Ask HN: How to enter a new market with an SaaS without VC?
We are running a SaaS solution (5-figure MRR / 250 active customers) in Germany / Austria looking to enter new markets. Especially US would be very interesting as the topic, the SaaS is made for, is popular in Germany for 1-2 years already and is currently popping up in the US and other countries in the last months.
The product itself is basically a SEO tool: a TF-IDF analysis tool for analyzing existing and creating better content for websites. In addition to that, you are provided with a ranking tracker for your keywords + an onpage tool which helps you to identify technical / structural / textual & content issue on your website.
1) Is there a realistic chance to find a motivated local marketing-partner who pushes the product into the market for 2-3 years and then earns a lifetime %-share of the local revenue in his country / area?
2) Which way would you suggest to enter the US or other new markets with a small SaaS, which does NOT want to go the way through VC funding / investors?
3) Are you possibly interested? ;)
7 comments
[ 3.2 ms ] story [ 22.9 ms ] threadRather than reach for the US why not try france or spain (or the UK)
-- common currency (except for the uk)
-- Fewer time zone issues (out of band support and troubleshooting)
-- Not having to deal with US taxes (as in sales tax vs vat)
-- Gives you a chance to work out I18N l16n in a smaller pool/area
-- is your client base one that would help you out if you put up an affiliate model? "sign up french clients and your next month is free"
If your looking for "marketing partners", are you looking at folks who would fit in a "basket of products" related to what you do? If you sell razors who sells shaving cream, can you team up with someone who is local to do the CS and sales for you hear, and you do the same thing for them there?
affiliate model is an options as well. the easiest push would be through webhosting companies or marketing agencies, who offer the product as upselling product to their existing clients and get some rev-share, i guess.
regarding the razors & shaving cream partnership. the idea is generally a good one (in theory). we already have some local partners (mostly online marketing agencies), but they usually don´t have the time/capacity/motivation to push a product from somebody else for a 40% share of a (small) monthly fee, as they don´t see the value in passive long-term recurring revenue.
Im in the process of building out a product to help small businesses deal with inbound leads and CRM, moving them to conversion more quickly. Our products would not be "competitive" however my customers could easily become your customers. If I reviewed your product, and LIKED it, would I be willing to promote you to my customers, assuming I could offer them a discount and get a rev share?
Im suggesting you find a SAAS business to partner with, they see the value in long term recurring revenue, and introducing a stream of said revenue, without adding a lot of overhead. Assuming you do reciprocal marketing, at the end of any given month only one of you is going to be writing a check and thats to balance the books between the leads your generating for each other.
The only example that I can think of for these sorts of relationships was/is paypal and eBay (it is early and I need more coffee). Both shared a ton of customers, and had complimentary products did the whole merger/split thing because it looked great on paper, but didn't work in principal. If your eBay, can you find your paypal, and build a partnership rather than seek a merger?