When you consider the following:
- 20 USD monthly fee x 12 months = 240 USD per user / yr.
- So, 1,000 paying customers would be needed to attain 240,000 USD revenue
- At a conversion rate of 10% one would need 10,000 users.
Figure in the fact that almost all SaaS niches these days are fairly well saturated and therefore getting 10,000 users in any space will be very difficult.
If one one were to average out the 240,000 USD in revenue over all 10,000 users, each would have to generate 24 USD / yr. in revenue. It would seem that obtaining this 24 USD from leed generation without having users open their wallets directly and keeping the service free from their end would in general offer a much better business model. (mint.com does this and generates around 30 USD / user / yr.)
Am I missing somethings with regards to the advantages of SaaS?