How to Generate Revenue in the Software Industry?

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Want to Generate Revenue more than you are generating? Perfect! This article is right for you to read. Every business revolves around creating value for its customers. If it’s dealing in clothing, or let’s say furnishings business. Their main task will be to manufacture, distribute and market the services or products well. Revenue is what covers the cost of it all. Revenue is the lifeblood of any business that keeps it running. It’s not the profit but revenue that keeps any business alive. But the important question remains: How to Generate Revenue to keep the business on track? There are several examples of business-related revenue models. Businesses need to consider a few factors. How will they create value, how will they deliver and generate revenue or make it profitable? We need to consider various revenue-generating ideas and models for the software industry.

How to Generate Revenue more than you are generating:

What is the Difference Between Revenue Model & Revenue Stream?

Generate Revenue

The revenue stream is one of the sources from which revenue is coming. Whereas revenue model is one of the main KPIs that predict income, maintain a difference between various streams, and bring change to any existing revenue strategy. Revenue models can vary when it comes to the software industry. Let’s take a look at some of the most prominent ones.

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It is one of the most common and classical models. It means selling your services and products for a certain cost that will cover both production and margin. With increased consumption one can increase profit margin through sales as well. You can either have it sold to businesses known as a B2B model or to consumers directly which is called a B2C model. It can be a one-time purchase i.e., through licensing like that of Microsoft, or a subscription-based in the form of a monthly, bi-annual, or annual subscription, examples can be Spotify or Netflix.


There is another form of revenue generation, that is in the form of advertising. Businesses need ad space to gain visibility. If you have a high volume of traffic coming to your site, pages, or channels. You might get paid to advertise the content of other businesses thus generating income. However, it has its downsides. It can distract users and they might feel discouraged from visiting your space because of recurring ads.

Commission Based Model:

It means that a business is getting a certain percentage of commission with every sale or booking. As much as the amount of transactions increased, the commissions increased too. Examples are food delivery, ride-sharing, or accommodation apps like UBER, CAREEM, FOODPANDA, AIRBNB, etc.

Affiliate Marketing:

Affiliate-based models can be another example of revenue generation. It is similar to a transaction-based model with the difference that you are not getting commissioned by a client but a supplier, influencer, or anyone promoting your product or services as an affiliate.

Advertising is more similar to this model for Generate Revenue. Once you have a high volume of traffic coming to your site. You can apply for an affiliate program. Even though there is a clear disadvantage that commission for affiliate programs is generally very low.

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