The serial number verification seems like a good idea, as long as you
can ensure that buyers and friends-of-buyers aren't inclined to hack
it.  However, I've always been more a fan of a business model that
invloves (a) some or all of the software being hosted and/or (b)
keeping customers dependent on you for some kind of updates, be it
updates to the code itself, or some kind of data that the application
depends on (i.e. a zipcode database in a mailing application).

Also, people are always more inclined to pay monthly fees for an
application if they know it's being continually improved, especially if
their feedback is taken into consideration in that improvement.  People
take a sense of ownership and actual investment in the project, rather
than it being simply a tool that they pay to use.


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