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Could SaaS & Netflix Have Anything in Common?

by Fred Ferguson
6 replies
I have been on the forum for almost 5 years but this is the first time I created a post like this. I have become quite addicted to IM software and love it! Recently it’s the hosted (Saas) stuff that has got my attention so this year I have bought some awesome white label/agency versions.

My thinking was I’d sell IM software solutions locally to offline businesses but now I’m thinking about creating something loosely based on the Netflix business model.

I’m wondering how well or NOT a low priced monthly subscription software business would do in this day and age. I see continuity models in almost everything but for the stuff I’m talking about it’s either buy or not.

All feedback will be valued and appreciated!
#business ideas #common #continuity income #members or subscription #netflix #saas
  • Profile picture of the author kilgore
    I'm trying to figure out what you mean. What exactly is IM software? There are all sorts of software that one may or may not use for internet marketing -- from analytics to email to websites to accounting to graphics to... Well, you get the idea. And what exactly is the "Netflix Business Model"? Streaming movies? Creating original television programs to compete with traditional television studios? Or do you just mean having a monthly fee? Because that's not a business model, that's just a payment plan.

    As far as creating a "low priced monthly subscription software business", if the value you are creating for your users is greater than the amount they are paying for your software, I'd think that your software should stand a good chance of being successful. But that's not unique to SaaS -- that's just standard business. And as I said, there are plenty of types of software that may or may not be useful to other businesses.

    If you have something specific in mind and think it could be of value to others, by all means pursue it. But if you're just trying to cash in on the latest buzzwords my guess is you're going to have a lot of trouble pulling something worthwhile together. There is plenty of SaaS software already out there. What are you going to do that others aren't already doing?
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    • Profile picture of the author arrival7
      Im a little confused about question as well. What types of software are you referring to or comparing to Netflix?
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  • Profile picture of the author Fred Ferguson
    Some of the software I was talking about is Profit Canvas, ClickBack Returns, Social Surveys, Timeline Optins, Brett’s circle, iconLead, Social Mobi Videos, Social Mobi Deals etc.
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    • Profile picture of the author luketr
      The reason why Netflix does so well with its model (ie. high monthly retention) is not just because of its low price, its because it just works & delivers exactly what everyone is expecting.

      What are your potential customers expecting? Results.

      If you can sell to talented creatives who can already have the skills to use the SaaS well or you could impart upon your potential customers the knowledge of how to use those whitelabel tools successfully then you've got yourself a winner. Otherwise, even if you do get customers to sign up to use those tools at $x.99/mo, without seeing results, they will undoubtedly end up cancelling.

      So that leaves you with a couple of options:
      • Set a high monthly charge and enter the venture expecting a fast customer churn rate
      • Find a monthly charge that allows you to do the work for them (guessing this one isn't too appealing for you)
      • *my favourite* offer a super low monthly charge or even a number of free months IF they purchase your well priced one-off training video series on how to get the best out of the tools
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      • Profile picture of the author Fred Ferguson
        Originally Posted by luketr View Post

        The reason why Netflix does so well with its model (ie. high monthly retention) is not just because of its low price, its because it just works & delivers exactly what everyone is expecting.

        What are your potential customers expecting? Results.

        If you can sell to talented creatives who can already have the skills to use the SaaS well or you could impart upon your potential customers the knowledge of how to use those whitelabel tools successfully then you've got yourself a winner. Otherwise, even if you do get customers to sign up to use those tools at .99/mo, without seeing results, they will undoubtedly end up cancelling.

        So that leaves you with a couple of options:
        • Set a high monthly charge and enter the venture expecting a fast customer churn rate
        • Find a monthly charge that allows you to do the work for them (guessing this one isn't too appealing for you)
        • *my favourite* offer a super low monthly charge or even a number of free months IF they purchase your well priced one-off training video series on how to get the best out of the tools
        This one is along the lines of what I was thinking except for the training videos part which is a very cool idea... I was thinking about something like $10/month and keep adding to the software selections as more good fit white label hosted stuff becomes available.

        Thanks for the feedback!

        *my favourite* offer a super low monthly charge or even a number of free months IF they purchase your well priced one-off training video series on how to get the best out of the tools
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        • Profile picture of the author luketr
          No problem & best of luck with the venture!

          Keep us updated & let me know when the site launches. I'll show it to some of our smaller digital services customers.

          There's another thought! Once you've got it up and running, create an affiliate program for small to medium sized agencies. Small businesses are always reluctant to pay for an agency to do these sorts of services for them (often they think they can do it just as well themselves). If a company needs a website, thats an easy sell, but they may not want on going services; at least the agencies could say "hey, I know you don't want us to do it, but here's the sort of tools we would have used. Take a look, there's great instruction videos and you may feel its something you can do yourselves".

          Win-win for you and the agencies. The videos should pre-sell the benefits of the tools, they will buy and you and the agency benefit. If they are going to cancel anyway because they suck at implementation the agency may recover a lead for additional digital services - the customer has now seen your videos on how useful that software is at getting traffic/conversions etc. Agencies will push your service more as they know it could convert to them on the back-end if the customer cancels their subscription.

          SM digital agencies could provide you with a stream of constant customers - maybe not long-term renewals but there's too much volume potential to pass up at least testing it.
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