What Saas Is

Software as a service is a bit of a trend. Business owners, tech aficionados, and more are familiar with it in practice even if they aren’t with the name. It’s basically the licensing or provided use of software that can be accessed from almost anywhere that has an internet connection.

Software as a service is often used as a substitute for software that is used and billed on a recurring cycle.  This can be monthly or yearly and usually has the added benefit of frequent updates, improved support, and a more competitive edge. Saas development is not an easy thing to get into.  Many businesses thrive off it as it permits a pretty solid project to gain customers and grow with their customer base’s needs and wants.  It is an opportunity for live feedback and use and offers an opportunity for growth that many business models don’t offer.

For the customer, it’s convenient both for its portability/accessibility but also for how simple it is to pay for. Many operate on a subscription-based payment model which means that after initial confirmation it can be automatically billed monthly or yearly without having to go through the hassle of dealing with invoices if the software proves to be valuable.

Because the software is hosted on the hardware provided by the software developer/company, it is far cheaper than dealing with high-level hardware requirements that previously limited software’s usability.

The business itself is sustainable both for its cost-effectiveness and for the growth opportunities a business model like this offers. Saas businesses are able to offer a product that is constantly adapting to the market with reliable revenue as long as the quality is consistent and marketing and targetting is optimized.

What Pricing Model Lessons Are There To Be Learned?

  • Charge What Your Product Is Worth
  • Don’t Overload With Useless Add-Ons
  • Freemium Still Works

Saas app development relies on having a team that is both able to work well together as well as plays their role effectively. Any lapse and the other teams suffer, and it can quickly turn into a cluster problem that will drive away subscribers.

Because developing Saas business costs a fair amount of startup capital, it is imperative to look to other companies as an example of what to do and avoid.

In order for a Saas development team to thrive, it’s important to streamline what the main functionality of the software is. Too many teams become obsessed with trying to beat the competition while suffering by not focusing on what their particular software can do better. It’s better to start with one unique selling point and expand than just be a copy of another software.

That said, many teams have trouble picking a price point. It’s important to charge what the product is worth.  This means from development to marketing to subscriber close.  Looking at what the ideal client or customer wants and then developing a product to fit works better than just making something and hoping to find a target audience.

Clients should want to try the software and be converted to lifelong users because of its usefulness. Bad fit clients do little more than chargeback and look elsewhere. They take up advertising dollars and cause more customer service headaches than they are worth.

Ultimately, the main takeaways are:

  1. Saas is a solid business model for teams that can develop the product well as a cohesive unit of how it is to be marketed.
  2. Just because a client will pay doesn’t mean they are the best fit.
  3. Saas businesses are profitable because of the reliability of the product and its user base.