Why do most developers build SaaS products? To solve their own problems. But what if you also want to sell your SaaS product? Where do you start? The answer, an existing SaaS marketplace.
What is a SaaS Marketplace?
A SaaS marketplace is a platform that offers cloud-based extensions to its users. These extensions are often referred to as applications, add-ons, or plugins. The purpose of these extensions is to supplement an existing product. Or, provide developers with an easier way to build their products. These extensions can be free or paid.
For example, Heroku is a platform as a service (PaaS). It enables developers to build applications. Heroku provides an elements marketplace. This is where developers can buy add-ons, buttons, or build packs. These tools help developers build applications faster and easier.
What are the benefits of launching your SaaS product on an existing marketplace like Heroku? Let's find out.
1. Built-In Distribution Plan
Marketing is often described as the hardest part of SaaS entrepreneurship. You're not a marketer, you're a developer. It's difficult to know how to organically market your product to users.
A SaaS marketplace can provide you with a built-in distribution plan. Heroku is a well-known, reputable marketplace with existing website traffic. You can take advantage of that traffic by listing your product in a relevant marketplace category. Ta-da, your product is instantly searchable on an established website.
2. Customer Validation
There are three add-on release stages when you launch a product to Heroku: alpha, beta, and general availability (GA).
The first stage is the alpha stage. At this stage, your product is only available to you and individuals that have been given access. These individuals are likely product testers that you've asked to trial your product and provide feedback. During the alpha stage, your product is not yet publicly available in the Heroku marketplace.
The next stage is the beta stage. To advance to the beta stage, you must have at least 15 users that have tested your product. Now, your product can be publicly listed on the Heroku marketplace as a free trial. During the beta stage, it's a good idea to continue to ask for feedback and improve your product.
The final stage is general availability (GA). Before you can move on to the GA stage, you must have at least 100 users that have tested your product. Now that your product has been tested and validated, you can start charging users. Congratulations!
Why does this multi-stage release system work? It requires that at least 100 users test your product before you can sell it. Thus, it's reasonable to assume you've found a good product-market fit.
3. Cost-Benefit Analysis
Marketing is expensive. According to a 2022 SaaS Marketing Guide, the average SaaS company spends between 15% to 25% of its annual revenue on marketing. If you're trying to launch your first SaaS product or a side project with no revenue, this cost is likely not manageable.
Why not tap into an existing customer base for free? Heroku already has customers that use its service. These customers are looking for products to enhance their applications. You win, and the customer wins. No need to launch your product into the abyss of the internet.
4. Simple User Integration
Heroku users need Heroku-specific solutions that are easy to install and set up. The first place that Heroku users will look to solve their problems is the existing marketplace. These products will be easier to use and faster to install.
For example, Heroku uses containers called "dynos." Dynos have ephemeral filesystems. This means that files that are not part of an application's slug are lost when a dyno is restarted or replaced. If you design a product that integrates with Heroku's ephemeral filesystem, then you've solved a Heroku-specific problem for users.
5. Easy Billing Process
Have you thought about how you're going to bill customers for your product? What about billing security? When you launch your product on Heroku, billing is taken care of for you.
Heroku allows you to price your product as a monthly subscription. You're able to add varying tiers to this subscription. Your customers will be automatically billed each calendar month. Heroku will also pro-rate any billing if a product was used for less time than the entire month.
No need to write and integrate complicated billing code. Let someone else handle the headache of billing for you.
Is an existing marketplace right for you?
Marketing takes time and money that you may not have. This is especially true if you're launching your first SaaS product or a side project.
Marketing also requires learning a new skill that may not interest you. Let's be honest, marketing is hard work, and it's not for everyone. If your passion is building products, then let a marketplace take care of the heavy lifting for you.
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