All About Micro-SaaS and How Developers Can Capitalize on It

Over the last 25 years, the global software industry underwent a profound shift. It was the move from per-seat licensed, locally installed software to the software as a service (SaaS) model. It was a change that altered everything about the software market. For one thing, it gave even small businesses access to both industry-standard and cutting-edge software tools. For another, it eliminated burdensome hardware replacement cycles by moving the bulk of business computing to the cloud.

However, here in 2024, it's becoming quite clear that the SaaS market itself is losing momentum. Starting in 2022, investment activity in new SaaS startups plummeted. Since then, the valuations of public SaaS companies have, too. For the average developer, this is a worrisome trend. After all, SaaS has been a massive job creator for programmers. And if it's on its way out, what are all of the displaced developers to do?

The answer is to evolve. The next phase of the SaaS revolution is already upon us, and it's called micro-SaaS. It's a variation of traditional SaaS solutions that neatly sidesteps some of the reasons that SaaS firms have struggled of late. Here is a complete explanation of micro-SaaS, including some examples and some ideas that even a solo developer could spin into a micro-SaaS product.

What Is Micro-SaaS?

Micro SaaS, as its name suggests, is the term used for small, industry, or task-specific software as a service solutions. They're the kinds of software that solve niche problems and don't try to take on too much or grow beyond their origins. The reason they're gaining traction is simple. They're relatively simple to create and require little to no ongoing development once launched. While they typically don't have massive user bases, they do tend to have stable and loyal ones. This makes micro-SaaS development much less risky and also makes it an excellent option for one-person startups.

Examples of Micro-SaaS Solutions

Although micro-SaaS has only started gaining traction recently, it isn't a new concept. In fact, there are a variety of micro-SaaS solutions already on the market and thriving. Some of them are even quite well known, although most people don't realize that they're built on a micro-SaaS model. Here are a few notable examples:

Zendesk

Zendesk is a micro-SaaS product aimed at the customer support service sector. It is a solution that offers an omnichannel customer communication solution that includes a support ticketing function, an interactive knowledge base, and a community forum. It allows businesses that use it to create a robust customer service toolset that rivals anything a larger firm could offer.

Carrd

Carrd is a micro-SaaS platform that gives users the ability to make sleek, responsive one-page websites on demand. The basic version is free, and users can add additional functionality like custom domain names and Google Analytics support for a small subscription fee.

Storemapper

Storemapper is a micro-SaaS solution that gives businesses a simple way to add a store finder widget to their business web pages. It allows for location data importation using Microsoft Excel, which makes the process simple even for non-technical users. Plus, it creates an interactive location map that customers can use to plot a trip to any nearby store location.

Micro-SaaS Seed Ideas

Since it doesn't take much up-front capital or a large development team to create a micro-SaaS product, they make a perfect starting point for developers looking to start a solo business. The first step in doing so, though, is to find a service niche that has a decent chance of attracting a stable audience and creating a decent revenue stream. To help with that, here are a few seed ideas that any developer could run with to get started.

A Budgeting and Expense Tracking Tool

Although there are plentiful solutions already available in the accounting SaaS space, most of them are overkill for individuals and very small businesses. However, a simple budgeting and expense-tracking micro-SaaS solution would be a perfect middle-ground solution. The target audience would be individuals and companies with simple financial situations, for whom turning to a bookkeeping business wouldn't be worthwhile. Think solopreneurs and freelancers, both of whom would be a natural fit.

Customer Testimonial Tracking Tool

In today's age of social proof and customer review supremacy, businesses have every reason to worry about managing customer reviews and testimonials. Especially when you consider that 95% of customers read reviews and testimonials before making a purchasing decision. That would make a customer testimonial tracking tool a surefire hit among the small business community. As long as it's simple to use and works as advertised, any developer could make one that would attract a loyal audience.

The Bottom Line

At the end of the day, it's pretty clear that micro-SaaS solutions will continue to multiply in the years to come. They represent a natural successor to traditional SaaS products, which often struggle to turn a profit by aiming too high or trying to be all things to all people. Plus, they're the kind of product that solo developers can take on alone, which should create plentiful work as the need for large SaaS development teams subsides.