Six Key Benchmarks for Your SaaS Startup
NOTES
Inside Sales Driven Companies Grow Fastest
Price the Product Between $1k to $25k Annually to Optimize Growth Companies
with contract sizes of $1k to $25k grow the fastest, about 26% faster or 35% y/y.
Cost of Customer Acquisition is About 11 Months’ of Revenue.
The median startup spends about 92% of first year average contract value on the sale, implying an 11 month payback period on the CAC.
Upsells are a Secret to Growing the Business Twice as Fast
The top 50% of growers generate more upsell business than their slower growing competitors.
Sales commission as % of ACV 9%
I assumed the typical ACV/compensation ratio was about 4:1 but in practice that number is closer to 10:1.
Median Monthly Revenue Churn is 0.75%
This means each year, the median business loses about 10% of its revenue to churning customers.