I just met a friend and talked with him. He’s running an AI SaaS doing $70k MRR, but the profit margin is only around 30% about $21k/month because he has to pay for infra, AI agents, and marketing through Google and Meta ads.
It made me think: wow, my B2C apps are actually much more profitable, even with lower MRR.
But one advantage he has is that he can potentially sell that SaaS for millions of dollars, while B2C mobile apps are much harder to sell at a good valuation compared to SaaS.
Sometimes the real question is:
Do you want high-margin cashflow now,
or a more sellable asset later?