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Cloud Service Business – 5 Things To Know

Here's how much money you can make with a cloud service business...

cloud service business

What is a cloud service business?

With this kind of online business you would own some software, infrastructure or platform and give people continuous access to it via the cloud

You’d monetize by charging an access fee, selling ad space, selling user data, that kind of thing.

Software as a Service (SaaS) seems to be the most popular and, I’d argue, by far the most accessible kind of Cloud Service business, so I’ll mainly share SaaS examples on this page.

Cloud Service is one of 19 types of online business and considered a Level 5 online business, according to our framework.

How can you make money online with a cloud service business?

Here are the legit ways I’ve found to make money online with a cloud service business…

Build Marketing Software

Nathan Barry built and grew ConvertKit into a popular email marketing solution…

  • Nathan Barry

  • Founder of ConvertKit
  • $2+ million ConvertKit monthly revenue

Build a Hosting Business

Traditional web hosting companies fit here, but a more relatable example would be Matt Basta’s podcast hosting service…

  • Matt Basta

  • Founder of Pinecast
  • $13,000 Pinecast monthly revenue

Build Collaboration Software

Ryan Badger apparently built v1 of his Dropbox-like software in a weekend from a beach in Thailand…

  • Ryan Badger

  • Serial Entrepreneur
  • $19,500 peak monthly revenue for Uploadfiles.io

Build Project Management Software

Renato Marinho’s PM software started off as a side project while working for another startup…

  • Renato Marinho

  • Founder of GitScrum
  • $50,000 GitScrum monthly revenue

Build Freemium Software

Curtis Herbert built an app that helps skiers and snowboarders track their runs. You can use a free version or pay a subscription for premium features.

  • Curtis Herbert

  • Founder of Slopes App
  • $25,000 monthly revenue from app

Build Niche Software

How’s this for niche: Preetam Nath’s software enables online store owners to communicate with visitors and customers via WhatsApp…

  • Preetam Nath

  • Co-founder of SuperLemon
  • $29,000 SuperLemon monthly revenue

Pros and Cons of Cloud Service Businesses

  • Usually very scalable.
  • Strong passive income potential.
  • Fairly predictable revenue if using subscription model.
  • Easy to sell once successful.
  • Several monetization options.
  • Usually requires a complex set of skills.
  • Churn.
  • Often a slow and/or expensive way to start making money online.
  • Customer service.
  • Data security issues.
  • Competition.

Is a cloud service business a good way to earn a living online?

It’s an attractive business model but you’d need to bring your A-game and probably hire some A-players if you want to succeed. Don’t expect to get rich quick or easy.

Cloud Service Business Resources

  • 5-Minute Breakdown: Software as a Service (SaaS)
    The below video is a good overview of SaaS, plus the other types of cloud services (IaaS and PaaS)…
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