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Re:Ask HN: Does the SaaS model really work? Really? by trevelyan on Tuesday November 25, 2008 @07:10AM (#376276)
Not to skirt the question, but ten thousand dollars a month is not really ramen profitable. Your hard costs are server space and bandwidth, and whatever amount of food and shelter is necessary to keep both of you working.

A lot of subscription businesses are slow growth and high churn. Your market expands slowly as the people who will pay for your services find you and you get better at marketing to them. Unless you have a really killer service, large advertising budget or the media at your beck and call, I think it will be tough to grow to that subscriber level overnight.

Re:Ask HN: Does the SaaS model really work? Really? by utnick on Tuesday November 25, 2008 @08:16AM (#376321)
Saas costs can be pretty low because you only need a couple hundred users to get to that 10K a month. A couple hundred users on most apps can probably be run totally fine off of a <100$ vps.