How I Make Money Online by Building and Selling SaaS Tools

Software as a Service (SaaS) has become one of the most profitable online business models. SaaS tools are web-based applications that solve specific problems for users, and they are typically monetized through recurring subscriptions. I’ve been able to generate consistent income by building and selling SaaS tools, and I want to share my experience with how you can do the same.

1. Identifying a Problem and Finding a Niche

The first step to building a successful SaaS tool is identifying a real problem that needs solving. SaaS businesses thrive when they provide valuable solutions to specific pain points faced by individuals or businesses. For instance, tools that improve productivity, automate tasks, or streamline processes are always in demand.

To come up with ideas, I focus on industries I am familiar with or areas where I see inefficiencies. For example, I once noticed how challenging it was for small businesses to manage customer feedback efficiently. So, I built a simple SaaS tool that automated feedback collection and analysis.

I spend time researching my target audience and industry trends to ensure that the problem I’m solving has a large enough market. Some strategies I use for finding a niche include: