Revenue Streams for Your SaaS Business

Look for the New Revenue Streams for Your SaaS Business in 2022

“Don’t optimize for conversions, optimize for revenue.”

This is going to be the agenda of today’s article. Our team is here to address SaaS business executives to help them find the solution to their revenue-related worries. Diversifying the recurring revenue and entering into the new targeted markets are the keys to success in the SaaS business market. But to identify the revenue stream and target the right market that can increase the flow of the revenue is not easy. Conversions are ways to increase recurring revenue, however, it is time to move beyond if you want to beat your SaaS business competitors.

Also Read: How To Diversify Your Revenue Streams With Esports & Gaming Subscriptions

SaaS Revenue Models to Choose

SaaS is a profitable business model, but the flow of revenue highly depends on the B2B SaaS revenue model. The following are some of the revenue models for SaaS that will surely help your business multiply the revenue:

  • Freemium Model
  • Ad-based Revenue Model
  • Affiliate Revenue Model
  • Direct Sales
  • Free Software-Paid Services
  • Premium Model

It will depend on the SaaS business and which revenue model will support it. For instance, offering freemiums is a more acquisition and less billing strategy, but it does not benefit revenue streaming for all businesses alike. Even experts suggest that sometimes offering freemium can harmfully affect the worth of the SaaS product. So, select the revenue model for SaaS as per your business to maximize your earnings.

Also Read: The Challenges Of The Recurring Revenue And The SaaS Business Growth

Varying Revenue Streams for SaaS

Companies that are hunting investors for the SaaS businesses direly need diverse revenue streams to ensure their investors that the money is in safe hands. These are a few of the sideways that can boost more money into the system.

Set Up Fees

SaaS companies can charge their customers’ set-up fees. The software and business solutions that are being used in huge conglomerates are complicated. And SaaS companies providing this software need days to set the system up. So, this is the best way to earn money from existing customers. However, make it clear in the beginning to the customer that you are going to charge a set-up fee.

Upsell Add-Ons & Cross-Selling

In the SaaS subscription business market, people suggest expanding the customer base, but there is another way that will diversify your recurring revenue. You can offer new features of your SaaS product as add-ons. Or you can cross-sell these features to your existing customers. It will save the resources that you otherwise need to search for the new target market. To cross-sell or offer add-ons, you just need a new business strategy.

You will probably need to segment the customer base depending on the features that you have to come up with. When customers are segmented accordingly, you can offer them the features that are of their interest and need.

Affiliate Programs

Now that you know the way to earn more revenue from the existing customers, it is time to tell you some ways to chase and onboard new customers. One of these is to go with the affiliate program. The affiliate program for SaaS means a company will compensate the third party that will advertise to bring more traffic and potential leads for the core SaaS business. However, SaaS businesses have to be vigilant when they implement an affiliate program. There are chances of attracting traffic from relevant domains rather than the targeted domain.

Professional Services for SaaS

Today, customer care services are far more than picking up calls from customers and telling them probable solutions for their worries. Do not underestimate your SaaS customer care services. Some SaaS products are too complicated to use that the customer needs time and effort to know how to use the highly-effective platform that you have provided. So, you need to carefully monetize your customer care services. For example, offer training, customer support or onboarding services for your SaaS product and charge money for these services accordingly. You can even consult with the sales team regarding the monetization of such services. It is one of the most feasible ways to increase your revenue.

Data Analytics

Many companies offer tools for analytics as part of their SaaS product. However, companies offering SaaS products can use AI algorithms to offer their customers business analytics. They can sell analytics as another feature. Today, customer data is considered a treasure. And analytics is a way of representing customer data that can feasibly be monetized. You can combine the feature of analytics with reporting. Offer autogenerated reports to your customers, and you can charge them monthly for this feature of reporting.

White Labelling

“White Label” means the SaaS product is designed and created by company A but sold by company B. However, the brand name of the SaaS product remains that of the company A. White labelling your SaaS product is a way to diversify the revenue. For example, HubSpot offers its CRM for marketing and other business needs. And SubscriptionFlow offers integration with HubSpot to its customers. Such symbiotic relationships in the corporate world mutually benefit businesses.

Also Read: How Account Expansion Invigorates Flow of Recurring Revenue

So, these are some of the revenue streams that you can opt for in 2022. SaaS businesses can implement the strategies mentioned above and opt for the SubscriptionFlow—subscription management software to materialize their dream of multiplying the recurring revenue.