It seems like the term Micro SaaS is everywhere right now.

Founders wear it like a badge of honor. Investors use it to describe lean, high-margin products. But here’s the thing, it’s also being misunderstood. And possibly, misused.

Last week, I spoke to a founder running a PDF compression tool. $2.8M in ARR. Another has a webhook service pulling in $5M with just three people. The average “micro” SaaS maintains 80% profit margins, better than almost any traditional business model.

Yet we’re still calling these “micro”?

How do you think that makes them sound to a potential investor, customer, or even team member?

It sounds like we’re apologizing for what’s actually laser-focused execution. That we’re shrinking what’s working instead of celebrating it.

What If It’s Not About Size at All?

What happens when a label that once felt empowering starts to limit your ambition?

When you call something “micro,” do you unintentionally suggest it should stay small?

I’ve been wrestling with this for months, watching successful founders unconsciously cap their own potential with this language. They price lower because they’re “just micro.” They hesitate to hire because micro means tiny. They apologize in sales calls for being specialized.

What if there’s a better way to describe these companies, one that acknowledges their strategic focus without downplaying their impact?

Introducing: Feature as a Service (FaaS)

I’ve been sitting on this term for months, watching the confusion grow. Today, I’m putting it out there.

It seems like what we’re actually building isn’t “small software.” We’re building focused solutions—deep, high-performance implementations of a single feature that integrate seamlessly into modern tech stacks.

Think about it:

• Loom? Started with screen recording as a service
• Calendly? Scheduling as a service
• Stripe Checkout? Payment forms as a service
• Remove.bg? Background removal as a service

Are these “micro” businesses, or are they specialized tools solving real problems better than anyone else?

These aren’t lifestyle businesses, they’re API-first, integration-ready features that slot perfectly into the modern software ecosystem. They’re built to do one thing so well that companies worth millions depend on them for that one thing.

Why FaaS Might Be a Better Frame

It’s a better mirror
“I run a Feature as a Service company” gives people instant clarity. You’re not just another SaaS. You’re not apologizing for being small. You’re owning that you solve one problem really well. Better than the giants who treat it as feature #47 on their roadmap.

It creates space for growth
Zoom was video conferencing as a service. One feature. $100B+ valuation at peak. The market doesn’t care how narrow you start, it cares how deeply you solve. When you say “Feature as a Service,” you’re not putting a ceiling on your ambition. You’re defining your strategy.

It unlocks premium pricing
When your customer knows you’re the best at one thing, they’ll pay for it. Because it’s not micro, it’s specialized. It’s not small, it’s focused. I’ve seen founders double their pricing just by changing how they describe what they do.

It reflects how modern software actually works
We’re in the age of the composable enterprise. Companies don’t want bloated platforms anymore. They want best-in-class features they can compose into their perfect stack. Feature as a Service speaks their language.

What Makes Something Feature as a Service?

Not every small SaaS qualifies. Here’s what I’m seeing as the pattern:

• One core feature that works standalone
• API-first architecture built for integration
• Depth over breadth in solving that single problem
• Clear value in one sentence (“We do X”)
• Refuses feature creep religiously

It’s not about being small. It’s about being disciplined.

So What’s the Ask?

What would happen if we stopped saying “micro” and started owning “focused”?

What if the question became: What feature are you turning into a service?

Starting today, I’m using Feature as a Service in all my content. I’m updating my bio. I’m changing how I describe the companies I advise. Not because I want credit for a term, but because the language we use shapes what we build.

And I think we can build bigger by thinking focused, not micro.

Join me. Change your bio. Update your pitch deck. Call yourself Feature as a Service. See what happens.

Drop it in the comments, what feature are you turning into a service? Or DM me. I’m all in on this shift, and I’m curious who else is, too.

Because the era of apologizing for focus? That ends today.