7 Revenue Streams For SaaS Business




Software as a Service (SaaS) is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.(Just check out 7 Revenue Streams For SaaS Business Below)


One common denominator in engaging Saas business model is that, you must be deliberate and strategic about revenue and profit generation from the very beginning. Let’s quickly look into some of the revenue generation channels for Saas.

  1. Leverage on Advertising

Building a SaaS with room for advertising space and revenue is relatively easy and cost effective. This is definitely a great way to go in generating more revenue.

As long as those Ads are not perceived as annoying. Except in cases where you are charging enough to do away with Ads. This is because Ads works best only for freemium services.

  1. Up-selling nature of Saas

This is not complicated at all, it’s just common sense. Up-selling which is increasing your value, to existing customers is definitely easier than new ones. And as you up-sell, you increase your value delivery, and in return leads to more revenue generation. The increased expenditure of your customers is directly proportional to your increased value delivery. Some example of up-selling are;

  1. Need for more Storage, Speed, or Data

As the businesses of your customers and users expand, there will be need for more storage, speed, data, bandwidth, among others, which naturally comes with it costs. This is an inbound method of increasing your revenue generation without been seen as too demanding unnecessarily.

  1. New Versions

Another method of up-selling is in the case of new versions of your SaaS, even though they come with their own risk at times, but it makes a lot of sense to some businesses. However, you must be able to tactfully lead your users through this path so that you don’t appear inconsiderate and loose them.

  1. White Label Licensing

Most businesses these days basically leverage on the business of others by being a distributor or re-seller. If this is something that is mutually beneficial to you and your customers in terms of cost and pricing, then it’s worth considering. It’s also important to properly set up the license agreement to avoid any future pitfalls or breach of contract.

  1. Revenue from subscribers

Revenue generation for Saas via subscription based might not be the ultimate, however, it is essential that you will have to start from somewhere. And taking from the long term base, benefits from subscription model can be amazing at the end. This is because you enjoy benefits in perpetuity of the relationship.

  1. Include Reporting

This is more like an innovative way of increasing your revenue, while you make the job of your users easier. It is developing a model by which you can charge for reporting. A reporting model that add value to your customers gives them a better service experience.

  1. Customer Service

There is nothing wrong with charging for customer service, for customers who need additional support, somewhat like a retainer fee, to get support when they need it. As long as charges are reasonably embedded in the overall cost.

  1. Leverage affiliate Sales

Leveraging on your links and connections through affiliate sales is a smart way to go. It helps to cover more grounds that you will not ordinarily excel in. All you need do is put the whole internal and external journey, as it regards to cost into consideration.



Like it was strongly noted at the beginning of this article, profit happen when you are deliberate and strategic about it. Think of innovative ways of giving better service to your customers than your competitors and you will attract additional revenue streams, without losing your users.

This is only a few, you can come up with more ideas.


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