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

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As expected, field sales has the most expensive CAC. And, fields sales has widened the gap as its cost has increased, while inside and internet sales have remained relatively flat. Inside sales is now 17% lower than field sales (vs 10% lower last year) and Internet sales is 47% lower (vs 43% lower last year.) Channels sales at $0.53 CAC are at par with online distribution.

More SaaS + Software Stats

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

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

Negative Churn and Expansion Revenue

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

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 businesses face significant losses in the early years (and often an associated cash flow problem)

55% of SaaS companies rate Customer Retention as the key metric to measure

Improve Your Pricing Schedule And Turn More Profit

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

More Growth Strategy Stats

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

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

Three uses for the SaaS Guidelines

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%

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

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

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

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn