SaaS and Distribution Channels
If there’s one thing I have learnt about building startups from the ground up, it is that distribution is a hard problem and businesses that solve for this problem first, have a higher chance of success. Many a successful products die a silent death because they can’t find a distribution channel. Esp in b2b saas, knowing where businesses most look for solutions is a critical piece. If they search on google, then google ads can be how you get visibility to your product. If they visit certain forums/conferences, then those become your distribution channels.
With the above understanding, I began exploring saas ideas and their distribution channels. I could see a lot of potential in marketplaces of famous applications (being a developer, I took most interest in github, atlassian etc). This piggy backing on giants allows one to reach the target segment faster than through the generic web.
A brief intro to marketplaces. These are of three types:
- open - like ebay (any seller, buyer can connect)
- curated - like flipkart, amazon (sellers are verified by flipkart)
- crafted - like uber (drivers work on the terms decided by uber)
An oft-sighted downside of marketplaces is the revenue model that forces revenue to be shared (30-40% in some cases). I think for someone trying to launch a quick product with no other visibility, this is a good bargain. One of my favourite online drawing tools generates 8 digits annually with 5 FTEs by being on atlassian marketplace. This allows them to keep the tool free elsewhere.
I am pretty convinced that unless one has a better distribution channel figured already, curated marketplaces are the way to go for initial product launch. If you’re building for accounting, find accounting marketplaces. For dev tools, go to github/gitlab marketplaces, productivity - go to slack, trello marketplaces. A product that uses a marketplace to amplify and can also have a standalone existence should be an ideal start for a b2b saas business, esp for a solo founder.