What is SaaS? A Complete Guide for Beginners

SaaS stands for Software as a Service. It refers to software products designed and hosted by a provider, which customers can access through the internet.

Users of SaaS don’t need to purchase a physical good or download anything. Businesses that provide SaaS apps manage everything themselves, including hosting, maintaining, and updating the software.

There are three main types of SaaS products:

• Packaged SaaS = products that help improve a process
• Collaborative SaaS = products that help with teamwork
• Technical SaaS = products that help improve technical workflows

If you’re thinking about starting a SaaS business, there are a few key benefits and drawbacks to consider first:

SaaS can sound daunting, so I wouldn’t blame you if you expected to see “Advanced technical setup” in my cons list. Thankfully, no-code platforms make it easy these days, even for total beginners. For example, Hostinger Horizons uses the power of AI to create your app; all you have to do is chat with it (via text or voice) about your idea, and it’ll code and build everything for you. I’ll show you how I used it myself as an example in the setup guide below.

While using SaaS within your own business can be a great way to save time and reduce reliance on your resources, it’s a slightly different ball game if you’re the one providing a solution to others.

If you want to set up your own SaaS business, it’s all about providing a solution to a problem. That’s the whole purpose of a SaaS product, and if your business isn’t removing a customer’s pain point, you’ve failed. So, to get you on the path to success, I suggest following along with the steps below:

1. Determine Your SaaS Idea

Identify a problem for your target audience and workshop ideas on how your software can solve it.

2. Assess the Market

Review what competitors are doing and see if there’s a gap in the market. You don’t want to compete with very established SaaS companies, unless you can provide something new and original!

3. Build Your SaaS App

Platforms like Hostinger make it easier than ever to develop your own SaaS app from scratch with the help of AI-powered tools like Hostinger Horizons.

Author's recommendation...

I’m no expert when it comes to building apps, so I was anxious about trying Hostinger Horizons for myself. Naturally, I thought I’d have no clue what to do or where to begin. However, Hostinger promises a no-code, user-friendly way to launch websites and apps, and I wasn’t disappointed. All I had to do was click a preset prompt, such as “Landing page” or “Budget web app”, or I could tell Hostinger Horizons what I wanted it to build. I used the following prompt for my test:

“Create a beautiful and well-designed web app with light colors to track my work tasks, weekly goals, and mood.”

It only took a few minutes for Hostinger Horizons to design and produce my app, so it’s a great tool if you’re looking to launch your own SaaS product quickly. And I was seriously impressed by the detail, design, and interactive features included, just from my brief prompt.

The AI-powered app is incredibly adaptive and responds rapidly to any changes or suggestions you make. For example, I tested the tool again and asked it to build a media tracker for users to log and review books, TV shows, movies, and video games. The prompt I gave was more detailed, resulting in an app that better matched my vision.

You’ll be limited by the number of messages you can send when using the seven-day free trial, so you might want to upgrade to a premium plan for greater control. Hostinger Horizons plans range from $6.99 to $79.99 per month (billed annually).

Emma Ryan Lead Writer

4. Set Your Pricing

Figure out what you want to charge, but remember that you want to convince customers to pay for and use your product. Don’t put them off with unrealistic pricing! Providing a free trial or limited free plan can be a good idea to give potential customers a sneak peek at what you have to offer.

5. Promote and Market Your Product

The real trick with selling SaaS is to convince customers they need this non-physical good and to hook them quickly with your marketing efforts, whether that’s through link building, SEO, email campaigns, or viral videos on TikTok.

6. Make It Easy To Convert

Signpost key information and ensure conversion points are accessible, obvious, and aren’t off-putting with too many steps or links.

7. Provide Customer Support

You want to nurture customer relationships to keep them long-term, so make sure you provide easy ways for people to contact your business if they have issues with or queries about your product.

8. Get Feedback From Users

Since you’re providing a service, take the time to gather feedback and reviews from customers. This can help shape future developments and updates.

Make sense?

Over 80% of businesses rely on at least one SaaS product, so there’s a real opportunity to promote and sell your software within the growing industry. To summarize the points above, the ultimate goal is to position yourself as an authority in your market, target a specific audience, make it easy for customers to convert, and iterate when necessary based on data and customer feedback.

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Build your web app without any coding or technical experience, thanks to Hostinger’s new AI tool.

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There are so many popular SaaS providers out there, but I’ve listed a few recognizable names below so you can get inspiration for your own SaaS business:

1. HubSpot

HubSpot provides an all-in-one service to help businesses connect with, convert, and retain customers. The platform can help with marketing campaigns, producing content, customer service, and more. This SaaS solution uses a subscription-based pricing model.

2. Slack

Slack is a common messaging platform for businesses, providing a tool to improve communication and collaboration. As expected of a SaaS solution, the company handles maintenance, updates, and security itself. Customers can access Slack via the internet. There’s a free model, as well as tiered pricing plans for additional features.

3. Salesforce

Salesforce is another SaaS example, providing a service to support customer relationship management (also known as CRM). Like most SaaS models, Salesforce asks its users to subscribe to a plan, which is how the company makes money.

4. Canva

Canva is a beloved design service for creatives, whether you’re looking to create a social post or work on a presentation. Everything is hosted, managed, and updated by Canva directly. The software can be accessed via the web, with different tiers of plans available.

5. Mailchimp

This popular email marketing software provides businesses with a user-friendly tool to manage campaigns and set up automations. Mailchimp can help improve your email marketing game and boost sales. To use this SaaS solution, Mailchimp offers a free trial, but users will then need to subscribe to a range of pricing plans.

So, can you start a SaaS business today? Yes, but it’s going to take some work. The good news is, you don’t need to know how to code or brush up on your technical skills because a tool like Hostinger Horizons makes it super easy to create your ideas in pretty much a single click. However, the main bulk of the workload comes into play when researching your target audience, ideating what you want to build, and pricing your SaaS.

Of course, you also need to be prepared to maintain and update your software yourself, unless you’re using Hostinger Horizons. And, most importantly, remember to listen to your customers and adapt to their needs to ensure your SaaS product is as effective as it can be.