[Journey] Launching a micro-SaaS and getting $

Update
I have changed the whole niche, I found another one that was way easier to rank in and that has potentially millions of users to get

I deleted the tool I made before and made a new one for my niche, lost a ton of time but was a good decision, way less competition and many other tools to implement (remember, I want this website to have a lot of tools in its niche)

What works:
  • Tested the tool in production environnement, it works
  • Authentification works
  • The link between Stripe <-> Database <-> User
  • Have an ugly landing page



How I get the money ?
It's a freemium.
Each user can use the tool for free one time, then on his second try I put a modal that says something like "Upgrade your plan to use the tool", then he has to sign in and after that he can pay to get unlimited access

Here is my issue : Each usage of the tool is costing me $0.004-$0.01

The average freemium conversion rate ranges from 1% – 10%

Scenario: 1000 Users with Freemium Conversion
1% Conversion Rate:


  • 1% of 1000 users = 0.01 * 1000 = 10 paid users.
  • Each conversion gives me $9 in revenue.
  • Revenue from 10 paid users at $9 per conversion = 10 paid users * $9 per conversion = $90
  • Profit = Revenue - Cost = $90 - $10 = $80
3% Conversion Rate:
  • 3% of 1000 users = 0.03 * 1000 = 30 paid users.
  • Each conversion gives me $9 in revenue.
  • Revenue from 30 paid users at $9 per conversion = 30 paid users * $9 per conversion = $270
  • Profit = Revenue - Cost = $270 - $10 = $260
Summary:

  • With a 1% freemium conversion rate and 1000 users, I make a profit of $80.
  • With a 1% freemium conversion rate and 10000 users, I make a profit of $800.
  • With a 3% freemium conversion rate and 1000 users, I make a profit of $260.
  • With a 3% freemium conversion rate and 10,000 users, I make a profit of $2690.
I will see once deployed if those stats are correct, I hope this can stay in profit

TODO:
- Limit the product to 1 usage per day per user (and unlimited once subscribed)
- Implement an anti-spam with a third-party api or some captcha so someone doesn't just destroy my bank account with a for loop lmao
- Make the legal pages (important)
- Make a user page so he can change his subscription status (downgrade, upgrade etc)
- Register correctly on Stripe
- Make a good landing page that converts
- Make it scalable



Many things to do still, I'm reinvesting my other project money into this one, it will take months to grow but should get organic backlinks because the tool just works, I'm not productive enough tho
Any updates OP?
 
Any updates OP?
- Limit the product to 1 usage per day per user (and unlimited once subscribed)
- Implement an anti-spam with a third-party api or some captcha so someone doesn't just destroy my bank account with a for loop
- Make a user page so he can change his subscription status (downgrade, upgrade etc)

-> Done

I have been trying to setup Stripe for a while now, its so boring to implement, there are some tricky cases
Example:
Each months, it should recredit the users token on the app, how to do this? Crontab? Listen to a webhook from Stripe?
If an user takes a plan, then 1 day later he upgrades, then he cancels his plan, wtf happens on my side?
If an user asks for a refund, I have to give his refund, otherwise he can call his bank and that's the worst case ever for your Stripe account, it happens all the time for no reason.

stuff like that

Stripe is a big problem

dont know if I should switch to something else
 
- Limit the product to 1 usage per day per user (and unlimited once subscribed)
- Implement an anti-spam with a third-party api or some captcha so someone doesn't just destroy my bank account with a for loop
- Make a user page so he can change his subscription status (downgrade, upgrade etc)

-> Done

I have been trying to setup Stripe for a while now, its so boring to implement, there are some tricky cases
Example:
Each months, it should recredit the users token on the app, how to do this? Crontab? Listen to a webhook from Stripe?
If an user takes a plan, then 1 day later he upgrades, then he cancels his plan, wtf happens on my side?
If an user asks for a refund, I have to give his refund, otherwise he can call his bank and that's the worst case ever for your Stripe account, it happens all the time for no reason.

stuff like that

Stripe is a big problem

dont know if I should switch to something else
Are you using Django?

If yes, you can use djstripe which helps a lot!

> Each months, it should recredit the users token on the app, how to do this? Crontab? Listen to a webhook from Stripe?

I think Stripe has this built in. You just need to research check this https://ordinarycoders.com/blog/article/django-stripe-monthly-subscription

-> If an user takes a plan, then 1 day later he upgrades, then he cancels his plan, wtf happens on my side?
You would change the subscription at the next billing cycle. (Current cycle stays the same, but on next cycle it changes)

-> If an user asks for a refund, I have to give his refund, otherwise he can call his bank and that's the worst case ever for your Stripe account, it happens all the time for no reason.

I think you should take into consideration about this, as it will happen anytime. Make sure your policy is clear.

Good luck!
 
Hello guys, I don't post often here but I will do this post to get some motivation, I have been reading a lot about SaaS businesses online.

I never saw a post about SaaS businesses here, they are quite lucrative and not "shady"

Ok, so what is a SaaS? It's an online product that people pay for; they don't own it, it's hosted on your own servers, and you can charge them one-time, monthly, or annually for it.
Think about Netflix: you pay each month to access the content.
But a SaaS doesn't have to be paid-only, it can be a freemium, like Spotify, where you can access the content but have to pay to unlock some features, the issue here will be that your free offer is too good and people never buy the product (WinRAR)

How am I gonna compete with those big companies ? I will not compete with them, I will launch a "micro-SaaS" that only does a specific task in a specific niche where I can get enough clients organically.

Example of a micro-SaaS
Search "Remove background image" on Google and you will see a lot of websites like this :
https://www.remove.bg/
This website is a money printing machine, let's see the stats:
56M monthly visits
Base pricing of $32/month

Let's take the worst case here, 1% of conversion.
Monthly revenue = 560,000 * $32 = $17,920,000
Crazy, isn't it ?

It won't make that. :-) There's no way it will convert at 1%. Not keywords like those.

The vast vast vast majority of people searching for "remove bg", "remove background" etc are looking for a quick/free tool.

And base pricing is not $32/mo.

You get 1 credit free. Almost everyone will use that.

Very few will sign up for the 40 credits per month plan at 9 euros per month let alone 200 credits per month at 39 euros(The $32 one you refer to)

They will get plenty signing up of course, but not 1%

Most that need 2-3 images done will just create multiple free accounts.

A few that have more will just pay the 9 euros for 10 credits.

Companies will sign up to the monthly credits and graphic designers with a lot of work.

Companies that work with images etc. Freelancers that work with images.

Still a great business, but there is NO WAY that 1% of the listed search vol on this are signing up for a $32/mo plan, let alone this being the "worst case". It's not even the best case :-)

I mean, even with an amazon review site you're looking at a CTR of 0.5% to 3% depending on your layout and the site. And that's CLICKS to amazon, not signing up for a $32/mo subscription to remove a background.

Of those around 10% buy. It's been years since I've had amazon review sites. I don't think I even tracked CTR from the site. I just remember the conversation rate after clicking through to amazon was between 5 and 15%. Usually averaging around 10%.

I maybe had 3-5% on some keywords back then, but you're not going to get more than that. A super highly targeted email opt in is going to convert at 40%. Most people searching for stuff on google are not clicking through to ads and certainly not buying stuff.

B2B keywords are different. There's going to be higher conversation rates there, but consumer keywords have very low clickthrough and conversion rates.
 
Very good plan, Intersting journey!....
I hope you find success in it to!....
 
- Limit the product to 1 usage per day per user (and unlimited once subscribed)
- Implement an anti-spam with a third-party api or some captcha so someone doesn't just destroy my bank account with a for loop
- Make a user page so he can change his subscription status (downgrade, upgrade etc)

-> Done

I have been trying to setup Stripe for a while now, its so boring to implement, there are some tricky cases
Example:
Each months, it should recredit the users token on the app, how to do this? Crontab? Listen to a webhook from Stripe?
If an user takes a plan, then 1 day later he upgrades, then he cancels his plan, wtf happens on my side?
If an user asks for a refund, I have to give his refund, otherwise he can call his bank and that's the worst case ever for your Stripe account, it happens all the time for no reason.

stuff like that

Stripe is a big problem

dont know if I should switch to something else
Sounds like a saas is needed to compete with stripe..or a saas that fixes the issues lol
 
I have an idea for the pricing:

$5 one time buy - Get 10 usage of the tool (not a subscription !)
$9.99 subscription - Get 200 usages of the tool
$19.99 - Get unlimited usages

If someone wants to use the tool once, he has to pay $5, then he asks himself "why would I pay $5 when I can pay twice and get 20 times more?"
No idea if thats a good strategy; but I will try idk

Also, it's always better to sell yearly subscriptions, many SaaS do it that way
For all the efforts and costs that went into the building of your tools, won't the one time buy deviate too much from SaaS model as many potential users may just think "oh cool won't use more than 10 tools" and most people can throw away $5. Sounds more like you will attract brokies only.

Some will even abuse your system by purchasing multiple different tools with your one-time plan using proxy or VPN.

The two other pricing sounds better I think. Just my two cents.
 
Last edited:
Any update? Was looking like a promising journey
 
- Limit the product to 1 usage per day per user (and unlimited once subscribed)
- Implement an anti-spam with a third-party api or some captcha so someone doesn't just destroy my bank account with a for loop
- Make a user page so he can change his subscription status (downgrade, upgrade etc)

-> Done

I have been trying to setup Stripe for a while now, its so boring to implement, there are some tricky cases
Example:
Each months, it should recredit the users token on the app, how to do this? Crontab? Listen to a webhook from Stripe?
If an user takes a plan, then 1 day later he upgrades, then he cancels his plan, wtf happens on my side?
If an user asks for a refund, I have to give his refund, otherwise he can call his bank and that's the worst case ever for your Stripe account, it happens all the time for no reason.

stuff like that

Stripe is a big problem

dont know if I should switch to something else
For stripe use webhooks - from my perspective its the most stable solution
 
For all the efforts and costs that went into the building of your tools, won't the one time buy deviate too much from SaaS model as many potential users may just think "oh cool won't use more than 10 tools" and most people can throw away $5. Sounds more like you will attract brokies only.

Some will even abuse your system by purchasing multiple different tools with your one-time plan using proxy or VPN.

The two other pricing sounds better I think. Just my two cents. https://faceswaponline.ai/pt/multi-faceswap/
Thanks for sharing your thoughts — you make a good point! Balancing between one-time purchase models and sustainable SaaS pricing is tricky, especially when considering long-term value and potential abuse. It’s definitely something worth thinking through carefully to attract serious users, not just one-off buyers. Also, if you’re into creative tools, check out — it’s a fun AI platform for multi-face swaps right in your browser!
 
Any updates ? dont get afraid share your link so we can help you or even jump with you for some %
 
It won't make that. :-) There's no way it will convert at 1%. Not keywords like those.

The vast vast vast majority of people searching for "remove bg", "remove background" etc are looking for a quick/free tool.

And base pricing is not $32/mo.

You get 1 credit free. Almost everyone will use that.

Very few will sign up for the 40 credits per month plan at 9 euros per month let alone 200 credits per month at 39 euros(The $32 one you refer to)

They will get plenty signing up of course, but not 1%

Most that need 2-3 images done will just create multiple free accounts.

A few that have more will just pay the 9 euros for 10 credits.

Companies will sign up to the monthly credits and graphic designers with a lot of work.

Companies that work with images etc. Freelancers that work with images.

Still a great business, but there is NO WAY that 1% of the listed search vol on this are signing up for a $32/mo plan, let alone this being the "worst case". It's not even the best case :-)

I mean, even with an amazon review site you're looking at a CTR of 0.5% to 3% depending on your layout and the site. And that's CLICKS to amazon, not signing up for a $32/mo subscription to remove a background.

Of those around 10% buy. It's been years since I've had amazon review sites. I don't think I even tracked CTR from the site. I just remember the conversation rate after clicking through to amazon was between 5 and 15%. Usually averaging around 10%.

I maybe had 3-5% on some keywords back then, but you're not going to get more than that. A super highly targeted email opt in is going to convert at 40%. Most people searching for stuff on google are not clicking through to ads and certainly not buying stuff.

B2B keywords are different. There's going to be higher conversation rates there, but consumer keywords have very low clickthrough and conversion rates.
damn bro, you must be a millionaire having time to yap that much - just tell him to use more conservative projections like 0.1% or 0.01% CVR
 
damn bro, you must be a millionaire having time to yap that much - just tell him to use more conservative projections like 0.1% or 0.01% CVR

If you want to pick fights with random people head over to X.com - Plenty of people there will take the bone and you'll have some drama. Enjoy.
 
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