51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

SaaS + Software
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When removing the smallest companies from the distribution, we find growth rates for companies using mainly Internet distribution lagged. Companies with mixed distribution strategies appear to be more agile and reported the highest growth. There was no distinguishable difference between growth rates for field sales vs. inside sales dominated companies. Rates are largely in line with last year’s survey.

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Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

54% treat upselling and add-on sales as high priority

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

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At Twitter, 10 percent of tech roles are staffed by women

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

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