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The Business of SaaS

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Re: The Business of SaaS

#131
Slack kind of found the holy Grail of SaaS sales where they get a foot in the door like a low-touch SaaS product where employees just start using it. But then they convert this into a high-touch business with low churn after the employees convince their boss to start paying.

They basically have outsourced enterprise sales to their customers.

Re: The Business of SaaS

#132
post #126

Earlier quoted context omitted.

I'd be very eager to read whatever you post. My contact details are in my bio if I can be cheeky enough to be remembered when you do publish!

Just made a reminder note to do so! As it turns out, you’re squarely in my target audience, as “a software person with hardware ambitions.” :D Will keep you posted.

Hey Hey! intriguing...

Feel free to get in touch if you want a sounding board. As I get older I'm more concerned with being useful, so I'd be happy to be a sounding board/alpha tester.

Re: The Business of SaaS

#133
post #119

Earlier quoted context omitted.

1. App Server (all my Clojure services... and the one transient service written in golang) 2. Postgres (Master) 3. Postgres (Standby) 4. Elasticsearch server (yea, only one right now, you know, few users) 5. One linode running RabbitMQ 6. The linode running NGINX that sits in front of the app server and does all of the reverse proxying Also, 7. The linode running the marketing site (wordpress). I know, I know, I'm a…

Consolidate that all down to a single server and save your configurations in case you ever do get customers. There’s no need to be wasting $120/month when you literally have no customers at this point.

I'd disagree. Optimizing infrastructure costs is the last thing you should be worried about at the start. Your time is far, far more valuable. If it works, leave it alone and spend your time on product/sales/marketing.

Re: The Business of SaaS

#134

Slack kind of found the holy Grail of SaaS sales where they get a foot in the door like a low-touch SaaS product where employees just start using it. But then they convert this into a high-touch business with low churn after the employees convince their boss to start paying. They basically have outsourced enterprise sales to their customers.

They didn't have an enterprise division until about a year and a bit ago, so I think it's more accurate to say that they found a channel that normally only works for low-touch SaaS, but for a product and business model that can charge SMB rates.

As someone else stated in another thread here, $100k+ deals don't happen because some employees use your product. It requires an enormous amount of sales and marketing infrastructure — and just plain old time — to rally someone else's organization around the change that adoption of your product entails.

Re: The Business of SaaS

#135

Earlier quoted context omitted.

Consolidate that all down to a single server and save your configurations in case you ever do get customers. There’s no need to be wasting $120/month when you literally have no customers at this point.

I'd disagree. Optimizing infrastructure costs is the last thing you should be worried about at the start. Your time is far, far more valuable. If it works, leave it alone and spend your time on product/sales/marketing.

He has 5 trial signups after 6 weeks. Let’s be realistic here. His time is literally valueless because he hasn’t made a single sale.

Better to save money and expand if and when a paying customer shows up.

Re: The Business of SaaS

#136
post #112
post #74

Yikes, that was the best article on SaaS that I've read all year. So much great information. A few things jumped out to me as off: > Conversion rates of low-touch SaaS trials with credit card not required: > 2%+: extremely good Really? 2% seems awful. If a company signs up for your trial, they must have a problem they're trying to solve. If you don't solve 98% of peoples' problems, it seems like you have a problem ge…

Well, I've had my little SaaS up and running for about 6 weeks. - The landing page gets about 30-70 hits per day (excepting the occasional spike) -- how many of those are bots and crawlers, I wonder? - I've had a grand total of FIVE (5) trial sign ups. - No buyers yet - My linode bill is currently about ~$120/month. - Still within the free tier on S3 and Mailgun. - You know, when I'm the only one using the app, I don…

I'm not in your market, but your product looks pretty interesting.

The free trial is fairly prominent on your home page. On your pricing page, all of the free trial links are below the fold for me: https://imgur.com/a/4qsaf

You might want to move the free trial buttons higher, maybe right below "How much does Contabulo cost?"

Also, you can put cost in lowercase.

Re: The Business of SaaS

#137
post #106
post #82

Earlier quoted context omitted.

Found the course very interesting and it's something I intend to build upon. However, I've done similar stuff with rails since it has more batteries included and found it easier of course. However, this comes to mind: https://elsyms.com/the-art-of-over-engineering-your-side-pro... This was followed by a discussion on HN which a lot of people enjoy over-engineering side projects because they use it as a sandbox to lea…

Thanks a lot for signing up. In your case, I think you're best off learning each of those things from separate courses / learning material. Mobile app development and Kubernetes are simply not related at all. This Flask course focuses on building a classic web app using server side templates. It happens to use Postgres and Redis while also performing background jobs with Celery. To me that's the bare minimum for buil…

I understand your points and somewhat agree with them, and it's great advice for people who want to build a product on the side.

However what I meant is, what if building and iterating is the goal, not the means to the product? When you're building a SaaS app you have to worry about market fit, sales(as the article talks a lot about), if you're not concerned about finding users and growing, a side project app can be a great way to learn and show knowledge.

Perhaps the classic web app with server-side templates is the quickest way to launch an MVP, but what I want is a way to build something integrating as many different things as possible, a lot of companies will want to see your GitHub, if you can present a largely-complex yet well-designed application where you can showcase front-end development, backend APIs, containers and what not you're one step ahead.

I want a sort of sandbox to play with, not an actual product, would be interesting as a multi-part series course(start with simple web app, keep iterating, separate web app from server code, remove bootstrap or other UI kits in favor of self created styles, incorporate mobile, watch app, whatever you can think of. This could be a good exercise in writing maintainable applications.

Re: The Business of SaaS

#138
post #91

Earlier quoted context omitted.

Not the op, but any chance I could ping you for some advice on this soft commitments stage and your approach? edit: My details are also in my bio if you want to shoot me an email.

Ditto - be interested in this side too. If you don't want to post to all my details are in my bio. Fascinating to hear how this area is conducted.

I would be interested to learn more about this, though I suspect that this approach is actually harder. From my experience companies will not even bother to try your product unless you're already selling to consumers or other companies. You really need some deep connections in order to get anything started with a company before you have a product.

Re: The Business of SaaS

#139

> Businesses and investors love SaaS because the economics > of SaaS are impossibly attractive relative to selling > software licenses. I would be careful and not over-generalize. The statement above is opposite of what many late stage investors think of SaaS companies. Their gross margins tend to be horrible. Some are basically in the business of being an intermediary mailbox for transferring money from their custom…

I don't disagree on a lot of this but I'm willing to give businesses like Workday, Twilio and Salesforce more time to develop their business before saying the market has decided. I had to look it up, but Twilio gross margins are healthy -- 55%. AWS expenses are not really a problem for a company like Twilio, their well publicized arrangement of relying on other large tech companies is a bigger threat.

Sure, the gross margins are healthy for many SaaS companies. Take a look at the other expenses. They eat that margin, and then some, quarter after quarter, year after year.

Where does it end? Will these companies ever be profitable? I'm invested in several public SaaS companies, just following the trend...

Re: The Business of SaaS

#140

Earlier quoted context omitted.

I'd disagree. Optimizing infrastructure costs is the last thing you should be worried about at the start. Your time is far, far more valuable. If it works, leave it alone and spend your time on product/sales/marketing.

He has 5 trial signups after 6 weeks. Let’s be realistic here. His time is literally valueless because he hasn’t made a single sale. Better to save money and expand if and when a paying customer shows up.

Well, you know, I'd like to think my problem is sales/marketing and not product.
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