SaaStr

APRIL 1, 2023

How To Capture This Global SMBTech Opportunity There is massive market opportunity to sell to SMB businesses. Efficient Go To Market There are a lot of ways to GTM as an SMB. With SMB, you want hundreds or thousands of little merchants to pay you every month. Nail an efficient SMB motion before trying to move upmarket.

Scale 187

Scale SMB Merchant Services Payment Methods 187

SaaStr

DECEMBER 14, 2022

Yamini Rangan, CEO at HubSpot, has many insights on how to serve SMB customers at scale. The Challenge of Digital Expansion for SMB. When the shift began in 2020, everyone wrote off SMBs as unprepared for the necessary changes that lie ahead. As a result, SMBs have recognized HubSpot as a place for solutions.

Scale 214

Scale SMB Scaling Innovation 214

SaaStr

SEPTEMBER 2, 2023

So there’s a question I’ve had for some time in SaaS: does high NRR really equal higher growth? Yes, most of the best in SaaS have high NRR, at least once they are public. SaaS Capital asked this question among some other great ones of 1,500 private SaaS companies here. This wasn’t obvious to me.

Startup 241

Startup SaaS SMB Banking 241

SaaStr

FEBRUARY 20, 2022

30+ SaaS CEOs Share The Signs Their First VP of Sales … Just Wasn’t Going to Work Out. SaaStr 527: Acquiring 10,000 SMB Customers Solely from Data with Gorgias CEO Romain Lapeyre. The post Top SaaStr Content for the Week: Gorgias CEO, Postman CEO, Waze Head of SMB Sales, Klaviyo SVP Marketing, and More! Plan For It.

SMB 215

SMB Scale Marketing Sales 215

SaaStr

FEBRUARY 12, 2022

Scaling a business is difficult, and scaling a SaaS business can be even more of a challenge. Gorgias CEO Romain Lapeyre has successfully scaled the Gorgias SMB customer base from 1,000 to 10,000 by relying on data. Lapeyre shares advice on how to use data to acquire more customers and increase ARR. .

SMB 227

SMB Scale Data Scaling 227

SaaStr

DECEMBER 3, 2023

So over the past decade-and-a-half we’ve come up with a lot of yardsticks, metrics and rules for SaaS companies. But — they are broken if you aren’t really a traditional, 100%+ NRR SaaS company. In particular: Hybrid SaaS with payments and fintech usually has far, far lower gross margins than pure software.

SaaS Payments 196

SaaS Payments Metrics Payments SMB 196

SaaStr

JUNE 2, 2022

The amount of folks buying SaaS software is a force like we’ve never seen before, and even with some stock market drama, many top SaaS companies still trade at $4B, $10B, $20B or more just a decade after being founded. First, even in the darkest times of ’08-’09 — folks still bought more SaaS than ever.

SMB 298

SMB SaaS Churn Enterprise 298

SaaStr

JULY 11, 2023

SaaS Experience: NOT REQUIRED. The top performers at Gorgias don’t come from a SaaS background, but they tend to understand a product and can help customers with questions. So many teams are hiring SDR/BDR teams, and it’s really tough to make that work in SMB sales. Who will be looking for this product? Mid-Market? Enterprise?

Sales Hiring 156

Sales Hiring SMB Sales Recruiting Payment Methods 156

SaaStr

FEBRUARY 1, 2022

We’ve been doing the 5 Interesting Learnings at SaaStr for quite a while, looking at many of the public SaaS leaders and pulling out the top learnings for founders and SaaS execs. Toast’s SMB NRR is 114% today — but it took 4 full years just to get to 100%. And it’s the true magic in scaling SMB SaaS.

Scale 335

Scale SMB SaaS Scaling 335

SaaStr

NOVEMBER 21, 2020

Let’s look at some of the top public SaaS companies: Shopify — very SMB: 100%. Hubspot — mostly SMB: 100%. Surverymonkey — fairly SMB, but going more enterprise: 100%. Zendesk — 116%, mix of SMB and enterprise. On the low end for the enterprise SaaS companies, but still basically 120%. And mostly SMBs.

Retention 323

Retention SMB SaaS Enterprise 323

SaaStr

DECEMBER 1, 2021

SaaS spending dipped in the first half of 2020 at the start of the pandemic but has since reaccelerated. As companies accelerate their digital transformations, the SaaS spend has exploded: In Q2 of 2021, G2 recorded the highest software spend per employee to date. “The The state of software buying has changed.

Software Review 230

Software Review SMB Enterprise Software 230

SaaStr

JULY 27, 2022

If a SaaS business hopes to win over the SMB market successfully, it will need a precise GTM approach. Founded in 2015, PayFit is a software company that empowers entrepreneurs and SMBs to digitize payroll and HR processes. Without an autonomous-first approach, you will miss out on many SMBs.

SMB 180

SMB Sales Hiring Scale B2C 180

SaaStr

FEBRUARY 19, 2022

When you’re starting off in SaaS, it’s very tempting to target small businesses. That journey here: Most of us don’t stay SMB forever. Zoom similarly started off almost 100% self-serve and SMB, and then later added an enterprise team. PagerDuty was almost entirely SMB at IPO, at $125m in ARR.

SMB 334

SMB SaaS Enterprise Software 334

SaaStr

SEPTEMBER 16, 2022

And one of my themes was that while the markets are down, I mean way down — the best in SaaS are still growing at jaw-dropping rates. Zoom’s SMB base has flattened after exploding like nothing we’ve ever seen before. But for the most part, there is no slowdown in the leaders of SaaS. It really means a lot.

SMB 348

SMB SaaS Cloud Scaling 348

SaaS Metrics

AUGUST 12, 2020

You might not have heard of the SMB protocol but still use it daily. The Server Message Block (SMB) is a network protocol. All Windows operating systems which are used for networking can run the SMB protocol. Its function is to enable users to communicate with remote servers and computers. A main feature of this protocol.

SMB 98

SMB Technology Communication 98

SaaStr

JANUARY 5, 2024

12,000 customers, very high net review retention (NRR) even with SMB customers. Why is Jason Worried for The First Time About SaaS: We are trading at 6x revenues in the public markets. Many will pull the chord and say, we have to do it. Who Will Be the First to Go Public: ServiceTitan. Dominates a vertical market with over $500M ARR.

SMB 290

SMB SaaS AI Software Review 290

Nimble - Sales

JANUARY 22, 2021

The post How To Sell Software To Small Business: Successfully Selling SaaS to SMB in 2021 appeared first on Nimble Blog. A bit of adrenaline in the blood, but mostly a relief – many liked the idea and freshness of the WFH rhythm. For salespeople, things began looking worrisome pretty quickly. Specifically, for those […].

SMB 131

SMB Software Business SaaS 131

SaaStr

JUNE 22, 2023

More here: If You’re Going to Do a SaaS Start-Up … You Have to Give it 24 Months – SaaStr Picking cofounders that aren’t as committed. More here: Planning to Do a SaaS Startup? SMB folks want to go upmarket because there is too much churn in SMB. 8–12 months is almost never enough time. That is important.

SMB 219

SMB SaaS B2C Interviewing 219

SaaStr

DECEMBER 27, 2023

5 Metrics Every SaaS Company Should Care About with Salesforce Ventures A hands-on, practical session on the top SaaS metrics #2. 10 Things That Always Work in SaaS Marketing with SaaStr’s Jason Lemkin A popular hands-on session on what always works to get you more leads. #3. A very tactical guide to scaling SMB sales. #7.

Scale 220

Scale SMB Generative AI AI 220

SaaStr

JANUARY 13, 2022

The late-stage VC firm Meritech put together its annual SaaS report here and it slices the data in a few interesting ways. The average SaaS company hits $225m ARR at IPO. The average SaaS company is growing 55% at IPO (at that $225m ARR). Folks that are very SMB with mediocre retention often don’t disclose it.

SMB 301

SMB SaaS Retention Scale 301

Tom Tunguz

SEPTEMBER 20, 2016

Today, we’ll dig into valuation metrics to see if there’s any systematic bias in the investor community for SMB, Mid-Market and Enterprise SaaS companies. SMB is less than $10k, Mid-Market is between $10k and $100k, and Enterprise is greater than $100k in average customer value.

SMB 100

SMB Scale SaaS Marketing 100

SaaStr

DECEMBER 14, 2022

A sign many of those with the biggest checkbooks in SaaS think things will get substantially better. The public markets were brutal then for SaaS, with LinkedIn, Marketo, and other leaders of that generation way down. The post Coupa, Marketo, And the Great Coming Rebound in SaaS appeared first on SaaStr. No way, you say?

SaaS 243

SaaS SMB Pricing Marketing 243

SaaStr

NOVEMBER 1, 2023

Well, fast forward to today and it’s truly an SMB powerhouse. How is SMB SaaS doing today? Transaction Fees Growing Far Faster (38%) Than Software / SaaS License (21%). Both Bill and Shopifty have morphed over the years from almost pure SaaS companies to payments platforms built on top of a SaaS core.

Payment Services 278

Payment Services Payments SaaS Payments Payment Solutions 278

SaaStr

NOVEMBER 7, 2023

Dear SaaStr: Can great SaaS salespeople seamlessly switch between industries? Only the very best reps that have sold sales or marketing tools, which are very similar to the tools they use every day already, can sell vertical saas or developer tools. You’d think a great SaaS rep could sell any other SaaS product.

Sales Hiring 171

Sales Hiring Sales SaaS SMB 171

SaaStr

MAY 4, 2022

Roughly — very roughly — you want to be multiproduct in SaaS by the time you have 10,000 customers. For SMB, it could be $20m-$30m in ARR. So a top theme across SaaStr CEO interviews since 2017 or so, and across our 5 Interesting Learnings series with public SaaS companies, is … when should you go multi-product?

Scale 241

Scale SaaS SMB Scaling 241

Tom Tunguz

AUGUST 2, 2016

Channel distribution represents one of the biggest and most important changes in customers acquisition for SMB SaaS startups in quite a while. One of the most interesting examples is Microsoft’s Office 365 SMB business. It’s the most successful SMB SaaS acquisition channel ever built. by Thomas Hansen.

Outsourcing Services 113

Outsourcing Services SMB Acquisition Scale 113

Tom Tunguz

SEPTEMBER 13, 2016

When an SMB SaaS startup is young with quickly growing revenues, more of the same works. A $1M ARR SaaS startup with an average selling price of $750 per year needs to add 1,333 each year on average to double. For some SMB SaaS companies, generating this kind of lead volume even at scale isn’t a challenge.

SMB 100

SMB Scale Startup Marketing 100

Tom Tunguz

OCTOBER 9, 2016

What are the attributes of the ideal SMB SaaS company, an entrepreneur asked me recently. There are product, marketing, and sales attributes to that ideal company that successful SaaS business have exemplified in the past. I don’t have the answer to building an amazing SMB SaaS company.

SMB 100

SMB SaaS Acquisition Education 100

SaaStr

MARCH 3, 2022

Dear SaaStr: What’s the Relationship Between OTE and Quota for a SaaS Salesperson? In most SaaS companies, a sales rep’s quota is in the end 3x-5x their OTE (i.e., Generally low with smaller deal sizes and SMBs, and generally approaching 5x in the enterprise and with bigger deals. salary + target bonus).

Scale 251

Scale SMB SaaS Onboarding 251

SaaStr

OCTOBER 11, 2023

One SaaS leader that’s accelerating again is Shopify. From a business model perspective, Shopify has in essence been a fintech and merchant product first and a SaaS product second for quite some time. Like Most Other SaaS Leaders, Shopify Has Gotten a Lot More Efficient. Software Important.

Payments 230

Payments Merchant Services Payment Solutions Revenue 230

SaaStr

SEPTEMBER 26, 2019

So, despite SaaS multiple and the public markets being at near record highs, we’ve seen things start to … wobble a bit overall in tech: The WeWork IPO simply failed , and the Peloton and Direct Smile IPOs were broken. One of the greatest SaaS companies of all times, but still, it turned out to be mortal. Slack is mortal.

SaaS Payments 273

SaaS Payments Sales Hiring Scale SMB 273

SaaStr

JANUARY 31, 2023

So Zoom and Shopify are the latest SaaS leaders to do price increases — albeit very differently. The SMB segment of Zoom has stopped growing, so going from ~0% growth to 7% growth actually might end up being huge. The post Zoom and Shopify Are The Latest SaaS Leaders to Raise Prices. First up is Zoom. Yup, $1.00.

Pricing 236

Pricing Merchant Services Payment Solutions Payments 236

SaaStr

MARCH 6, 2024

So Okta is one of our favorite SaaS and Cloud leaders. But like many SaaS and Cloud leaders today, the bigger ones are still growing faster. While many tech SMBs are struggling, finding the gems in the SMB base that can grow into large accounts is still critical. The story is super inspiring.

Fractional VPE 207

Fractional VPE Part-Time VPE Scale SMB 207

SaaStr

APRIL 8, 2023

Over the years, we’ve done just an incredible number of deep dives, AMAs, and more with many of the best CROs and VPs of Sales in SaaS! From Atlassian to Zoom to Cloudflare to Bill and More! appeared first on SaaStr.

Scale 242

Scale Sales Hiring SMB SaaS 242

SaaStr

MAY 10, 2023

So we’ve covered HubSpot on our 5 Interesting Learning series more than any other SaaS leader, but it’s for a reason. They’re a barometer of sub-enterprise B2B SaaS in many ways. Like almost everyone in SaaS, HubSpot is getting more profitable and more efficient — quickly. And what’s the latest?

Scale 244

Scale SMB Headcount New CTO 244

Tom Tunguz

MAY 5, 2013

Kenny van Zant drew this diagram for me on white board and I think it’s the best visualization of how SMB SaaS freemium business grow. The diagram highlights a few important mechanics of the SMB SaaS business model. But most paying users for freemium services are SMBs. A Different Animal.

SMB 100

SMB Scale SaaS Mobile 100

SaaStr

NOVEMBER 16, 2021

As your SaaS company grows and you go through various fundraising stages, your company size also grows. David Sacks, Co-Founder and General Partner at Craft Venture,s shares wisdom from his years of experience in SaaS to help you build your org chart for each step of your company’s fundraising journey. Microsoft acquired Yammer for $1.2

CTO Hire 236

CTO Hire Sales Hiring Sales Recruiting CTO 236