Licensing terms, defined simply

The vocabulary of selling licensed WordPress software — no jargon, no law degree required.

Activation

The moment a key is bound to a specific domain. Licenses have activation limits (1 site, 5 sites, unlimited); the license server enforces them automatically.

EDD / WooCommerce

The two main WordPress e-commerce plugins. Lisensio is WooCommerce-only — one deep integration instead of two shallow ones.

Grace Period

Days after expiry during which a license still validates, giving customers time to renew without their sites breaking.

License Key

The unique string a customer receives after purchase (e.g. LISE-9X4K-QP2M-7ZTD). It proves they paid and controls which domains may run your product.

License Server

Software that generates, validates and manages license keys. When a customer’s site wants to activate or update your product, it asks the license server whether the key is valid. Lisensio turns your own WooCommerce store into one — instead of renting this from a third party.

Merchant of Record (MoR)

A company that legally sells the product on your behalf and handles global sales tax/VAT (Paddle, Polar). Convenient, but you pay a premium forever and the customer relationship belongs to them.

Obfuscated Download URL

A download address that hides the real file location and re-validates the license on every request — so update links can’t be shared or posted on forums.

Renewal Rate

The percentage of expiring licenses that customers renew. Healthy WordPress product stores see 60–75% yearly renewal rates with automated reminders.

Renewal Rate

The percentage of expiring licenses that customers renew. Healthy WordPress product stores see 60–75% yearly renewal rates with automated reminders.

Renewal Rate

The percentage of expiring licenses that customers renew. Healthy WordPress product stores see 60–75% yearly renewal rates with automated reminders.

Revenue Share

A percentage of every sale taken by a platform: ~10.5% at Freemius, 10% + $0.50 at Gumroad, 5% + $0.50 at Paddle, and a flat 50% on Envato marketplaces from July 2026. Lisensio charges 0%.

Staging Site

A private copy of a site used for testing. Good license servers (including Lisensio) let staging domains activate without consuming the live-site limit.

Subscription Engine

The machinery that bills customers on a schedule and syncs license validity to payment status. Lisensio includes one built in — no WooCommerce Subscriptions extension required.

Fluent in licensing? Now own the server.

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