Quote Info

In comparison to previous surveys, it appears there is more confidence in inside sales in the $1K-$25K range.

For Entrepreneurs.com

More SaaS + Software Stats

The best place to hide a dead body is page 2 of Google search results.

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

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

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

After $10M in ARR, the median growth rate slows to just under 50%

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

SaaS IPOs have more than doubled over the last 12 years

More Growth Strategy Stats

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

The average SaaS company spends just 6 hours determining their pricing strategy

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey