Tag: saas revenue

How Do SaaS Startups Make Money? | SaaS Revenue Model
Software as a Service (or SaaS) is a new method for delivering software applications over the internet. It does not require any installation or maintenance of the software to avail of the services. The software is hosted by a third party and one can access it by paying a subscription fee.

The benefits of the SaaS model are clear. It provides lower costs, lower commitment risk, and a try-before-you-buy model, which gives customers a remarkable opportunity to assess a product before making a purchase. Indeed, the benefit is so clear that a 2017 study conducted by BetterCloud found that 86% of organizations estimate that 80% of their business apps will be delivered through the SaaS model by 2022.

Growth chart of SaaS business apps in companies

In 2022, the SaaS market valuation is at $186.6 billion and has an annual growth rate of around 18%. It is projected to grow to $700 billion by 2030.

For software businesses, on the other hand, the SaaS model presented an entirely new way to build, distribute, market, sell, and support a software product. It affects every single part of a software operation. But the most significant change that the SaaS model brought — the one at the root of all the other changes — was the SaaS revenue model. The Software as a Service (SaaS) revenue model is associated with regular, ongoing payments over a defined period, in exchange for using a software application or other tool.

About SaaS
SaaS Revenue Model & Its Phases
Phase 1: The Initial Sale
Phase 2: Retention Revenue
Phase 3: Expansion Revenue
How to build a great SaaS revenue operation

Software As A Service

About SaaS

SaaS is referred to as a software distribution model in which a cloud provider hosts applications and makes them available to end-users over the internet. In this model, an independent software vendor may contact a third-party cloud provider to host the application.

SaaS is one of the categories of cloud computing that include infrastructure as a service (IaaS), and platform as a service (PaaS). SaaS applications are mostly used by IT professionals, business users, and personal users. Products ranging from entertainment services, like Netflix, to advanced IT tools come under SaaS. SaaS products are mostly marketed to B2B and B2C customers.

As per recent McKinsey & Company study, technology industry analysts have predicted further growth in the SaaS market, and expect to see the market for SaaS products close to $200 billion by the year 2024.

All About SaaS

SaaS Revenue Model & Its Phases

Before SaaS, the software revenue model was transactional and all that mattered was the initial sale of the software product. Big, fancy salesmen sold long-term deals for one, two, or even five million dollars a pop. Done. Hands dusted, gong rung, contract signed — all the revenue that was going to come from that deal had been generated.
Enter the SaaS revenue model. It swapped the single point of revenue with three essential phases: Initial sale → Retention → Expansion

SaaS Revenue Model

There are three phases of the SaaS Revenue Model as listed below.
- Phase 1: The Initial Sale
- Phase 2: Retention Revenue
- Phase 3: Expansion Revenue
Phase 1: The Initial Sale

It still exists! And it’s still an essential part of the SaaS revenue model. “Closing” an initial sale includes everything from a simple self-serve upgrade to an annual contract shepherded by an inside salesperson.

If you play this phase well and show strong initial sales growth, you’ll get somewhere with your SaaS business. You’ll probably be able to raise some money, maybe even have a mini-brand — excellent! But these days, an initial sale brings in far less revenue than in the traditional SaaS revenue model. It’s still extremely important — you need a flow of new customers — but you also need to move on too.

Best SaaS Marketing Agencies to hire for 2021

SaaS Marketing Agencies can help you in automating and scaling up your marketingresults. If you are reading this article then you probably have raised somemoney to grow your Software as a Service business or platform and are nowlooking forward to increasing your customer base. Software applicati…

StartupTalkyManav Makhija

Phase 2: Retention Revenue

“You mean we have to keep them happy? Forever??” – Early SaaS pioneer

Quite so, Mr. Early SaaS Pioneer. There’s a new (SaaS) revenue model in town. Most early players, however, maintain the sales-first mentality even though they’re selling much smaller, month-to-month deals. They’re celebrating the initial sale disproportionately which is not correct for SaaS.

On the other hand, some SaaS companies quickly realized the importance of retention. Indeed, they saw that an initial sale didn’t matter much if a new account was canceled three, six — even 12 months later. They realized they couldn’t sustain growth if they churned the customers they brought in. These people know how to play the game of SaaS.

Today’s SaaS pros realize that retention is the biggest revenue opportunity in SaaS. An initial sale might get you $500 in the bank when you convert that deal. But retention, retention will bring in that amount times the number of months the account stays active. And why? Here’s some fast math on that point:
- 1 month (initial sale): $500
- x 12 months = $6k
- x 24 months = $12k
- x 36 months = $24k
Indeed, the revenue opportunity from retention is exponentially larger than the initial sale. Execute well in this second phase, my friend, and you will build a solid, sustainable SaaS business. Excellent! But wait — if you want to build a great SaaS business, crush the competition, and have a shot at an IPO, you’ll have to master the third phase of the SaaS revenue model: Expansion.

Phase 3: Expansion Revenue

Often overlooked, always important — this is where the true secret to SaaS growth lies. Savvy SaaS teams quickly realized that they could drive revenue growth by expanding existing accounts. Upsells, cross-sells, and any other sales that could generate additional revenue from existing customers became SaaS staples. And it worked earlier, mainly because the opportunity for second-order revenue was huge.

Calculating expansion revenue growth rate

You understand the realities of the three phases of SaaS revenue. Excellent! But that’s only half the battle. The other half is executing against it. You’ll need to shift the way you look at adoption, customer service, sales, and marketing. Thanks to the SaaS model, the operations of software businesses are changing.

Customer relationships: In the SaaS revenue model, customer relationships are based on the ongoing delivery of customer value.

Marketing issues related to the SaaS/subscription model: Marketing strategies focus on growing subscribers through lead generation, branding, goodwill activities, and other efforts to create interest in the product or service.

Operational implications of the SaaS/subscription revenue model: Companies employing the SaaS/subscription revenue model should focus primarily on delivering cost-effective customer value.

Financial and strategic implications: In most cases, successful SaaS/subscription companies build up their subscriber base over a long period. In the interim, they require financing to develop delivery capacity as well as to support efforts to increase the user base.

Key metrics: SaaS/subscription companies consider key metrics to be customer retention and net new growth in subscriber numbers.

Modalities: While SaaS/subscriptions are most commonly thought of as single sales to individual subscribers, the SaaS/subscription model also works with bulk sales. Rather than selling one subscriber one subscription, a company can sell subscriptions in larger increments for a reduced per-user rate.

Costs and benefits of the SaaS/subscription model: The SaaS/subscription revenue model usually works best when a company is servicing ongoing and continuous customer needs. This means that customer relationships may span several years. It is often challenging to convince new customers to commit to long-term contracts, especially in the case of companies offering novel products or services.

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Product reviews can help you in a number of ways and even be crucial in yoursales process. The fact is, 90% of consumers read online reviews[/indian-review-sites-new-upcoming-trend/] before even visiting a business.Similarly, 77% of B2B buyers conduct their own research before talking tosalespeo…

StartupTalkyRishabh Rathi

How to build a great SaaS revenue operation

To build a great SaaS revenue operation, there are three truths teams must accept:
1. SaaS revenue goes well beyond an initial sale. There are three essential phases of revenue and a SaaS business must execute well in all three phases to become great.
2. Building a management structure that provides continuity and strategic consistency across these three phases of revenue will ensure the best shot at success.
3. Product engagement is the key to winning the game of SaaS. Great SaaS operations understand this and find a way to bring this data to their team in the most actionable way possible. Great SaaS revenue models seamlessly integrate product engagement insights into every part of their customer-facing operations.
Conclusion

A good SaaS model provides lower costs, and lower commitment risk, and a try-before-you-buy model gives customers a remarkable opportunity to assess a product before making a purchase. For software businesses, on the other hand, the SaaS model presents an entirely new way to build, distribute, market, sell, and support a software product.

Now that you know about the revenue model of SaaS, let’s get on board and start executing them in your business.

FAQs

What is SaaS?

Software as a service (or SaaS) is a way of delivering applications over the Internet – as a service. Instead of installing and maintaining software, you simply access it via the Internet, freeing yourself from complex software and hardware management.

What are the examples of SaaS?

Examples of SaaS are – BigCommerce, Google Apps, Salesforce, Dropbox, MailChimp, ZenDesk, DocuSign, Slack, and Hubspot. PaaS Examples: AWS Elastic Beanstalk, Heroku, Windows Azure (mostly used as PaaS), Force.com, OpenShift, Apache Stratos, Magento Commerce Cloud.

What are the three phases of the SaaS Revenue Model?

The three phases of the SaaS Revenue Model are:-
- Phase 1: The Initial Sale
- Phase 2: Retention Revenue
- Phase 3: Expansion Revenue
Is Netflix a SaaS?

Yes, Netflix is a SaaS that offers software to watch licensed videos. It follows a subscription-based model wherein the user can choose the suitable one as per its requirement.

Is Facebook a SaaS?

SaaS simply stands for “Software as a Service”. Facebook is a consumer network product, not technically SaaS, but there’s no other product that provides as many services as Facebook does.

Are mobile apps SaaS?

The new frontier for enterprise software as a service (SaaS) providers appears to be in mobile apps. While desktop platforms are still the backbone of any SaaS product, mobile apps are becoming increasingly important. Mobile apps and API connections are expected to add 0.71% growth to the SaaS Market Size.
December 22, 2022
Top 25 Profitable Micro SaaS Ideas to Explore in 2022
Software as a Service or SaaS is a cloud-based software authorizing model, that licenses software to users through the internet. The services are centrally hosted and require no installation or maintenance from the end user. It can be easily accessed through a web browser with an internet connection.

SaaS comes with the advantage of an on-demand subscription basis, which eliminates the risks of long-term commitment for users. They come at absolutely lower costs with no requirement for any operating expenses. SaaS is one of the fastest-growing services in the market. Their growth rate is rising by 18% every year.

What is Micro SaaS?

Top 25 Profitable Micro SaaS Ideas
Micro SaaS – Features and Advantages

Micro SaaS – Limitations

What is Micro SaaS?

Micro SaaS shows promising growth in the Software as a Service market. They are started and operated as a small business as their name describes. Investments are required in a lesser number compared to other SaaS operations. Micro SaaS is considered to be focusing on a narrow market that is Niche Market with a small team and limited customers.

With their recurring profits, fewer capital needs, low risk, dedicated customers and minimal operating expenses, Micro SaaS has started attracting many entrepreneurs towards them in recent years.

Top 25 Profitable Micro SaaS Ideas

The top 25 Micro Most profitable SaaS Ideas for your startup that definitely help you make money. The micro saas ideas to make money in 2022 are discussed below

Email Marketing

As digital marketing is growing at a rapid pace, email marketing has become one of the most profitable micro SaaS ideas. It is an essential service that helps an organisation to maintain regular follow-ups for their emails.

E-mail marketing Revenue forecast

Even the clients and customers can be kept in close contact through consistent email campaigning and marketing system. It can also save time, by segregating important mail from spam through colours or folders. It is necessary for an organisation that deals with too many emails.

Resume Builder

It is a significant tool that is necessary for youngsters and adults, who’re seeking jobs. Teaching them about creating an interesting resume and providing them with examples or templates could prove to be a promising startup. Demand for Resume Builders remains consistent over time.

Accounting Services

The always ‘in-demand’ services like accounting and basic tax calculations can be integrated into simple software. It helps the users manage their businesses and know the basic tax details they are supposed to pay.

Video/Photo Editing Services

The growing social media and e-commerce trend has only increased the need for photo or video editing tools. Developing an editing tool with good features according to the social media and e-marketer’s requirements can be a good choice.

Human Resource Management (HRM)

This is software that is used to track, manage and plan the requirements of the workforce deployed in an organisation.

Global Human Resource Management Market

It is expected that about 90% of workforce management by 2023, would be handled by SaaS. There is a huge need for these types of management software.

Content Management

There has been an enormous growth in the number of bloggers and social media users in recent times. Therefore, a need for content management software becomes essential. A SaaS tool to create and manage content with advanced facilities to auto-post and manage them will have more demand.

Learning Management System (LRM)

This has a great scope in the present online world. Educating students and elders on basic, professional and personal life through online lectures and study materials, will have a great demand in future. It is high time to start a SaaS platform for educational services.

Survey Compilation

Customer surveys and feedbacks are the most essential elements for the growth of a business. But, when plenty of them pile up, it might be difficult to keep track of everything. A SaaS tool can solve this by providing features, that can pick up important feedback, and merge repeated ones and others. It can save time and help to provide efficient solutions to the matter.

Team Management

Managing teams in projects and discussions when working remotely could be challenging. Particularly, when the meeting includes PPTs and much information, that is to be noted, it becomes difficult for a follow-up. A SaaS software to handle this can be of great advantage to the user and as an income generator to the service provider.

Customer Resources Management (CRM)

Freelancers and companies need to do multiple activities or work for different clients at the same time. Managing all these works on their own can be a time-consuming process. Hence, this type of management can be done by Micro SaaS tools, effectively and reliably, for freelancers.

Invoicing

Software that can generate bills and invoices automatically after every sale stands to be useful. Bills should be easily exported to PDF or any other Tax calculation software as per needs. It should be able to generate periodic bills with good presentation. Auto billing and Invoicing software can increase the productivity of an organisation.

Healthcare Services

Tracking clients’ healthcare schedules, fixing and reminding them of their appointments, providing remote health support through professionals, online consultations with doctors, etc., can be done through the healthcare SaaS service. The demand for such services is going to be higher in the future.

Fitness manager

Developing a fitness/wellness program during these pandemic times, when most of us are working from home, is one of the best ideas. You can teach people simple exercises or yoga that are needed for their day-to-day wellness. If you’re a fitness professional, then you can do it as a proper online program through a SaaS tool.

Journaling

The pace of the growing world has made people isolated. Accompanying those people by letting them share their thoughts and making them reflect on their lives could be useful. Just design software with a good user interface and writing formats and this might be your next best Micro SaaS startup. Journaling is indeed good for mental health.

Web Analytics

Web Analytics Software helps you track your website’s traffic and analyze your performance over time. They provide solutions to improve the performance of websites, thus saving time and increasing the income for an organisation.

Pharmaceutical Service

This could be an essential service required by older people. They may lose track of their medicine’s availability and suffer at the last minute. A SaaS platform to address this issue and deliver the medicines to their doorstep on time can make a good startup.

Software Solutions

In a world that is revolving around more technical devices than humans, there’s no drought for doubts regarding software and its functions. Addressing these doubts by providing solutions in an easy and simple way, either through videos or blogs, can be a good option for a Micro SaaS business.

Form Generator

The usage of online forms, like Google forms, has become an essential tool in recent times. So, developing a SaaS tool for creating forms, will have a good market demand. Presenting it in such a way that, even people with no coding knowledge can create their own forms, will certainly possess a higher advantage for this service.

Cookery

Cookery has gained a huge reception among people around the world. The lockdown, which arrested people in their homes, made them look for new ways to enjoy their meals. Hence, online cooking demos and sharing of recipes by chefs and professionals could be a good idea for starting a business.

KPI Tracking

Key Performance Indicators (KPI) a tool used to measure the company’s performance and displays the result as charts and tables for easy understanding. It helps the organisation to monitor sales and other performance-related activities. The demand for such tools is always higher.

Tea/Coffee Round

It may sound weird, but this type of service proves to be of great importance to employees in an organisation. There is a need for an app that keeps track of rounds of who should make tea for the day. A perfectly crafted Micro SaaS tool could do that.

Personal Goal Tracker

This should track anything from personal goals, maintaining diet, achievements, milestones, etc., This can be made into a graph for easy viewing and analyzing one’s performance. The personal tracker can have a good reach among audiences.

Time Manager

Organizing and planning time, to make optimum utilization, might demand most of our energy. If a small software could assist us with that, then it’ll be of great support. Developing a time management tool, that could help us keep track of our time and remind us of what and when things should be done, can have a good deal of demand in future.

Habit Tracker

With people getting more conscious of their habits, a habit tracker can be a great tool and a profitable Micro SaaS idea. It is a simple tool that helps one to look into and manage their own habits. One can maintain a record of their habits in this software to analyze and self-assess themselves whenever one wants. This modest tool helps one to progress towards their goals. This SaaS idea can be of great value to the users.

25. Grocery/Essentials

People are getting more attracted to online shopping, and groceries are getting added to that list. Developing a SaaS-based model for grocery service would make it more efficient and successful in future.

Micro SaaS – Features and Advantages
- Development of Micro SaaS can be easier and simpler. You don’t require much coding knowledge or technical skills to start one.
- You can develop a one-to-one interaction with customers, which helps to build a dedicated customer base.
- Even though, Micro SaaS mostly concentrates on Niche Markets, its geographical boundaries are limitless. It can have customers from any part of the world.
- Recurring income is undoubtedly the best revenue model in the world today. There’re plenty of opportunities in Micro SaaS, to create a good recurring revenue model.
- Though you’ve stable customers, their numbers will be limited due to a narrow focus on a particular niche.
- Since the capital and investments are limited, you may have to depend on other hosting platforms like Shopify, to start your Micro SaaS. This makes you stick to their rules and regulations and you may be less independent.
- Operating with a small team means, fewer ideas for improvements and innovations and more responsibilities on few persons. Failing to notice market changes and adapting to them quickly, could be risky for business.
Micro SaaS – Limitations

Though there’re a few disadvantages, they could be eradicated easily by improper planning and if not having proper market awareness. Any good idea with a knowledgeable team can bring out the most successful Micro SaaS business but without planning it could fail.

Conclusion

Ideas are boundless and every new day blooms with some new ideas, innovations and entrepreneurs, and Micro SaaS is the best way to create and give shape to such ideas. The best 25 Micro SaaS Startup ideas that are mentioned above is one that could start now, as it is the right time to do so. I hope, one of these ideas either benefits you or strikes you with some new concepts that could be further enhanced to make profitable saas companies.

FAQ

What is a Micro SaaS?

Micro SaaS is a business targeting a niche market, run by a small team, with small costs and has a small but dedicated user base and no outside funding.

How can you make SaaS profitable?

Develop a solution for a problem, Write up a lean plan, Explore pricing models and Financing and funding and Build your product.

What is a SaaS example?

Some of the SaaS examples are BigCommerce, Google Apps, Salesforce, Dropbox, MailChimp, ZenDesk, DocuSign, Slack, and HubSpot.

How do I find a good micro saas idea?

We have packed this article with the best micro saas ideas but you can brainstorm by analysing the market for more such ideas.

Are micro SaaS startups really profitable?

Yes, they are profitable and usually revenue ranges between $1,000 – $10,000 per month.

How do I build a micro SaaS product?

You may look up to a team of developers and designers or you can use tools like no-code tools to build your micro saas.
November 25, 2022
8 Ways To Provide Better SaaS Customer Experience In 2022

‌‌‌‌‌‌Traditionally, software was distributed in different forms such as through CDs and DVDs. These practices are used to cost the user and distributor the additional responsibility of installation and maintenance of the software.

The new alternative to this practice is to directly download a subscribed service by the means of the internet. They are termed SaaS. SaaS is a software distribution method that allows the end-users to directly purchase and download their needed software by the means of the internet.

SaaS has gained much hype in the last few years. Many different startups and companies are investing in SaaS for vivid reasons. Some sell their products by SaaS, or others use SaaS for improving their business. Irrespective of the need, creating a SaaS is a hectic job.

Imagine creating a SaaS product with such dedication. However, in the end, you are left with an almost negligible amount of customers acknowledging your efforts. The biggest fall for any product is through its customers. Customers are the biggest resources for success. Creating the best user experience for any SaaS developer is surely one of the major tasks.

There are a few tricks and tips one can try to implement for a better SaaS user experience. Some of them are:

Work Towards Creating a Good Impression

We all have heard and believed the proverb “First impression is the last impression”. Creating better impactful landing pages can attract the attention of customers. On average, a visitor roughly spends about 10-20 sec on each webpage. These initial seconds are the time when a judgment is passed towards it. Creating an attractive and thoughtful landing page can surpass this period. Surpassing can increase the chance of converting a visitor into a customer.

Begin With Ease

The beginning is the first and most crucial step of any journey. Providing customers with an easy start can be more beneficial. There can be times when a SaaS product loses out their customers at the start only. This can be because of a complex starting procedure. It’s best to keep the start simple and clear.

Starting with complex or time-consuming steps can irritate the customers. Even to sign in, it is best recommended to ask for needed information only at the start. As an alternative one can also add up the option of skipping unrequited formalities at the start.

Be Clear About Your SaaS Product

SaaS is a product brought by some amount. Before buying the product, no user has the proper acknowledgement of its services and tools. Not all products of the same field offer the same services. Customers buy the SaaS depending upon their requirements. Without actually having the idea of detailed work, a customer can’t make a call. Giving out clear information on the subscription given by the amount and the tools made available will be a plus point for both sides.

Provide Clear Guidelines

New users might get stuck in some steps. Keeping clear and detailed guidelines for customers can make them grateful for the team. Guidelines can be in the form of a small tour of the service, it can be a video explaining any error, a pdf full of basic working, or a graph showing the next steps. Guiding users makes them feel valued. This is a great tactic for avoiding any negative comments about service.

Have an Open Communication System

There can be times when clients might feel stuck. And no possible solution is made available to them through any guide. At such times, they might feel the need to have direct contact. For such occasions, keeping one or two methods as a part of communication is recommended. It can be in the form of an email or any other similar service.

As much as it is important to provide clients with an immediate contacting option, it is also an essential part to answer them. For one to have better control over their customers, they should constantly reply and communicate with customers on all of their needed issues.

Follow Real Advice

Each service has a comment section below it. This is the place where one can easily track the accuracy of their made products. Be it grocery products or a SaaS product. It is best to keep track of given comments for a better understanding of the target audience and their needs. This can also avail the developers with the knowledge of their competitor’s strategies.

Provide Improved Services Constantly

The purchased users are the ones who can attract more customers by their comments and feedback. It is important to provide them with satisfactory service. New implementations are required to be made now and then.

Developers should avail their SaaS users with new implementation as a part of the update. This update should also be explained and notified to the users by any possible means such as a message box or notification to their registered email.

Be Grateful

Showing gratitude to the SaaS users can alleviate their experience. Along with that, it can also make them a trusted client of your SaaS product. There are different options for making your users feel special.

Giving out any free service as an addition or providing them with a free trial of service for a limited period. All these can create a good impact on clients.

There are many practices one can implement for improving the user experience. The above-given examples are some of the most simple and needed implementations by markers.

Conclusion

SaaS (Software as a System) is the distribution of software by the means of the internet. Software as a service (SaaS) is one type of cloud computing along with Infrastructure as a service (IaaS) and Platform as a service (PaaS). SaaS works to deliver software to the client directly without the need for additional instalment and management of any software or hardware.

SaaS startups and products are gaining much hype recently. There are many factors affecting the success rate of SaaS products. One of them is their user experience.

FAQs

How do you improve SaaS UX?

Provide Clear Guidelines, Provide Improved Services Constantly, and Be Clear About Your SaaS Product.

What are SaaS best practices?

Provide a better user experience, focus on personalization and compatibility with all devices.

What are the examples of SaaS?

Some of the most common examples of SaaS are Microsoft Azure, Dropbox, Google Docs, etc.

What are some of the failed SaaS startups?

Some of the failed SaaS startups are Teamometer, RingDaddy, Habitual, etc.

March 7, 2022
SaaS Pricing Guide: How to Decide the Right Price for your SaaS Product
While doing a business, one of the most important things is to set a proper price for the product or service that you are selling. The pricing decides the future of your business and if it will reach the top and be successful.

Now, in any kind of business you need to do a lot of research while deciding the price of the product or services. There are various factors that need to be taken into consideration during this crucial time.

When we talk about the importance of technology in our life, the thing that has made the most impact has to be the Internet. Thanks to this, we are enjoying so many services in just a single touch of our fingers.

Almost every business is on the internet and is providing services to its consumers through that. We live in a time, where we can now get applications over the internet. Instead of installing a software one, we can have the access to it through the internet and can also maintain it there. This service is called SaaS.

Companies that are building SaaS products must set a correct price for them as their revenue depends on it. So, in this article, we will talk about how one should decide the right price of their SaaS product that will entice the audience and will also bring profits to the business. So, let’s get started.

“The moment you make a mistake in pricing, you’re eating into your reputation or your profits.”

-Katharine Paine

Why Pricing is Important?
What is SaaS Pricing?
How To Price a SaaS Product?
SaaS Pricing Models
FAQ

Why Pricing is Important?

Pricing is important for two obvious reasons,
- The first and foremost one is, giving value to the customers, when someone pays for a product or service; it means it is worthy enough to buy.
- Another reason is that it helps the said company to step into the competitive market. If it has a good cost-to-value ratio, then naturally it makes it presence known as a competitor for other same businesses in the market
What is SaaS Pricing?

A SaaS pricing is nothing but a price model of software that one can get access to through the internet and can maintain it online instead of installing one into your device. The things that influence the price of the products are the marketing strategy, Target markets, and revenue objectives. A proper SaaS pricing model will lead to success for that business that deals with these products.

How To Price a SaaS Product?

As mentioned before the future of a company relies on its pricing strategy. Now, there are several strategies that can be applied while setting the perfect price for a SaaS product and those are:

Cost-Based Pricing

This strategy is very simple and easy to apply. You can count the cost of the product by just evaluating the amount that was used in the making and also providing the product to the consumers. It includes the development charge of the product, the salary of the employees and of course a little bit more amounts that will ensure profit from that product.

Although there are some limitations revolving around this strategy like the earning will cover all the cost that was required during creating and providing the product. You can also fall behind your competitor as cost-based pricing doesn’t notice the price of the competitor’s product.

Competitor Based Pricing

This strategy involves setting the price of your product that matches your competitor’s standards. This model is very easy to find, as in the competitor’s website you get to observe the price of their SaaS products.

When you are new in this business, it is not possible to know the entire amount that will be cost for providing this service. So, pricing the product same as the price of your competitors gives you a general idea that can generate you customers for your SaaS product. It also has a limitation, if you consider your competitor’s pricing, you might charge too little for your service, which is definitely not healthy for your business.

Promotional-Based Pricing

This strategy is about lowering the product’s price to attract more consumers and increase their demand quickly and it is just for a limited time. The time limit chosen for this offer can attract a good number of consumers towards the product, which may result in an increase in the demand for the SaaS product.

This can be applied for only a short amount of time and it can also backfire because if the promotional-based pricing continues, the consumer might question the product’s value.

Value-Based Pricing

Establishing this strategy takes a good amount of time and require a lot of work. In this strategy, the price of the product completely depends on the consumers. The value of the products decides their fate and the audience’s opinion of the product’s worth matters the most here.

Here, even if you decided to make the price higher, if the customer is willing to pay then your SaaS product is definitely a hit. On the other hand, this strategy’s biggest disadvantage is that the consumers that are divided in a group find the value of your product different; going for the same price of the product becomes difficult.

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SaaS Pricing Models

This section deals with the pricing models that can be used to charge the users of your SaaS products.

Flat Rate Pricing

This model is extremely simple, here the business offers only one price for a couple of features that are tagging along with the product. It is preferable because it is easier to sell and this single price is for everyone thus not making it complicated.

Usage-Based Pricing

In here, the pricing depends on the usage of the product by the customer, that is if you use the service more, then you have to pay more and if less, then your amount will decrease. This way the customers can find reliability in this as they are only paying for the amount of service that they have used. It is also called Pay As You Go Model.

Per Feature Pricing

The users have to pay here for every feature that they are going to use It is best for those company that wants every feature of their product to be used by the customers.

Tiered Pricing

This includes giving out different packages that have different features in them for the customers to use. Here, the customer chooses the package that is more compatible with them and pays for that only. It can increase your revenue if your customer after using one package decide to use another one so that they can attain other good features that come with that different package.

Conclusion

The products and services that SaaS businesses are providing to their customers, the must-have contain a proper price. The business needs to follow a correct pricing strategy that will help them in establishing the business in front of their customers, and then only it can survive in the competitive industry.

FAQ

What is the Full form SaaS?

The full form of SaaS is Software As A Service.

What is SaaS Invoice?

It is an automated system where it helps in billing clients recurring basis.

Which is The Best Way For Pricing A Product?

Cost-based pricing is the best way to price your product.
November 25, 2021
Leadpages Review: Landing Pages Made Easy

Making a beautiful and inviting landing page can be a difficult task especially if you’re doing it from scratch. Traditionally, making a landing page for a business required coding and designing skills but that’s not the case anymore.

The emergence of services that offer a complete platform for hosting, designing, and publishing a webpage has been making lives easier. These landing pages help gather customer feedback, generate leads, and in the delivery of digital products.

Leadpages is an easy-to-use landing page builder that helps businesses create optimized landing pages without any code. It is an online marketing platform that is capable of creating landing pages, pop-ups, and site alerts. Leadpages make it possible for everyone to create and publish a landing page that converts without having to deal with the technical aspects of it.

Having a fast, optimized landing page is sure to benefit any marketing campaign and business of all kinds. Leadpages acts a doorway for small businesses to grow and expand through e-commerce.

Features of Leadpages
What else does Leadpages offer?
Pricing of Leadpages
FAQ

Features of Leadpages

Continuing to be one of the fastest landing page builders out there, Leadpages offers its users functionality. It’s equipped with features to create landing pages, pop-ups or alerts fast and without having to deal with the hassle of code.

Having a template gallery of 140+ templates, making a landing page is as easy and choosing a template, editing it, and publishing. The drag-and-drop editor saves time and makes it easy for anyone to create a landing page.

Here’s a list of the core features supported:

Default Optimization

When you create a landing page with Leadpages, the platform automatically does the optimization for you. This makes sure that you have a fully mobile responsive and SEO optimized page for your business.

Users don’t need to depend on any integrations or pay extra to get their pages ranked as Leadpages does it for all available plans.

Often landing pages are connected to other services such as mailing lists, advertising platforms, and analytic platforms through integrations. SEO tools are built-in to allow users to customize and tweak how the website looks in search results.

Leadpages provides tools to boost seo ranking

Get Started with Leadpages now!

PayKickstart Review: An Easy Cart Management Solution

PayKickstart is an automated and customizable cart manager and affiliate platform designed to help your online business. Learn more about it.

StartupTalkyCharudath K Nair

Free and Fast Hosting

Leadpages provides its own hosting so you don’t have to. It uses Google Cloud for its hosting, ensuring the best speeds possible no matter how complex the page is. Google Cloud is used by popular websites and platforms for their effortless storage integrations and security reasons.

The landing pages created by Leadpages are secure and DDoS protected. This means great uptime for your pages and more reliability. Users also have the option to use a custom domain if they wish to.

If you’re running a successful online marketing campaign and plan on using Leadpages for making new landing pages, rest assured that the traffic will be handled and the website will stay fast no matter the amount of traffic you receive.

Unlimited Leads and Publishing

Leadpages allows users to create an unlimited number of landing pages for all their plans. There is absolutely no cap on the number of pages you can create or the traffic you receive.

The price you choose to pay is fixed even if you scale up your business and start gaining more traffic. Users can utilize this to their advantage by setting up multiple landing pages with variations to generate more leads faster. The same applies to pop-ups and site alerts.

Content Delivery System

The content delivery system makes it convenient for users to serve their digital products on landing pages. Newsletters, pdfs, and downloadable resources can be easily set up with the platform’s dedicated content delivery system.

The fact that it requires no effort to set up user downloads on your website is quite amazing. Traditionally it requires some backend coding and some form of a database set up to host files and serve them. Leadpages save users time and allows for more interaction between businesses and their web traffic via the use of digital goodies.

How to Improve Landing Page Conversion?

Landing Page is an opportunity for the company to tell the most important thing about their products and services. In this post, we’ll go over 10 landing page sections that help web pages generate more leads.

StartupTalkyRishabh Rathi

What else does Leadpages offer?

Leadboxes

Leadboxes are a quick and easy way to create pop-box boxes for your business. The process for creating one is the same as for a landing page except with a few extra options such as triggers and positioning. These are a great way for getting more engagements. Creating an attractive and interesting pop-up with the editor is much easier than you might expect it. Leadboxes is a cool way to market your subscription-based services, newsletters and dynamic data with your users.

Leadboxes lets you create pop-ups for any action you would like to add

Get Started with Leadpages now!

Leadlinks

Leadlinks is a link generator that helps your email marketing. It can be integrated with any popular email marketing tool and CMR to create links to specific pages or perform certain actions.

Think of those big buttons that appear in emails along with some additional links. Leadlinks can help you create similar links to subscribe to newsletters and updates directly from an email without any signing up.

The links are customizable and easy to integrate with mail tools. Users can also collect stats such as clicks, traffic location and dynamic data.

Leadlinks generator

Leaddigits

Leaddigits in an intuitive way to expand your marketing into traditional ways. It allows customers to opt-in for receiving newsletters and offers as text messages. These are rarely used now that the internet is mainstream, but it’s still a nice feature to have. It can also be a way of reminding users for various reasons such as offers, pending carts, and important updates regarding your business.

Leaddigits editor lets you configure custom messages

Tagplayer – Features, Review, and Pricing

Show your visitors the right content at the right time and channel to convert them into loyal customers. Customize their experience with Taglayer.

StartupTalkyDev Kumar Padhy

Pricing of Leadpages

Leadpages keeps its pricing simple by having just three plans to choose from. The standard plan will cost you $37/month with access to all of the platform’s core features and a free domain name. The only limitations being the amount of times you can AB test and the option to use the built-in payment system.

Upgrading to the Pro plan at $79/month grants you 3 free domain names and all of the platform’s rich features. All the plans are eligible for customer support services and have the freedom to create unlimited landing pages.

The Advanced plan will cost you around $321/month that grants you up to 50 sites.

The plans are priced in a way that’s affordable for small businesses and startups alike which require a landing page to gain more traffic and generate leads.

In the case where you might need additional accounts and domains, Leadpages offers custom plans that depend on your needs so that you always have the freedom to upscale without having to worry.

Leadpages Pricing

Get Started with Leadpages now!

Conclusion

Popular CMS editors like Elementor provide similar features but the process to get started is much more complex. Moreover, it is better to have a clean and separate platform for all your landing pages. It offers a great price, useful features, and a simplistic UI for everyone.

The best part is that no code is required for all the actions and integrations that you can set up using the platform. Leadpages is a great choice to consider if you wish to up your marketing and bring in new customers.

FAQ

What is Leadpages?

Leadpages is an easy-to-use landing page builder that helps businesses create optimized landing pages without any code.

What are the features of Leadpages?

Fast page load speed, Image library, Lead backup/CSV download, Mobile responsive pages, and Online sales & payments are some of the features of Leadpages.

What is the Pricing of Leadpages?

Leadpages has three plans to choose from. The standard plan will cost you $37/month and the Pro plan will cost you $79/month and the Advanced plan will cost you around $321/month.

August 12, 2021

Flippa: Buy and Sell Online Assets

The days of retail stores have been on a decline, while online businesses and enterprises have risen exponentially in the previous years. This pandemic has also played its part in the rise of online marketplaces, whilst generating a need for online stores. Flippa helps people who requires an online store and those who want to sell websites, templates and domains by connecting them as a marketplace to buy and sell such amenities.

If you are a developer, Flippa helps you sell domains, starter templates, established websites, online businesses, and starter mobile applications. However, if you’re not so experienced in building your own online application, Flippa caters to your needs by introducing you to a variety of online business sellers, so you can decide what’s best for you.

Why sell Online Enterprises
Why purchase an Online Business
Services Offered by Flippa
Listing and Upgrade Pricing
Post Sale

Why sell Online Enterprises

Exponential spike in demand for online business.
Find the appropriate valuation for your digital asset through SDE.
Sell a blog, e-commerce site, SaaS, and make the most out of your skills.
Flippa lets you negotiate with buyers.
Flippa offers safe transaction through their integration with Escrow.com.

Flippa is an amazing platform to sell digital assets, not only for the above mentioned reasons, but also because you can showcase your experience, benefits and earnings to get the best customers which would otherwise be a hitch.

Moreover, Flippa offers you two different ways of selling your online asset, that is, by setting a fixed price, and by auction. The businesses with a valuation of about $100,000 often prefer a fixed price, while those with a greater valuation usually go for auction. Auctioning stirs a sense of urgency among the buyers since it is available for a limited time frame, and hence helps achieve a higher price for the business.

Why purchase an Online Business

Since the pandemic, demand for online business has skyrocketed.
Online business gives you a greater visibility, without any concern of location.
You can ask the seller for read only access and proof of revenue, and evaluate if it suits your business needs.
You get a thorough detail of all business prerequisites, marketing initiatives, and operational costs the business.

Buying an online enterprise, be it content based, domain, or an e-commerce site, is not just about making profit. Running online business comes with its own set of highs and lows, catering to the needs of your customers and constant maintenance of your website. You have to continually look for ways of generating more revenue, legal risks, technical knowledge to keep your enterprise updated and growth opportunities. Once your business has enough customers, the curve thereafter rises exponentially.

Services Offered by Flippa

Due Diligence

This is an assessment and verification service that Flippa offers for the online asset which a seller posts for sale. This service is offered in three different pricing, each of which focuses on a certain aspect of the enterprise.

Red Flag Report	Standard Report	Enhanced Report
Costs $1000 for one year analysis	Costs $1000 for two year analysis	Costs $1000 for three year analysis
Report is 12-15 pages long	Report is 21-25 pages long	Report is 26-35 pages long
Report analyses high-level risks and opporttunities	Focuses on risks and high-level opportunities with traffic information	Analyses detailed risks, opportunities with financial and traffic information
Preffered for enterprises with valuation upto $30000	Preffered for enterprises with valuation between $30000 and $200000	Preffered for enterprises with valuation over $200000

Flippa Finder

Flippa Finder is a service for new buyers to find the perfect product, which would best suite their online marketplace. It comes at a cost of $50 +2.5% acquisition fee, which is payable once the purchase is done. Flippa Finder offers an hour long analysis of suitable products, prices to offer, and exploring the platform along with a list of products suitable for your description with pros and cons of each. It also helps you analyse and negotiate to win the best deals.

Online Enterprise Broker

There might be various reasons to need a broker. Flippa provides affiliated brokers with prior experience in finding you the best deals, as well as showcasing your product with every advantage and edge. Sometimes, procuring the best deal is all about how your product is presented before the buyer, and sellers might not always have the best ideas in this part, which is where brokers come in. They know where to look, what qualities to present and the appropriate valuation of your product. There are various brokers working with Flippa since as long as 2010, and are the perfect amenity for those who can not find time to go through all the searching and negotiations.

Financing

Flippa offers financing solutions such as SBA loans and 401(k) business financing for small business acquisitions. The prerequisite for 401(k) assistance is a funding of $50,000 and for that of an SBA loan is a credit score of 690 or above. The financing is as easy as following three easy steps.

Undergo the assessment by Flippa to find out the perfect financing option.
Interact with a financing expert to be on the safe side.
Get the financing and start your online business.

Business Valuation

Finding an appropriate valuation for your business is at times hard. Flippa offers a free enterprise valuation tool to give insights as to increase your product’s sellability and reach through an advanced enterprise pricing model. With up to 30,000 new buyers monthly, Flippa gives you the best exposure. The sales data that Flippa uses for valuation of a business or enterprise is unparalleled. It uses the data to compare the business model, category and time for which the business has been running, so it can furnish you with a fair price.

Listing and Upgrade Pricing

The initial listing fee for your online asset is fixed for your convenience, represented accordingly:

Starter templates or websites: $15
Undeveloped or parked domains: $10
Starter applications for android/iOS: $15
Established websites: $49

Along with the listing, Flippa offers a number of upgrades to your product to boost your reach, sellability and valuation. These upgrades come with a one time charge, and offer assistance in different domains as listed below.

Premium Boost	Marketing Boost	Ultimate Boost	Newsletter Boost
Costs between $65 to $295 depending on the asking price	Fixed cost of $395	Fixed cost of $545	Costs $95 for domains only
Offers an optimized marketing exposure	Promotion on social media targeting buyers	Homepage banner for one week	Access 110000 domain buyers
Assured response time of the same day	Advertise your product through a video	200 character ad featured in the Newsletter	Get to feature in the weekly Domains Newsletter
	Listing is posted on partner sites along with blog posting

Confidential Listing

Many a times, a buyer would prefer to keep their personal information such as their business name and URL confidential. Flippa offers a ‘keep my listing confidential’ option while listing for keeping your details hidden. If you opt for confidentiality creating a listing, the buyers won’t be allowed to view your name, business name, URL, and financial attachments unless they have a registered Flippa account and have signed a Non-Disclosure Agreement with regards to your information approved by you.

Post Sale

Once the offer is accepted, the users are redirected to Post-sales Completion area. This helps in discussion over the online enterprise, its operation, its transfer and other related questions. Thereafter, the transfer of assets takes place, with Escrow for thorough protection, throughout the transfer.

FAQs

What is Flippa?

Flippa is an amazing platform to sell digital assets, not only for the above-mentioned reasons but also because you can showcase your experience, benefits and earnings to get the best customers which would otherwise be a hitch.

What is the founder of Flippa?

Matt Mickiewicz

When was Flippa founded?

2009

How much does it cost to sell on Flippa?

Flippa charges $15 per month. A success fee is payable with a successful sale. This fee is dependent on the achieved sale value.

May 16, 2021

Tag: saas revenue

How Do SaaS Startups Make Money? | SaaS Revenue Model

About SaaS

SaaS Revenue Model & Its Phases

Phase 1: The Initial Sale

Phase 2: Retention Revenue

Phase 3: Expansion Revenue

How to build a great SaaS revenue operation

Conclusion

FAQs

What is SaaS?

What are the examples of SaaS?

What are the three phases of the SaaS Revenue Model?

Is Netflix a SaaS?

Is Facebook a SaaS?

Are mobile apps SaaS?

Top 25 Profitable Micro SaaS Ideas to Explore in 2022

What is Micro SaaS?

Top 25 Profitable Micro SaaS Ideas

Email Marketing

Resume Builder

Accounting Services

Video/Photo Editing Services

Human Resource Management (HRM)

Content Management

Learning Management System (LRM)

Survey Compilation

Team Management

Customer Resources Management (CRM)

Invoicing

Healthcare Services

Fitness manager

Journaling

Web Analytics

Pharmaceutical Service

Software Solutions

Form Generator

Cookery

KPI Tracking

Tea/Coffee Round

Personal Goal Tracker

Time Manager

Habit Tracker

25. Grocery/Essentials

Micro SaaS – Features and Advantages

Micro SaaS – Limitations

Conclusion

FAQ

What is a Micro SaaS?

How can you make SaaS profitable?

What is a SaaS example?

How do I find a good micro saas idea?

Are micro SaaS startups really profitable?

How do I build a micro SaaS product?

8 Ways To Provide Better SaaS Customer Experience In 2022

Work Towards Creating a Good Impression

Begin With Ease

Be Clear About Your SaaS Product

Provide Clear Guidelines

Have an Open Communication System

Follow Real Advice

Provide Improved Services Constantly

Be Grateful

Conclusion

FAQs

How do you improve SaaS UX?

What are SaaS best practices?

What are the examples of SaaS?

What are some of the failed SaaS startups?

SaaS Pricing Guide: How to Decide the Right Price for your SaaS Product

Why Pricing is Important?

What is SaaS Pricing?

How To Price a SaaS Product?

Cost-Based Pricing

Competitor Based Pricing

Promotional-Based Pricing

Value-Based Pricing

SaaS Pricing Models

Flat Rate Pricing

Usage-Based Pricing