Demoware is a term of distinction used to differentiate between types of shareware software. Other types of shareware include nagware, crippleware, freeware, adware, and even spyware.

Demoware is commercial software released by way of a free download in a version which is limited in one (or more) of the following ways:

• Remains functional for a set number of days from installation.
• May only be launched a set number of times.
• Adds identifying marks to the output. Common with image and video editing demoware.
• Is limited to a set number of "days of use" (i.e. only days you actually use the program count toward its trial limit)
• Program execution terminates after a set time period (typically between 5 and 60 minutes).
• Limited number of times an important function may be used (eg, CD burn)

In addition, the software usually hides a code somewhere on the computer system (in Microsoft Windows, often somewhere in the registry) that prevents removal and re-installation of the demo in an attempt to reset the trial period. Once the trial period is complete, the user must purchase a registration code to continue using the software.

Another use of the term "demoware" refers to software that has no real functionality, but instead only functions for demos, usually run by an employee of the company selling it following a "demo script" rather than by an end user. The intent is to give the person viewing the demo a sense of how the program will look, on the theory that this makes the software seem more real than a mere spec sheet. The functionality, planned to be implemented in the future at some point before delivery, has been faked for the demo (for example, for a Web application, the "product" may only be a series of static HTML pages). The customer may or may not be made explicitly aware of this, though it is usually obvious if one is paying attention. This kind of demoware is often used by software startups to show off concepts to sales prospects, to trade show audiences, and to potential investors. It is especially common in the enterprise market.

Software distribution