SaaS Business Model: How People Are Secretly Making Money Using AI

The SaaS business model is one of the most powerful online business models where people are secretly earning lakhs of rupees. The best part is that you can also start this business easily in today’s time using AI.

However most people do not even know what the SaaS model actually is. They only know that money can be made from SaaS. But how does the SaaS model really work? How is it built? And how much money can you actually earn from it? In this blog, you will understand everything step by step. If you want to build your own AI tool or start a startup with a unique idea, then this guide is for you. Make sure you read it till the end.

What Is the SaaS Model?

SaaS stands for Software as a Service.This means you create a website, app, or software and provide users with a service or solution they need. Instead of selling a product once, users pay to use your software.

Can You Build a SaaS Model Without Coding?

Yes.You do not need to know AI development or coding. You only need to know how to use AI tools.Using advanced no-code platforms, SaaS models can now be built in minutes with the help of AI.

How the SaaS Business Model Works

1. Idea Selection

You need an idea that is useful and in demand.

Examples

 AI Image Generator

 YouTube SEO Tool

Business Name Generator   

2. Build the Interface

Earlier, interfaces were built using coding. Now, no-code platforms like Lovable allow you to build apps and websites without writing any code.

3. AI Tool Integration

Your SaaS model alone cannot perform tasks like generating images or text.

For example:

If you build an image generator, you need an AI tool to convert prompts into images. 

Instead of creating AI from scratch, you integrate existing AI tools like:

ChatGPT

 Gemini

These tools are connected using API integration.

4. Payment Setup and Publishing

Once your SaaS tool is ready, you:

Set up payment

 Publish the SaaS model

 Start earning money from users 

• Choosing the Right SaaS Idea

  The SaaS idea depends on:
  Your audience
  Your interest
  

  Example Ideas

  1. If your audience is content creators, build a YouTube SEO tool
  2. If your niche is animals, create an animal-information SaaS where users enter an animal name and get complete details
  The key is to build according to user needs. 

• Building a SaaS Model Using AI 

  

Lovable is an easy and powerful no-code app builder. Why Use Lovable? No coding required. AI-powered development. Trusted by many users
Web and mobile preview available
You simply describe your app using prompts, and Lovable builds it for you.

Creating a SaaS Prompt Using ChatGPT

Before using Lovable, you first describe your idea clearly in ChatGPT.

Example:
You want to build a YouTube SEO tool
Users enter a topic
The tool generates SEO-friendly titles, descriptions, and tags
No coding required
AI integration included
ChatGPT then creates a complete structured prompt for Lovable.

Backend Setup Using Supabase

A backend server is required to store: 

User data Generated content

App usage history

Supabase is used as a cloud backend where: 

You create a project

Connect it with Lovable

Store all user data securely

AI API Integration (Gemini Example)

To make the SaaS functional:

You generate an API key from Gemini

Paste it into Lovable

The AI now processes user prompts in the backend

The user interacts with your app, but the AI does the execution.

Adding Login and Signup Features

Using prompts inside Lovable:

Login page is created

Signup page is added

Email verification is enabled

User security is maintained

Testing and Fixing Errors

If any error appears:

Copy the error

Paste it into the Lovable chat

The system automatically finds and fixes the issue

This process continues until the SaaS tool works perfectly.

Connecting Dashboard and History

The generated results are linked with:

User dashboard

History section

Usage count

Users can view and reuse their generated content anytime.

Payment Integration Using Razorpay

To earn money:

Free and paid plans are created

Razorpay payment API is integrated

Users can upgrade plans using UPI or other methods

Initially, payments can be tested using test mode.

Final Payment Confirmation Fix

After payment:

User plan updates automatically

Dashboard reflects the upgraded plan

Access is granted according to the subscription

Publishing the SaaS Application

Once everything is working:

The SaaS model is published

Users can access it using a public link

Payments go directly to your Razorpay account

Converting the SaaS Website Into a Mobile App

You can convert the web app into a mobile app using a web-to-APK tool:

Paste the SaaS website link

Add app name and logo

Generate APK in minutes

Optional Play Store upload

Lovable Pricing and Credits

Free daily credits available

Extra credits through referrals

A complete SaaS model can be built using very few credits

Pro plan allows custom domains and full access

Example: AI Image Generator SaaS

An AI image generator SaaS was built using the same method:

Prompt input

Image size selection

AI image generation

Hugging Face API integration

Fully functional without coding

If you are serious about starting an AI startup, this method allows you to launch quickly and test ideas before investing heavily.