Services- difficult to scale profitably. Onboarding- 80 / 20 rule- roll the 80% repeatable stuff into the app. Only deliver the 20% that is actually custom. Increased value and you can increase price, increase margin.
Advertising- Unless you&#x2019;re in the advertising business- it&#x2019;s hard. Inventory is finite and hard to execute well. Spiceworks have 125 customers which are advertisers and 800,000 users. Done properly advertising doesn&#x2019;t belong in this bubble.
Subscriptions = &#xA3;- this can be per use or per month- aligned with your market
Ecosystem- Channel sales, affiliate, API monetisation, Apps. Everything Leveraged
Network Effect- Monetising the data through use. Anonymous, Benchmark
Ancillary- anything else! Float/discounts/affiliate sales/ setup fees. Get paid before paying etc.
Things that make up the revenue model of SaaS
Can&#x2019;t have silos
Technology is more important- infrastructure, security, governance, compliance taken over for customers
Marketing needs to be tied into the technology- self service, nurturing
Revenue model needs to be built into the app. Must be aware of this early on. Support the right metrics and segmentation
Every business is different- I don&#x2019;t know the governance and compliance issues at play in your business
Did we reach the goal?
Hi- My Name&#x2019;s Justin Pirie
How to Optimize Your SaaS Revenue Streams - Rackspace SaaS & Cloud 2010