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.
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.