In the ever-evolving world of tech, businesses have developed a wide array of monetization strategies. Among them, Software-as-a-Service (SaaS) has emerged as a dominant force. In fact, over 30,000 SaaS companies operate globally, spanning industries like finance, education, cybersecurity, and healthcare.
SaaS’s success is easy to understand: it provides recurring income, predictability, and scalability. By charging users a monthly or annual subscription fee, businesses can offer continuous access to cloud-based applications and services. But while SaaS is undeniably popular, there’s another powerful—yet often overlooked—business model in the software world: software support.
In this post, we’ll explore what software support is, why it’s important, and how it can be used as a sustainable, recurring revenue stream—even if your product isn’t SaaS-based.
What Is Software Support?
Software support refers to the process of helping users get the most out of your software product. This may include:
- Assisting with installation and setup
- Explaining or guiding users through features
- Troubleshooting bugs or issues
- Providing documentation or training
- Addressing compatibility or upgrade concerns
Whether your software is a desktop utility, enterprise tool, or server application, your users will eventually need help. Offering professional and timely support can make the difference between a one-time customer and a loyal user who sticks with your product for years.
Some companies, like MLtek Software, have built long-standing reputations by offering not just high-quality utilities but dependable, ongoing support. These businesses thrive by combining powerful tools with an assurance that help is always within reach.
The Pros and Cons of Outsourcing Software Support
If you’re a small business or solo developer, you might be tempted to outsource your support efforts to save time. And there are some benefits to this approach:
- You can manage a higher volume of support tickets
- It frees you up to focus on development and product growth
- Support agencies often have extensive experience with customer service
However, outsourcing support comes with its own set of challenges:
- A third-party might not fully understand your software or customer needs
- Communication gaps can lead to longer resolution times
- Outsourced support can become costly, especially as your user base grows
For companies interested in using support as a revenue model, outsourcing is rarely ideal. The revenue you generate from support fees can be easily offset by what you pay external support teams.
If your goal is to create a self-sustaining income stream, it’s often better to keep support in-house—or at least maintain strong oversight over how it’s delivered.
Why Offering Software Support Is Essential
Offering dedicated software support isn’t just about fixing problems—it’s a strategic business move. Here’s why:
1. Reliable Revenue Stream
The average annual support cost tends to hover around 20% of the initial software license fee. This means if you sell your product for $500, offering an annual support contract for $100 can generate stable, repeatable income. Over time, this recurring model can even rival or surpass new license sales in profitability.
2. Customer Retention and Satisfaction
When users know they can rely on your team for help, they’re far more likely to remain loyal. Support builds trust and reduces churn. It transforms your product from a one-time transaction into an ongoing relationship.
3. Continuous Product Improvement
Support requests often highlight bugs, friction points, or feature gaps. By listening to customer pain points, you get direct feedback to improve your software. It’s not uncommon for the most successful product updates to be driven entirely by user support data.
4. Brand Reputation
Software companies with excellent support earn reputations that spread through word-of-mouth and online reviews. Whether it’s a simple disk utility or an enterprise storage manager, a strong support team is often what separates “just another tool” from a trusted, go-to solution.
Using Software Support as a Business Model
So, how do you turn support into a real business model?
Step 1: Assess Your Product’s Fit
Start by analyzing how your software is distributed. If you offer a SaaS product, users already expect support to be included in their monthly fee. In this case, support is part of the package and typically not sold separately.
However, if your software is sold under a one-time license or annual subscription, you’re in a much better position to monetize support. Many independent developers and B2B software vendors adopt this approach.
For example, a company selling a standalone backup tool or archiving utility might include a basic support tier for free, but charge for extended help, setup assistance, or premium technical support.
Step 2: Establish Pricing
A common industry benchmark is to set support fees at 20% of the software’s retail price. This number is high enough to cover costs, but low enough that most customers will see it as a fair value—especially if your software is business-critical.
You can structure support in various ways:
- Annual contracts (most common for B2B software)
- Monthly subscriptions (mirroring SaaS-style billing)
- Tiered support plans (e.g., Basic, Premium, Enterprise)
Some companies even offer pay-as-you-go support, allowing customers to purchase support credits or tickets individually—useful for low-volume users or hobbyists.
Step 3: Treat Support Like Its Own SaaS
Even if your product isn’t SaaS, your support services can function like one. Offer consistent, repeatable value to customers through:
- Priority response times
- Personalized onboarding
- Regular check-ins or software audits
- Access to an exclusive knowledge base or video tutorials
This kind of structure turns support into a service your customers actively want to renew, not just something they reluctantly pay for.
The Hidden Benefits of Running Support In-House
By keeping your support operations in-house (even if it’s just a small team), you gain several advantages:
- Faster issue resolution – You know your software inside and out
- More valuable customer insights – You hear the feedback firsthand
- Deeper customer relationships – Users feel a stronger connection to your brand
Plus, it’s easier to bundle support into other offerings—like upgrades, plugins, or training programs—when you control the whole process.
Conclusion: A Profitable Model Hiding in Plain Sight
While SaaS has taken center stage in the software world, support as a business model quietly continues to offer enormous potential—especially for companies offering licensed or on-premise tools.
Whether you’re developing a data archiving tool like ArchiverFS, a system management suite like MLtek Software’s offerings, or a simple utility application, offering paid support can open up a recurring revenue stream, strengthen user relationships, and give you the insights needed to make your software better.
Support isn’t just about solving problems—it’s about adding value. And when done right, it can be one of the most stable and scalable parts of your business.
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