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7 Powers with Hamilton Helmer
Acquired
SaaS Model and Switching Costs in Business
SaaS businesses benefit from a model where switching costs are high. Unlike traditional software sales, SaaS involves constant selling over time rather than a one-time large installation sale. Companies are able to offer lower prices because of the expectation of repeat business, which in turn influences the way they are financed and valued, often relying on switching costs as a primary power source.
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