How to Start a Software Company

If your product solves a pain point, someone is probably googling it right now. What works best:

• Deep-dive demos and tutorials, incl. in video format.
• Product comparisons and "A vs. B" pages.
• Blog and social media posts by thought leaders.
• Detailed product documentation that ranks well in search engines.

This is a strong fit for early-stage product sales. It also works well long-term for complex SaaS and niche B2B solutions, where trust and deep product knowledge matter. Popular tactics include:

• Personalized product demos and pitch decks led by the founder, using real-world narratives to highlight impact — not just features.
• Strategic networking at industry events, in incubator communities, and on platforms like LinkedIn.
• Tailored outreach that speaks directly to the target company’s pain points or references shared connections and industry context.
• White-glove onboarding.

This requires being active where your users are. Key tactics include:

• Building with communities (e.g., works especially well for products like development and design tools or collaboration platforms).
• Hosting public roadmaps, feature request boards, or feedback loops to engage power users.
• Participating in niche forums, online communities, and open-source initiatives.

This means plugging into bigger platforms or co-marketing with complementary tools. Smart approaches include:

• Developing early APIs and connectors to popular platforms.
• Partnering with adjacent tools (e.g., a fitness app integrating with wearables or nutrition trackers).
• Joint marketing efforts like webinars, case studies, or bundled offers.

A common choice for developer tools, AI/ML tools, payment processing platforms, PaaS, and IaaS. Users can be billed on API calls, compututing power, or data volume. You will need crystal-clear billing dashboards and real-time quota alerts for users. Also, consider adding budget-capping features for individuals and SMBs, which removes the fear of surprise bills and improves conversion.

(based on per transaction or a percentage of the transaction value)

You earn a percentage or fixed fee per transaction processed through your platform. This model is common among marketplaces, fintech tools like Stripe, and SaaS platforms with embedded payments (e.g., job boards and booking tools). We recommend using tiered rates here (e.g., lower commission for high-volume sellers) to keep top users from going to competitors.

You charge based on the number of users or collaborative environments (teams, workspaces, projects). This is one of the most profitable and scalable models for team-centric B2B SaaS products. Since user volume equals SaaS revenue, focus on optimizing UX flows and adding role-specific features to encourage more and more collaboration.

The most popular combinations are:

• Subscription + usage-based (base subscription covers core access, while variable charges apply for heavy usage).
• Free version for individuals or small teams + per-seat pricing when scaling.
• Subscription + % fee on transactions processed.
• Per-user pricing + usage-based (for advanced usage like analytics queries, API calls, and reports).

Generate revenue by offering implementation, customization, user training, and consulting services alongside your software. This approach works well for midsize and large-scale enterprise clients, especially those in complex, regulated industries.

Involve other businesses to resell your software as is or in a rebranded format that looks like their own product. If used correctly, this can help you scale fast without a large sales team or tap into new markets, especially vertical ones.