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E183: B2B SaaS Business Model Overview

by Sean Boyce

Sean discusses the important components of the B2B SaaS business model and how it generates revenue. He explains the different strategies for a subscription-based business model, including a freemium model and a free trial. While he is not a fan of the freemium model, he sees the value in a free trial. Sean emphasizes the importance of understanding the activation points for conversion from free to paid users.

Key Points

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  • B2B SaaS business model is about generating revenue
  • Subscription-based models are common
  • Freemium model includes different tiers of capabilities, some for free
  • Free trial is a good option for understanding the product’s capabilities
  • Conversion from free to paid users is important
  • Activation points need to be identified
  • Measuring conversion percentages is crucial
  • “You need to take a look at what you’re working on building and which of these options make sense.”
  • “You can measure the first and most important activation point, and that’s can you convert users that are using your product for free to a paid tier?”
  • “This is an overview of the B2B SaaS business model and probably the most important component.
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