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Is B2C SaaS a waste of time?

I once watched a video from a successful SaaS founder (Jason Cohen from WP Engine) where he asked B2C founders in the audience if they regretted doing B2C. Almost everyone said 'yes'.

Is B2C SaaS, especially for IHers, a waste of time? Should we focus our time and attention mostly on B2B SaaS?

posted to Icon for group Software as a Service
Software as a Service
on March 13, 2022
  1. 5

    B2C "bootstrapping" is very tough because CAC is usually VERY high. B2B is "easier" because its rarely taken as an expense vs an outcome-focused investment.

    B2B SaaS charge up to $5k for piece of shit softwares at times.

    But B2C, $9 per month out of pocket is a no no for many consumers

  2. 4

    As someone who's built a (primarily) B2C SaaS and currently working on another one, I can confidently say it's not a waste of time. But it is different. IMO, you need to think a lot more about network effects.

    Mine have been generally mobile apps and with the reach of the app store, you can certainly build an interesting business.

    That said I believe most B2C businesses can also have a B2B to element and that it's beneficial to tack that on at some point.

  3. 3

    It wouldn't say B2C is a waste of time per se. It's a bit more nuanced than that.

    You want to operate in a market with potentials customers that:

    a) Have money and
    b) will easily spend that money

    Following the above, you'll naturally gravitate towards B2B customers. Businesses, usually, have money to spend and are more willing to spend that money.

    I even notice this very clear distinction in my personal life; when it comes to business expenses, I will make purchase decision much quicker and easier that I do when it comes to personal expenses.

    That said; if you're doing B2B and can bring your market down to a niche (the smaller and better defined the better in the early stages) where potential customers have sufficient buying power and are willing to spend that money, it could still work.

    However, doing a B2B project where success hinges on mass adoption, that's a tough nut to crack for an IH'er.

    1. 2

      This comment was deleted 3 years ago.

  4. 1

    For bootstrappers I would say 'yes, for sure'. For startups with VC funding or financial power I would say 'maybe'.

    B2C is a really hard way to create a SaaS.

    1 - You need A LOT of money to grow.
    2 - You must have a VIRAL product like Uber, Netflix, Airbnb or whatever.
    3 - You probably are not going to profit for years (you see that in Netflix, Airbnb, Uber).

    I don't think it's a smart way to start if you don't have much, but that's not impossible.

  5. 1

    You can never say that B2C SaaS is a waste of time, they are just different market strategy. I'm the founder of AdTargeting (https://adtargeting.io/), which is best tool of Facebook interests and Google keywords. Maybe I won't make as much money as a B2B SaaS do, but I have my loyal customers and I help them targeting their audience and find niche words in a minimum price to lower ad costs and maximize ROI. It makes so proud and I can feel where my value exists.

  6. 1

    I wouldn't say a waste of time but really hard.

    It is good for learning though. But B2C with a larger free plan I wouldn't do again tbh. Often you have so many competitors + expectations of the users even if they are not even paying.

    B2C with only paid options is valuable IMO.

    B2B however you can be very dependent on one customer but often it is way easier because the people you sell your business to are not buying it with their own money so the emotional component is gone at least.

  7. 1

    I do not think so. It's just a completely different strategy. B2C is more of a marketing strategy. You won't make money like B2B, but if your product is good. You have gained a good reputation and word of mouth.

  8. 1

    It all depends of course. If you already have a possible business you can possibly sell to, it is easier to convince one business and snowball from referrals, while B2C means you almost always have more customers to convince and have a more specific market in mind before you can convince them to buy something from you.

  9. 1

    I have been writing about profitable Micro SaaS Ideas and covered a lot of profitable ideas in B2C space. So, there is money in B2C space.

    Now the question of working on a B2C model vs B2B model - I am not going to talk about which is better and which is not. But all I wanted to say is - there is money in B2C as well and for most IHers who are starting first time, it could be an easy bet to pick a small B2C model before thinking big with B2B.

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