How to Build a SaaS Product: A Starter Guide
SaaS (Software as a Service) is a business model where software is delivered over the internet via subscription. Spotify, Slack, Notion, Canva — all SaaS. In 2026, the SaaS market has surpassed 300 billion dollars. You can build your own SaaS product too.
What Is SaaS?
SaaS is a cloud-based application that users access through their browser without downloading. Key differences from traditional software:
| Criteria | Traditional Software | SaaS | |----------|---------------------|------| | Installation | Local install | Browser | | Payment | One-time | Subscription | | Updates | Manual | Automatic | | Access | Single device | Anywhere | | Maintenance | User | Provider | | Scaling | Hardware investment | Flexible |
SaaS Development Steps
Step 1: Define the Problem
Successful SaaS products solve real problems:
- What problem are you solving?
- How many people experience this problem?
- Why are current solutions inadequate?
- Will people pay for this solution?
Step 2: Market Research
- Competitor analysis
- Target audience definition
- Pricing research
- TAM/SAM/SOM calculation
Step 3: MVP (Minimum Viable Product)
Deliver maximum value with minimum features:
- Identify core features (max 3-5)
- Launch in 4-8 weeks
- Collect early user feedback
- Iterate
Step 4: Technology Selection
Frontend:
- Next.js / React — Most popular
- Vue / Nuxt — Easy learning curve
- SvelteKit — Performance
Backend:
- Node.js / Express — JavaScript ecosystem
- Python / FastAPI — AI/ML projects
- Go — High performance
Database:
- PostgreSQL — General purpose, reliable
- MongoDB — Flexible schema
- Redis — Cache and sessions
Infrastructure:
- Vercel / Netlify — Frontend hosting
- AWS / GCP / Azure — Cloud
- Supabase — Backend-as-a-Service
- Stripe — Payments
Step 5: Essential SaaS Features
Every SaaS needs:
- User registration and login (Auth)
- Subscription management
- Dashboard
- User roles and permissions
- Notifications (email, push)
- Analytics
- API (for integrations)
- Documentation
SaaS Pricing Models
| Model | Example | Best For | |-------|---------|----------| | Freemium | Slack, Notion | Wide audience, viral growth | | Flat-rate | Basecamp | Simple products | | Tier-based | HubSpot | Different segment needs | | Per-user | Jira, Asana | B2B | | Usage-based | AWS, Twilio | API/infrastructure | | Hybrid | Zoom | Flexibility |
SaaS Metrics
| Metric | Description | Target | |--------|-------------|--------| | MRR | Monthly Recurring Revenue | Growing | | Churn Rate | Customer loss rate | Under 5 | | CAC | Customer Acquisition Cost | LTV/3 | | LTV | Customer Lifetime Value | CAC x 3+ | | NPS | Net Promoter Score | 50+ | | ARR | Annual Recurring Revenue | MRR x 12 |
SaaS Success Tips
- Fall in love with the problem, not the solution
- Launch early and often
- Listen to customer feedback
- Start simple, grow incrementally
- Focus on reducing churn
- Grow organically with content marketing
- Invest in automation
Conclusion
Building a SaaS product requires business acumen as much as technical skill. Find the right problem, launch fast with an MVP, and develop based on user feedback. In 2026, SaaS remains one of the most attractive business models.
If you'd like to build a SaaS product or bring your idea to life, get in touch: info@cagribilgehan.com. Check out my projects: cagribilgehan.com