Business model · Business planning

'Pop-Up' Customers

Gareth Simpson Music Supervisor, TV Production

Last updated on May 27th, 2019

It seems the climate around tech right now is SaaS - but I'm trying to develop a product for TV production companies. One of the problems is that most TV shows, the team exist for about nine months, then the they dissolve as the programmes are delivered - my customers only really want to pay for the product for the period of time they are using it. It is making my business model hard to sell to investors. Any helpful advise?

Waleed Alhaider Founder and Data Scientist

May 25th, 2019

I would suggest focusing on how useful your product is and what the customer response has been around it. If it's really useful and great then 'Pop-Up' television is on the rise with more productions than ever. Try to have the numbers ready for investors that you will be able to cover many television productions and your product will be used year round on several television shows with no down time around then it wouldn't be a hard sell

Paul Garcia marketing exec & business advisor

May 30th, 2019

Assuming you have identified the decision makers who purchase your product, it's likely that they are working on something else each time they stop working on the previous project. Someone is ultimately responsible for the purchase, and orienting your purchase to benefit that person and making it portable to whatever project they're working on, should make it a continuous use license.

If your license is based on number of users or is billed monthly instead of annually, then your licensing model probably needs adjustment so it fits how the industry functions, not trying to make the industry accept your licensing model.

If for example the buyer is only actively using the product for 9 of every 12 months, then price it so the product is 25% more expensive, and sell it in 9 month terms instead of monthly. You end up with the same sales figure and perhaps more friendly buyers.

Or your maybe your product/market fit is still wrong and you need to continue product development so it is actually what customers want, not just what you want to sell them. What validation steps have you taken to test your fit and marketing strategy? It sounds like you haven't done this because you're getting these points of resistance still.