Webinar

Hidden Costs of Homegrown Software Monetization Systems (And How to Avoid Them)

Discover hidden costs of DIY software monetization and why scaling with expert solutions boosts profitability and time-to-market.

Original Air Date: December 1, 2024

In this Webinar

Overview

If you're a software producer grappling with the complexities of monetizing your offerings, this webinar is a must-watch. Join Michael Goff, Principal Product Marketing at Revenera, along with experts Ravi Trivedi, Daniel Mboweni, and Sheela Bilderback as they unpack the hidden costs of homegrown software monetization systems—and how to avoid them. 

Drawing from real-world customer experiences, the panel explores why DIY approaches often fall short when scaling, adapting to hybrid models, or meeting C-suite objectives. You'll gain insights into the risks of revenue leakage, delayed product launches, and missed upsell opportunities that stem from fragmented entitlement and licensing strategies. Learn how modern monetization platforms can streamline operations, improve data visibility, and accelerate time-to-market. 

Whether you're preparing for an IPO, navigating M&A, or simply trying to future-proof your monetization strategy, this session delivers actionable guidance. Don't miss the chance to hear from professionals who’ve lived through the challenges and found scalable solutions.

Recap

Key Themes and Takeaways

The Hidden Costs of DIY Software Monetization

Speakers opened with a relatable analogy comparing home improvement projects to building homegrown monetization systems. While DIY may seem cost-effective at first, it often leads to delays, inefficiencies, and the eventual need for expert intervention. The takeaway: just because you can build it doesn’t mean you should.

Hybrid Software Models and Monetization Complexity

Daniel highlighted how most tech companies today operate as hybrid software organizations, combining on-premises, SaaS, and private cloud deployments. This diversity introduces significant complexity in licensing and entitlement management, making scalability and adaptability essential for long-term success.

Strategic Impact on C-Suite Objectives

Monetization isn’t just a technical challenge—it’s a strategic one. The panel emphasized how licensing models directly affect recurring revenue, profitability, and time-to-value. Sheela Bilderback shared examples of how homegrown systems often fail to meet executive demands for compliance, auditability, and data visibility, especially during IPOs or M&A events.

Operational Risks and Revenue Leakage

Homegrown systems can introduce serious risks, including inconsistent branding, lack of enforcement, and revenue leakage. The conversation explored how disconnected license generators and manual processes can lead to lost revenue and poor customer experiences, especially when scaling or transitioning product lines.

The Importance of Data and Governance

Data emerged as a recurring theme. Without centralized visibility into entitlement and usage, companies struggle to make informed decisions. Sheela Bilderback recounted how her previous organization couldn’t track where software was deployed, which created compliance and customer support challenges.

Monetizing AI and Emerging Technologies

As AI adoption grows, so do infrastructure costs. Robbie Trivedi discussed how modern monetization platforms enable flexible models—like token-based consumption—that align pricing with value delivered. This flexibility is critical for preserving margins and adapting to evolving customer needs.

Transitioning from Homegrown to Scalable Solutions

The panel shared lessons learned from transitioning to platforms like FlexNet Operations Cloud. They emphasized that modernization doesn’t require a full rip-and-replace; companies can start by integrating existing license generators and evolve over time. This phased approach helps maintain continuity while unlocking new capabilities.

Customer Experience and Time-to-Market

Ultimately, the webinar underscored that software producers must prioritize customer experience and speed. Homegrown systems often slow down product releases and distract engineering teams from core innovation. Investing in scalable monetization solutions enables faster go-to-market and better alignment with customer expectations.

Speakers

Daniel Mboweni

Daniel Mboweni
Senior Solution Engineer
Revenera

Ravi Trivedi

Ravi Trivedi
Product Management, Software and Device Monetization
Revenera

Sheela Bilderback

Sheela Bilderback
Manager Consulting Services
Revenera

Frequently Asked Questions

Homegrown systems often seem cost-effective but can introduce hidden risks like revenue leakage, inconsistent enforcement, and poor scalability. As businesses grow or face events like IPOs or M&A, these DIY setups struggle to meet compliance and audit requirements. They also require significant engineering resources to maintain, which distracts from core product innovation. Over time, these limitations can delay product launches and erode profitability.

Scalability ensures that your monetization strategy can grow with your business. As software producers expand into new markets or adopt hybrid deployment models, rigid systems can’t keep up. Scalable platforms allow for flexible packaging, pricing, and enforcement across SaaS, on-premises, and cloud environments. Without scalability, companies risk revenue leakage and operational inefficiencies.

A well-structured monetization strategy directly influences recurring revenue by enabling subscription models, usage-based billing, and upsell opportunities. The webinar explains how modern platforms help track customer usage and entitlement, making it easier to align pricing with value. This leads to more predictable revenue streams and better financial reporting for stakeholders.

CRM systems are designed for managing customer relationships, not enforcing software entitlements. Over time, companies build custom add-ons that lead to fragmented implementations and inconsistent customer experiences. The webinar discusses how this approach lacks visibility into actual software usage, making it difficult to charge accurately or prevent piracy.

Hybrid models—combining SaaS, on-premises, and private cloud deployments—introduce licensing and entitlement challenges. Each model may require different enforcement mechanisms and packaging strategies. The webinar emphasizes that a flexible monetization platform is essential to support these diverse models without overburdening engineering teams.

Data is critical for understanding customer behavior, usage patterns, and entitlement compliance. Without centralized data, software producers struggle to make informed decisions about pricing, packaging, and product development. The webinar highlights how modern platforms provide a single pane of glass for visibility across all licensing systems.

DIY systems often rely on a few key engineers and lack documentation, making them fragile and hard to maintain. When those engineers leave, companies face knowledge gaps and operational risks. The webinar shares real-world examples of delayed product launches and compliance issues caused by over-reliance on homegrown solutions.

During IPOs or mergers, companies must demonstrate streamlined, auditable, and compliant monetization processes. Homegrown systems often fall short in these areas, creating risks during due diligence. The webinar explains how modern platforms help software producers meet regulatory requirements and present clean financials to investors.

Token-based models offer flexibility by allowing customers to consume software services on demand. This approach supports elastic usage and aligns pricing with actual value delivered. The webinar discusses how combining token models with subscriptions can help software producers manage peak usage and improve profitability.

AI and cloud services introduce new cost structures and usage patterns that require dynamic monetization strategies. Software producers need systems that can adapt quickly to changing infrastructure and customer demands. The webinar explores how modern platforms enable rapid packaging changes and help preserve margins in AI-driven environments.

Want to learn more?

See how Revenera's Software Monetization platform can help you take products to market fast, unlock the value of your IP and accelerate revenue growth.