The SaaS Business Model

SaaS means “software as a service.” It’s a software, licensing, and delivery model where software’s licensed on a subscription basis and centrally hosted. It’s also known as “on-demand software.”

Users typically access SaaS through a web browser. If you create software or an app, you can charge a subscription fee for access to the service. Some of the companies who offer the peace of mind business model from the last article are SaaS companies.

Sometimes entrepreneurs or small business owners create some software and switch to a different business model.

For example, Nathan Barry used to get most of his revenue from writing books and offering online courses. In the last two years, he created ConvertKit and switched to the SaaS business model.


ConvertKit – ConvertKit provides the automations and email marketing tools you need to grow your blog and business.

Rainmaker Digital – Rainmaker Digital provides sophisticated website, email, and marketing automation solutions, plus expert design, content, SEO, and email marketing services.

Last Pass – Last Pass is a Password Manager, Auto Form Filler, Random Password Generator & Secure Digital Wallet App

Aweber – AWeber is an affordable and easy to use email marketing and autoresponder tool.

SendOwl –  SendOwl makes it easy for you to sell digital products direct to your audience from your blog, social media, or anywhere you can paste a link.

This business model works best if you have team support. There’re way too many elements for a solopreneur to juggle successfully.

How can you translate your skills, strengths, and gifts into software or an app? What can you offer your subscribers so they happily pay for your on-demand software? How can you make their lives brighter?

Maybe you can create an app filled with your best work and exclusive content they can’t get anywhere else. Make it robust and lively, a delightful experience that keeps them coming back for more because they just can’t get enough of it.

Maybe you can leverage some freelancers’ genius and offer support to clients who don’t have time to source and vet their own help. Zirtual offers entrepreneurs access to professional virtual assistants who do the admin work no business owner likes doing (paying bills, anyone?), which frees up time for more important work. Is there a similar service you can offer?

Remember, it’s about making people wonder how they ever lived without your service. Identify their pressing needs and craft elegant solutions to them.

Explore the SaaS business model if you have the tools and support to deliver a phenomenal experience for your clients, customers, and subscribers. Make them eager to get behind your velvet rope and soak in your genius.

Want help designing your “Software as a Service (SaaS) Business Model”? Book a Clarity session today!

Photo by Domenico Loia on Unsplash