superior tech capability, it’s the service wrap that goes around this that your customers will value. Get the combination of people, processes and technology right and you’re onto a winning formula.
“It’s not easy to achieve – which is why you don’t need to worry about competitors licensing your software! How they deliver services to their clients will be different, even if the tech is the same.
“Clients are generally not that interested in the back-office systems and processes you employ, they just want to receive good service.
Won’t I be burdened with bug fixes and user issues?
“Again, these issues don’t need to hold you back.
“We’re talking about software that’s been designed and developed to address real-life needs within your organisation. With your teams are using it day-in, day-out – and with the support of a great team of developers at RGS IT of course – you can license your software with confidence.
“Of course, there will always be ongoing improvement to functionality and user experience, that’s just part and parcel, and can be scheduled via new releases. This enables you to maintain the software and avoid user issues, and cover your costs with the license fee.
Will it be more hassle than it’s worth and detract from the day-job?
“It certainly doesn’t need to be a hassle or distraction!
“At the outset, you have a few things to do, but once everything is set up, you should have a strong and steady stream of additional revenue.
“The technology for your own business will require a continual commitment – technology changes, business requirements change, so your software solution is always going to need to keep pace. In turn, your service to your licence holders will keep pace.
“You’ll need to price the software license so it returns a profit and enables you to invest in ongoing improvements. Indeed, what a great way to recoup your software development costs!
“Once, that’s all in place, you’ll need to do a bit of admin to make sure your licenses and licensees are managed correctly. If you approach licensing in the right way, and put in the effort up-front, you cover the costs of developing software for your own business and enjoy a steady stream of relatively passive income, for the long-term. Furthermore, this adds value to your business, so if you’re looking at selling it at some point in the future, this is another string to your bow.”
Because we have helped several clients to successfully license their software, we can help you too. Get in touch to discuss software licensing with Simon or Rob.
