Friday, March 21, 2008

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.

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Hi, txs for letting me know your thoughts...