Many small and medium-sized B2B software companies with legacy products face a familiar challenge: how to reignite growth after years of little to no revenue expansion.
Software companies which have been in business for 10-15 years and show no to little revenue growth often press ahead with product modernisation with the belief that converting their legacy software to DIY self-service SaaS solutions is the answer to re-ignite growth.
However, changing the existing enterprise license revenue model to DIY SaaS can be a fatal move.
Transitioning from a “we do it for you” model to “do it yourself” SaaS is rarely straightforward—and often misguided.
Typically, software businesses in this position have built software solutions for the enterprise market with sales led growth strategies, multiyear license contracts supported with training, implementation and support services. After the initial growth phase, a period of no to little growth follows and revenues decline if they lose a major client.
The no-growth period combined with increasingly dated products with accumulated technical debts, makes it difficult to raise further funding to innovate and to expand their products. Limiting cash flow also limits the speed to adjust to the changing market and competitor dynamics.
While such companies try to survive, they face increasing competition from new, well-funded entrants. The new players typically enter the market with innovative technologies, pursue a DIY service model and push for fast scale with product led growth strategies.
These are often the moments when companies decide to transition the current enterprise to a DIY SaaS model in the hope of re-igniting growth and increasing profit margins.
Critical Questions Before Pursuing DIY SaaS
Before diving headfirst into a DIY model, ask yourself these questions:
- Are your customers even open to self-serve solutions?
- Is your product and tech ready for a seamless DIY experience?
- Do you have the funding to make this transition work?
- Will a lower-cost DIY model cannibalise your existing revenue streams?
- Does your team have the skills to execute this pivot successfully?
Moving to DIY often means going head-to-head with well-funded new entrants who’ve built their entire business around this model. If you’re not ready to compete at their level, you could end up losing both old customers and the battle for new ones.
There is a 3rd way. A better way for established B2B SaaS companies with legacy software to consider to reignite growth:
The “Do It Together” Model
In the “do it together” model, the customer collaborates with the company or its representatives for setup, customisation, or ongoing use of the SaaS product.
The key characteristics are:
- Personalised assistance. Customers receive help during key stages such as onboarding, implementation, or optimisation.
- Hybrid model. Combines automation and human support. Tools for collaboration, such as shared dashboards or real-time co-working features.
- Increased engagement. The focus of the dedicated customer success team is on building relationships and ensuring customers achieve their desired outcomes.
The result? Happier customers, better retention, and new revenue streams. Plus, as you refine and automate key processes, this approach becomes increasingly scalable.
A Smarter Hybrid Approach
The best SaaS companies don’t just pick one model—they combine all three:
- offering simple but valuable “do it yourself” modules as an entry-level
- provide optional “do it together” onboarding and support packages
- reserving “do it for you” services for those on premium plans
This tiered approach provides traditional enterprise SaaS businesses with a clear product development roadmap to reignite their revenue growth by moving clients up the value chain: attract clients with low entry cost DIY modules, co-operate with them to experience the full power of the software platform leading to cross and -upsell opportunities.
Legacy SaaS companies don’t have to compete on the same playing field as new, well-funded entrants following the DIY strategy. By embracing a hybrid approach, you can leverage your strengths—deep expertise, customer relationships, and tailored solutions—while modernising your offerings.
The key is to design your business model to meet customers where they are. Give them flexibility and choice, but don’t lose the personal touch that sets you apart.