Statistic Info

The most significant changes this year include: 1) Upsells: this year just 45% paid full commission rates on upsells, vs. 58% in last year’s group; 2) This year just 32% paid no additional commission on longer term contracts vs. 42% in last year’s group. Not surprisingly, commissions on renewals are typically deeply discounted, with a median rate of 2%. Upsells command a median rate of 8%, and nearly half of the companies pay full commissions on upsells.

For Entrepreneurs.com

More SaaS + Software Stats

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

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

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

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

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

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

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

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

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

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

More Growth Strategy Stats

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

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

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

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

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

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

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

They may forget what you said, but they will never forget how you made them feel.

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.