Micro Saas

Profitability

Revenue & Salary

How Profitable Is A Micro Saas? (Updated for 2024)

Pat Walls

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Updated: October 8th, 2024

How Profitable Is A Micro Saas? (Updated for 2024)

So you want to start a micro saas?

And the first question that came to your mind was, “well, are micro saas actually profitable?”

Especially considering:

You could start a micro saas with as low as $5
Based on our data, micro saas generate an average of $1.8M per year
You could see gross margins as high as 95% with micro saas

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a micro saas.

Let’s dive in!

Is a micro saas profitable?

Yes, a micro saas is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $1.8M per year with an estimated gross margin of %, you could expect to recover your investment within months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your micro saas.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your micro saas is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a micro saas worth it?

If you’re wondering if a micro saas is worth it, the answer is a big YES. With micro saas, you have the potential to earn $1.8M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a micro saas to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful micro saas case studies.

Examples Of Profitable Micro Saas

Here are a few examples of profitable micro saas, and a few more details about them:

1. SuperLemon ($348K/year)

After 2 failed startups, the founders set their sights on working on something people want and are ready to pay for. Their priority even before they had decided on the idea for the product was to find an audience, a group of people who faced a problem, and who currently pay for a software tool to solve their problem. App marketplaces were a way to mitigate some of this risk.

They had some prior experience with building a Shopify store, and also had a friend who built a $20k/mo Shopify app without any employees.

To find problems worth solving, they browsed the entire Shopify app store, which at the time had 3,000+ apps. Going through every single app, jotting down interesting ones, especially ones that had poor reviews indicating that they could do a better job at solving the same problem, and picked 5 out of the 100s of those ideas they identified, based on their goals and constraints:

An existing problem that people were already paying for
Existing apps weren’t doing the best possible job at solving customer’s needs
The app had the potential to grow to at least $3k in MRR, which after costs would allow the founders to live comfortably in Bengaluru

Is it profitable? Yes
How much money it makes: $348K/year
How much did it cost to start: $0

How We Developed A $29K/Month WhatsApp Plugin For Shopify

SuperLemon, a WhatsApp plugin for Shopify eCommerce stores, crossed $29,000 in MRR as of July 2020, with 20,000 users from 50+ countries and 1700+ paying customers, all acquired through organic marketing strategies and a relentless focus on customer service and satisfaction.

Read this case study

Read by 23,644 founders

2. Analyzify ($144K/year)

DataPack, the founder's productized offer for data-analytics-related projects, had received too many requests from Shopify stores. So they decided to create a standalone product for the Shopify market.

Is it profitable? Yes
How much money it makes: $144K/year
How much did it cost to start: $6K

Our Analytics App For Shopify Reached $12K MRR In Just 7 Months

Analyzify.app is a Shopify app that helps enable accurate and reliable data tracking and generates $12K+/month with over 350 stores empowered, thanks to a freemium version on YouTube and exceptional customer support.

Read this case study

Read by 8,981 founders

3. Live helper chat ($90K/year)

Everything started more than 10 years ago. When the founder was working in a small web agency and one of their clients asked for a live support script. Since they couldn't find any good open-source alternatives at that time - he decided to build one in two weeks during his holidays

Is it profitable? Yes
How much money it makes: $90K/year
How much did it cost to start: $0

I Built A Live Chat Tool In My Spare Time And Now Make $90K/Year

Lithuanian developer turned open-source guru builds and grows Live Helper Chat, attracting thousands of clients, and generates $90k/year, all in his spare time, without any marketing or investors.

Read this case study

Read by 3,737 founders

Learn more about starting a micro saas:

Where to start?

Need inspiration?

-> Other micro saas success stories

Other resources

How much can you make with a micro saas?

With a micro saas, you can make an average of $1.8M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $5. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within months.

How much does a micro saas make a week?

Based on our data, average weekly revenue for a micro saas ranges around $37.4K. As such, you could see monthly revenues of $150K.

To know if your micro saas achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your micro saas.

How much do micro saas owners make?

The income of a micro saas owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established micro saas is about $37.4K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a micro saas owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Micro Saas Profit Margins

Generally speaking, a micro saas can expect profit margin of around %. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a micro saas, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, micro saas owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, micro saas owners can ensure long-term sustainability and profitability for their business.

Micro saas owner salary

The salary of a micro saas owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established micro saas, in a prime position, might see an average weekly salary around the ballpark of .

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a micro saas may be a promising business to start - but the success of your micro saas mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable micro saas.

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