Does SaaS make sense financially?

Think about issues, not ideas, as they say. I believe this also holds true for the model. Although the SaaS model appeals to us developers and marketers, is it truly feasible in today’s globalized and saturated market?

Although there are SaaS companies that generate millions of dollars, it appears that the average success story only generates $3,000 MRR based on data from StarterStory and the IndieHackers stripe-verified product database. That’s not enough to cover the pay of one employee, much less create a company around.

As much as I detest saying it, I believe that the agency model or a typical 9–5 job is considerably more financially feasible for the majority of individuals.

It really depends on what you’re aiming for. I have three separate SaaS ventures that together generate around $4,000 a month. While this isn’t enough to replace a full-time salary, it’s sufficient to contribute to a pension and fund the occasional vacation. Initially, I invested a lot of time into these projects, but they’ve become largely passive now.

I still work full-time and wouldn’t change that. Relying on a SaaS for your livelihood can be stressful, and even successful SaaS ventures are vulnerable to changes in search engine algorithms. However, having some extra income is a nice bonus.

Your post suggests that SaaS, agencies, and traditional 9-to-5 jobs are mutually exclusive, but I think that’s the wrong perspective. From my experience in web development, building something solely to make money often leads to failure. It’s better to focus on creating something because you enjoy innovating. If it turns into a million-dollar idea, that’s fantastic. If it just provides some extra cash, that’s still a win. And even if it doesn’t make any money, you’ll still gain valuable experience.

I completely concur with you, u/dtwoo! Combining both would need extraordinary discipline and a critical understanding of priority. I’m attempting it myself as well; depending solely on SaaS ideas or a 9–5 job to provide 100% of my revenue is simply too dangerous. Seeing repeated waves of layoffs prompted me to finally try it out.

How is your SAAS marketed? I’ve found it stressful as someone who also does it on the side because I have an FT Jon to think about and can’t spend all day marketing it on instagram or whatever.

The answer is simple, if you are purely going for the money it’s probably not worth since you are likely to work 12 hours per day while bootstrapping your idea. Furthermore, success is not guaranteed. To genuinely like working on and liking the product is the safe refuge. Even if you don’t succeed, you will undoubtedly earn experience that you may use for your next regular work or future company venture. Keep in mind that you grow from your errors.

I encountered some entrepreneurs who were starting several projects one after the other. A portion fail, a portion are sold transactionally, and a portion stick around and significantly increase their worth. Yes, it’s a rough road, but at least you’ll be able to diversify your sources of income if you chance to solve the appropriate problem at the right moment. Regular 9 to 5 work isn’t a safe haven either; there’s always a chance of being laid off. I believe the best is to blend and test out until you figure things out. That’s what I personally am doing. Sending you my best wishes!

For most people, working in an agency or having a 9-to-5 job is a more financially stable choice, and there’s nothing controversial about that.

However, for me, the risk is worth it.

I thrive on building things and having complete control over them. I dislike the constraints of a 9-to-5 job and being managed by others. I value the freedom to set my own schedule and make my own decisions, which motivates me through the challenging phases of starting an online business. It’s incredibly tough.

If your primary goal is external rewards like money, you might want to look elsewhere you’ll likely give up before you see any financial return.