Shareware

Shareware is a type of proprietary software that is initially shared by the owner for trial use at little or no cost. Often the software has limited functionality or incomplete documentation until the user sends payment to the software developer. Shareware is often offered as a download from a website or on a compact disc included with a magazine. Shareware differs from freeware, which is fully-featured software distributed at no cost to the user but without source code being made available; and free and open-source software, in which the source code is freely available for anyone to inspect and alter. There are many types of shareware and, while they may not require an initial up-front payment, many are intended to generate revenue in one way or another. Some limit use to personal non-commercial purposes only, with purchase of a license required for use in a business enterprise. The software itself may be time-limited, or it may remind the user that payment would be appreciated. Trialware or is a program that limits the time that it can be effectively used, commonly via a built-in time limit, number of uses, or only allowing progression up to a certain point (e.g. in video games, see Game demo). The user can try out the fully featured program until the trial period is up, and then most trialware reverts to either a reduced-functionality (freemium, nagware, or crippleware) or non-functional mode, unless the user purchases a full version. Trialware has become normalized for online Software as a Service (SaaS). WinRAR is a notable example of an unlimited trialware, i.e. a program that retains its full functionality even after the trial period has ended. The rationale behind trialware is to give potential users the opportunity to try out the program to judge its usefulness before purchasing a license. According to industry research firm Softletter, 66% of online companies surveyed had free-trial-to-paying-customer conversion rates of 25% or less. SaaS providers employ a wide range of strategies to nurture leads, and convert them into paying customers.