Web & Software

What Is SaaS? Using Subscription Software and Selling Your Own

Updated: 9 November 2026
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Short answer

SaaS (software as a service) is software that you use over the internet without installing it on a computer, and pay for with a monthly or yearly subscription. Online bookkeeping programs, email and meeting apps are the best-known examples. For a company that wants to sell its own software by subscription, SaaS is a business model that requires a membership and login system, regular payment collection, keeping customers' data separate from each other, security, and updates without interruption.

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What does SaaS mean?

Software as a service (SaaS) is a model where, instead of buying a program and installing it on your own computer, you use it over the internet. The program runs on the provider's servers, and you log in through a browser or an app. Instead of a one-off license, you pay with a monthly or yearly subscription. Updates, backups and server maintenance are the provider's job; one morning you log in and find the new feature ready. In return, the provider decides how the program works and where the data is kept. Today, online bookkeeping programs, email and office suites, meeting apps and ready-made customer tracking programs (CRM) all work on this model. The topic needs to be looked at from two sides: the subscription software you use in your business, and selling your own software by subscription.

What should you check when using SaaS in your business?

The advantage of SaaS is clear: no installation, a quick start, and technical maintenance is not your job. In return, there are some questions to ask up front. How does the subscription fee change as the number of users grows? Where is your data stored, and in what format can you export it when you stop the subscription? If the provider removes a feature or changes its terms, what is your alternative? Can it connect to the other programs you use? The answers to these questions decide whether, a few years from now, you find yourself locked into a system. When you tie a process at the heart of your business entirely to subscription software, an outage of that software means your business stops too; read the provider's support channels and its commitments in case of an outage with this in mind. Try products that offer a trial period with a real working week, because every piece of software looks easy with sample data. Reviewing all your subscriptions together once a year is also a good habit; as the team grows, per-user accounts quietly pile up, and accounts nobody logs into keep getting paid for.

What do you need to sell your own software by subscription?

On the other side of the coin is the entrepreneur or company that wants to sell its own software idea as SaaS. Here the job is more than a working program. You need to set up a structure where each customer logs in with their own account, pays regularly, and the service runs without interruption every day. Because customers trust their business to this software, expectations for security and continuity are high too. In short, with SaaS the product is not just the software; it is keeping that software running every single day. The core parts of a SaaS product are:

  • Membership and login: sign-up, email verification, password reset and optional two-step verification.
  • Separating customer data: each customer should see only their own data, and one customer's heavy use or errors should not affect the others.
  • Subscriptions and payments: plan selection, a trial period, automatic charging each billing period, reminders after a failed payment, plan changes and cancellation. Card details are stored by the payment provider, not on your server, so the payment provider you choose needs to support recurring billing.
  • Permissions and roles: letting customers add users from their own team and decide who sees what.
  • Admin panel: being able to monitor all customers, subscriptions and revenue from a single screen.
  • Security and backups: storing passwords and sensitive information encrypted, regular backups and access logs.
  • Update routine: trying each new version in a test environment first and releasing it without interrupting customers.
  • Notifications and support: a welcome email, payment and renewal notifications, and a support channel where customers can report problems.

Where should you start with your own SaaS product?

The most common mistake is trying to build every feature from day one. A healthier route is to release the smallest working version that solves the core problem behind the idea (an MVP, or minimum viable product), test it with a few real users and grow it based on their feedback. The infrastructure, on the other hand, needs to be built for many customers from the start. When customer separation and subscription logic are added later, a large part of the system often has to be rewritten. Think about your pricing model early too: whether you charge for a single plan, by number of users or by usage affects some decisions in the infrastructure. If you are going to offer a trial period, design from the start how the move to a paid plan will work when the trial ends. Plan the legal side alongside the product as well: terms of use, the privacy notice required under KVKK (Turkey's personal data protection law), the texts required for distance sales and your invoicing setup should all be ready before launch.

Before you start, answer three questions in writing: whose problem does your product solve, and what is that problem; which plan will the customer pay for, and how often; and which three features absolutely must be in the first version? These answers will be the basis both for your first meeting with a software team and for your conversations with your first customers. Adorb develops subscription-based products that serve many customers from a single infrastructure, from the idea stage to launch; a crypto trading bot SaaS infrastructure that you can run under your own brand is one of these products.

This article is for general information only; for your own situation, please consult your accountant or legal adviser.

Frequently asked questions

Are SaaS and cloud software the same thing?

In everyday use they often mean the same thing. Cloud means the software and data sit on servers on the internet. SaaS is the business model in which that software is offered as a service on a subscription. Every SaaS runs in the cloud, but not every piece of software in the cloud is SaaS; a custom system used by just one company can also run in the cloud.

If I use software on a subscription, who owns my data?

The data is yours, but it sits on the provider's servers. That is why the contract should state where the data is stored, how it is backed up and in what format it will be handed over to you when you end the subscription. A system with no export option makes it harder to move to other software later.

Do I need to build a technical team for my own SaaS product?

Not necessarily. Many entrepreneurs develop the first version with an outside software team and build their own team as the product takes off. In that case, it is important that the code is documented and written to be maintainable; whether the work can easily continue when your own team takes over later depends on it.

Should I sell my software as a one-off purchase or by subscription?

It depends on the product. For a product that is constantly updated, runs on a server and needs support, a subscription keeps your income in step with your costs. For a product that is installed once and used for a long time without changes, a one-off sale or license may suit better. Some companies offer both options.

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