Software as a Service (SaaS) is a hugely popular business model — and for a good reason. The Internet allows businesses to provide subscription-based services in many innovative and affordable ways.

What’s even more impressive about SaaS businesses is that they can be adapted for different functions, users, and working environments. Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) are some of these adaptations which are growing in the industry.

What is a Micro-SaaS?

The micro SaaS business model is an adaptation that differs from these fundamentally in one manner: it operates on a much smaller scale, having a narrow focus and a dedicated user base. (This is why it’s also called ‘Small SaaS’).

Main Differences Between Micro-SaaS and Traditional SaaS

A full-sized traditional SaaS can be a large-scale project involving multiple developers and fulfilling numerous functions. Micro SaaS businesses, however, are developed with minimal funding and costs by a small team or even a single individual to fulfill a hyper-specific purpose in a niche community. Hence the narrow focus and dedicated user base mentioned earlier.

Developers highly appreciate micro SaaS solutions because they have the highest potential to create a fairly significant passive income. Part of a growing market, a micro SaaS application can generate revenue with minimal resources, being widely perceived as a low risk product. When well-developed, micro Saas solves existing needs, achieving customer satisfaction rapidly. Their build-in-one and sell-it-to-many SaaS recurring revenue model allows you to increase your ROI quickly.

Top 3 Micro-SaaS Features

Low Cost

A micro SaaS is a project that works without requiring expensive resources. Its development, because it takes place on a smaller scale, will also require significantly less funding than a traditional and more extensive SaaS.

Niche Market

If you are addressing a niche market due to the problem your micro SaaS seeks to solve, your user base will likely be part of the same industry or seek to perform the same task using your services. But even though your base may be small, these customers are more likely to be committed to using your micro SaaS business due to the alignment they feel. Therefore, it is highly likely to support its development in other ways such as email feedback, beta testing, monetary donations, or even voluntary bug fixes.

Efficient Communication

Since an individual or a small team creates a micro SaaS, the development process is unlikely to be held up by delays in communication, task handovers, or waiting for approval from higher-ups. Smaller communication networks mean faster results overall.

How to Test The Profitability of Your SaaS Idea’s Industry

Pick a Problem you can Relate to

It’s no secret that the more passionate you are about something, the easier it will be for you to have the vision and do the work necessary to bring it to life. For this reason, we recommend picking a problem you’ve witnessed in your professional experiences.

For example, struggling with social media communications or email marketing is not an isolated problem. So, a solution that could simplify and streamline the process and at least eliminate some of the associated costs is highly desired. Bannerbear is a company that saw the need and did just that. They auto-generate social media images, banners, videos, and even dynamic emails through its API technology.

Not all SaaS developers have an in-house designer who can quickly create social channels, and their app solves this problem.

Determine a Solution you would Want

Once you’ve identified a problem that is commonly faced by a niche community, brainstorm ways that you can solve this problem. And instead of trying to think up complicated solutions from the get-go, remember this rule in your micro SaaS guide: keep it simple. Successful micro SaaS focuses on addressing single variables at a time than every issue simultaneously.

Research Intent, Demand, and Competition

As we’ve said earlier, finding unsaturated market segments where you can easily thrive is pretty complicated. We’re lying now. It’s actually impossible. So, instead of hoping and dreaming, you need to be practical and understand who you are going up against. The same industry can seemingly have multiple Micro-SaaS platforms that address the same problem. However, you’ll notice that products will differ in some significant way, whether in terms of how they allow users to perform tasks or monetize their services to maximize accessibility. Indeed, there are a few key factors you need to look for. Use them to your advantage by creating that unique mix of elements to draw in users.

Create A Working Brand Persona

Customers buy products, but customers trust humans. A vital step in your marketing process will be the creation of your brand persona. Whether you decide on a playful or business-like persona, you’ll want this to show in more than just your marketing.

What’s more, don’t make the mistake of using a brand persona only for social media advertising. Inject aspects of this character or story into your software itself, and you’ll have a cohesive idea your potential customers are more likely to find captivating.

Learn how to build, analyze and market your Micro-SaaS product on PayPro Global’s Blog.