How is SaaS Software Distributed?

Struggling to get your innovative B2B SaaS product in front of the right people? You're not alone. But fear is not! A well-defined distribution strategy is the key to answering the question: How is B2B SaaS distributed?  

This comprehensive guide helps you understand the world of B2B SaaS distribution channels, empowering you to unlock the full potential of your product. We'll explore both direct and indirect channels, helping you choose the winning mix for your business. 

What Is SaaS Distribution? 

SaaS distribution is the process of delivering cloud-based software to users. It involves advertising, sales, and smooth transition to ensure easy access and enjoyment of apps. There are two methods: direct, where you buy from the app's website, and indirect, where the app partners with sellers to reach users. Overall, SaaS distribution ensures a smooth connection between users and software creators. 

How is B2B SaaS Software Distributed? 

SaaS distribution channels are the different paths through which a software product reaches its end users. These channels can be divided into two main types: direct and indirect.  

Direct Distribution Channels: These involve a company's internal resources, such as its own sales team, to sell directly to customers. For example, ABC Software Company sells its products directly to customers through its website and dedicated sales representatives. 

Indirect Distribution Channels: These involve selling through third-party entities like resellers or online marketplaces. In this scenario, the third party's name appears on customer invoices or statements, not the companies. For instance, XYZ SaaS Company sells its products through a network of authorized resellers who handle customer transactions. 

Direct distribution channels for B2B SaaS companies 

Inbound channels 

• SEO (Search Engine Optimization): SEO delivers remarkable results by optimizing websites and content for relevant keywords, enhancing visibility, and attracting a targeted audience. 
• Content Marketing: Tailored content fosters audience engagement, trust-building, and conversion, positioning businesses as authoritative sources. 
• Paid Social: Social media advertising offers targeted exposure and cost-effective user acquisition, diversifying reach and tapping into specific audience segments. 
• Paid Search: Immediate results through paid search advertising target relevant keywords, boosting visibility and driving traffic effectively. 
• Referral Marketing: Satisfied customers drive organic growth through word-of-mouth and social proof, building credibility and attracting new customers. 
• PR (Public Relations): Building relationships with media outlets enhances brand visibility, yielding meaningful results when executed effectively. 
• Product-led / Viral Features: User-centric features drive organic growth, fostering sustained adoption and growth within the target market. 

Outbound channels 

• Phone: Ever considered picking up the phone and giving a potential client a call? Cold calling might seem old-fashioned, but it's still a powerful way to connect with prospects, especially in industries where online targeting is challenging. It's all about having a friendly conversation, understanding their needs, and uncovering new opportunities to help them. 
• (Cold) Email: Imagine receiving an email that feels like it was written just for you. That's the magic of personalized sales emails and newsletters. By sharing valuable insights and sending messages at the right time, you can create emails that resonate with your audience and spark meaningful discussions about how your SaaS solution can address their challenges. 
• Letters/Postcards: Who doesn't love receiving something personal in the mail? It's a rare treat in today's digital world. Sending personalized letters or postcards, especially for high-value SaaS offerings, can make a lasting impression and stand out among the sea of emails. 
• Tradeshows: Picture yourself at a bustling industry tradeshow, surrounded by potential clients who are eager to learn about innovative SaaS solutions. Attending these events provides a unique opportunity to engage with prospects face-to-face, showcase your product's value, and build relationships that can lead to long-term partnerships. 
• Out of Home: Ever noticed a billboard or digital display while commuting to work? Outdoor marketing tactics like these can increase brand visibility and attract attention from potential B2B clients, even in the digital realm of SaaS. It's like bringing your online presence into the physical world, making your brand more memorable. 
• Events/Public Speaking: Whether hosting a webinar or speaking at a conference, participating in events allows you to connect with industry professionals and demonstrate thought leadership in the B2B SaaS space. Public speaking engagements position your company as an authority in the field and create opportunities to engage with your target audience in meaningful ways. 

Indirect distribution channels for B2B SaaS companies 

• Marketplace and Review Websites: Partnering with review platforms can enhance your company's visibility and credibility. Earning positive reviews not only expands your reach but also builds trust with potential clients, positively influencing their decision-making process. 
• Co-selling: Collaborating with partners who share your target audience presents opportunities for joint promotion and mutual growth. Co-selling strategies like hosting webinars, sharing newsletters, and offering bundled products foster a synergistic approach, benefiting both parties while increasing market presence and client acquisition. 
• Resell: Utilizing resellers, especially in specific industries, can effectively broaden your product distribution. However, maintaining careful oversight of the customer journey is essential to safeguard your brand reputation and ensure a seamless experience. Balancing the advantages of wider market reach with the need for brand consistency and customer satisfaction is crucial for success.  

How to choose a B2B SaaS Distribution Strategy? 

Imagine choosing a distribution strategy for your B2B SaaS product as charting a path on a map. To reach your destination of business success, you need to navigate through several key factors. These include understanding your company's goals, knowing what your customers need, and weighing the pros and cons of different distribution channels. Let's simplify these crucial considerations to help you plot the right course for your business: 

1. Company Goals

Start by defining what your company aims to achieve with its distribution strategy. Are you looking to expand into new international markets, increase market share in a specific industry, or establish strong customer relationships? For instance, if global reach is a priority, partnering with established app stores can help you quickly tap into international markets. Conversely, if building close relationships with clients is essential, direct sales might be more effective. 

2. Customer Needs

Understanding the specific needs and behaviors of your target customers is essential. B2B clients often require specialized solutions with robust support. For example, businesses needing sophisticated CRM systems might benefit from direct sales or partnerships, where personalized onboarding and support are emphasized. Alternatively, for more standardized solutions, a subscription model via an app store might be sufficient. 

3. Pros and Cons of Distribution Channels

Evaluate the advantages and disadvantages of each distribution channel. Direct sales channels allow for customized solutions and strong client relationships but can be resource-intensive. Channels like marketplaces or app stores offer broad visibility and ease of access but may not support complex, customizable solutions well. Consider how each channel aligns with your product's complexity, cost structure, user experience, and scalability needs. 

4. Cost

Analyze the cost implications of different distribution channels. While SaaS products typically have lower capital investment requirements, some distribution channels may involve higher operational costs or setup fees. Direct sales can be costly due to the need for a dedicated sales force, while app stores might charge significant commissions. Balancing these costs against the potential benefits is crucial to ensure profitability and competitiveness. 

5. SaaS Features

Consider the unique features of your SaaS product when choosing a distribution channel. Factors like pricing models, scalability, compatibility with other tools, and user experience should guide your decision. For example, complex software with extensive customization options may be better suited for direct sales or partnerships, while simpler, more universal applications could thrive in app stores or online marketplaces. 

By thoroughly evaluating these factors, you can select a distribution strategy that aligns with your company’s goals, meets customer needs, manages costs effectively, and leverages the unique features of your B2B SaaS product to achieve maximum visibility and success. 

Conclusion 

The B2B SaaS market offers a wealth of opportunities, but navigating the distribution landscape can be tricky. At Majoris Digital, we're experts in guiding B2B SaaS companies to their ideal customers. 

We'll craft a customized distribution strategy that blends direct and indirect channels, content marketing, targeted advertising, and strategic partnerships – all designed to maximize your reach and fuel your growth.  

Don't get lost in the distribution maze. Contact us today for a free consultation and unlock the full potential of your B2B SaaS product!