As a start-up or a small business in the SaaS space, there are two things you can never get enough of: time and money. You’re constantly racing against the clock to get your product off the ground and generating revenues.
One of the best ways to reduce costs and decrease time-to-market is to use a SaaS-friendly billing system. SaaS-friendly billing systems are designed specifically for companies who sell online services under a subscription model. They offer many advantages over a typical generic payment system as well as a home-brew solution.
Benefits of Using a SaaS-Friendly Recurring Billing System
1. Faster Time-to-Market
Every day you gain by going to market faster and starting your revenue stream, you take a step towards building a sustainable business. Using a ready-to-go system saves precious time, and lots of it.
2. Reduced Start-up Costs
Cash isn’t a luxury that most start-ups can take for granted. Using a SaaS-friendly billing system is much more cost effective than building your own, while providing many benefits not found in generic systems.
3. Flexible, Well-Documented API
A SaaS-friendly API will be flexible, well documented, and robust—the same kind of API that SaaS providers like to build for their own customers. This allows you to create a completely seamless experience without all the guesswork.
4. Improved Security
Security is a top concern for any online payment system. A SaaS-friendly billing solution will make security a top concern and also be PCI compliant. The last thing a fledgling CEO needs is a security breach and the PR nightmare that comes with it.
5. Avoid the Red Tape of PCI Compliance
PCI compliance is required by the payment industry for any system that transmits, stores or processes credit card information. Getting your own software PCI certified is complex and costly—a complication best avoided when you’re strapped for time and cash.
6. Instant Access to Key Metrics–Out of the Box
One of the biggest differences between a SaaS-friendly billing system and a generic billing system is the reporting available. A great SaaS-friendly billing system will give you instant real-time access to key metrics like number of signups, monthly and daily revenues, and outstanding accounts. It will also let you customize how the data is presented and integrate it deeply into your website. This saves you oodles of time from building custom reporting systems and manually compiling reports.
7. Flexible Choice of Payment Gateways
A SaaS-friendly billing system will plug into a large number of payment gateways, giving you the flexibility to shop around and get the best rates, without gateway lock-in. Doing so can save you thousands in transaction fees, and may very easily offset the cost of the billing system itself.
8. Flexible Billing Options
SaaS-friendly billing systems are designed to meet the billing needs of SaaS providers. They offer flexible billing cycles and combinations that enable you to optimize how, why and when you charge customers.
9. Trial Periods & Promotions
Trial periods and freemium models are the lifeblood of many SaaS provider’s marketing efforts. Using a SaaS-friendly billing system offers you complete flexibility to implement trial periods, plan upgrades and downgrades, volume discounts, and much more.
10. Automation Features
A great billing system will help you automate and streamline the entire sales process. From sending notification emails and receipts, to automatically re-trying failed payments, a SaaS-friendly billing system will save you a lot of headache and greatly improve your customer experience.
This is just a short list of the benefits of using a SaaS-ready billing system. Ultimately, all of these boil down to one thing: Your start-up business sees profits faster. So if you haven’t considered a SaaS-friendly system yet, it’s definitely worth your time to look into.