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To charge or not to charge, that is the question!
Many developers make the assumption that by offering
free lifetime upgrades they will increase their
sales. Statistically this is simply not true.
Past customers are one of the most important assets
that a business has. Do not be afraid to charge
for major upgrades. Current customers are the
most valuable customers but often the most neglected
opportunity of all.
Upgrades are good for business. Upgrades not
only bring in additional revenue but upgrades
provide a number of marketing opportunities from
press exposure to promotional opportunities.
Developers can opt to handle upgrades a number
of ways some of the options include:
Option 1
Charge for major upgrades, offer point releases
free of charge.
Option 2
Provide a free upgrade to users who have purchased
within the last 90 days, if its beyond 90 days
charge a nominal fee.
Option 3
Sell upgrade insurance, for an additional fee
at the time of purchase. This will increase
profit margins and enable users to get upgrades
free of charge.
How Often To Upgrade?
Typically one major upgrade per year is suggested.
This keeps the product fresh and allows developers
to profit financially from the marketing attention
the upgrade will bring.
Announcing the Upgrade
Developers should email existing users to let
them know about the upgrade. Send a press release,
update RSS feeds and the website to announce a
new version.
(See the Software
Launch Checklist)
New Keys for New Versions
If you require updated registration keys for new
versions, any existing cracks will not work in
your latest software releases. Be sure to thoroughly
communicate upgrade details to existing customers.
Related Articles:
Tips
for Software Upgrades
How
to Launch and Announce an Application
How to Price
Software
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Developer
101
How to Manage Upgrades