What are different types of software licenses?

When it comes to licensing and selling your software product, choosing between the different software license types is a crucial decision. By choosing the correct licensing model, you can ensure that you use the best approach for your business to grow and collect payments.

In this blog, we will introduce some of the most common software licensing models we offer to our customers. If you want to read more in detail, please visit our documentation pages.

This blog is also available as a YouTube video:

A perpetual license is when you charge a customer once, and they get access to your product fully, and forever. A subscription is instead when you recurringly charge a customer so that they can continue to use your product. The most common subscriptions are paid on a monthly, quarterly, or yearly basis.

In some cases, it might also be beneficial to charge the customer only when they use the software or its features. For example, if you sell an accounting software product, you could charge your customers for each financial report they create using the software. This licensing model is called usage-based licensing.

Lastly, some companies want to allow only a limited number of machines to use their software at the same time. This can be done using node-locking or floating licenses, both of which we have covered in more detail in our documentation. You can then charge the customer extra for a license where they can to use your software on more machines at the same time.

If you would like to learn more about the licensing types, please read our documentation. Thank you for reading!


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