Thursday, March 18, 2010

Services as a Product

If you aren't familiar with "as a Service" revenue models, it refers to selling something as one would a service, with a recurring charge often based on usage. For example, SalesForce.com is a "Software as a Service", or SaaS, model. You pay a fixed amount per user per year. This can apply to platforms or infrastructure as well as software.

However, products can be easy to buy. When you purchase AppleCare for your laptop, you get an empty paper box. But there is a SKU for it. In some cases, products have less abandonment than services and are subject to less scrutiny before flippantly tossed in the cart before checkout. It's a Service as a Product.



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