SaaS or ‘Software as a Service’ is being used rigorously in current business ventures as it provides more accuracy and vision to any business project. Interestingly, with this solution, the importance of installing the hardware devices to run the data and different applications has lost its importance. It is a very selective section of cloud computing, through which the future business data collection process can be simpler than ever. SaaS is a very profitable genre in the field of futuristic business ventures, and thus a question may arise about the SaaS business, and that is what could be the revenue stream for such business enterprise, or in general words, the earning process for the SaaS business!
Unfortunately some people believe that there are no such good ways of earning revenue for Saas business and if there are some sources, those are very minor in their conducts. Interestingly, the reality and the current situation are otherwise, and there are a number of ways in which the SaaS business can earn its revenue. ‘Payment’ to get the software is not the only mode of earning, and the enterpriser of this business can earn great revenue with multiple options, without stressing out on particular section of the business venture. Here are some of the solutions:
Set-up Cost and Upsell
A Set-up cost is one of the common ways to earn the revenue and it gives clarity to the providers about the authenticity of the users and determines the commitment too, thus it is a great way to explore the minds of the customers and the possible future relationship with the users. On the other hand, the set up earning can actually lead to the upsell market for the SaaS providers. It is one of the easiest ways to enhance the revenue through the existing customers, and it is a great business opportunity, as this way of earning lessens the dependency of the brand on the pressure of adding up new customers. To maintain the continuity with the existing customer’s certain facilities like offering additional storage, speed, data, bandwidth or the frequency are enlisted as ‘services’. Though, this process of earning is largely dependent on the benefit of the product or the service, along with the need or requirement of the client.
It is another great way to boost the earning for the SaaS business as, through this process, it becomes a two-way system to get business, where the users advertise or sell the product. As the process is dependent on the users, it is not dependent on any other external way from the business providers’ side. The SaaS providers are only responsible to pay the commission after getting the revenue. So it is definitely a win-win situation for the SaaS providers.
Customer Service and Information Charges
Saas providers are on the verge of adding a new structure for great revenue, which are customer service and information charges. As with this system, the business providers offer to sale some of the researched information to the clients. It is not very difficult for the clients to value them by paying the money as they are getting a great help, and interestingly it can work for the clients to cling to the services which can create the path for more business. Basically, a great customer service is the key to earn good money and with the satisfaction of the customers; the process can be on the loop for a great revenue system.
Advertisements are the most common sector of earning money, and it is the best way of earning through the free version users, but not very apt for the paid customers. As the paid customers already pay a certain amount, adding advertisements can create a negative impact on them. So even if the ads are there, they must be in a way that looks less annoying for the users.
This is rather a complicated but effective method of earning lucrative revenue. If the SaaS can coordinate or work with other software applications, the importance of it can rise to a whole new level. This work model can do magic for some of the users and it can have a great value or earning in the future. But this great system comes with certain risks, and the reason is, the amount of money invested to create and run it. But if the developers can be assured of its service and the demand of the customers, it can turn out to be a great money-making option.
When some of the SaaS is so apt that the potential customers want to avail it for their business purpose, the tie-up with the providers or the reselling of the product can be beneficial form the point of view of the revenue. This process is known as the White Label Licensing.
At the end of this discussion, the conclusion is, a better service can open up new trails for Revenue Streams for SaaS Business. SaaS is not a new concept, but the vast implication is definitely new. So there are a number of scopes yet to be explored by the developers of this new business. Thus, the future and the success of SaaS business is dependent on exploring various ways for SaaS revenue, and with more innovative ideas for the revenue, the market of SaaS business will be more strengthened to touch the zenith.