{"id":60587,"date":"2023-07-26T22:16:00","date_gmt":"2023-07-26T22:16:00","guid":{"rendered":"https:\/\/businessyield.com\/?p=60587"},"modified":"2023-08-31T15:05:59","modified_gmt":"2023-08-31T15:05:59","slug":"saas-business-model","status":"publish","type":"post","link":"https:\/\/businessyield.com\/business-services\/saas-business-model\/","title":{"rendered":"SAAS BUSINESS MODEL: How it Works, Examples & Template","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n

A SaaS business model is a software application delivered over the Internet to provide users with easy access to their data and features. A SAAS business model is a non-physical product or service for sale through an online marketplace, cloud storage platform, or other similar platforms. Let’s have a look at a few examples of the SAAS business model and a template for creating our own.<\/p>\n\n\n\n

What is a SAAS Business Model and How does it work?<\/strong><\/span><\/h2>\n\n\n\n

A SAAS business model is an on-demand software service model that provides software and related services to customers over the Internet. Analyst Michael Farr coined the term in 2005, but it has become popular.<\/p>\n\n\n\n

The key difference between this type of business and traditional models is that instead of selling licenses for specific products or services, you can subscribe instead to a subscription that entitles you to use whatever features are available depending on what kind of account you choose (e.g., basic vs. premium). <\/p>\n\n\n\n

This allows businesses not only to save money but also avoid having large upfront investments in hardware or software licenses when starting because there’s no upfront cost involved.<\/p>\n\n\n\n

However, some companies may still need capital funding before they’re able to make any profit from their venture – though not necessarily from subscriptions alone.<\/p>\n\n\n\n

For example, suppose someone wants to only certain features within an application such as Microsoft Word. In that case, this means paying less than buying one license that includes all functions within both versions (basic vs. premium).<\/p>\n\n\n\n

SaaS Business Model Examples<\/span><\/h2>\n\n\n\n

The following are the Saas business model examples<\/p>\n\n\n\n