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Industry · Software & SaaS
How software & SaaS businesses make money
The 1M.chat dataset has 798 software & SaaS businesses. 354 of them have a revenue figure the founder reported in an interview. Their median is $40K a month, and 35% were at $1M a year or more when interviewed, with a median team of 4 employees. The growth channels founders credited most often were organic social media (55%), SEO & organic search (54%), word of mouth & referrals (31%).
Revenue at interview
| Under $1K/mo | 23 | |
| $1K–$10K/mo | 70 | |
| $10K–$50K/mo | 95 | |
| $50K–$83K/mo | 43 | |
| $1M+ a year | 104 | |
| $1M+ a month | 19 |
Growth channels credited
| Organic social media | 55% | |
| SEO & organic search | 54% | |
| Word of mouth & referrals | 31% | |
| Paid ads | 31% | |
| Communities (Reddit, forums, Slack groups) | 30% |
Share of 244 businesses with channel information; founders often name several.
Business models in this group
| Subscriptions (SaaS & memberships) | 710 | |
| Selling physical products | 31 | |
| Usage-based fees | 24 | |
| Services, agency & consulting | 11 | |
| Ads, sponsorships & affiliate | 7 | |
| Marketplace commissions | 4 |
Tools named most: Twitter (32%), Instagram (22%), Stripe (22%), Google Analytics (22%), YouTube (20%) — of 65 that listed tools.
Case studies
Read how they did it
- UpHex: white-label ad software for HighLevel agencies at $190K a monthUpHex sells white-label Facebook and Google ad campaign software to marketing agencies.$190K/mofounder-reported 2023
- Mailbird: a desktop email app for Windows and Mac that grew to $170K a month on SEOMailbird sells a desktop email client for Windows and Mac that unifies multiple email accounts in one workspace.$170K/mofounder-reported 2024
- Missive: a shared inbox and team chat app at $2M a year with a small teamMissive sells a shared inbox and team chat app for businesses.$2M/yrfounder-reported 2022
- Intelogos: selling AI workforce analytics to data-driven teams at $100K a monthAI-native workforce analytics platform that turns real-time activity into KPIs, benchmarks, and recommendations for data-driven teams.$100K/mofounder-reported 2024
- Wellyx: management software for gyms, spas and studios at $60K a monthCloud-based management and marketing software for gyms, spas, dance studios, salons, and yoga studios$60K/mofounder-reported 2023
- StatsDrone: an affiliate stats tool for iGaming affiliates at $20K a monthStatsDrone sells an affiliate stats aggregator SaaS to iGaming affiliates and affiliate networks.$20K/mofounder-reported 2022
- Estii: pricing and estimation software for tech services firms at $10K a monthEstii is an estimation and pricing platform for service providers.$10K/mofounder-reported 2024
- Swift App: booking and management software for indoor sports facilities at $120K a yearSwift builds software to help sports facility owners run their businesses, starting with indoor baseball facilities.$120K/yrfounder-reported 2022
- Live Helper Chat: an open-source live chat tool that earns $90K a yearOpen source live support chat for websites, sold to companies that want to host it themselves.$90K/yrfounder-reported 2021
Examples
Highest founder-reported revenues in this group
| Business | What it sells | Revenue / month | Where |
|---|---|---|---|
| Fathom AnalyticsSoftware & SaaS | Privacy-focused website analytics software | $50Mfounder interview | Canada |
| Transformify: Wor...Software & SaaS | global payroll and contractor payment software | $5Mfounder interview 2021 | United Kingdom |
| LemlistSoftware & SaaS | cold email and sales automation platform | $4.4Mfounder interview | France |
| BrightLocalSoftware & SaaS | Local SEO software and services for marketers | $2.7Mfounder interview 2021 | United Kingdom |
| TrainualSoftware & SaaS | training and knowledge base software for small businesses | $2.7Mfounder interview 2019 | United States |
| LempireSoftware & SaaS | Sales outreach tool for cold email and LinkedIn | $2.5Mfounder interview | France |
| FactoflySoftware & SaaS | admin and invoicing tool for freelancers | $2.4Mfounder interview 2022 | Denmark |
| MediaflySoftware & SaaS | Sales enablement and content management software | $2.3Mfounder interview | United States |
| EfficySoftware & SaaS | CRM software suite for businesses | $2.1Mfounder interview | Belgium |
| StoreYaSoftware & SaaS | Ecommerce marketing and advertising apps | $2Mfounder interview | Israel |
| RegpackSoftware & SaaS | Online payment management and registration platform | $1.6Mfounder interview 2023 | United States |
| MailmodoSoftware & SaaS | No-code interactive email marketing software | $1.3Mfounder interview 2021 | — |
| FlipsnackSoftware & SaaS | online digital flipbook creation tool | $1.3Mfounder interview 2022 | United States |
| Sportika LabsSoftware & SaaS | Platform for launching youth sports academies | $1.3Mfounder interview 2026 | United States |
| TextMagicSoftware & SaaS | SMS marketing and communication platform for businesses | $1.2Mfounder interview 2022 | Estonia |
| Inflectra Corpora...Software & SaaS | Software development and testing management tools | $1.1Mfounder interview 2022 | United States |
| MeisterSoftware & SaaS | collaborative productivity and mind mapping apps | $1Mfounder interview | Austria |
| KYC HubSoftware & SaaS | Platform to mitigate financial crime risks | $1Mfounder interview 2023 | United Kingdom |
| TenantCloudSoftware & SaaS | Property management software for landlords and tenants | $1Mfounder interview 2021 | United States |
| ClickMeetingSoftware & SaaS | Webinar and online meeting platform | $897Kfounder interview 2022 | Poland |
Revenue as the founder reported it in a Starter Story interview, at the interview date; not current revenue. “What it sells” is a 1M.chat summary. How this data is built
Questions
How much do software & SaaS businesses typically make?
Among 354 software & SaaS businesses with founder-reported revenue, the median was $40K a month at the time of the interview. The sample is founders who chose to be interviewed, so it leans toward businesses that were already working; treat it as a range of real outcomes, not an average for everyone who tries.
How many software & SaaS businesses reached $1M a year?
123 of 354 (35%) reported at least $83K a month, the run-rate for $1M a year.
How did software & SaaS businesses find customers?
Of 244 with growth-channel information, founders most often credited organic social media (55%), SEO & organic search (54%), word of mouth & referrals (31%), paid ads (31%), communities (Reddit, forums, Slack groups) (30%). Channels are grouped by 1M.chat from what founders said worked.
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