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Ask HN: How to enter a new market with an SaaS without VC?

3 pointswusatiuk10y ago7 comments

We are running a SaaS solution (5-figure MRR / 250 active customers) in Germany / Austria looking to enter new markets. Especially US would be very interesting as the topic, the SaaS is made for, is popular in Germany for 1-2 years already and is currently popping up in the US and other countries in the last months.

The product itself is basically a SEO tool: a TF-IDF analysis tool for analyzing existing and creating better content for websites. In addition to that, you are provided with a ranking tracker for your keywords + an onpage tool which helps you to identify technical / structural / textual & content issue on your website.

1) Is there a realistic chance to find a motivated local marketing-partner who pushes the product into the market for 2-3 years and then earns a lifetime %-share of the local revenue in his country / area?

2) Which way would you suggest to enter the US or other new markets with a small SaaS, which does NOT want to go the way through VC funding / investors?

3) Are you possibly interested? ;)

7 comments

6 comments · 3 top-level

zer00eyz10y ago· 2 in thread

Would you be better served staying closer to home for your first attempt?

Rather than reach for the US why not try france or spain (or the UK)

-- common currency (except for the uk)

-- Fewer time zone issues (out of band support and troubleshooting)

-- Not having to deal with US taxes (as in sales tax vs vat)

-- Gives you a chance to work out I18N l16n in a smaller pool/area

-- is your client base one that would help you out if you put up an affiliate model? "sign up french clients and your next month is free"

If your looking for "marketing partners", are you looking at folks who would fit in a "basket of products" related to what you do? If you sell razors who sells shaving cream, can you team up with someone who is local to do the CS and sales for you hear, and you do the same thing for them there?

wusatiukOP10y ago

a "closer-to home" market would be easier for sure, and we are also thinking about it. but the issue is more or less similar - you need a local with an existing network or somebody with real passion to push the product to partners / clients with different marketing campaigns (content marketing, blogger relations, exhibitions, direct mailings, forums, blogs,...)

affiliate model is an options as well. the easiest push would be through webhosting companies or marketing agencies, who offer the product as upselling product to their existing clients and get some rev-share, i guess.

regarding the razors & shaving cream partnership. the idea is generally a good one (in theory). we already have some local partners (mostly online marketing agencies), but they usually don´t have the time/capacity/motivation to push a product from somebody else for a 40% share of a (small) monthly fee, as they don´t see the value in passive long-term recurring revenue.

zer00eyz10y ago

Not quite what I was suggesting so let me clarify.

Im in the process of building out a product to help small businesses deal with inbound leads and CRM, moving them to conversion more quickly. Our products would not be "competitive" however my customers could easily become your customers. If I reviewed your product, and LIKED it, would I be willing to promote you to my customers, assuming I could offer them a discount and get a rev share?

Im suggesting you find a SAAS business to partner with, they see the value in long term recurring revenue, and introducing a stream of said revenue, without adding a lot of overhead. Assuming you do reciprocal marketing, at the end of any given month only one of you is going to be writing a check and thats to balance the books between the leads your generating for each other.

The only example that I can think of for these sorts of relationships was/is paypal and eBay (it is early and I need more coffee). Both shared a ton of customers, and had complimentary products did the whole merger/split thing because it looked great on paper, but didn't work in principal. If your eBay, can you find your paypal, and build a partnership rather than seek a merger?

dolfje10y ago· 1 in thread

Maybe interesting for us, why don't you want to use VC funding / investors? Is it the equity part?

wusatiukOP10y ago

yes, equity part and freedom in product development, but there are options like a separate US company with shared equity. Looking forward to your email (ctc details in my profile).

wusatiukOP10y ago

1b) Where should you start looking for such a marketing-partner?

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