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

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Overall, the median company devotes 30% of their CAC to marketing expenses, with the remainder allocated to sales. However, internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing. Besides a slight shift towards greater marketing spend by field sales companies, the results are largely consistent with last year’s results.

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To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

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

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

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

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

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

80% of venture capital investments take place in the enterprise

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

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

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

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

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

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

In 2017, the world invested around 3.4 billion U.S. dollars in small hydropower technologies, down from 3.9 billion U.S. dollars in 2016.

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

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

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

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”

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide