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

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

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

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

More Growth Strategy 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

Negative Churn and Expansion Revenue

Analyzed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

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

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

Google only has a 30 percent female workforce

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

Is your SaaS business viable?

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