Internet Sales strategies have a significantly lower CAC of just $0.42

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Compared with previous surveys, field sales lagged inside sales by a greater amount this year (6% in 2015 vs. an insignificant 2% difference in 2014). Median growth among field sales dominated companies slightly lagged inside sales dominated companies (by 6% points), but led internet sales by 8% points. Channel sales dominated companies grew significantly faster, though the data is sparse. Mixed also performed well.

More SaaS + Software Stats

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

Customer Segmentation analysis will help point out which are your most profitable segments

The median annual unit churn for SAAS companies was 10% in 2016

More than 1/2 of SAAS companies increased their spending on customer retention last year

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

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

More Growth Strategy Stats

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

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

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews

Invention is 10% inspiration and 90% perspiration.

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

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 monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

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