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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

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

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

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

Three uses for the SaaS Guidelines

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

More Growth Strategy Stats

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

SaaS IPOs have more than doubled over the last 12 years

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

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

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

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

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

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”