I noticed that more and more desktop software companies start to charge users yearly instead of selling perpetual licenses.
More and more desktop software products are sold on yearly or monthly base.
For example MS Office, Adobe Creative Cloud and even smaller products like Stencyl (game creation platform) now costs $199/year if you want to publish games for iPhone or Android.
With the classical perpetual licenses I sell now I have the following difficulties:
- My niche is quite narrow, and the price should be high, but for many users the current price (about $300) is quite steep.
- I cannot publish major upgrades yearly (actually it takes about 18-24 months), so it is not easy to get a regular income from the existing user base (a few thousand users).
- A small number of old users upgrades to the new versions from old versions: they are either satisfied with the old version or find the upgrade price too high (probably because they purchased an old version way cheaper a few years ago).
So as a potential solutions I see:
- Adding time limited licenses (for 1 year or maybe for 3 months) in addition to current perpetual license.
- Changing the model from perpetual licenses to 1 year subscription. And stop selling perpetual licenses completely.
Can you please share your thoughts on the move from perpetual to 1 year licenses?
What is the fair price for 1 year license if the price for perpetual license is 300 USD?
Thank you in advance.