/ ideas

Collective funding for SaaS

A lot of projects, especially small or new-coming, have monetization problems. Even although services they provide are helpful. Some of them just don't have such a budget for marketing. Some missed with monetization model and didn't find a way through experiments to effective money expropriation yet.

Despite wide popularity of this problems lot of founders tried to use well-known models without any adaptation to their business scope. Sometimes that is not bad - good old school ads or time-limited subscriptions. Checked, worked. But not anywhere and anytime.

Faced this problems time to time I thought that I need to make some experiments with project moneymaking ways. Since it's hard to experimenting with big and complex schemes and this is wasting really lot of time, first idea was in selling service sliced to mini-services. It's easier to develop and implement, easier to check result and fix next steps. And we can just give it as a gift - not sorry =)

So, the first wave of experiments called "little is good enough" was successful! Although did not bring almost a penny. But noticeable was raised audience interest, even at the expense of free buns - opportunity to get something whipped them up. And it means that we are certainly moving in the right direction to the answer to "how to sell?".

To the basement of further development was mounted idea that people are different and they want to pay different amounts for the same service. Also not so rare the case that for example paid subscription user receives features useless for him in 80% and would never be used. This supports the idea that we need to sell in small pieces, among which everyone can find something important and useful.

But don't deny that in addition to concerns about user we should care about effectiveness and diversity of monetization models in project. Therefore the next experiment was the implementation of model, based on crowdfunding. This is a new trend extremely growing on the internet and beyond. Thinking about that word, came up with a simple but pleasant idea, grew up in a new monetization model for SaaS with small audience and popularity. But who knows, it may take root in the broader segment.

It is a possibility to get a service, say, for a month at the rate of "all inclusive", paying for it as much as user think is enough. This is going as follows - site creates a virtual piggy bank in which any registered user can put any amount of money. As soon as box is filled in completely (i.e. we got necessary for us sum - such as a cost of business subscription) all who participated get unlimited access to all the services for a month.

This is a common model, which of course can be modified depending on conditions and desires. We can change the composition of services or their duration - doesn't matter. It is important that every user can pay a little money and get exactly he want and even more without overpaying.

At the moment I think that this method justify itself not only for a financial reasons. This way can significantly increase the loyalty of customers and make potential customers more active.

Kirill Zorin

Kirill Zorin

I'm experienced developer and for now I working as "Head of R&D" in the middle-size company. I have a lot of ideas that I want to share with other ones. And this blog is for that.

Read More
Collective funding for SaaS
Share this