Demand Generation

Blog Post

A Beginners Guide to the Software-as-a-Service (SaaS) Business Model

Software-as-a-Service (SaaS) is a software delivery method where the solution is owned and managed by a company, hosted on a cloud that a third party provides, and delivered to customers on a subscription basis via the internet.

This article will help you understand the fundamentals of the SaaS business model, including its strengths and weaknesses.

The Four Pillars of The SaaS Business Model

1. Centralized Ownership

The Application Service Providers (ASPs) retain ownership over and maintain the SaaS product. Instead of permanent licenses, they sell the solution via subscriptions and provide everything else their customers require, such as support and maintenance.

This helps with keeping costs low and enables companies with limited budgets to adopt newer technologies.

2. Cloud-based Hosting

Most SaaS companies use cloud hosting solutions such as AWS, Microsoft Azure, and GCP to deploy their applications. This makes it easier for them to scale fast while retaining the quality of performance when it comes to delivering the promised value to their customers.

Generally, SaaS platform developers use microservice architecture, which keeps costs lower and makes the solution easy to operate, modify, upgrade, and maintain.

3. The Subscription Pricing Model

As we briefly touched upon earlier in this article, SaaS companies bill their customers periodically (weekly, monthly, or annually). This subscription-based pricing renews customer access to the solution at a specified service level.

The nature of the tiered pricing model varies from company to company. For instance, some SaaS solutions charge based on features used, while others charge based on the number of users.

4. Internet-based Delivery 

Customers have web access to SaaS products through their local machines. However, the data is stored and processed on servers of the cloud hosting solution used by the SaaS company, usually located elsewhere.

This cost-effective, scalable, and versatile approach helps SaaS companies adapt with time while continuing to deliver world-class services to their existing customers.

SaaS vs. PaaS. vs. IaaS


SaaS (Software-as-a-Service) utilizes cloud hosting solutions managed by third parties to host software. Businesses then use the internet to deliver it to their target audience. The advantage of the SaaS application is that it can be accessed via a web browser, making its adoption simple.

Examples of popular SaaS applications include G Suite, Dropbox, and Slack.


PaaS (Platform-as-a-Service) delivers a framework for developers that is used to build applications. The servers for storage, processing, and networking of data centers are managed by third-party service providers — also known as Cloud Platform Services (CPS).

AWS Elastic Beanstalk, Windows Azure, and Heroku are some of the most prominent PaaS solutions.


IaaS (Infrastructure-as-a-Service) helps its users to monitor and maintain their IT infrastructure while giving them the freedom to scale up or out as per their requirements. IaaS keeps hardware costs low.

Google Compute Engine (GCE), Microsoft Azure, and DigitalOcean are some examples of IaaS solutions.

Source: BMC. Differences between IaaS, PaaS, and SaaS

Strengths of the SaaS Business Model

Scalable Solution

As the SaaS solution is hosted on the cloud, there are no limits on how many customers a SaaS company can serve. Furthermore, selling the solution in every country is possible, provided the legal requirements are taken care of.

The cloud hosting solution in use will take care of the new storage and processing requirements while accommodating new users in real-time.

Easily Accessible

In the olden days, customers had to purchase enterprise software, upgrade their local machine to match the recommended specifications of the software, and install it before they could start getting any value. 

Now, all they need is a computer with a stable internet connection and a license to a cloud-based tool.

Automatic Updates

SaaS solutions have made the “software update” button and waiting for it to complete before starting your work obsolete. SaaS vendors deploy new updates on the cloud, and they will be reflected in real-time on customers’ devices.

Customization and Customer Relationship Management

SaaS Providers can create multiple pricing plans to target customers of different requirements in the same or similar domains. This assists them in having a wider potential customer base while delivering economical and personalized solutions to each of them. 

Predictable Costs

The pay-as-you-use linear pricing model makes it easier for SaaS businesses to predict how much working capital is required to hit the SaaS market. This makes it easier to maintain finances and scale up in the future, as well as increase the platform's average customer lifetime value.

Weaknesses of the SaaS Business Model


It is challenging for both the business and their users to store their sensitive data on third-party servers. It is crucial for businesses to carefully go through the privacy policies before choosing a cloud hosting solution.

Longer Sales Cycle and a High Customer Acquisition Cost

The journey that transforms a prospect into a paying customer is quite long. SaaS businesses often have to spend a lot on marketing strategies for the entire sales funnel to ensure it resonates with the audience. 

High Competition

The strengths of the SaaS model make it easier to develop such a solution even with a strict budget. Due to this, every domain in the SaaS industry has a lot of players, big and small.

eCommerce, SaaS, and Matter Made

The SaaS business model is scalable, accessible, affordable, and easy to maintain. These advantages make it a great opportunity but also make it competitive at the same time.

The one thing that will set a SaaS brand apart from its competition is its marketing strategy — as it will relay its value to its target audience, motivating them to sign up for a trial.

Matter Made helps SaaS platforms achieve this objective through a strategic blend of demand generation, decision-maker marketing, paid media, and product-led growth.


Schedule a chat with us today.

Demand Generation

Blog Post

The Do’s and Don’ts of Email Marketing

We are now using email more than ever before. 

Back in 2017, people sent around 269 billion emails each day. In 2022, that figure has hit 333.2 billion — and it is projected to grow to 376.4 billion in 2025. 

Email has always been an awkward marketing medium. If you add emojis, casual language, or exclamation marks, your email will come across as very informal. On the flip side, many marketers err on the side of caution and end up coming across as cold or spammy. 

Bad email marketing also has consequences. If you don't follow email etiquette rules carefully, you can damage your website domain's health (and thus, your wider Search Engine Optimization (SEO) efforts). 

To help you master email etiquette and protect your domain's health, this article will cover the do's and don'ts of email marketing. 

Email Do’s

Here's a list of things you want to make sure you are doing as an email marketer:

  • Use a recognizable sender email address that's similar to your brand name. This way, recipients will recognize who the email is from.

  • Check if your emails are going to spam with To use this tool, add the email address gives you to your marketing list (everyone will get a unique address). Then, press "view your report." will run several authentication tests and tell you if your email passed or failed.

Source: A screenshot of the first few checks runs and their results

  • Don't send emails more frequently than every two business days. Doing so can land you in the spam folder and encourage people to unsubscribe.

  • Monitor your email marketing metrics carefully. This includes your bounce rate, open rate, deliverability rate, Click-Through Rate (CTR), list growth rate, and conversion rate.

  • Use a concise subject line that's easy to read. Try to use everyday language and stick to 60 characters or less (roughly nine words). Make sure you also choose a subject line that reflects your email's body text. 

  • Check your spelling and grammar carefully with professional tools like Grammarly and Spelling and grammatical errors can turn potential customers away, so double check for them.

  • Use to verify the addresses on your email list. This will help you spot invalid email addresses so you can remove them. 

Source: An image of sample data from's email list verification tool.

  • Make your unsubscribe button easy to find. This is mandated by the CAN-SPAM act.  

  • Monitor your results and check you are targeting the right audience. It may help to build an Ideal Customer Profile (ICP) to represent your audience. 

  • Stay within your Email Service Provider's (ESP's) daily allotment. Depending on your ESP, you may incur additional charges or penalties if you exceed your allotment.

  • Stay up to date with email marketing best practices. Best practices in emails change with new data and privacy legislation. Make a habit of checking if your marketing is compliant every quarter. This is also the kind of task a marketing project manager can help you with.

Email Don’ts

Here's a list of things you do not want to do as an email marketer:

  • Write your entire subject line in CAPS LOCK. You may annoy recipients and trigger spam filters. 

  • Use exclamation points in your subject line. According to a study of 115,886,636 emails from the book Email Subject Lines That Actually Work, the open rate for subject lines with exclamation points is 45.5%, compared to the average of 51.9%. 

  • Use common spam filter trigger words. Examples include "free," "only," "winner," "money," "billion," and "price." 

  • Use more than one Call-To-Action (CTA). Instead, direct all your readers towards a single CTA that supports your overall email marketing goal. 

  • Use large images or embedded forms. These will load slowly and frustrate readers. They are also not particularly mobile-friendly (and many, many people read their emails on a mobile-device). 

  • Attach files. Doing so will activate spam filters that are trying to protect email users from ransomware. 

  • Use any dynamic scripts within your email. Dynamic scripts include Flash and JavaScript. 

  • Use too many bright fonts, underscores, or bolded fonts. These are great attention-getters, but they can also make your email look overwhelming, unprofessional, and spammy. 

  • Purchase email lists from a third-party provider. Using third-party provided email lists can damage your sender's reputation. You may also be fined for sending unconsenting parties unsolicited emails. 

  • Mislead people with your email header or the "from" field. These practices are considered "email spoofing," and they can damage your sender's reputation and land your email in the spam folder.

Email Communication Etiquette and The Role It Plays In Your Marketing

Email marketing can be very lucrative for brands. Statistics from the Data and Marketing Association in the U.K shows that the Return on Investment (ROI) from email marketing is over 3510%

Following the email do's and don'ts in this article will help you maximize your reach with email marketing. 

If you'd like to boost your marketing further, reach out to Matter Made. Matter Made helps eCommerce brands leverage Product-Led Growth (PLG), RevOps, demand generation, and more. 

Contact Matter Made today!


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