Whether you offer a B2B or B2C product, there are many benefits to selling your product using the SAAS model. In this blog we have highlighted two main reasons why selling your software product as a service is a benefit to your business:
- Recurring Revenue
While there are more reasons to apply the SAAS model to your business, we will focus on these two in this post.
1) Recurring Revenue
Once your product is ready to be released and your sales teams starts to onboard customers, you will begin to see revenue trends. Over the lifecycle of your product, you can apply predictable revenue models as subscription spend is tracked on a recurring basis (monthly, yearly). With recurring revenue models applied, the team can use this information to scenario plan for the future based on contract value and lifetime expectation of each contract.
Another benefit of the SAAS model is that cloud-based technologies, such as SAAS applications, are extremely scalable. Once the product is tested and ready to be released to the market, companies can provide free trials to entice more users to try the product and eventually become a paying customer. As the software product did not require many fixed costs during development, such as a brick and mortar building, nor does it cost more to send additional licenses, companies have the ability to reach users en masse.
While there are countless other benefits of businesses selling software as a service (SAAS), two major benefits are recurring revenue and scalability.
At NachoNacho, we have created a marketplace connecting both sellers and users of SAAS products, whether the product is for supplier management or a customer relationship management software.