When you’ve built a successful service or consulting company, the idea that building your own SaaS product can sound very attractive: scalable revenue, recurring customers, and product-led growth. But the reality is often far more complex.

In this episode of In Demand, Asia and Kim explore why non-SaaS companies struggle when attempting to spin off software products. They cover what makes SaaS such a different business model, the hidden costs and pitfalls of under-committing, and what it really takes to make a spin-off succeed.

If you’ve ever wondered whether your company should build its own SaaS product, or you’re already in the middle of one, this episode will help you avoid the most common mistakes and wasted investment.

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• (00:01:00) - Why non-SaaS companies get drawn to the “siren song” of SaaS
• (00:03:00) - How building internal tools triggers the idea of selling a software product.
• (00:09:45) - Why SaaS is hard and why spinning off a SaaS product often doesn't work out.
• (00:14:30) - Why parent-company reputation doesn't transfer to a SaaS spin-off as often as you'd think.
• (00:18:30) - What are the most common pitfalls to avoid if you're thinking about creating a SaaS spin-off product?
• (00:23:15) - Most SaaS spin-offs require $200K–$800K of investment before they start making money.
• (00:28:30) - Understanding go-to-market for a SaaS product and the mistakes that parent companies often make.
• (00:41:30) - The problems that come up with the parent company isn't fully committed to the new product.
• (00:44:20) - What made Moz and SearchPilot successful when others failed.
• (00:47:45) - Final advice: hire experienced contributors and treat the spin-off like a true startup.