Our Path Through The SaaS Sea And Why We Chose Market Disruption
Before we dive in for our first post, allow me to briefly introduce us. We are Clockify, a new time tracking app on the market that not only claims to be free, but actually is completely free. In this article we’ll reveal the reasoning behind our strategy and talk a little bit about SaaS in general.
Marketing in the SaaS space is incredibly difficult. You don’t even have to be part of the industry to realize that. Just open the app store and try searching for anything. You’ll more than likely get dozens of apps competing for the same audience.
In the ever-increasing space of tech startups, you have to fight for every single user to keep up with the competition. Here at Clockify we are faced with the same challenge in the time tracking market — how to get closer to our target audience and beat the competition.
Factors of Success
Let’s take a quick look at some of the key factors which significantly influence the chances of a SaaS getting traction and popularity. It boils down to only a handful of items:
— Offering solutions to previously unsolved problems
— Simplification of otherwise complicated tasks
— Raising the levels of profitability/productivity
If you can be the first player in your niche to successfully implement one of these key factors, you are much more likely to experience success with your startup. If you offer none of the above and just ‘hope’ your app or startup will get picked up on the lucky chance, you better have a four leaf clover in your possession.
So what option did we choose?
Before I answer the question, let’s put things into a proper context.
Solving a Problem
Like many other startups, Clockify emerged out of a need to develop an in-house solution for a problem. As a software development company, we used a paid time tracking tool to manage our work hours.
The crucial moment occurred when people behind that tool decided to skyrocket their prices. We didn’t like the fact that we had to dish out a lot of money every month on a simple time tracking tool so we decided to create a tool for our own internal use.
Birth of an Idea
So, along came Clockify. And with it, a new idea was born. What would happen if we gave away the product for free? We certainly wouldn’t be the first to utilize that idea, just consider the examples of Trello and Slack.
After testing the initial market response which turned out very positive, Clockify became a fully-fledged product and went public.
Offering Value for Free (And What That Costs You)
We decided to create a unique value proposition by offering a completely free and unlimited service, unlike anything else previously available on the time tracking market.
This option of course, is the toughest one because you need to have an existing cash flow or bury yourself deep in debt to cover for the expenses.
Fortunately for us, as a software company, we are able to provide a free service by covering our costs from other projects.
The only paid plan we intend to offer for Clockify is for a self-hosted solution or some custom development. Everything else will remain completely free, forever.
Connecting With the Audience
In order for people to find your product and understand it better, you need to tell them exactly what it is that you can do for them.
Our mission statement is to enable businesses to build bigger teams without any limitations and having to worry about how much it would cost them. We consider this one of our core strengths which will drive our business to success.
That said, we identify our primary audience as small to mid-sized companies (especially those operating in the remote work arena) which need to track their work hours, but freelancers and bigger companies can fit the bill perfectly, as well.
Choosing A Path And Sticking to Our Guns
Because the market is too saturated with similar products and it would take us much more time to position ourselves as a paid tool, we decided to create our own path. Our main goal on that path is to disrupt the market by offering a fully functional service entirely for free.
Why give out everything for free? We strongly believe that offering real value for free creates a wealth of other opportunities in the long run. It could attract a host of other business opportunities for Clockify down the line, as well as connect our parent company with other valuable business insiders.
Now that you know who we are and what we do, we invite you to follow along as we share the insights of our path to growth and success. You can check us out at Clockify.me and feel free to send any feedback, we would appreciate it.