3 Ways to Maximize Revenue

Software vendors can improve sales by optimizing licensing strategies with their current customer base.

By Daniel Greenberg, Macrovision

Are you leaving money on the table?

Although most software executives would agree that traditional licensing models need improvement, few understand how much revenue their company could gain by improving the pricing strategies used with their current customers and products.

In fact, pricing is the most powerful driver of software company value. According to a study by McKinsey & Co., a 1 percent increase in pricing can deliver a 7 percent increase in earnings, on average, for software companies generating between $100 million and $10 billion in sales. There is no better way to drive stock price than getting pricing right.

Without selling an additional customer or developing a new product, there are three ways that savvy software companies can increase revenue.

Enterprise 2005 Just 1 Month Away!

Request your invitation to be a part of Enterprise 2005, the software industry's most elite event. Two hundred software CEOs and professionals will gather in Pebble Beach, Calif. on August 7-9 to discuss "New Opportunities." Keynote presenters will include SAP's Bill McDermott, Adobe's Bruce Chizen, Symphony Technology Group's Romesh Wadhwani, Salesforce.com's Jim Steele, and Disney's Tony Scott. To request an invitation and find out more about the conference, click here.

Poll: California's Tech Lead?

A new study says California captured the largest share of U.S. technology jobs in June. Other studies have pointed to continued stagnancy in the Silicon Valley and other regions of the state. How do you feel California's technology workforce is changing?
View the poll >>

Last week, readers gave their two cents about what Wipro exec Vivek Paul's move to an investment group means to software offshoring.
Give your opinion and see the results >>

The State of Software Pricing, Leadership

Vinnie Mirchandani predicts the balance of IT budgets will shift from utility to innovation spending - and what that means for enterprise software vendors - in a new SandHill.com Blog, the State of Software Pricing. (If you have examples of customers deploying "innovative" technology solutions, Vinnie wants to hear from you.)

Also on pricing, Erik Keller talks pennies and penny-pinching in his post on the challenge of marketing pricing information technology.

Paul Lavallee calls on software execs to fine tune their leadership plans in a new post to the New Era, New Thinking SandHill.com Blog.

If you have a post for any of these topics or would like to suggest a new topic for the SandHill.com blog, email us.

Don't Miss the New News Page!

The SandHill.com news page has been redesigned to help readers find the news they want - and fast. From the main news page, readers can see the software business headlines in the 'Top Stories' list to find stories of interest and click the 'More Software News' link to scan a complete list of recent software news. The right column of the news page also provides links to news by management function and news by hot topic.

The SandHill.com home page has also been redesigned to include "Quick Links" to Sand Hill Group's most popular content. Email us with feedback on these new features and suggestions for new features.

More at SandHill.com:

Read the most important enterprise software industry news of the week >>

Monitor the latest software venture capital deals >>

Size up last week's software M&A deals >>

See who’s made it to the top in our list of recent software executive appointments >>

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Parting Thought

"A candle loses nothing by lighting another candle."
- Erin Majors

Courtesy of Malcolm Kusher, The Kushner Group