Rick Blyth Micro SaaS Guide eBook

Download The Micro SaaS Handbook

Grab your free copy of my 12 chapter guide to Micro SaaS before I change my mind. Read it anytime, anywhere at your leisure. 

There's over 100 pages of actionable content including:

  • What is Micro SaaS

  • The Benefits & Drawbacks of Micro SaaS

  • Finding a great Micro SaaS niche

  • Generating solid Micro SaaS ideas

  • Validating Micro SaaS ideas

  • How to launch your Micro SaaS

  • Scaling your Micro SaaS

  • Selling and Exiting your Micro SaaS

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Interested in building Micro SaaS apps that compound over time that consistently bring you recurring income each and every month?

Come join the group of developers figuring out they're worth so much more than a paycheck!


Rick Blyth Micro SaaS Guide eBook


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Micro SaaS Benefits

Now that we know what Micro SaaS is, let’s take a look at the key benefits of the Micro SaaS business model!

At its core, Micro SaaS is about solving problems for an audience within a specific niche. Much like SaaS (Software as a Service), it allows customers to subscribe monthly/annually to software applications that add value.

So, as a software developer, what are the Micro SaaS benefits that we can expect from this business pursuit?

In this article, I’ll be breaking down the top 10 Micro SaaS benefits, exploring the main advantages to producing Micro SaaS apps.

From minimal startup costs to financial freedom, you can expect to see a whole host of advantages. I’ll be focusing on these 10 Micro SaaS benefits:

  • 1. Compounding results from your efforts

  • 2. Financial security from a predictable recurring income

  • 3. Minimal startup costs

  • 4. Direct connection with your users

  • 5. Ability to build it once but sell it to many

  • 6. Time freedom

  • 7. Location freedom

  • 8. Technical freedom

  • 9. Financial freedom

  • 10. Self-employed status

#1 - Compounding results from your efforts

Firstly, as you add more features to your Micro SaaS app, you’re building upon its existing foundations. Instead of starting from scratch each month, you’re always building on top of the work you’ve done in the previous month. The more features you add, the more enticing your offering will be for your prospective users.  

Secondly, your customer base will grow over time as early adopters of your app are joined by new customers. Again, the work you put in on promoting your app doesn’t start from scratch each month, it compounds and builds upon what you’ve done previously. I cover the various methods of scaling up your customer base in a later chapter but for the time being, I just want to communicate this compounding of the subscribers too.

Micro SaaS Increasing Software as a Service user base

This compounding of both the growing features of the app and the expanding customer base cannot be underestimated.

In my case, when I first launched the MVP of my Merch Wizard chrome extension, I did so with a barebones app that was functional but didn’t have any bells and whistles to it. However, the functionality in that first version laid the foundations for the app as it is today and many of the original MVP features haven’t needed to be updated since their launch.

They say that you should cringe when you think about the first version of the app you release. I am cringing right now thinking about that MVP version, but you’ve got to start somewhere and gaining that early feedback is vital! 

Merch Wizard Micro SaaS MVP

My Merch Wizard MVP (Cringe)

I offered a low monthly subscription for early adopters that many of them are still paying today! This group of early adopters formed a stable base of monthly subscription income which I was able to build upon as the app evolved and became more well known within the community.

#2 - Financial Security From A Predictable Recurring Income

Your customers will subscribe to your product on a monthly or annual basis. Whilst there’s always going to be a certain degree of customer churn, the vast majority of your customers will continue to pay you on autopilot every single month. 

It’s this automatically recurring income that makes this business model so attractive to gaining a stable passive income. 

Having a baseline of subscribers paying you each month, whether or not you’re working flat out adding new features or taking some time off, is very reassuring. 

Micro SaaS Financial Security

If you compare this to freelancing, you effectively start at zero each month with no hours billed and if you don’t put in the hours, you don’t get paid …. Sick? Injured? Family emergency? You don’t get paid.

In my case, it was the group of enthusiastic early adopters paying monthly that gave me the confidence to focus on the app. This built up a runway to de-risk my eventual exit from my day job to go full time on the app. I wouldn’t have had anything like the same level of confidence to quit my job if I was leaving to go freelancing.

I have also been through the unfortunate experience of working at a company that suddenly went bust overnight. Everyone lost their jobs with no notice and no pay.

So, let me ask you which is safer ... relying wholly on one company to pay your salary each month, or having hundreds/thousands of customers pay you a small subscription each month … I know which I’d pick!

#3 - Minimal Startup Costs

The Micro SaaS app business model doesn’t require any upfront costs. The only thing you’re putting “at risk” is your time.

As it’s software you’re creating, you don’t need to buy any inventory upfront or rent office space. All you need is your computer and an internet connection to get started.

You don’t even need an advertising budget to successfully launch your Micro SaaS app. My launches have all been via organic methods. I recommend this over ploughing money into paid ads which can be very costly if executed poorly.

#4 - Direct Connection With Your Users

There’s nothing quite like having an open and direct connection with your app’s users. They will let you know what features they love, what they’d like to see next, and will also spread the word about your app to other potential customers.

In my old day job as Technical Director, I was so far removed from the end users it was difficult to get any meaningful feedback from them.

In the Micro SaaS app world, it’s likely you’ll be interacting directly with your users every day. You’ll have access to a continuous stream of useful insights into your users’ thoughts and desires which will help mold your product roadmap.

In my case, I took this a step further and organised an entire conference for my niche’s user base! As I was active in the Merch Facebook groups I saw that there was only one conference for this niche, held annually in Seattle, USA.

I figured it could be a good idea to arrange a conference for the European based Merch creators and once I had the blessing from the USA contingent, the Merch UK Conference was born!

Rick Blyth Speaking at Merch UK Conference

Despite the stress of organising a conference for 80+ people, which in the end had several attendees from USA & Europe as well as the UK., the benefits far outweighed the stress. I was able to:

  • Increase my profile in the community.

  • Earn further trust that my app was run by a credible person.

  • Create relationships with multiple influencers within the niche community and network with other app owners.

  • Meet many Merch Wizard users and pick their brains in person (these relationships have lasted years and are vital for feedback).

#5 - Build It Once, Sell To Many

There are only so many hours in a day and in a job/freelance role, your income is constrained by the amount of hours you’re able to work.

This is known as active income, where you’re actively working and getting paid the corresponding amount for each hour you work. Your earning potential is always going to be constrained by the number of hours in the day/month.

Contrast that with building your Micro SaaS app. You are no longer being paid per hour, but rather for the result of your efforts in building a top notch product.

This is the secret to how you can achieve a disproportionate income from the time you invest. For example, this relatively modest looking chrome extension is run by one developer and it nets him a disproportionate $32,000 in monthly passive income recurring revenue!

Closet Tools on Indie Hackers

Closet Tools for Poshmark - a great Micro SaaS example

Micro SaaS apps are the best time leveraged model for us software developers to follow to achieve passive income. This leveraging of your time is the true power of the Micro SaaS business model.