All terms
SaaS & Startupintermediate

SaaS

Software as a Service

Definition

A business model where software is delivered online on a subscription basis, customers pay a recurring fee to access the product instead of buying it outright.

Why it matters

SaaS generates predictable recurring revenue (MRR/ARR) and builds compounding value over time. It's one of the most scalable business models because the marginal cost of adding a new customer is near zero.

Example

Shopify, Notion, and Canva are all SaaS products. You pay monthly for access, not a one-time licence fee.

Related terms

Learn the language of business - and build the systems behind it.

Rich Girl Systems turns 1168+ founder concepts into a step-by-step programme with daily challenges, XP and your own assistant.

Take the free founder quiz