SaaS creators often fall into the trap of building solutions for problems that don’t exist or designing tools that only appeal to other SaaS developers. This insular approach can create an echo chamber of ideas that add little value to the broader world.
It’s like everyone trying to sell each other better hammers when most people need a saw. If your SaaS targets “fellow SaaS creators” or is yet another productivity app with a marginally different twist, you’re swimming in an ocean of sameness. The solution? Get out of your comfort zone and discover real, tangible problems in other industries. Think about the pain points that truly disrupt daily operations or limit growth in established sectors.
Why Do So Many SaaS Projects Target SaaS Developers?
It’s the path of least resistance. SaaS developers build tools for themselves because it’s easier to solve problems they encounter daily. They understand the technical nuances, and the feedback loop feels immediate.
The issue? These problems are often narrow in scope, creating tools that only a niche subset of other developers need. Furthermore, developers are often accustomed to building their own solutions or leveraging open-source tools, meaning they are not always the most willing to pay for software. They would rather replicate it or find a free alternative.
Developers do not present a big, unified market, but one with endless segmented niches based on languages, frameworks, and specific workflows. If you want to stand out and build something with significant market potential, leave this bubble. Dig into industries you know nothing about. Learn their pain points. For example, the complexities of compliance in transportation logistics or the inefficiencies in inventory management within skincare manufacturing are areas screaming for innovation and likely have businesses willing to pay for effective solutions.
The downside? It takes effort – research, understanding industry jargon, and potentially even physical site visits. But meaningful success demands meaningful effort.
Is the SaaS Community a Pyramid Scheme?
Not exactly, but it feels like one to some observers. The endless loop of SaaS-for-SaaS products — directories, templates, AI wrappers — can start to resemble a house of cards where the primary exchange of value is within the same group. “I sell shovels to people selling shovels” is a phrase that rings painfully true.
This isn’t inherently bad; shovels were essential during the gold rush, and there's value in tools that help SaaS businesses function. But are you contributing to the longevity of the broader economic ecosystem, or are you banking on a quick buck within a closed loop? If your SaaS is a derivative of 50 other tools, offering a slightly different interface or a marginal feature improvement, you’re likely in the latter camp. Consider the long-term sustainability and the actual value being created outside the SaaS bubble.
How Can You Avoid the SaaS Echo Chamber?
Stop scratching your own itch. Instead, scratch someone else’s. This requires a shift in perspective and a proactive approach to understanding different needs. Talk to people in industries entirely different from your own. Interview a farmer about their crop management challenges, a nurse about the inefficiencies in their patient record system, or a truck driver about the logistical hurdles they face daily. Ask them about their most annoying, repetitive tasks – the things that genuinely frustrate them and waste their time. Build something to address those.
Actionable steps:
- Pick an industry outside your expertise. Deliberately choose a sector you know little about.
- Spend one month immersing yourself in it. Read industry news, follow relevant social media accounts, and try to understand the day-to-day operations.
- Talk to real users. Not online personas or Reddit threads — actual humans working in that industry. Conduct interviews, offer to shadow them for a day, or attend industry events.
- Validate your ideas. Don’t assume your solution is valuable. Test it before building. Present your proposed solution to potential users and gauge their interest and willingness to pay.
What’s Wrong With AI-Wrapper SaaS?
AI wrappers, or SaaS tools that slap a thin layer of artificial intelligence over an existing product, are the new plague of the ecosystem for many. They’re often low-effort, churned out in days by leveraging readily available APIs, and rarely solve real, fundamental problems. It's like putting a spoiler on a minivan – it might look a little different, but it doesn't fundamentally change the vehicle's purpose or performance.
If you’re using AI in your SaaS, great – AI can be a powerful tool. But ask yourself critically: Does it fundamentally improve the user experience in a meaningful way, or are you adding AI because it’s trendy and generates buzz? If the latter, you’re likely wasting time and resources that could be better spent addressing genuine user needs. Consider if the AI truly solves a problem or if it's just a marketing gimmick.
What Makes a SaaS Idea Truly Valuable?
Two core things: It solves a real-world problem, and people are willing to pay for it. Your idea doesn’t need to revolutionize an industry overnight, but it must provide tangible benefits that users recognize and are ready to invest in.
Look at accounting tools that prioritize privacy and security, like Zerocrat. They succeed not because they're flashy or built on hype, but because they address specific pain points related to data protection in a sensitive domain. If your solution is "nice to have," something that mildly improves convenience, it may not be a sustainable business. If the solution is a "need to have," something that solves a critical problem or significantly improves efficiency, it has a much higher chance of success.
Should You Build SaaS in Industries You Don’t Know?
Yes, but only if you’re willing to put in the work to understand them deeply. Many developers shy away from this because it’s uncomfortable and requires learning new domains, terminology, and workflows. Learning the intricacies of, say, the hospitality or compliance sectors takes time, patience, and a willingness to be a beginner again. But it’s often the key to creating SaaS products with real impact and less competition.
Pro tip: Freelancing or consulting in a new industry can provide invaluable firsthand insight into their challenges and unmet needs, giving you a significant advantage when developing a SaaS solution. However, be cautious of the advice "Start from where you are. Do what you know." While this can be good advice if you just need to start, learn, and maybe get lucky, if your interests lie solely in small markets that don't have the budget or inclination to spend on software, you won't find much financial success. Balance your existing skills with a strategic exploration of larger, more viable markets.
Is the SaaS Market Oversaturated?
In some niches, absolutely yes. The glut of SaaS targeting SaaS users or offering generic workflow tools is overwhelmingly crowded. It feels like there's a new project management or note-taking app launching every week.
But opportunities abound in underexplored areas and within established industries facing new challenges.
For example:
- Healthcare: Streamline insurance processing for smaller clinics or develop tools for better patient communication and data management.
- Education: Build specialized tools to make remote teaching more engaging and effective, focusing on specific subject areas or age groups.
- Small-scale agriculture: Create SaaS solutions to optimize crop rotation, manage inventory for local farmers' markets, or facilitate direct-to-consumer sales.
The key is to look for specific pain points within these broader sectors.
How Can You Validate a SaaS Idea?
Here’s a step-by-step process to avoid building something nobody wants:
- Find a niche audience. Don't try to solve everyone's problems. Target specific industries, roles, or company sizes.
- Ask questions. Conduct thorough interviews with potential users. Identify their most time-consuming, frustrating, or expensive tasks. Ask about their current workflows and the tools they use (and don't use).
- Prototype. Build a basic, functional version of your solution – it doesn't need to be perfect. Focus on the core value proposition. Tools like low-code platforms can be helpful here.
- Test it. Get your prototype into the hands of your target audience and observe how they use it. Gather feedback on what works and what doesn't.
- Measure interest. Gauge how willing users are to pay for your tool. Don't just ask if they like it; ask if they would pay for it. Real validation comes from pre-sales, commitments to pay upon release, or even letters of intent, not just compliments.
Are Self-Promo SaaS Launches Effective?
Rarely. Self-promotion within SaaS communities often leads to polite upvotes and superficial engagement, not paying customers. These communities are often filled with other builders who are also trying to promote their own products.
To succeed, launch in the specific online and offline spaces where your actual target audience exists. For instance, if you’re building a SaaS for skincare brands, join skincare industry forums, attend beauty trade shows, and connect with skincare professionals on LinkedIn – not just SaaS subreddits or developer-focused platforms.
What’s the Ultimate Key to SaaS Success?
Empathy. Truly understanding your target users’ needs, frustrations, and aspirations, and then delivering a solution that genuinely fits their workflow and solves a meaningful problem. This requires active listening, deep research beyond surface-level observations, and a willingness to pivot and adapt your product when your initial assumptions prove wrong. It's about building a solution for your users, not just by you.
Final Thoughts: Is It Time to Rethink Your SaaS Strategy?
Yes. The initial gold rush of easily built, broadly appealing SaaS is largely over. Standing out today requires building solutions that go beyond the developer echo chamber and address genuine needs in specific industries.
Focus on solving real problems for real people, not just iterating on tools for other developers. It’s undoubtedly harder work, demanding more research and domain expertise, but it’s also the only sustainable way to create something that has lasting value and a viable business model. This piece aims to be honest, direct, and actionable, pulling no punches about the current state of SaaS. If this resonates, start building smarter today.
Is the SaaS Graveyard Filled With "Me-Too" Products?
Yes, it's overflowing with them. The SaaS landscape is littered with the digital corpses of products that offered incremental improvements or replicated existing solutions without a significant differentiator. These "me-too" products often emerge from a place of internal fascination, solving a problem the creator personally faced but that lacks widespread market demand.
While this can be a valid starting point for learning, it rarely translates to long-term business success. The graveyard is filled with countless project management tools, note-taking apps, and communication platforms that simply didn't offer enough unique value or a compelling reason for users to switch from established competitors.
Why Do SaaS Founders Struggle to Identify Real Problems?
Because they're often too close to their own experiences and the immediate tech landscape. Founders, particularly those with technical backgrounds, often fall into the trap of solution-seeking rather than problem-finding. They become enamored with a specific technology, framework, or approach (like AI, blockchain, etc.) and then search for a problem to apply it to, rather than identifying a pressing problem first and then exploring the best technological solutions.
This often leads to contrived solutions for non-existent or insignificant problems – a hammer looking for a nail that doesn't exist. The key is to flip the script: deeply understand the pain points of a specific target audience, then explore the most effective ways to address them.
Do Developers Make Bad SaaS Founders?
Not inherently, but their skillset can be a double-edged sword. Developers have the incredible ability to build almost anything, which can be both a blessing and a curse. This technical prowess can sometimes lead them to overengineer solutions, prioritize intricate features over a smooth and intuitive user experience, and underestimate the crucial importance of marketing, sales, customer support, and the overall business strategy.
Successful SaaS requires a balanced approach, blending technical expertise with strong business acumen, marketing savvy to reach the target audience, and a deep understanding of the specific needs and behaviors of the intended market. A great product is only part of the equation.
Should You Build SaaS for Developers?
It's a tough nut to crack and generally a high-risk, high-reward endeavor. While developers represent a large potential market in terms of numbers, they're notoriously difficult to sell to for several reasons. They're often accustomed to using free or open-source solutions and possess the technical skills to potentially build their own internal tools rather than pay for existing ones.
Furthermore, the developer market is highly fragmented, with vastly varying needs and preferences based on their programming languages, frameworks, development methodologies, and specific roles within a team. Targeting this market successfully requires a laser-focused approach, addressing a very specific and intensely felt pain point for a well-defined niche within the broader developer community. Generic tools rarely gain traction.
Is "Start With What You Know" Bad Advice?
It's nuanced and depends on your aspirations. While starting with familiar territory can be a good way to gain initial traction, build confidence, and learn the fundamental ropes of SaaS development and launch, it can also significantly limit your potential for substantial growth and revenue. If your area of expertise lies within a small, niche market that is not known for spending money on software (e.g., very small hobbyist communities), you'll likely struggle to scale beyond a modest side project.
The best approach is often to strategically combine your existing foundational skills and knowledge with a deep understanding of a larger, more lucrative, and underserved market. This might involve consciously learning about a new industry, partnering with someone who has established domain expertise in a promising sector, or conducting extensive market research to identify genuine needs outside your current comfort zone.
What's the Biggest Mistake SaaS Founders Make?
Building a product nobody wants. This sounds incredibly obvious, but it's the most common and heartbreaking pitfall for aspiring SaaS founders. They often get so caught up in the excitement of the building process, the technical challenges, and their own vision that they completely neglect to rigorously validate their core idea with potential customers before investing significant time and resources.
They mistakenly assume that because they find the product useful or interesting, others will too. This leads to wasted time, wasted resources, and ultimately, a product launch that falls flat because it doesn't address a genuine need or offer a compelling solution to an existing problem. The key is to validate your idea early and often, through continuous customer interviews, surveys, prototyping, and even attempting pre-sales before writing significant code.
How Can You Escape the SaaS Idea Trap?
By consciously focusing on identifying and understanding real-world problems that exist outside your immediate tech bubble and personal experiences. Step away from your computer and actively engage with potential customers in diverse industries. Attend industry-specific events, read trade publications and news related to sectors you're considering, and conduct informational interviews with people working in those fields.
Look for persistent pain points that are pervasive, consistently causing frustration, and potentially costing businesses significant time or money. The more acute and widely felt the problem, the greater the potential for a successful and valuable SaaS solution.
What's the Secret to SaaS Success?
Solving a real problem for a paying customer. It's fundamentally not about building the coolest technology, implementing the latest trendy features, or having the most visually appealing interface. It's about deeply understanding your specific target market, their existing workflows, their daily frustrations, and their willingness to pay for a solution that genuinely alleviates their pain points or significantly improves their efficiency.
Success in SaaS is not just about building a product; it's about building a sustainable business that provides ongoing value to its users.
Is it Too Late to Enter the SaaS Market?
Absolutely not. While certain generic niches are undoubtedly overcrowded and highly competitive, there are still countless underserved markets, emerging industries, and evolving business needs that are ripe for innovative SaaS solutions. The key is to identify areas where existing solutions are lacking, too expensive, too complex, or simply not addressing the specific nuances of a particular industry or user group.
The future of SaaS likely lies in increased specialization, deeper personalization, and more effective vertical integration – solutions tailored to the unique needs of specific industries or professions.
What's the One Thing Every SaaS Founder Should Do?
Talk to potential customers. Before writing a single line of code, designing a user interface, or even settling on a definitive feature set, rigorously validate your core idea with the people who will ultimately be using (and hopefully paying for) your product. Ask them open-ended questions about their biggest challenges, their most time-consuming tasks, their existing workflows, and their current frustrations.
Listen carefully to their feedback – both positive and negative – and be willing to iterate and pivot based on their input. The most successful SaaS products are often built in close collaboration with their target audience, reflecting a deep understanding of their actual needs and preferences.