I believe they are called "apps" now, it's a $500B market. As far as desktop software, it's the same as it ever was... you make a product, you release it for download, you sell a license. No mystery to it. But it often makes more sense to sell it as a subscription; you can make it very cheap for the user up front, and get a continuous revenue stream. Subscriptions make more sense if you provide constant updates, supp…
Yeah, at the core of it I see this as a value problem. If you charge a lot, it's a tough or impossible sell for users who aren't yet sure they'll get that amount of value from it. If you charge too little, you're leaving money on the table from big customers who would be willing to pay much more. Setting the up-front cost also requires you to estimate a bunch of things: what will it cost you to build (including futur…
I don't think you can ever be saturated in number of customers, if you have a good thing and are on the right track, the moon is the limit. You build new versions to increase the user base.
If you're in a niche market that can actually become saturated, then your customers are likely professionals and willing to pay much more than consumers, since they make money from your software.