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.

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More SaaS + Software Stats

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

Companies with longer contracts (2+ years) reported the lowest annual unit churn

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

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

How Often Should The Pricing Committee Be Meeting And Making Changes?

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

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

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

More Growth Strategy Stats

Improve Your Pricing Schedule And Turn More Profit

At Facebook, 15 percent of tech roles are staffed by women

The average SaaS company spends just 6 hours determining their pricing strategy

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

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

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

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

How Often Should The Pricing Committee Be Meeting And Making Changes?

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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