Shareware and freeware

Much of the "Shareware" movement was started via user distribution of software through BBSes. A notable example was Phil Katz's PKARC (and later PKZIP, using the same ".zip" algorithm that WinZip and other popular archivers now use); also other concepts of software distribution like freeware, postcardware like JPEGview and donationware like Red Ryder for the Macintosh first appeared on BBS sites. Doom from id Software and many Apogee games were distributed as shareware. The Internet has largely erased the distinction of shareware - most users now download the software directly from the developer's website rather than receiving it from another BBS user 'sharing' it. Today shareware is commonly used to mean electronically-distributed software from a small developer.
Many commercial BBS software companies that continue to support their old BBS software products switched to the shareware model or made it entirely free. Some companies were able to make the move to the Internet and provide commercial products with BBS capabilities.