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Shareware

Shareware is a term for 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. 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.

The term “shareware” is largely out of use in the modern computing world, replaced by “trialware” or “freemium”.

Trialware or demoware 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).[citation needed] 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.[citation needed] SaaS providers employ a wide range of strategies to nurture leads, and convert them into paying customers.

Freemium works by offering a product or service free of charge (typically digital offerings such as software, content, games, web services or other) while charging a premium for advanced features, functionality, or related products and services. For example, a fully functional feature-limited version may be given away for free, with advanced features disabled until a license fee is paid. The word freemium combines the two aspects of the business model: "free" and "premium". It has become a popular model especially in the antivirus industry.

Adware, short for "advertising-supported software", is any software package which automatically renders advertisements in order to generate revenue for its author. Shareware is often packaged with adware to lower the shareware fees or eliminate the need to charge users a fee. The advertisements may take the form of a banner on an application window. The functions may be designed to analyze which websites the user visits and to present advertising pertinent to the types of goods or services featured there. The term is sometimes used to refer to software that displays unwanted advertisements, which typically are more intrusive and may appear as pop-ups, as is the case in most ad-oriented spyware. During the installation of the intended software, the user is presented with a requirement to agree to the terms of click through an end-user license agreement or similar licensing which governs the installation of the software.

Crippleware has vital features of the program, such as printing or the ability to save files, disabled or unwanted features like watermarks on screencasting and video editing software until the user buys the software. This allows users to take a close look at the features of a program without being able to use it to generate output. The distinction between freemium and crippleware is that an unlicensed freemium program has useful functionality, while crippleware demonstrates its potential but is not useful on its own.

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