Software-as-a-service is one of the most commonly used business models in the Silicon Valley. It reduces the upfront cost for the user, but it has a serious effect on cash flow.
Well-known examples are:
Salesforce
Magento
Surveymonkey
Teamleader
Before you start
Check if software responds to real needs
Competition analysis (crowded market).
How to start?
Create an MVP that is free in order to test the product’s appeal and find ways to improve it.
What are the key success factors?
Convert free users to paying ones
Attract enough clients
How to cope with the threats?
Cheaper one time payment solutions
Add extra services/features with subscription
The user no longer finds the sofware relevant
Connect with the user in order to make the product relevant again
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