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The firm may be having good products but its inability to effectively manage the hyper-growth
stage can lead to business failure (Fowley and Pahl, 2016). To effectively manage the hyper-
growth stage the firm needs to choose an appropriate growth strategy. The first growth strategy
is to increase organic traffic because the greatest profit is obtained from organic search on
platforms like Bing and Google. The second stage is the introduction of new channels for
THE SAAS BUSINESS MODEL EXPLAINED 3
marketing, the business should invest in the marketing channels which will give the highest
access to customers (Fowley and Pahl, 2016). The third strategy is to add product upsells, it is
the best way to serve the current customers because it will help the firm to earn more. To
improve customer satisfaction the business should ensure that the software works faster by
removing bad codes. The last strategy is to add affiliate programs that will greatly promote
membership.
THE SAAS BUSINESS MODEL EXPLAINED 4
References
Dempsey, D., & Kelliher, F. (2018). Recurring Revenue Model Through a Cloud Computing
Channel. In Industry Trends in Cloud Computing (pp. 111-128). Palgrave Macmillan,
Cham.
Fowley, F., & Pahl, C. (2016, September). Cloud migration architecture and pricing–Mapping a
licensing business model for software vendors to a SaaS business model. In European
Conference on Service-Oriented and Cloud Computing (pp. 91-103). Springer, Cham.
Yang, Z., Sun, J., Zhang, Y., & Wang, Y. (2015). Understanding SaaS adoption from the
perspective of organizational users: A tripod readiness model. Computers in Human
Behavior, 45, 254-264.