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How Quickly Does Headcount Scale in the Fastest Growing Software Businesses?

Tom Tunguz

Above, I’ve charted the headcount growth rate for 10 of the fastest growing software companies in recent history. I’ve normalized the years for when all the businesses were roughly at the same headcount - fewer than 50 people. This is a proxy for when the business established product market fit.

Headcount 168
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8 Top Takeaways from Lenny Rachintsky + Jason Lemkin on “Building a World-Class Sales Org”

SaaStr

Involve sales in product development to ensure alignment between customer needs and product roadmap. Unlike building a product team, there is no efficiency when building a sales org: half of your headcount will be in sales at $10m, $50m, or $100m in revenue. You really do want your top 1-2 reps in the early days making good money.

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SaaStr on Lenny’s Podcast: How To Build a World-Class Sales Organization

SaaStr

Involve sales in product development to ensure alignment between customer needs and product roadmap. Unlike building a product team, there is no efficiency when building a sales org: half of your headcount will be in sales at $10m, $50m, or $100m in revenue. This means building a sales org requires a different approach.

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PLG & Profitability : More Product Doesn't Necessarily Mean Greater Profits

Tom Tunguz

PLG companies spend comparable amounts on sales & marketing (S&M) to SLG companies, but they spend more on research & development (R&D). The chart above shows the combined Sales & Marketing + Research & Development Costs divided by revenue. Engineering teams do this to a lesser extent.

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Annual Planning for Sales Organizations: Headcount, Quotas & Territories

OpenView Labs

Headcount Planning. But headcount planning is often a useful place to start because the inputs required to make decisions are the least dependent on factors outside of the sales organization. This decision will drive many of your other headcount decisions. What ratio do you want between AEs and other sales roles?

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5 Ways to Keep Your Sales Machine Efficient While Scaling Headcount

Sales Hacker

Decreased revenue per rep, High turnover as you scale headcount. We made our machine more efficient even as we scaled, grew headcount, and skyrocketed our revenue. In the first six months of the year, our team’s headcount grew by almost 60%, yet our revenue outpaced that, growing by 142%. 5) Hire Intelligently.

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How IBM Sees AI Changing the Game for Companies of All Sizes with IBM’s VP of Technology and Director of Startups

SaaStr

Things like code assist and automating the code design help you use your developer organization more wisely. Ai made it possible to engage with students, teachers, and others within the platform, save on customer service headcount, and scale the company. The challenge was connecting the dots between 60k signups and multiple schools.

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