So
why does making money out of a SaaS business feel like an uphill climb with no end in sight?
IP- Secret Sauce-
most of time and value in here
Technology- infrastructure- small- internal focused
Revenue model is completely disconnected from everything else- sell it however you want
As is marketing
Loosely-coupled, at best
Loosely-coupled, at best
Loosely-coupled, at best
Loosely-coupled, at best
IP- Secret Sauce-
most of time and value in here
Technology- infrastructure- small- internal focused
Revenue model is completely disconnected from everything else- sell it however you want
As is marketing
Can’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
Things that make up the revenue
model of SaaS
Subscriptions = £- 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.
Products-
computers, appliances, anything physical
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’re in the advertising business- it’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’t belong in this bubble.
Subscriptions = £- 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’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’t know
the governance and compliance issues at play in your business
Network Effect!
Ecosystem!
Did we reach the goal?
Hi-
My Name’s Justin Pirie
Alternative Photo:
http://www.flickr.com/photos/piero/2204978222/