How to monetize top vs. long-tail customers in software

Published on March 5, 2023

The current volatile economy is forcing companies to rethink their monetization models to secure margins and boost profitability. This is especially important in the tech industry, which, despite the hefty valuation reductions and massive layoffs currently happening, is an important industry in the overall global business growth. In this turbulent context, software companies need to prioritize the development of best-in-class models to maintain and improve their profitability.

As highlighted by Hermann Simon’s book True Profit!, the ability to generate sustainable profits is vital for companies to thrive. However, a common pitfall of most software companies is focusing on developing new features while neglecting monetization models. Commendable companies like Evernote and HubSpot have exceeded average industry growth and become models due to their groundbreaking pricing and…

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