Why SaaS Businesses Waste Money on Content Marketing

Why SaaS Businesses Waste Money on Content Marketing

Content marketing can be an integral part of a SaaS business’s growth strategy, but all too often, it ends up being a waste of time and money. 

This is a dreadful shame because the content is awesome! So, why is there this issue?

Well,  despite the immense potential that content marketing offers, many SaaS businesses struggle to see any meaningful ROI from their time and financial investments. Many SaaS businesses therefore unfortunately waste money on content marketing.

But, it doesn’t have to be this way!

In this guide we will provide you with some practical solutions that should help you to make the most of your content marketing strategy. 

It’s true that the SaaS industry has become increasingly competitive, with so many companies turning to content marketing to attract and retain customers it can be difficult to stand out. Simply churning out blog posts and social media updates is not enough to make an impact.

 In fact, a lack of strategy and foresight can lead to wasted time and money. The good news is that with a deliberate and purposeful strategy you will be better placed to see a positive ROI.

Content Marketing Proves Wasteful

Content marketing has long been hailed as one of the most crucial facets of any marketing strategy. However, for SaaS companies, it can sometimes prove to be a wasteful expense and simply not worth the effort.

SaaS companies are known for their notoriously high burn rates, and spending a valuable budget on content marketing that doesn’t yield a tangible return can put a significant dent in the companies ability to operate effectively.

Generic content that doesn’t translate well to the target audience of your business can be an enormous waste of time and resources. In addition, effective SEO (on pages and link building) are key to actually getting results from content marketing. 

For any successful SaaS business a reliable customer base is key. However, attracting and retaining customers can be a challenging task without an effective marketing strategy. While many companies believe that content marketing is the answer to their growth woes, this isn’t always the case. Instead, sometimes it is actually better to focus on leveraging other forms of marketing, such as paid advertising and email marketing.

Content marketing has many benefits, but it is more of a medium to long term play. Every company is different, so with a limited budget you need to be careful to invest into marketing tactics that are fundamentally aligned with the specific business goals.

Why do SaaS businesses waste money on content marketing?

Content marketing provides an awesome and timeless means for any SaaS businesses to reach potential customers. However, the reality is that many companies fail to see a valuable return on their investment in content marketing. A lack of clear strategy and focus on quantity over quality can be blamed for this in most cases. Instead of producing high-quality content which resonates and inspires their target audience, they try to publish as much content as possible without really considering its general usefulness. 

Not only does this attitude waste money but it also does no favors in improving reputation and credibility. 

What are some common mistakes that SaaS businesses make when it comes to content marketing?

Content marketing is awesome when paired with SEO, unfortunately some SaaS businesses totally overlook the huge importance of SEO. Your content might be awesome, but if you don’t follow SEO best practices and continually try to enhance your reputation in the eyes of the search engines you will find it difficult to see any real results.

Is content marketing still effective for SaaS businesses?

Yes, of course!

Content marketing is still a hugely effective strategy for SaaS businesses when done correctly. It can yield an ROI that is just not possible through paid ads. However, as a founder or CMO at a SaaS business, you do need to be aware that SEO is a long-term investment and takes time to generate results. 

A consistent content schedule and a desire to establish topical authority to the point of industry dominance is the best way to attract more qualified leads and build a loyal customer base. Remember content marketing is not the be all and end all of marketing and you will see the best results when it’s integrated with other tactics such as social media and email marketing.

How can SaaS businesses measure the success of their content marketing efforts?

SaaS businesses can measure the success of their content marketing efforts by keeping tabs on keyword rankings, website traffic, engagement rates, and sales conversion rates. Setting clear goals and objectives before launching content marketing campaigns along with continuous A/B testing (different content types) can improve results. The success of your content marketing will ultimately come down to how effectively you can communicate your messages through content.

Cost-effective content marketing strategies for SaaS businesses?

There are several cost-effective content marketing strategies that SaaS businesses can use to get more bang for their buck. One idea is to repurpose existing content into different formats whether that be listicle blog posts, roundup posts, social media updates, infographics, or short form videos. Another good way to enhance your content marketing is to collaborate with influencers in order to amplify reach and exposure. Finally, creating a community around the brand can be a great way to get more brand engagement and get more idea of what your audience is looking for.

SaaS Firms Bleed Money

As the world of SaaS and service based software continues to boom, companies are throwing money at marketing to drive increased revenue. Unfortunately, many SaaS companies are bleeding money on marketing initiatives that fail to deliver results. 

The majority of new SaaS companies pour vast sums of money into content creation and search engine optimization (SEO), hoping that this will bring in new customers and drive business growth. 

While this sometimes can have a massive impact, often, it doesn’t. One of the main problems usually lies with the content itself. Many SaaS companies produce blog posts that exist only to “sell” and do not even try to provide real value to their target audience. WIthout value, there is no credibility for your brand.

Thinly-veiled advertising pieces, designed to push their product or service onto customers along with smart SEO may generate clicks, but it rarely leads to meaningful engagement or conversions. 

Along with poorly executed content, SaaS companies also struggle with budgeting and spend management. There is a culture of pressure to drive growth and attract new customers for founders and it can be tempting to throw money at marketing initiatives without properly measuring their impact or ROI.

As a result many businesses enter a vicious cycle where they continue to pour resources into ineffective campaigns, draining precious revenue and resources that could be put towards other areas of the business. 

You need to focus on being more strategic with your overall marketing and finding out where content and SEO fits in the equation for you. Using data to inform your strategy and decision making will help you avoid wasting money on ineffective marketing initiatives and focus their resources where they will be most impactful

Lack of Research

Despite having a great product, many SaaS companies are failing to make an impact with their content strategy. We think that one of the biggest reasons businesses are wasting money on content is because they are not taking the time to understand their customers. 

In reality there is a lot of necessary research that needs to be done in order to identify what your customers want and need. A lack of effort spent on the research component of content marketing is translating into ineffective content that doesn’t relate to the target audience. 

It’s not always about the quality of the words on the page, but, instead a demonstrated understanding of the customer’s journey. If you know where your customers are in their buying process and you can create content to meet their needs at each stage you will find it much easier to connect with them throughout the customer lifecycle. 

Don’t Neglect SEO and PPC

SaaS companies must also have a clear SEO strategy in place. Focusing on organic search can be a powerful tool for SaaS companies looking to grow their customer base. Incorporating SEO into your content strategy is key, and by researching and targeting the keywords and topics which are “hot” in your niche you can get a lot of good content ideas.

While SEO is crucial, SaaS businesses cannot ignore the importance of paid advertising as well. With the right budget, testing and strategy, paid advertising can be a great way to find new customers and generate substantial revenue time and time again.

Top Tips

Tip 1: Avoid creating content blindly without having a clear strategy. You need to develop a content plan that aligns with the ambitions, intentions, and goals of the business. Being deliberate like this will help you avoid unnecessary expenditure on ineffective content.

Tip 2: Content creation is not just about quantity, but also quality. With that said, publishing content at scale is a great way to yield results. However, it’s better to be writing a few awesome articles rather than writing dozens of low-quality blog posts, shift your focus to creating fewer, higher-quality pieces that inform and engage your audience. Your content needs to be great and provide real value in order to rank – this will also help improve the overall perception of your brand.

Tip 3: You should try to repurpose your content rather than just creating new content from scratch every time. By repurposing content (that has already proved successful) can save time and money and help you better target different segments of your audience. For example, transform your blog post into a video to extend the lifespan of your content and reach a new type of customer.

Tip 4: Don’t forget the importance of distribution. Publishing great content is key, but unfortunately this is just the first step. If nobody sees your content then it won’t have an impact on your business. You need to put a clear distribution strategy in place to help you reach more people. Social media, email marketing, and paid ads are some very effective channels for distribution!


Why do SaaS companies lose money?

SaaS companies often prioritize rapid growth over profitability during their early stages, thus incurring losses. These losses are typically attributed to high research and development costs, sales and marketing expenses, and customer acquisition expenditures. While some businesses can eat up these losses, others can’t always bounce back. Additionally, SaaS companies may invest heavily in infrastructure and recruiting top talent in the early days to maintain a competitive market edge. Remember, the goal is to eventually reach a good level of profitability – increased revenue and optimized expenses is necessary.

How much should a SaaS business spend on marketing?

There is no one-size-fits-all answer to this question, as the amount that a SaaS company should spend on marketing depends on the company’s stage of growth, target market, and the level of competition. As a general rule of thumb, SaaS companies should invest between 10-40% of their revenue on marketing activities. This is a big range, but in general, the more you invest (smartly) the better. It’s important for companies to continuously track their marketing spending and the return on investment to ensure that the strategy is effective and sustainable.

How does content marketing benefit SaaS companies?

Content marketing can be highly beneficial for SaaS companies because it creates a means to educate potential customers on your specific products and services while building trust and brand recognition. You can build a reputation as an industry thought leader and demonstrate the value of your service offerings. Content marketing can continuously drive organic traffic, while also reducing customer acquisition costs and increasing the likelihood of conversions.

What do SaaS companies spend money on?

SaaS companies often spend a lot of money on research and development. This includes things like software development, testing, and user experience design. In reality, they are necessary expenses. Additionally, SaaS companies are often very growth-oriented and will invest heavily in sales and marketing e.g. events, public relations, and sales team salaries.

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