Thinking about buying a micro SaaS business? That can be a great idea but before jumping in, it’s smart to know what to look for These small online software services often have steady income and low overhead costs. But not all of them are worth the asking price. That’s where a few simple metrics can help you make a better decision
In the Sub SaaS Review Category, people often look at data as a way to tell the story of a product’s health Here are five key things to check out before buying a micro SaaS:
1 Monthly Recurring Revenue (MRR)
This is the amount of predictable income the SaaS makes each month MRR helps you get a quick idea of how stable the business is A steady or growing MRR tells you that customers are sticking around and paying If MRR is going up, that’s usually a good sign
2 Churn Rate
Churn tells you how many customers are leaving each month A high churn rate could mean customers aren’t happy or the market is too competitive Look for a SaaS with a low churn rate, because it often means people find value and are likely to stay
3 Traffic Sources
Where are the users coming from? Are they finding the site through search engines, social media, or paid ads? This matters because some sources are more reliable than others For example, traffic from search engines is often “free” and steady, while traffic from ads stops once you stop paying
4 Customer Acquisition Cost (CAC)
This is how much it costs to get a new customer If the cost is high, the business may not be making as much profit as it seems You want to see if there’s a healthy balance between what it costs to bring in users and how much money those users bring in later
5 Owner Involvement
How much time does the current owner spend each week running the business? A good micro SaaS should need only a few hours of work each week If it requires regular support, development, or customer service handled by the owner, you’ll need to figure out if you can do that yourself or hire help
By keeping an eye on these five things, you’ll have a clearer picture of the SaaS you're thinking about buying It’s not about being a tech expert, just paying attention to the right numbers