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"Definition of Software product business"

  • Company develops the Intellectual property and owns it
  • Entire branding of the product is the responsibility of the company
  • Company sells the product to customers i.e. consumer, enterprise or SMB directly or through channel\distributor\reseller partners
  • The product caters not to a single problem or customer but to a larger base of customers with similar problem with minimum customization
  • Investment for IP development can be from various investor sources but the company makes revenue only after the initial gestation period
  • Revenue cycle is a typical S-Curve where in the returns of the investment is maximum after 5 or more years (Traditional software). The time period changes depending on the software and mode of deliver (Licence, SaaS etc.)
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Tyrique Kuhlman

Lvl 10
2y ago

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