Hosting Vs Saas – Start a SaaS vs Productized Service?
Start a SaaS vs Productized Service?
Hosting Vs Saas
Brian Casel here, answering another reader’s question. You can join my free newsletter and reply with your questions by subscribing at
Kyle asked: “What has your experience / lessons been between starting a SaaS product vs A Productised Service? Can you do both at the same time?”
Each has it’s pros and challenges (not cons).
SaaS Pros:
– More scalable long-term (exponentially scalable)
– More valuable asset
– Potentially smaller team size
SaaS Challenges:
– A lot harder to identify a value proposition (selling a tool, not a done-for-you)
– Requires a much longer runway
– Requires a wide range of technical skills
Productized Service Pros:
– Easier/faster to launch
– Done-for-you is an easier value proposition
– Shorter runway required (can grow revenue and profit much faster)
Productized Service Challenges:
– Customer growth requires team growth
– Dramatic swings in revenue
– Requires a lot more emphasis on processes (I like this challenge, and its why I created ProcessKit).
Bottom line:
I see Productized Services as “the path of least resistance” to transitioning to your first “big” business. If software is something you want to do, that’s a good next step after productized service, but it’s certainly not without its challenges.
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Hosting Vs Saas
Start a SaaS vs Productized Service?
Great video Brian
Thx Brian for sharing. Following your podcast since restaurant engine. Great work
Great video. Lots of knowledge here.
great information as always, maybe something off in the audio set up? Sound only coming through in the left channel
Thanks Brian
Love the content! Audio is only to one side of my headphones tho. I'd love to see more breakdowns like this!
2:50 missed the edit?
Seems to be no audio