Unpopular opinion: B2B SaaS is a pyramid scheme

I may be looking at this completely wrong so I welcome pushback but from the way I see it, B2B SaaS as a whole is basically a pyramid scheme.


All of the companies are just selling to other companies with the only value being added majority of the time is so those companies can sell more of their software to more of these companies.


There is little to no added value to the world at all and when we talk about “value”, it is usually just either lowering costs or increasing revenue but nothing tangible that really helps things outside of the B2B space.


What am I missing?

🐱 Off-Topic
21
hh456
Celebrated Contributor
11
sales
We let people alleviate pain for money. Productivity has value.

I really don't care if more wells are dug in a 3rd world country. If we can fix a problem, and someone will pay us for it. Value is added.
SaaSguy
Tycoon
8
Account Executive
Tons of B2B SaaS companies are selling into verticals like construction and manufacturing that create tangible products. This is a bad take.
UrAssIsSaaS
Arsonist
6
SaaS Eater
Isnt lowering cost and increasing revenue the end goal for any company? 
poweredbycaffeine
WR Lieutenant
5
☕️
The software/ internet business, as much as we would all like to believe otherwise, is not about improving the world or adding value in a rainbows and puppies kind of way. We are all here to make money by selling our software and/or services to companies who need it so they can more efficiently build and sell software and/ or services. Pretty plain and simple.

Lowering costs is a value add to just about any company-- go ask their CFO. When your software saves another company cash, they can turn around and hire more talented employees, or invest in resources that improve the quality of work and life for your employees.

Pyramid scheme? No. Self-fulfilling prophecy? Closer.
UrAssIsSaaS
Arsonist
2
SaaS Eater
Much more eloquently than I stated. Not many people in this world are out here trying to paint the sky with pink clouds (good on those that are, we probably need more of them). They are out here trying to make millions and this industry has figured out how to do it pretty effectively. 
Sunbunny31
Politicker
3
Sr Sales Executive 🐰
Lower costs in your business often leads to better consumer experience and cost on the front end.

If I'm a B2B company and I am using an efficient martech stack that helps my business engage my own customers, it's better for everyone, yes?  I think you're assuming that it's one big circle of B2B2B2B all selling incestuously into itself.  While that might be true on some level, there are consumers at the end of most of it.   

I want the businesses with which I, as a consumer, engage, to:  have what I need, get it to me as painlessly as possible, and support me if I have issues.   Bad technology makes all of that cumbersome and a challenge, and I, as a consumer, will go elsewhere that treats me better.
GDO
Politicker
2
BDM
SaaS is not exclusively selling to SaaS 😉
Diablo
Politicker
1
Sr. AE
Definition for value varies for everyone. Though we are selling A product, B product might increase the ease of doing A, might help A sell more, might make A a more perfect product when supplemented with B and thousand other reasons.. sometimes things are not tangible if looked from a micro level
SaaSyBee
Politicker
1
Founder
I think the correct term is "circle jerk" ;)
BmajoR
Arsonist
1
Account Executive
Big swing and a miss. The part you are missing, is an understanding of what is valuable to everyone but yourself. Does a product allow a business to conduct themselves with more efficiency? That's valuable. Does a product solve a pain that a company is struggling with? That's value.

We aren't in the business of making the world a better place. That's what nonprofits are for. 
FamilyTruckster
Politicker
1
Exec Director, Major Accounts
This is a spicy take. 

value is perceived. If you’re talking intrinsic “feel good” value, hard no. 

if someone is buying, they found value. 

Fun topic @GlennRoss 
Justatitle
Big Shot
1
Account Executive
One of the worst takes I've seen on here. I've sold Point of Sale software, Event management software and trucking software, each of them have been considered a need for various reasons, now there is certainly want vs need, for example Clari is a great revenue software but it's not needed, it is to help reps forecast so I can see in that example a bit of what you are saying but I disagree in the pyramid scheme concept which you have listed. Pyramid schemes screw the new guys that get in to them and the suckers that buy. With SAAS you have to be consultative or you will lose and show tangible reasons why someone should buy.
Blackwargreymon
Politicker
1
MDR
Tons of B2B SaaS companies are selling into verticals like construction and manufacturing that create tangible products. This is a bad take.
Fribbles
Notable Contributor
0
Sales doosh
ya i don't really care what im selling if if im making. Morality is the last thing I think about when going into a new sales gig lmao 
ChumpChange
Politicker
0
Channel Manager
Time and resources saved are definitely a value driver. Money and time saved mean more resources to penetrate new markets, launch new products, hire more people, etc.  If you honestly believe "no value is added" then you're simply out of touch.  This is where you need to sit in on leadership level meetings to see how and what drives the ship.    
MR.StretchISR
Politicker
0
ISR
To answer your question, I don't go through their hashtags.
Clashingsoulsspell
Politicker
0
ISR
Mean girls covered this pretty well, you're not going to make '#fetch' happen.
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