If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

SaaS + Software
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Pricing/Upsell/Cross Sell

For Entrepreneurs.com

More SaaS + Software Stats

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

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

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

When venture capitalists participate in seed rounds, the average round size is 3x larger

Is your SaaS business viable?

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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

More Growth Strategy Stats

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

Three uses for the SaaS Guidelines

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

Software and online services are in a period of dizzying growth

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

SaaS IPOs have more than doubled over the last 12 years

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

orecasts suggest that global blockchain technology revenues will experience massive growth in the coming years, with the market expected to climb to over 23.3 billion U.S. dollars in size by 2023.

The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

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

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