Friday, March 21, 2008

They really got the hang of it

Here is a list of developers who understands how to do things right:


PipeLine Deals (USA). The developers at SalesForce should study the way the people at PipelineDeals are thinking. It's a really beautiful product, with a bright and shiny concept. Straigth on, nothing but the most needed features. The truth about really great CRM systems is naturally that you should spend as little time as possibly to mange the system, and as much time as possible to manage your customers. It's this the guys at PipeLine Deals have understood.

Goodbarry (AUSTRALIA) This is the markets first real eCommerce management service. Impressive in every small detail. 

TraceWorks  (DENMARK) The people at TraceWorks have developed the markets most impressive MRM (Market Resource Management) system. Further, they are totally independent of space and media, not like the Google tools. And since most users of MRM systems like to consider themselves as independent too, the TracWorks consept is right on spot.


Look out for the SaaS sales traps

Personal sales can be expensive if you don’t have clear rules of engagement. So the first thing you need to do is to filter your lead base into 2-3 categories.

Size and depth is usually two helpful ways to help you focus your sales force in the right direction.

The other is pricing of your services. A pricing model should have 3 dimensions; Operational costs, marketing costs and recurring margin. If there is not a balance between those dimensions, your business will not be profitable, and you will need to close down.

So how to beat the $10 per user/Mo competition? Well, look around. Many developers are trying to put more features for less into their products, others try to beat them by better design and usability. Yet, others try branding and marketing.

It's not easy, but one thing is clear. It's not enough just to build a functional software, any programmer can do that.

The trick is to develop a business concept that users can understand and agree to.

How to price your services?

Pricing SaaS products will be the next big issue for every developer. Not only are prices going down in general, making it really hard for customers to verify cost vs. need, it will also mean many developers will close for business. To think that recurring revenues will solve everything is a lie. Even if internet covers the globe, most sales and marketing will still be local. And  costs money. 

Wednesday, March 19, 2008

Go high end or low end or both?

I'm having a discussion with some people I'm working with. The question is if they should remake their current product, and build a "light" team version, and price it much lower.  This is a critical issue, since a mistake can cost lots of money. Will a new simplier version cannibalize on their current position? Will current users want to downgrade?

Want to start up a SaaS portal?

There is a need for a user oriented SaaS portal service, with editorial reviews, tests and user experiences? A place where users can publish their demands, requirements and needs. Where developers could pick up and deliver solutions. It's time to turn the clock around. Who will be first to launch such a service?

How to build an effective sales funnel

Many CRM systems have one big fault. They don't operate like most salespeople do. Many times it's too complicated, like SalesForce, with thousands of functionalities, forcing salespeople to spend oceans of time administrating the system. What you should look for is CRM systems who focus on workflows, using as few interfaces as possible, delivering only the key figures you really need. Like PipeLine Deals.

Friday, March 14, 2008

Did you miss something?

If you where a car manufacturer, would you just build one single model, offer one engine size, have it in one coulor only and sell it at one price level only? Probably not. But how come SaaS developers so often only have one product, one product version one price level and only one website?

And how come so many developers have not discovered that they have a unique production advantage, compared to almost any industry type in the world? Digital products are cheap to manufacture, multiply and distribute.

If SaaS developers should think like manufacturers of consumer goods or B2B products, they would quickly start to develop product variations, website variations, price variations, feature variations. They could even present their basic products under different brandnames, different designs and coulors. Quick, easy and at low cost.

Presenting rich and variable SaaS product portfolios, with something for everyone would surely boost sales.