And should I build a micro-SaaS product?
You may have seen the wording and thought to ask, “what is micro-saas” when looking to start a new web business. Micro-saas is a software as a service business usually operated by one person or a very small team.
The benefit of them are they usually are very independent of location as they operate online and provide a very predictable recurring revenue stream.
Why are they useful you ask? The biggest factor of a micro-saas is they focus on a very specific problem for a small group. This means they are a very high margin, low risk business models that can sometimes operate with very little effort (outside of the actual building of course!). Since they focus on small market needs, this prevents you from getting lost in the shuffle of focusing on a very large market or problems that are too complex.
Do micro-SaaS platforms actually make real money?
Yes, and some do pretty well actually!
Below are three companies that are micro-SaaS projects. They are simple ideas that focus on a single problem and have grown monthly recurring revenue
2 person team. $300,000 a year
1 person. $1,500,000 a year.
1 person. $55,000 revenue
Isn’t micro-saas just SaaS?
When working with people who are looking to build, a lot of comments they get are “Micro-saas just seems to be useless SaaS projects”
If it is making money, it isn’t useless. Also, the target market for micro-SaaS is a very specific use case so what may be useless to someone may be a no brainer buy for someone else.
Should I build a micro-SaaS project?
If you are looking to build a project and the complexity and features of SaaS is overwhelming, micro-SaaS maybe for you. Focus on the target use case, the users that would benefit from it, and start your project from there. If anything, you have a very minimal investment into a project to learn from!