Chapter2:The money of SAAS ,not so earned

Autor:neo-yang Czas:2022/06/08 Czytać: 7421

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How to monetiza for free SAAS?

What’s the different of subscription and freemium?

1.The monetization of SAAS.

1.1. Subscription

You can also understand: rent instead of selling.

Try it free for a period of time, then start billing periodically, again automatically.

Perhaps this is what most people think is the most normal way.

Therefore, most companies that switch from the traditional software industry to SAAS will adopt this model. Such as Adobe, Microsoft, etc.

This also has a lot to do with the main TO B of their products.

However, this is really not the only money-making model for SAAS. Even, it may not be the most important mode of making money.

At least, all Internet-minded companies will not adopt this approach. In my personal opinion, this method actually more or less continues the idea of ​​”selling software”.

Of course, for a completely TO B SAAS, this approach is also appropriate.

1.2. Free

The Internet, in the eyes of many people, is “strange” and “incomprehensible”.

There are not only free SAAS, but many more, and some of them are the best in their class.

Such as Google’s Gmail, Docs and many other to C SAAS.

Free SAAS, how to make money?

In fact, everyone who works in the Internet industry knows it.

In short, make money from traffic and user data. Collect and analyze the needs of users, and make money by matching accurate advertisements in the right place.

In addition, the completely free mode is only suitable for to c, not for to b, and there is no need to used for to b product in this way.

1.3. Freemium 

Probably, most people who do SAAS product will prefer this model.

High frequency free, low frequency charged. The main functions are free, and the value-added services are charged.

Get traffic by free functions and make money by low frequency functions.

This model is mostly subscription-based. However, the subscription is part of the value-added services.

Some subscribe to some low-frequency functions, some subscribe to some cloud services or data services, and some subscribe to version upgrades or others.

There are also a small number of charges that are not charged by subscription, but are charged by times. This is often because the demand itself is relatively low-frequency. Subscription is not suitable for users, but it is more suitable charged by times.

2. A special

Generally speaking, companies and products that have been transformed from the traditional software industry tend to choose the first one, which is a subscription. Even if there is a free part, it is used as a “freebie”, which is just a sales strategy. And companies with heavy Internet genes tend to choose the latter two. However, there is one company that is special.