Many WordPress product business models follow a ‘Site License’ pricing structure, encouraging a customer to purchase a license depending on the number of websites they’re going to use your plugin or theme on.
How would you get started with this?
You’re going to need to generate an API key for your customer upon checkout. That API key should then ‘know’ how many sites it can be used on for that particular product. Customers can then install your plugin or theme on their website and enter in their API key to validate it and receive updates in the future.
Why should you monitor site usage?
As soon as an API key is saved in your plugin or theme, their website URL should be recorded on your license server. If Joe bought a 1 Site License, he should only be able to link that API key to one website and receive updates on a single website.
This prevents customers from abusing the system and buying your product once and using it on an unlimited number of websites while still receiving updates.
This can increase your revenue when done right!
Customers that use your product according to license specifications such as Joe, he’ll soon realize that he needs to make use of your product on the next website he builds for a friend or family member.
Instead of installing an outdated version of the plugin that he downloaded a couple of months ago on the new site, he’ll upgrade to the 3 Site License this time. It’s cheaper per site (we talk more about pricing models on the WP Updatr Blog) than buying a second 1 Site License and he’s got peace of mind in having an extra site now on his 3 Site License.
In a matter of months, Joe went from a 1 Site License for $19 to a 3 Site License for $29. If he didn’t have to use an API key to receive updates on his second website, he wouldn’t have upgraded his license.