So you’re trying to figure out if a company is SaaS or not-SaaS? Been there done that got the slightly confusing spreadsheet to prove it! It’s a bit like trying to decipher ancient hieroglyphs sometimes but with a little savvy and a whole lot of patience (and maybe a stiff drink) you can crack the code.

Let’s dive in!

Table of Contents

Understanding the SaaS vs. Non-SaaS Divide: More Than Just Software

The first thing we need to tackle is the fundamental difference between SaaS and non-SaaS businesses.

It’s not always as straightforward as you might think.

Need a little help figuring out if a company is SaaS or not-SaaS? 🤯 We’ve got you covered! This comprehensive guide will break down the key differences and help you classify those prospects like a pro. Dive into the world of SaaS vs. non-SaaS!

While SaaS typically screams “cloud-based subscription software” the reality often presents a more nuanced picture.

Think of it like this: SaaS is the shiny new car sleek efficient and always updated.

Non-SaaS is the trusty well-loved pickup truck – maybe not as flashy but it gets the job done in its own dependable way.

The Defining Characteristics of SaaS Businesses

Let’s get down to the nitty-gritty. A true SaaS company centers its business model around delivering software over the internet via a subscription. This isn’t just about having a website; it’s about the core product. We’re talking about applications accessed remotely continuous updates scalability that adjusts with the client’s needs and predictable recurring revenue streams for the business. Think Salesforce Slack or even your favorite streaming service. They all share these key traits. The pricing model is crucial; you’ll typically see monthly or annual subscriptions often tiered based on features or user numbers.

Moreover the accessibility of SaaS software is paramount.

Users access it through a web browser or dedicated app eliminating the need for complex local installations or upgrades.

This leads to significant cost savings and ease of use for the customer – a big selling point.

This contrasts sharply with traditional software where you purchase a license for a one-time use.

Scalability is another crucial aspect.

A SaaS solution can easily accommodate a growing user base without requiring major infrastructure overhauls – unlike on-premise software.

This flexibility is a major advantage for businesses that anticipate growth.

Identifying Non-SaaS Companies: A Wider World of Business Models

Now let’s flip the script and talk about non-SaaS businesses. This is the much broader category encompassing any company that doesn’t fit the SaaS definition. We’re talking about everything from brick-and-mortar retailers and manufacturers to professional services firms and consulting companies. The common thread here is that their core business model doesn’t revolve around a cloud-based software subscription. They may use SaaS tools internally but it’s not their primary offering to the customer.

Think of a local bakery.

They might use software to manage their inventory but their primary business is selling baked goods not software.

Or consider a construction company; they might use project management software but their core product is buildings not the software itself.

The key takeaway is to focus on the primary offering – what the company sells directly to its customers and generates its revenue from.

If it’s not primarily software delivered as a subscription it’s probably non-SaaS.

It’s not always black and white though.

Sometimes the lines blur a bit leading to a little gray area that requires a closer look.

Diving Deeper: The Gray Areas and Nuances of Classification

Here’s where things get a little more interesting.

Not every company fits neatly into the SaaS or non-SaaS boxes.

Some businesses operate in a hybrid model offering both SaaS and non-SaaS products or services.

Others might offer software but not necessarily in the traditional subscription model.

Navigating these complexities requires a keen eye for detail and a willingness to consider the full scope of a company’s operations.

Hybrid Models: The Blurred Lines of SaaS and Non-SaaS

Imagine a company offering a combination of cloud-based software (SaaS) and on-premise software solutions.

Or maybe they sell software licenses alongside consulting services.

These hybrid models present a challenge in classification requiring a closer examination of their primary revenue streams and core offerings.

The key is to determine which aspect of their business carries the most weight.

If subscription-based cloud services make up the lion’s share of their revenue they’re leaning towards the SaaS side.

Otherwise they’re probably better categorized as non-SaaS.

To further complicate things even purely SaaS companies can offer add-on services that are non-SaaS in nature.

For example a company offering a project management tool might also provide consulting services to help clients implement the software.

This consultancy side is outside the SaaS core but doesn’t make the overall business non-SaaS.

It’s always about the primary business model.

Beyond Subscriptions: Other Software Delivery Models

Let’s consider companies that sell software but don’t follow the typical subscription model.

Think of companies selling perpetual licenses for their software – a one-time purchase providing lifetime access.

While still technically software this isn’t the SaaS model.

Similarly companies offering software bundled with hardware (think printers with driver software) don’t usually fit into the SaaS categorization.

It’s also important to distinguish between businesses that use SaaS tools internally for their own operations and those that offer SaaS as a primary product to customers.

A company might use Salesforce to manage their sales pipeline but it doesn’t inherently make them a SaaS company.

The focus should remain on the company’s customer-facing offerings not its internal processes.

Practical Strategies for Classifying Prospects: A Step-by-Step Guide

Now that we’ve explored the theoretical aspects let’s move on to a practical guide to classifying your prospects.

It’s a bit of detective work but the more you do it the better you’ll get.

Step 1: Thoroughly Analyze the Company’s Website

The company’s website is usually your first port of call.

Look for clear indications of their primary offerings pricing models and service delivery methods.

Key words and phrases to look for include “subscription” “cloud-based” “software-as-a-service” or other similar terms.

Pay close attention to the “pricing” or “products” sections of the site for clues.

Don’t just skim – delve into the details.

Often you can discover subtle hints that point towards the right classification.

If the website is poorly designed or provides limited information don’t despair.

Move on to the next step.

But before you do also check for press releases news articles or blog posts.

These resources often provide valuable context and information that the main website may omit.

Step 2: Examine Company Brochures and Marketing Materials

If you can access the company’s marketing materials carefully review their brochures case studies and white papers.

These documents often highlight the key aspects of their business and provide deeper insights into their offerings.

Look for detailed descriptions of their products or services and how they’re delivered.

The language used can offer subtle but important clues.

Similarly explore the company’s social media presence.

Their posts and interactions can often reveal important information about their business model and target audience.

Sometimes a casual mention of a subscription service or a specific type of client will be a key piece of the puzzle.

Step 3: Leverage Third-Party Resources

If you’re still unsure consider using third-party resources like LinkedIn Crunchbase or industry-specific databases.

These platforms often provide detailed information about companies including their business models revenue streams and employee profiles.

Sometimes the job titles of key personnel can offer clues about the nature of the company’s offerings.

For example the presence of many software engineers might suggest a software-centric business.

Furthermore don’t underestimate the power of a quick Google search.

Sometimes a well-placed news article or press release can illuminate a company’s primary offering.

Pay attention to the details; even seemingly insignificant information can make all the difference in correctly classifying the company.

Step 4: When in Doubt Err on the Side of Caution

If after all this you’re still not entirely sure it’s always better to err on the side of caution.

If there is any doubt classify the prospect as non-SaaS.

It’s better to avoid misclassifying a prospect than to risk wasting your time pursuing a lead that isn’t a good fit.

This strategic approach saves you from wasting time and resources and helps you focus on leads that align with your sales strategy.

Remember it’s a process and you’ll improve with experience.

Don’t be discouraged by challenging cases.

It’s all part of the learning curve.

The more you practice the better you’ll become at quickly identifying whether a prospect is a good fit for your SaaS-specific sales process.

The Importance of Accurate Classification: Maximizing Your Sales Efforts

Why bother with all this meticulous classification? It’s not just an academic exercise; it directly impacts the effectiveness of your sales strategy.

Tailoring Your Outreach: The Key to Success

Accurate classification allows you to tailor your outreach to resonate with the specific characteristics of each prospect.

A generic one-size-fits-all approach is rarely effective.

SaaS companies and non-SaaS companies have different needs priorities and pain points.

By understanding these differences you can craft messages that connect more deeply and increase your chances of success.

Specifically your approach to SaaS companies should highlight the efficiency scalability and accessibility of your product.

Focus on the return on investment and the ease of integration.

Non-SaaS companies on the other hand might be more interested in the tangible benefits of your product or the long-term strategic value.

This customized approach leads to better engagement a higher conversion rate and a more fruitful sales pipeline.

Improving Your Sales Pipeline: Focus and Efficiency

By focusing your efforts on prospects that align with your product you dramatically improve the efficiency of your sales pipeline.

Wasting time and resources pursuing irrelevant leads is a major drain on any sales team.

Accurate classification reduces this inefficiency and enables your sales team to focus on high-potential prospects who are more likely to become paying customers.

This strategy maximizes your time and resources allowing you to achieve a higher conversion rate with less effort.

In the long run improved accuracy in prospect classification leads to increased revenue and better overall sales performance.

It’s a seemingly small detail with a huge impact on your bottom line.

The time investment in perfecting this skill pays off exponentially.

Remember this isn’t just about ticking boxes; it’s about building stronger relationships with potential clients by understanding their unique business needs and speaking their language.

So grab your magnifying glass (figuratively speaking of course) and happy hunting!

Classify prospect as SaaS or non-SaaS