SaaStr

JANUARY 3, 2021

One question I struggled with a lot in the early days was what price points supported inside sales reps. It was clear to me that our freemium offering, priced at from $0 to $19/month, couldn’t really support a traditional inside sales team. What about a $199 or even a $99/mo price point? But how low can you go?

SMB 330

SMB Pricing Sales Metrics 330

OPEXEngine

MAY 18, 2021

In this blog, we are looking at the business metrics that can be measured quantitatively and providing a few insights on how investors analyze them. We’ve talked to dozens of our SaaS customers, as well as investors to learn more about what is happening with these key metrics. SaaS Metric #1 – Annual Recurring Revenue (ARR).

SaaS Payments 98

SaaS Payments Metrics Payments Payment Services 98

SaaStr

APRIL 10, 2023

Others may seek to corner the SMB market. Zendesk knew that they could risk selling to startups like any other SMB, so that was the problem they set out to solve. Durham says, “We are judging ourselves in how we treat startups differently from an average SMB. However, what many businesses may overlook is the startup segment.

Startup 196

Startup Scale SMB Venture Capital 196

SaaStr

JULY 20, 2022

While these aren’t great metrics if Weave was enterprise, they are still solid for SMBs. Many SMB SaaS companies struggle to hit 100% NRR and 80% GRR. A fairly standard SMB price point. With a current stock price of $3.37, the Series C and D investors are substantially underwater. Series C ($5.35

SaaS Payments 230

SaaS Payments Scale Payment Methods Payments 230

Clouded Judgement

APRIL 11, 2024

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This has all resulted in the median stock price declining 5% YTD.

Cloud 177

Cloud Software Azure AWS 177

SaaStr

MAY 18, 2021

Squarespace is almost all not just SMB, but self-service. HubSpot is almost all small businesses, but at a higher price point ($10k) that is sold directly and through channel partners. More here: Public SaaS Company Disclosure Metrics for Retention and Renewal Rates. Their new revenue retention is about 85%.

Merchant Services 264

Merchant Services Revenue SMB SaaS 264

SaaStr

NOVEMBER 28, 2022

We are seeing more agile packaging and pricing methods, dynamic deals, ramp-up revenue, and consumption and usage. This may look like moving from a mid-market business to an SMB, and eventually to an enterprise. With a new product launch, you may shift from a flat monthly subscription fee to a consumption-based pricing model.

Scale 190

Scale Finance Sales Hiring Scaling 190

SaaStr

DECEMBER 3, 2021

10 SaaStr 211: The Ultimate Guide To SaaS Pricing From Investors @ Benchmark, Matrix, Upfront Ventures & Operators @ Figma, Snyk, and Kustomer. #9 7 SaaStr 124: Upfront’s Mark Suster on The One Thing That Kills Sales, Why You Have To Price High and Discount & Why Sales People Are Either Farmers or Hunters. #6

Scale 193

Scale Sales Hiring SMB Benchmarks 193

SaaStr

JULY 13, 2023

Being very careful here is especially critical with SMB SaaS, where the ACVs are lower. NRR is the NorthStar metric in SaaS, but we all agreed it can be gamed, to some extent. Price raises can increase NRR, without adding value. Most important metric to them is the % of paid base actively using the product.

SMB 176

SMB Scaling Metrics B2B 176

SaaStr

FEBRUARY 4, 2021

The pricing stayed exactly the same, as did the target customer and target deal size. In the end, it all boiled down to one metric we’ve discussed briefly before: He Doubled Revenue Per Lead. Brendon immediately brought in 3 new reps, almost on Day 1, that knew how to close at our stage and our price point.

Sales Hiring 343

Sales Hiring Sales SMB Pricing 343

SaaStr

MAY 19, 2019

What lessons can we learn from this huge Kiwi SMB success, for other founders? ” So even in SMB sales in smaller markets, if you take dominant market share — you can get to $500m+ in ARR! ” So even in SMB sales in smaller markets, if you take dominant market share — you can get to $500m+ in ARR!

SMB 212

SMB Customer Lifetime Value AWS Churn 212

Clouded Judgement

MARCH 22, 2024

Subscribe now ARR (Annual Recurring Revenue) vs ERR (Experimental Runrate Revenue) ARR (Annual Recurring Revenue) is one of the most popular SaaS (Non-GAAP) metrics. However, it’s also one of the most loosely used metrics, and is frequently misused. I created this subset to show companies where FCF is a relevant valuation metric.

AI 183

AI Revenue Cloud Technical Advisors 183

ChurnZero

MARCH 18, 2022

With so many SaaS metrics floating around, and even more opinions on when and how to use them, it can be hard to know if you’re measuring what really matters. Leading SaaS expert, Dave Kellogg, and ChurnZero CEO, You Mon Tsang, sat down to answer all the questions you want to know about SaaS metrics like ARR, NRR, GRR, LTV, and CAC (i.e.,

Customer Success 98

Customer Success Metrics SaaS Banking 98

SaaStr

OCTOBER 30, 2021

Their CEO will join us at SaaSr Scale 2021 on December 15 to talk about using data to get to 10,000 SMB customers! I asked Aasif Osmany to share his learnings as a top-performing SMB VP of Sales, below. My personal objective was simple, learn as much about SMB SaaS as I could and move on to another company to continue learning.

Scale 254

Scale Sales Hiring Sales SMB 254

Clouded Judgement

DECEMBER 21, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This metric is more self-explanatory, so I won’t go into detail.

Cloud 177

Cloud Software Benchmarks Retention 177

SaaStr

OCTOBER 11, 2023

You don’t want to overwhelm SMB customers, and Monday made this a focus from day one. All the metrics we’re using — LTV to CAC, CAC return rate — don’t take cash into account. This is how they optimized the product and pricing. How do you get over 100 for SMB? Part of monday’s macro experience was pricing based on seats.

Scale 164

Scale Sales Hiring Scaling Banking 164

ProfitWell

SEPTEMBER 3, 2019

“Close enough” is sufficient only in horseshoes and hand grenades; your pricing page is no exception. If your pricing page isn't perfectly designed to convert potential customers, all that effort you put into sales, marketing, and product development might as well be for naught. What is a pricing page?

Pricing 69

Pricing Scale compliance Technical Review 69

SaaStr

APRIL 8, 2020

Click here for ChartMogul’s free-forever launch plan that will give SaaS businesses access to the world’s first subscription data platform so they can analyze and improve key metrics like MRR, churn and LTV. Profitwell’s Free Pricing and Retention Audits. Hiver’s Free Shared Inboxes for SMB.

Machine Learning 216

Machine Learning Artificial Intelligence SaaS Consulting 216

OPEXEngine

JANUARY 11, 2022

Consumption-based pricing is best used when you can accurately and easily break down your service offering into small, digestible units. Many companies in the technology industry are moving toward “pay for what you use” consumption-based pricing models. Four pricing models. Uncommitted contracts. Challenges and shifts.

Pricing 52

Pricing Payment Solutions Outsourced Development Compensation 52

Clouded Judgement

SEPTEMBER 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This metric is more self-explanatory, so I won’t go into detail.

Cloud 169

Cloud Software Benchmarks Retention 169

Clouded Judgement

APRIL 12, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This metric is more self-explanatory, so I won’t go into detail.

Cloud 161

Cloud Software Benchmarks Retention 161

Clouded Judgement

JUNE 20, 2023

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., The market is clearly pricing in lower rates + reacceleration of growth.

Cloud 161

Cloud Software Benchmarks Scale 161

SaaStr

JUNE 3, 2022

7 Secrets to a Successful SMB GTM Strategy with PayFit and Accel. Metrics that Matter Whether You’re Raising $1m or $100m with Index Ventures. SaaS Pricing Strategies that Work: How to Design an Optimal Pricing Model with FastSpring’s VP Product. Kick off to SaaStr Europa 2022 with SaaStr CEO Jason Lemkin.

Mobile 211

Mobile Scale SMB Travel 211

Clouded Judgement

DECEMBER 20, 2022

Through these interactions, I’ve built up mental benchmarks for metrics on which I place extra emphasis. My hope is that this analysis can provide startup entrepreneurs with a framework for how to manage their businesses around SaaS metrics (e.g., This metric is more self-explanatory, so I won’t go into detail.

Cloud 130

Cloud Software Review Software Benchmarks 130

Tom Tunguz

AUGUST 26, 2014

HubSpot’s target customer base are SMBs and with this price point, it’s possible to support a profitable inside sales model if the team is very efficient. HubSpot is the second fastest SMB SaaS company to IPO yet, achieving the mark within 8 years. Only WIX, CTCT and RNG had smaller figures of $86, $265 and $352.

Benchmarks 113

Benchmarks SMB Metrics SaaS 113

Clouded Judgement

JUNE 9, 2023

Quarterly Reports Summary Top 10 EV / NTM Revenue Multiples Top 10 Weekly Share Price Movement Update on Multiples SaaS businesses are generally valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. Revenue multiples are a shorthand valuation framework.

Trends 130

Trends Cloud Azure AWS 130

Clouded Judgement

JUNE 2, 2023

One of my favorite metrics to look at is net new ARR added in a quarter. ” From Okta: “We're seeing increased macro headwinds on our business, most notably with new business across SMB and enterprise. Let’s start with one obvious point - Q1s have been rough! Forget the outlook / guide for a minute.

Cloud 130

Cloud Trends SMB Subscription 130

User Pilot

JUNE 29, 2022

Price is more suitable for mid-market and enterprise companies. Pricing: 14-day free trial with all features included. With Baremetrics, you can easily access key financial metrics and analyze how different groups of customers contribute to the revenue. Pricing: Free trial available. Geared for SMB. Baremetrics.

SaaS Payments 97

SaaS Payments Software Review Payment Solutions Payment Methods 97

Kellblog

FEBRUARY 13, 2022

Our average sales price (ASP) , say $100K. For extra credit, our segment-specific ASP: SMB opportunities get valued at our SMB ASP of $25K and enterprise ones get valued at our enterprise ASP of $100K. Some semi-random proxy value , say $25K. Because, well, we’ve always done it that way, and I’m not sure why.

Sales 132

Sales SMB Systems Review Forecasting 132

Chart Mogul

DECEMBER 8, 2022

This year alone, I shared over 200 curated reads on leadership, growth, pricing, SaaS metrics, benchmarks, and much more. This year alone, I shared over 200 curated reads on leadership, growth, pricing, SaaS metrics, benchmarks, and much more. What price point can usually be supported by sales reps? ” 3.

Sales Hiring 52

Sales Hiring SaaS Scale Benchmarks 52

OPEXEngine

JUNE 11, 2020

SaaS companies track income with a variety of different metrics, and it can be confusing. Definitions and reporting of metrics vary across companies. Here’s a quick guide to the key concepts. Pros and Cons: SaaS SMB vs. Enterprise Models. Some companies track bookings, ARR and recognized revenues, others track billings.

SMB 59

SMB SaaS Benchmarks Subscription 59

ChurnZero

JUNE 2, 2021

If they stop using it, depending on what the metric is that it’s based on, it’s more volatile. Now we’re seeing numerous companies price 8 to 12, so it’s definitely jumped up a little bit. Price earnings doesn’t work. There’s been a lot of successes in the SMB side, like Shopify.

Benchmarks 98

Benchmarks B2B SMB SaaS 98

Kellblog

JUNE 17, 2023

the mind of someone who spends far too much time thinking about SaaS metrics), as I read this report. This is a cool idea, but it’s misleading because those descriptive names are simply a proxy for deal size (aka ASP = average selling price). CAC payback period (CPP) is simply not a sales efficiency metric.

Scale 103

Scale Sales Benchmarks Metrics 103

OpenView Labs

FEBRUARY 3, 2022

This metric represents how long it takes, in months, to pay off the costs of acquiring a given customer on a gross margin basis. Usage-based pricing (UBP) , also known as consumption-based pricing, allows customers to pay for products according to how much they use. These metrics are an indicator of product-market fit.

Headcount 73

Headcount SaaS Compensation Acquisition 73

Baremetrics

NOVEMBER 9, 2021

The ideal buyer for lower-priced businesses might be a solopreneur looking for a hands-off stream of income. Important SaaS Metrics and Unit Economics Unit economics and SaaS metrics like churn rate will always be important. But when valuing a business, it’s important not to get too hung up on any single metric.

SaaS Payments 105

SaaS Payments Technical Review Development Team Review Software Review 105

User Pilot

JULY 18, 2023

Price increases. Here are other metrics subscription-based companies should track alongside churn: Customer retention rate. Let’s go over the most common types of churn: Customer churn rate : this metric shows how many customers stopped using your products or services during a certain period. Poor onboarding.

Churn 92

Churn Payments SaaS Payments Payment Solutions 92

Chart Mogul

AUGUST 5, 2021

The Assembly platform now offers feature coverage and capabilities so that throughout their ecommerce journey, their customers have the right solutions at the right time at the right price. Adam uses an often overlooked SaaS metric, net dollar retention, to strategize. Whereas with SMB SaaS businesses, you find different scenarios.

Retention 52

Retention Enterprise Entrepreneurship SaaS 52