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SaaS development

A business based on a subscription sales model is eight times more valuable

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Subscription Model. When to use it?

The subscription model is a sales model in which the main feature of providing a service or product (and charging a fee) is periodicity.

The periodic settlement model allows the company to plan production volume in the long run, and in the case of online access - to develop a digital product or technology. Many companies use the subscription model only for selected services or products, e.g. Ford or Schneider Electric. More and more often,  e-commerce projects are appearing that combine product sales and delivery with a monthly subscription.

Sales in the subscription model, also known as subscription sales, is not limited by the industry, but by the needs and behavior of customers, as well as the infrastructure and readiness of the company to introduce it.

Discover the main benefits of SaaS and the transition to subscription sales:


Scalability

Scalability

Subscription sales necessitates the standardization of a digital product and delivery process, which means that business is ready to increase its scale at any time.
Customer loyalty

Customer loyalty

The subscription service is decided by loyal customers who care about a long-term relationship with the brand.
Production liquidity

Production liquidity

Subscription sales allows leveling production and deliveries in such a way that the flow is continuous. (Heijunka).
Financial liquidity

Financial liquidity

Subscription sales provides a steady income that allows the company to plan and control costs.
High value

High value

A multiplier of 8 is currently used to value the SaaS business value, i.e. for sales of PLN 100,000 per year, the valuation will be PLN 800,000.

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Certificates
  • 5 years of work with businesses in the SaaS model
  • 5 systems created and introduced to the market
  • 7 ways to sell SaaS
  • 8 times more than its sales value is worth a business based on SaaS