How to Calculate the Cost to Build a SaaS System

How much does it cost to build a SaaS system

Calculating the Cost to Build a SaaS System: Profit vs. Spend

The potential to earn passive income by building a Software as a Service (SaaS) system is very alluring, but what will you have to put in upfront to get there? Determining your cost to build a SaaS can be more complicated than you might think. We’ve built a number of SaaS systems and want to share with you how to estimate your spend on each part of the project, avoid costly mistakes and get the most for your money.

One of the first questions more people with a great idea for a SaaS ask is:

Is building software worth the investment? read more

Putting up a SaaS Paywall To Get The Right Customers

You just logged into a new SaaS system and now they want you to enter your credit card JUST TO LOOK AROUND? “That’s ridiculous!” you think to yourself a little bit outraged. “I’m not putting in my credit card just to look at this thing. Why would anyone think that is ok?”

Then we have two different paths that people take. They usually go something like this:

    • This is crazy, I am never going to put in my credit card just to look. Goodbye!
    • Now that I am looking at this thing, it really does solve my problem, and this is a big problem for me. Alright, I’ll bite. Here’s my credit card info.

    What is the value for a new SaaS of these two different groups?

    Disclaimer: This article does NOT apply to all SaaS systems. The bigger the system and the more the system is a platform, not just a single tool, the more this article applies in my experience. read more