Profit Engine Framework

A Profit-Focused Software Business Model Framework

A successful software product needs more than a “if you build it, they will come” business plan.

Identifying a profitable and scalable software business model requires holistic thinking about a number of interrelated factors: return-on-investment (ROI), pricing, licensing, enforcement, value exchange and a few others that we outline below. The ways in which you adjust and tweak these items defines how much profit the business can earn and the rate at which profit grows.

Through years of first-hand experience as product managers, consultants, and trainers, we have found there are eight components which drive profitability for software-powered products and services. Where you start your thinking about these factors does not matter (much), but thinking about these items in isolation often results in diminished profits for the enterprise.

Profit Engine Framework Canvas

Go Deeper with Profit Engine Resources

We write a lot about business frameworks — it’s kind of our thing. The articles, webinars, and tools described below will give you a deeper understanding of how to use the Profit Engine Framework specifically.

If you’d like to go deeper still, we have a whole Product Management training course that puts profit at the center of the learning journey.