Introduction
There have been whole books written on pricing software. And rightly so. It is a complex and difficult area to get right.
Software is unlike nearly every other business. All the cost on making the product is incurred upfront. That’s often 90 percent of the required kick-off capital to get out of the gate. Once the product is built, it is built.
Of course, the software needs to be maintained and updated where appropriate (likely every quarter), but once the core product exists, it can be resold and resold and resold with little development cost. That is the reason VCs love to invest in technology companies; especially when you have already built the product and you need money to scale it. It is a “build ...
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