| We have sold a JavaScript component as our sole source of revenue for about 4 years now, having started selling it 8 years ago. We've played around in the SaaS market, in end-user apps that use the component, but we've never found anything that makes even remotely the amount we make from selling the component. A lot of people think SaaS is easier, I personally find it x10 harder. We ended up gaining far more benefit from giving away the SaaS products as a means of marketing the component. The thing with the component market is the revenue is far more an "amplification" of the economic environment. You're at the bottom of the food chain, you need new development projects to be started to be considered. Development projects are expensive. In late 2008, budgets were slashed, our component sales probably dropped 80%. SaaS is much more stable revenue-wise. But on the flip-side, in 2007 when the going was good, sales just soared, it's not only downturns that you feel in the component market. My advice would be - focus on building a cash buffer as soon as possible, doing so was the only reason we're still here. - aim for the Enterprise market, forget three figures a license sales. That level means the component is too simple, something open source will come along and kill you. - The component market is better for margins and good salaries. The SaaS market generally scales better. Which you choose probably depends what you want to do with the business in the medium and long term. |