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by aerovistae 2605 days ago
Could OP (or anyone else who feels qualified, I guess) give me their opinion on a perpetual license as opposed to an annual license?

I have been considering building some licensed software and I had it in my head to offer an annual license to get at that recurring revenue, but...since it's client-only software (e.g. a game engine) that doesn't need to be making any API calls to my servers, I'm wondering if maybe that doesn't make any sense. I don't know...I've never made licensed software before and so I've never really thought about this. I guess I worry with a perpetual license that I'll run out of customers after enough people have got their hands on it. Maybe that's crazy, I don't know.

Also I would have no idea how to price a license...how did you arrive at your prices?

2 comments

Most of my competitors (who provide client-side-only libs) were doing perpetual licensing, so I followed suit. However, there IS a recurring aspect: the customer gets email support and version upgrades for only a year. Then they must renew. It's opt-in, but I nudge them with email reminders.

I've seen a number of client-side-only products that ARE subscription (like Sencha), but they seem more general-purpose, like a framework. Something developers at a company would use everyday for everything. FullCalendar felt like more of a plug-n-play widget, not as pervasive.

Maybe your product is somewhere in between. It's pretty arbitrary nonetheless.

As long as you provide continued support for a product and iterate on it there is nothing wrong with charging a monthly fee. Perpetual licensing could make sense in the early stages of your company as a means of raising money but I think the subscription model is better for maintaining a predictable monthly income.