|
It's not just that it's more money it's that it's a reliable stream of income. If you're selling copies of software at one-off price then your ongoing revenue is new customers and people upgrading. And there's the size of the market to consider - the more potential customers you have the lower price you can charge. Niche products tend to be more expensive to start with and so customers wait longer to upgrade, which reduces your revenue which is pressure to increase price.
Subscription isn't a silver bullet either but at least it smooths out some of the revenue.
|