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Compared with previous surveys, field sales lagged inside sales by a greater amount this year (6% in 2015 vs. an insignificant 2% difference in 2014). Median growth among field sales dominated companies slightly lagged inside sales dominated companies (by 6% points), but led internet sales by 8% points. Channel sales dominated companies grew significantly faster, though the data is sparse. Mixed also performed well.


For Entrepreneurs.com

More SaaS + Software Stats

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

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

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

Cloud-hosted applications have a 99% uptime

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

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”

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

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

73% of organizations indicated nearly all their apps will be SaaS by 2021

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months