Saas Product Developer Business

How Profitable Is A Saas Product Developer Business? (Updated for 2024)

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Updated: September 9th, 2024

How Profitable Is A Saas Product Developer Business? (Updated for 2024)

So you want to start a saas product developer business?

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

With a market size of $143B - there’s plenty of business to go around.

Especially considering:

You could start a saas product developer business with as low as $20
Based on our data, saas product developer businesses generate an average of $2.42M per year
You could see gross margins as high as 75% with saas product developer businesses

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 saas product developer business.

Let’s dive in!

Is a saas product developer business profitable?

Yes, a saas product developer business 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 $2.42M per year with an estimated gross margin of 83%, you could expect to recover your investment within 12 months or even less.

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

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 saas product developer business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a saas product developer business worth it?

If you’re wondering if a saas product developer business is worth it, the answer is a big YES. With saas product developer businesses, you have the potential to earn $2.42M 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 $143B, 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 saas product developer business 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 saas product developer businesses case studies.

Examples Of Profitable Saas Product Developer Businesses

Here are a few examples of profitable saas product developer businesses, and a few more details about them:

1. Bannerbear ($600K/year)

Jon worked as a designer and programmer for over two decades. In his role as a designer, he focused on developing various products and banners for marketing teams. The idea for Bannerbear stemmed from his desire to streamline the time-consuming design process.

Is it profitable? Yes
How much money it makes: $600K/year
How much did it cost to start: $500

How Jon Yongfook Bootstrapped Bannerbear To $50K MRR in 3 Years

Bannerbear is an API tool revolutionizing marketing automation, founded by Jon Yongfook Cockle, generating an impressive $600K/year and offering pricing plans from $49 to $299, with a growth strategy focusing on community engagement and customer recommendations.

Read this case study

Read by 394 founders

2. Outseta ($300K/year)

The business idea originated from the founders listening attentively to early-stage SaaS start-up founders who expressed that their tech stacks felt somewhat pieced together, and they experienced difficulty integrating numerous tools.

Is it profitable? Yes
How much money it makes: $300K/year

How Geoff Roberts Bootstrapped Outseta To $25K MRR

Outseta provides essential SaaS tools for early-stage startups, generated revenue of $25K/month, and was launched through a strategic mix of Product Hunt, BetaList, content marketing, and email prospecting to drive growth.

Read this case study

Read by 428 founders

3. Widebundle ($660K/year)

He used Shopify Facebook Groups and communities to read people’s problems and questions, add comments, and start conversations. It’s a long job that only a few people want to do, but it works.

At some point, Matt found 3 people who wanted the same thing but it didn’t exist in the Shopify App Store. They wanted features from a bundled app that didn’t exist. And if 3 people want it, maybe there are more.

Is it profitable? Yes
What's the gross margin? 45%
How much money it makes: $660K/year
How much did it cost to start: $300

Failing Thrice, Then Building A $40K/Month Shopify App By The Age Of 25

WideBundle is a Shopify App founded in May 2020, that has grown to making over $40,000 monthly, with 5 people working full-time, and helps Shopify merchants create bundles and offers to increase their average order value.

Read this case study

Read by 4,468 founders

Learn more about starting a saas product developer business:

Where to start?

-> How much does it cost to start a saas product developer business?
-> Pros and cons of a saas product developer business

Need inspiration?

-> Other saas product developer business success stories

Other resources

-> Saas product developer business tips

How much can you make with a saas product developer business?

With a saas product developer business, you can make an average of $2.42M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $20. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a saas product developer business make a week?

Based on our data, average weekly revenue for a saas product developer business ranges around $50.4K. As such, you could see monthly revenues of $202K.

To know if your saas product developer business 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 saas product developer business.

How much do saas product developer businesses owners make?

The income of a saas product developer business 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 saas product developer business is about $50.4K. 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 saas product developer business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Saas Product Developer Business Profit Margins

Generally speaking, a saas product developer business can expect profit margin of around 83%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a saas product developer business, 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, saas product developer business 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, saas product developer business owners can ensure long-term sustainability and profitability for their business.

Saas product developer business owner salary

The salary of a saas product developer business 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 saas product developer business, in a prime position, might see an average weekly salary around the ballpark of $41.8K.

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 saas product developer business may be a promising business to start - but the success of your saas product developer business mostly depends on your effort and your approach.

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

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Starting A Saas Product Developer Business: Everything You Need To Know

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