Does the SaaS model really work?  Really?
callmeed: Yes, it works. How well it works really depends on a lot of things. It does take patience and you do need to know your market.I actually think you don't need to be in a huge market to be hugely successful. We serve a niche market (professional photographers) and, by most accounts, are successful with strong growth.We have 2 main products/services that have a monthly fee. The first isn't a true SaaS (it's more Saas+web hosting), but we have several thousand customers paying monthly.Our most recent product (nextproof.com) is a true SaaS and is also doing well. We launched in June and should hit the 1,000 account mark early next year.The thing I like about being in a smaller/niche market is that it's easier to find and present to your target market. If you're product is good, it will sell–you just need to make them aware.Here's some things I would suggest based on experience:* Find some "connectors" in your market and partner with them. Give them free accounts and VIP treatment in exchange for referrals
* If you need some cash up front, consider selling a limited amount of "lifetime" accounts. They pay $500 (or whatever) and get an account for life. We've done this and people jumped all over it.
* Explore the possibility of tweaking your app for even a smaller niche market.I've got lots more ideas ... but that's where I'd start. But, yes, I'm a firm believer that it can work.