How to make money with the SaaS Business Model?

Software-as-a-Service, or SaaS for short, which has been one of the most important working models in recent years, continues to rise with the internet. With innovative SaaS services developed from all over the world, we are now more free in many points of our daily life. So what exactly are these services, also called SaaS Tools?

It is a method that allows you to rent applications and services that you normally purchase and download and are responsible for maintenance in traditional methods, with an internet connection. SaaS tools meaning Web-based software, on-demand software, or hosted software.

What are SaaS Tools?

The most important feature that distinguishes SaaS applications from traditional methods is that they free the user. Since the entire system is accessible over the internet, you can start using it directly instead of having to install or maintain software. So you don't waste time with unnecessary software management.

Whether you use it in your daily life or in your business life, many services are actually those on the Top SaaS Tools list. All services such as Basecamp, Zendesk and Wix, which are at the center of our business life, are actually evaluated under the title of SaaS Tools for it Operations.

Since the freedom provided by the model is very wide, there are different services that are very advanced in finding solutions to different problems. With Marketing SaaS Tools, you can increase the performance of the company you work with or the brand you own. These applications will enable you to better manage the team you work with, to better build the ads you will create for your brand, and most importantly, to use your time in a richer way.

Advantages of the SaaS Model for Software Developers 

If you want to develop a product using the SaaS model, this list is for you. Because, thanks to this model, you can get rid of the heavy burdens of the traditional business model and make money thanks to your service that works entirely on the internet.

● You can develop different pricing models for your service, thus diversifying your customer portfolio.

● Since the entire system will work over the internet, you can easily provide online support to your customers.

● While using the service, users use the simple interface that only you have developed. So they don't have to deal with its confusing technology.

● Since the primary type of support will be online, your onsite support costs are reduced to zero.

● Possible reductions in the number of users do not increase the cost of the business. So you can make stronger plans going forward.

So what are the advantages of the SaaS model for the users of the service?

● Since the whole system works over the internet, they can access the service from anywhere in the world, regardless of the hardware.

● As with traditional services, users do not have to deal with headaches such as purchasing, installation, management, updating, licensing, and support.

● They can choose among different subscription options that best suit their business and budget.

● As long as they have an internet connection, they can get online support from anywhere in the world.

Looking at this list, does it make much sense to make money with SaaS Tools? This is definitely one of the most popular methods of 2021, whether it's Content Marketing SaaS Tools or services developed for a different field.

Three Periods of a SaaS Business

If you have reached this point in the article, you have learned very clearly the answer to the What is SaaS Tools question. Even if you are only on the user side of these services so far, after reading this article you will have clear ideas on how to monetize using SaaS Tools. So let's take a look at what are the three stages of SaaS Tools.

All SaaS businesses, from the most profitable to the new start, go through three different stages. These stages determine whether the project will be successful or not. While all newly established companies go through the Startup phase; the main target should be the second and third steps.

Let’s dive into the three phases:

    1. Startup Phase: The first steps of the service that you will develop using the SaaS model will take place at this stage. Creating the software, making the first promotional activities of the product and most importantly, the first users' return about the product will be included in this phase.

    2. Hypergrowth: If you can get through the first months successfully, it's time for the second phase that all SaaS services around the world have entered before great success. With the second stage, you should positively evaluate the feedback from users and improve your service accordingly.

While this often means higher costs, it is a necessary step to meet the needs of the industry. If you go through this usually long phase successfully and perfect your service, you can move on to the phase that SaaS Tools enjoy.

    3. Stable Golden Goose: Now that you have left the hardest part of the journey behind, you can start growing your service steadily. When you reach this stage, your product and the resources you have will be improved, so the amount you will earn with new users will gradually increase. At this stage, you should do the resource management well and leave the rest to the SaaS model.

Open Source SaaS Tools

Do all services that use this model necessarily belong to a specific team? Of course no. There are dozens of services that have been using the SaaS model for many years and continue to serve completely open source. Whether you are a regular user or someone who wants to do business in this industry; If you want to take a look at the open source SaaS Tools, you can click here.

Let's get to that important question, which is the main subject of this article. How do SaaS Tools, including giant companies such as Spotify, GSuite, Square, make money? What models can you use to make money when you start today and produce a great service?

How do SaaS Tools make money?

At the beginning of the article, we talked about the differences between traditional models and SaaS models. One of the most important differences is the ways in which apps make money. While the most important source of revenue for traditional software is licensing fees, we have more alternatives to the SaaS model.

The main difference between the two models' approach to income is important for users. Because the licensing fees of traditional software are much higher than the rental costs of the services in the SaaS model. This puts the services in the SaaS model a few steps ahead.

Related: Learn How to make money from mobile apps for beginners

Popular SaaS Tools revenue models:

Subscriptions: The most popular method of income today is definitely subscriptions. If you pay attention to the products you use yourself, the world now turns over service subscriptions. The world's largest services such as Netflix, Spotify, Xbox Game Pass use it, as well as smaller SaaS Tools. Because, thanks to this method, the amount that users have to pay is reduced, the service becomes more logical.

Freemium (Free + Premium): Another income model that has become widespread in recent years is the model called Freemium. A model where a few simple features of the service can be used for free, but a monthly fee is charged for more advanced features. One of the best examples of this model is that Slack can normally be used for free, but that it limits it to a certain number of users.

Ads: When it comes to SaaS Tools, the most controversial revenue model is undoubtedly advertisements. Services that provide certain features to their users for free, just like in the Freemium model, can receive advertisements within the platform to close their gaps. Spotify's free subscription version is a good example.

Data: With the internet being in every aspect of our lives, we already know that the most valuable thing is our personal information. The most valuable thing SaaS Tools and social media platforms have is user data.. Because advertisers are already willing to pay huge sums of money for this information.

How to start a SAAS website :

If you already are a web developer, it will be very easy for you to build one on your own. However, you might need some help from other developers depending on the service that you intend to offer online; whether it’s complex or not.

However, if you are someone with no web development skills, you simply can pay a freelancer to develop it for you (given that you can manage to pay any amount for it).

I know this might be hard for you or you cannot afford to pay the amount of money that developers charge for such a service.

Fortunately, there is a better alternative, which is to buy a ready-made script online. You can use search for any kind of scripts on CodeCanyon.com and host it on a shared server for free or on a dedicated VPS server for a small fee like a Link Shortner. You literally can buy scripts for as cheap as $33!

One of the best cheap scripts that you can buy out there is this link shortener that will cost you just $33.

While purchasing a ready-made script, you will get an option to purchase the extended license so to be able to sell it as a service.

Selling your SAAS as a GIG

However, if you cannot afford to buy the extended license you can always sell the service as a gig. Go and list your gig on freelancing websites like Fiverr, Upwork, or on Appsumo. Thus, whenever someone buys your gig, your job is to create an account for him and send him the credentials to access your online tool.

To summarize, there is no doubt that SaaS Tools have more options for making money than traditional services. Therefore, if you want to make money with SaaS Tools, one of the most popular business models of 2021, it is the right time to take action. On this site, we will continue to produce content about both SaaS Tools and other ways you can make money online. 

If there is a specific topic you want to learn, do not forget to write a comment.

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