SaaS and Software

SaaS Business Model: Learn How It Works and How to Measure If It Does

Marie Liechman

With more than 15,529 SaaS companies registered on Crunchbase and 12 times growth rate since 2010, it's okay to say that SaaS is a business model of the 21st century. So, let's discover, why does everyone want to be a SaaS company?

What is SaaS?

SaaS (Software as a Service) is software hosted on the cloud. It can be accessed via an internet browser, mobile application, or desktop app. SaaS is provided to users on a subscription basis, which means they have to pay a recurring fee monthly or annually.

SaaS revenue streams
SaaS companies typically have a few revenue streams in addition to subscription. Let's look at all of them.

Subscription
Recurring payments are the main revenue-generating stream of SaaS businesses. This stream is fluctuating and varies from month to month (depending on your pricing model and customer satisfaction). People continue to use the app as long as it delivers value.

Upsell
You can upsell to existing customers offering them more storage, more data, additional features, or more accounts.

Software setup
You may charge for software setup. This revenue stream not only adds to the profit of your SaaS but also enables a customer validation process. You need to approach setup fees carefully. It works better for enterprises (big clients) with a lot of data.

Customer support
You can develop different levels of customer support and charge for this service. Customer service is an important and expensive part of any business. And, we consider it to be part of the SaaS value proposition so it might also be included in the pricing model.

If you want to read some more about key metrics of SaaS businesses, you can check out this blog post here: https://www.eleken.co/blog-posts/saas-business-model-learn-how-it-works-and-how-to-measure-if-it-does.

Will every business evolve into a subscription business model?

In conclusion, software as a Service business model is a win/win for customers and businesses. For businesses, SaaS scales fast, generates recurring revenue, and gets managed easily. For customers, it offers convenience and reduced investments.

Customer demand is changing. They are more willing to pay for access to the product or service in smaller amounts rather than paying lump sums up-front. Customers enjoy not only lower costs but also constant upgrades of the software and easy access to new features and cutting-edge technologies.

There is a luring opportunity for every business to evolve into a subscription business model. If you want to keep your product viable and generate constant profit, regardless of where you are, you should start considering this option.

The transition may be expensive at first, but you can reap benefits very fast as soon as you choose the right pricing model and set up your metrics.

Marie Liechman

New Articles About SaaS 2021

Marie Liechman 2021-03-09

Software-as-a-service (SaaS) is becoming the most popular choice for companies looking for accessibility, functionality, and versatility in the aggressive business environment. Here are the best articles I've found on the internet this year: Web Design Examples - https://www.eleken.co/blog-posts/web-design-examples-of-usable-responsive-and-high-converting-websites In this article, you will take a look at effective web design examples that display usability, responsiveness, and high conversion. Blue Ocean Strategy - https://www.eleken.co/blog-posts/blue-ocean-strategy-grow-your-business-without-having-to-compete Very often, startup owners who come up with an innovative product don't know where to start and how to implement all their thoughts into a real product that speaks its value. Here you will learn how to grow your business without having to compete Average SaaS Growth Rate - https://www.eleken.co/blog-posts/average-saas-growth-rate-brief-guide-for-startups Among various business metrics, there is one that should always be top of mind. In this article, you will learn about the growth rate and how to use this indicator to measure your business results. How to Build a Minimum Viable Product - https://www.eleken.co/blog-posts/how-to-build-a-minimum-viable-product-and-save-your-budget In this article, you will learn what is an MVP, what are its main types, and how to build a minimum viable product to validate your idea and spend minimum resources.

What is Software as a Service (Saas)? List of Top Saas Companies and Products to watch in 2020

Jerica madinson 2020-02-18

Welcome to the concept of running business from third-party infrastructure.

No more need of downloading and configuring hardware/software or even middle-ware.

Plug and play has moved beyond the four walls of office.

Cloud is the new place to-go for businesses all over the world.

SaaS- Software as a Service- is here to stay.

Top SaaS Companies and Products Top SaaS Companies SaaS product SaaS companySaaS softwareSaaS servicesSaaS applications

What Is a SaaS Marketplace? Why Is It Important in Software Marketing?

Solution Suggest 2021-07-16

Learn what SaaS marketplace is and how SaaS marketplace is going to be the new marketing strategy for software businesses to get more traction to business.

What Is a SaaS Marketplace?

Why Is It Important in Software Marketing?

Tips to Create a Software as a Service Business Opportunity

Dmitriy Reshetov 2018-10-24

In today's digital world, online-based tools are becoming increasingly popular as traditional IT systems are being outdated by the cloud. Learn how to seize the business opportunities the SaaS market has to offer.

Discover the Must-Have Instant Messaging Apps of the Future in 2023

Charanreddy 2023-07-24

As of 2023, the world of instant messaging apps has continued to evolve, offering users a wide array of choices to stay connected and communicate seamlessly. Additionally, the secure mobile messaging app boasts end-to-end encryption, ensuring that all conversations and shared content remain private and secure. WhatsAppWhatsApp has long been a dominant player in the instant messaging arena, and its popularity has only grown in 2023. ConclusionIn 2023, instant messaging apps have continued to redefine how we communicate, with Clap Messenger standing out as one of the best choices. Ultimately, the best instant messaging app depends on individual preferences, specific needs, and the desired level of security and convenience.

Digital Marketing For SAAS Products Services

ProMarketo Digital Marketing Agency 2021-07-28

Hire Your Pro-Digital Partner to Grow Your SAAS Business.

Grow your business many-folds with one of the most reliable digital marketing company in Bangalore India.

To know more visit our page : https://promarketo.com/digital-marketing-for-saas-products-service

WHO TO FOLLOW

MORE FROM AUTHOR

7 Things to Know Before Taking a Remote Developer Job

Marie Liechman 2021-09-12

Why Your Website Should Be Mobile-Friendly?

Marie Liechman 2021-09-06

Mobile Devices vs. Web Platforms

Marie Liechman 2021-04-27

Web Design Animations in 2021

Marie Liechman 2021-04-21

Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.

Press enter to search

Best Ideas to Start a SaaS Business in 2022

Andrew Rudy 2021-11-05

Software as a service, or SaaS, is one of the most promising business models in 2021 - 2022. It’s popular among entrepreneurs, investors, and customers alike. Learn about the most promising ideas you can tap into to build your own SaaS startup and make it successful. In this article, we talk about all the ins and outs of building a SaaS business and the industries that have the largest demand for SaaS products https://www.mobindustry.net/blog/10-ideas-to-start-a-saas-business/ TRANSLATE with x English Arabic Hebrew Polish Bulgarian Hindi Portuguese Catalan Hmong Daw Romanian Chinese Simplified Hungarian Russian Chinese Traditional Indonesian Slovak Czech Italian Slovenian Danish Japanese Spanish Dutch Klingon Swedish English Korean Thai Estonian Latvian Turkish Finnish Lithuanian Ukrainian French Malay Urdu German Maltese Vietnamese Greek Norwegian Welsh Haitian Creole Persian TRANSLATE with COPY THE URL BELOW Back EMBED THE SNIPPET BELOW IN YOUR SITE Enable collaborative features and customize widget: Bing Webmaster Portal Back

Switching To SAAS Platforms: Why Migration Is Necessary?

way2smile solutions 2021-06-17

Shifting to saas platforms is highly useful for your business.

Take a peek into the diverse benefits of saas as you read below!

Learn More at - Switching To SAAS Platforms: Why Migration Is Necessary?

HR Software

Ajay Singh 2023-11-20

The Evolution of HR Software: From Legacy Systems to Next-Gen SolutionsHuman Resources (HR) management has significantly transformed over the years, owing much of its efficiency and effectiveness to advancements in technology. Rise of Legacy HR SystemsThe 1980s and 1990s witnessed the proliferation of more sophisticated best HR software solutions, marking the era of legacy systems. Companies like Oracle and SAP introduced ERP solutions that encompassed HR functionalities, marking a significant shift in HR software development. Transition to Web-Based SolutionsThe emergence of web-based HR solutions marked a significant milestone in the evolution of HR software. The evolution of HR software has not only automated and streamlined HR processes but has also transformed HR into a strategic partner in driving organizational success.

Best SaaS Software Development Services

mitchel henry 2019-12-11

It is the best alternative to standard software installation.

We at Logicspice, SaaS software development company provides the SaaS solutions to small, medium and large enterprises.

We have experienced developers who have efficiently developed SaaS application which will help to reduce the overall operational cost.

We assist our clients to bring their application to SaaS model.

Software as services used in many businesses like Content management system (CMS), Customer Relationship Management (CRM), Human resources (HRM), Accounting.

Don’t worry if you are planning to develop a custom SaaS solution, our experts will take care of development of an application within a certain time frame with advanced features.

Functional vs Non-Functional Requirements: what is the difference [Ultimate Guide with Examples]

Maya Krapivnyk 2021-01-15

Once you have an idea for a future product, the next step in its implementation is to create a list of product requirements.

Mandatory requirements include business requirements, user requirements, functional and non-functional requirements, and implementation requirements.Functional and non-functional requirements are paramount.

The first ones determine how the system should function, what additional software should be integrated, what access levels are set, determine rules for storing and processing data, and much more.On the other hand, non-functional requirements view the system from the user's point of view; they describe the attributes of the system (color, quantity, quality).Each of these two types of requirements is vital to the product you are to develop.

The more precisely the requirements are described at the very beginning of your development path, the more chances you have to create a quality product the first time while saving your budget and gaining time from competitors.Want to know where to start and what exactly to consider when compiling a list of requirements?

Read our detailed article on functional and non-functional requirements for software products.

Know what your quality product should be like.https://ddi-dev.com/blog/programming/functional-vs-non-functional-requirements-what-is-the-difference-ultimate-guide-with-examples/

Empowering Success with of Building Software Product

Ace Infoway 2023-06-29

Did you know that businesses that invest in building software are 2. In a landscape where innovation and efficiency are key differentiators, businesses that harness the power of custom software solutions gain a substantial competitive advantage. From increased efficiency and productivity to enhanced customer experiences and scalability, here you will explore 10 compelling reasons why building software is absolutely vital for achieving lasting business success. Explore the 10 compelling reasons why building software is vital for your organization's growth, efficiency, and competitive edge. From turbocharging efficiency to outshining competitors, we've got 10 rock-solid reasons why software is your secret weapon.

Securing Your SaaS Applications: Best Practices for Cloud-based Security

Top Developers 2023-05-26

With such growth, it becomes critical to ensure that SaaS applications are secure and protected from various cybersecurity threats. Best SaaS security practicesBelow are the eight best SaaS security practices to help organizations secure their sensitive data and information. When creating cloud applications, software developers should keep security in mind throughout the entire process of software development life cycle. Endpoint security considerationEndpoint security is the practice of securing the devices that have access to the SaaS system. Most software development companies with global recognition and accreditations follow the standard software development guidelines to ensure the security of SaaS applications.

Head Towards SaaS Subscription Management Software for Uninterrupted Business

Para Adam 2019-11-01

Business models are considerably evolving with the technology, and when it comes to choosing the right choice for your business, you have to consider the long term benefits that will have a strong impact on your overall business later wards.

The most projecting reason behind using the SaaS subscription management software is its ease of providing services to businesses and end-users without taking the burden of maintaining infrastructure.According to a survey, 16 % of the business companies were using the SaaS subscription management software back in the year 2016 and the adoption is expected to increase this year.

This means that companies are relying on the best subscription management software for their business processes and getting their requirements done.Benefits of using SaaS Subscription Management SoftwareFlexible payment methodsHaving said that, one exclusive benefit that the SaaS subscription management software provides users with is its pricing strategy.

It enables users to pay only for those services they intend to use rather than paying for the complete software.No Operational CostOne more benefit that the SaaS subscription management software brings on the table for its users is, there is no need to think about managing hardware related issues.

And due to the nature of cloud computing in SaaS subscription software, it enables your business to operate at the forefront of software development, which means that shifting from the regular software will not only benefit the company's operational budget but also create a considerable increase in efficiency, productivity, and accessibility of business operations.Apart from the cloud technology that SaaS offers to its users, there are certainly other elements that need to be considered while shifting towards the best subscription management software which isTime ManagementWhile you deploy a cloud-based system across your subscription business you do not need to invest additionally on hardware.

As the cloud solution deployment time is nothing as compared to on-premise systems.

Is Chrome Remote Desktop superior to TeamViewer?

Troop Messenger 2023-01-31

When it comes to remote desktop software, there are many options available. Two popular choices are Chrome Remote Desktop and TeamViewer. In terms of performance, TeamViewer is generally faster and more reliable than Chrome Remote Desktop. In terms of pricing, Chrome Remote Desktop is completely free, while TeamViewer has a free version with limited features as well as paid options that offer more advanced features. In conclusion, while both Chrome Remote Desktop and TeamViewer have their own unique features and benefits, the choice between the two will largely depend on individual needs and preferences.

SaaS Development – Complete Guide

Elena Petelko 2019-10-23

The popularity of SaaS product development is growing extremely fast. It has become one of the frequently used and reasonable approaches to launch new software products. This business tactic is known for the number of distinctive advantages. Both businesses and customers have benefited from them. Take a moment to check out the complete guide on SaaS development in our article.

Micro-SaaS Guide with 10+ Unique Micro SaaS Examples

Sumatosoft 2022-10-13

The SaaS industry has grown rapidly over the past ten years and is anticipated to surpass traditional enterprise software in the years to come. We, at SumatoSoft, have analyzed and presented insightful data in this guide through which you’ll learn about the escalating popularity of micro SaaS and in what aspects micro SaaS is different from SaaS tools. Table of ContentsThe goal of this article is to help you learn aboutWhat is Micro SaaSDifference: SaaS Vs Micro SaaSWhy to Build Micro SaaS BusinessCornerstones of Micro SaaSCornerstone #1: An IdeaCornerstone # 2: Pricing ModelsCornerstone # 3: MVP10+ Unique Micro SaaS ExamplesConclusionWhat is Micro SaaSTyler Tringas was the pioneer of the concept of Micro SaaS in the tech industry and his business storemapper is one of the practical and fundamental examples of micro-SaaS model in real-time. The main cornerstones of micro saas are:Cornerstone # 1: Generating IdeaBrainstorming an appropriate idea for micro SaaS is the foremost and essential step. com/Key Idea: Key idea of SolidGigs is to provide thoroughly researched job postings to freelancers.

Which are the best SaaS development companies in Bangalore?

Goteso LLP 2019-06-13

Goteso is the best SAAS Development Company in India and USA.

If you need any kind of CRM, business software into the SAAS model then get a free consultation at [email protected] or via call at +91 94781–87006

Calling all surveyors, construction firms, and retail stores! Unlock the power of X-Booker for streamlined workflow management

Dania Taimuri 2023-10-17

In the dynamic and rapidly evolving landscape of contemporary business, where every moment carries weight, efficiency emerges as the linchpin of success. It is within this framework that X-Booker takes center stage as the ultimate instrument for optimizing your business operations. With X-Booker, bid farewell to the arduous grind of manual tasks and usher in a seamlessly integrated workflow meticulously engineered to amplify productivity. Beyond the realm of day-to-day operations, X-Booker is primed to offer comprehensive analytics and reporting, providing you with invaluable insights to fine-tune your strategies and drive exponential growth. Dive deep into the data, uncover trends, and make informed decisions that set you on the path to unrivaled success.

Empowering Small Businesses with SaaS Solutions: A Comprehensive Guide

dooninja 2024-02-08

One powerful tool that has revolutionized the way small businesses operate is Software as a Service (SaaS). Moreover, SaaS solutions are typically designed with user-friendliness in mind, making them accessible to small business owners and employees with varying levels of technical expertise. From accounting and payroll to marketing automation and collaboration tools, the range of SaaS solutions available to small businesses is vast and diverse. By leveraging the latest technology and innovation, small businesses can improve efficiency, enhance productivity, and ultimately drive growth and success. In conclusion, SaaS for small businesses represents a game-changing opportunity for entrepreneurs and small business owners to harness the power of technology to achieve their goals.