My business sells Premium WordPress Themes, however, we have now created a subscription based service that allows users to create free websites in a very similar way than Squarespace.com. The question I am hoping to get advice for is: should I separate my new SaaS service from the eCommerce platform in order to avoid brand confusion? Or shall I put it all under the same website / brand?
Absolutely and redundantly - yes.
Great question, many business owners who tend to add features or expand into new opportunities capitalizing on their core assets tend to make the mistake of not realizing that they should be separated and as you go the owner has to constantly play chess against him or herself with its own products. If they by any means compete against one another they should be separated and should have a dedicated person or team supporting each goal and effort for each separately.
Don't make the mistake of trying to grow each as independent and assuming is your unicorn while you're treating the other with the same intent...When business owners do that, at some point, just like when playing chess against yourself, you unintentionally make the other one lose. In your case these two aren't complimentary either so they should be marketed differently.
My name is Humberto Valle, I am an MBA with 10yrs experience in marketing strategy and consulting. I am the co-founder of Unthink.me and distruptor of technology for the city of El Paso, Tx. We have clients world wide with a variety of hurdles for whom we provide solutions for. I hope this response was any of help :)