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Both started SMB (Monday even more so), and Both have now gone more enterprise (Monday even more) But still with the vast majority of their customers SMB. Enterprise Expansion : While maintaining strong SMB growth, Monday.com has successfully moved upmarket.
SMB Unit Economics: Why Is 6 Quarters the Right Target for SMBs at Scale? So, SMBs are asking for consolidation, and that’s why Bill has acquired companies and continues to add more financial operation capabilities. BILL wants to be at the heart of every SMB business. If we go back to 2006, BILL was a cloud-based company.
HubSpot has gone upmarket over the past years, while also remaining even more SMB-focused. 36K+ Deals Also Increased to 28% of the Base Shopify has seen something somewhat similar, as both have gone upmarket, growth in SMB and smaller customers have still kept up. Because even more start smaller than ever.
110% NRR from 157,000 SMBs Yes, it can be done, 110% NRR from SMBs. 54% Growth in $50k+ Customers Like Shopify, Klaviyo is firmly SMB overall. SMB Weaker. But SMBs in the middle have become more cost and price-sensitive. #10. .” 5 Interesting Learnings: #1. It’s down from 117% at its peak, however.
So theres a theme Ive been working on with all the SMB-focused founders I work with and have invested in: # 1. The Goal for SMB SaaS is 100%+ NRR. Easy in enterprise, hard in true SMB. # However, SMBs have a certain level of inherent churn. And then your NRR will cross 100% with SMBs. Thats often 3% a month or so.
It’s SMB. Crowdstrike gets 8% of its revenues from professional services, too, and makes money on them, with 27% gross margins. Okta gets about 3% of its revenue from professional services. HubSpot gets about 2.3% of its revenue from services.
Even With a Big Enterprise Push for Years, 60% of Revenue Still From Mid-Market and SMB RingCentral closed 20 $1M+ TCV deals last quarter. But even as they push more and more into the enterprise, the SMBs still are buying. But I’m not sure that’s the proper way to look at it. Either way — ouch. Almost just as much.
And when it IPO’d, it was still solidly an SMB solution. Leaning More into Free Even as it goes more enterprise, and see a decline in SMB / Commercial accounts, PagerDuty is still leaning in more on Free. We all used some sort of tool for website monitoring, but the O.G. As has PagerDuty. It’s efficient.
SMB, mid-market, enterprise). Benchmark Your GRR : Investors will compare your GRR to industry standards: Enterprise SaaS: 90-95% Mid-market SaaS: 85-90% SMB SaaS: 80-85% Anything below these benchmarks signals potential retention issues 3. Segment by Customer Type : Break down GRR by customer segments (e.g.,
SMB-focused SaaS companies often have better performance with Facebook in particular, and can often deploy more there. And marketing, done well, on platforms almost always works. It’s hard to do well, but getting top placement on the Shopify ecosystem seems to work, for example. To a point.
Mid-Market Is The Perfect Laboratory For Both Product and Go-To-Market Development Most founders falsely view market segmentation as a binary choice between SMB and Enterprise. Yet they close in months, not years, with substantial ACVs ($20-70K+) that support full sales motions including SDRs, AEs, and CSMs.
In this episode, we’re going to be talking about how SMB digital brands can win the best talent Joining us for that conversation is someone who knows quite a bit about that. The post How SMB Digital Brands Can Win the Best Talent appeared first on FastSpring. I’d like to welcome Lizzie Mintus.
Many that are self-serve and SMB-focused can start off without a sales team … for a while. Dear SaaStr: What Are Some Successful SaaS Leaders Without Sales Teams? But almost none stay without a sales team … forever. Yes, Atlassian since well past its IPO had almost no direct sales team.
Some can stay SMB only to $100m ARR, even $1B ARR. Going Upmarket: Many founders are reluctant to sell to larger customers, even when the opportunity is there. If you have customers willing to pay you $500/month instead of $5/month, you need to seriously consider going upmarket. And $5000 vs $500. But not most of us.
to dominate US SMB payments. TL;DR : After years of M&A drought, big deals are returning. It’s not just Wiz and Scale. In the latest billion+ acquisition, Xero just acquired Israeli-founded, NYC-based Melio for $2.5B revenue multiple proves strong B2B companies with real growth (and it’s strong) can still command premium exits.
If you’re in SMB or mid-market, keep in mind that CSMs can handle more accounts because the engagement tends to be lighter. As you scale and introduce automation or self-service tools, you can push closer to $2M per CSM, especially if your product becomes easier to manage or your team gets more efficient.
In sales, t he more SMB you are, the more you should lean on your bench. With SMBs in particular, internal promotions can work better due to more “at-bats” and learning opportunities on the front lines. Lean into self-motivated talent.
New SMB customers often don’t already have a next-gen payroll platform in place. They are SaaS for spas and salons. They were the first in their category to add payroll, and it’s gone well. But the attach rate for new customers is 50% higher than existing ones.
The 250,000 Customer Club: How HubSpot and Monday Both Created SMB+ Empires #4. How to build GTM Efficiency in SMB Sales Kyle Norton, CRO @ Owner.com #5. OpenAI to Hit $12.7 Billion in Revenue This Year. But Wont Be Profitable Until $125 Billion in Revenue #3. The Bar Today for a Series B #5. Top Pods and Vids: #1. For Real: Live
At least for SMB and more routine mid-market sales. Organizations clinging to traditional sales structures especially in SMB and mid-marklet will find themselves rapidly outpaced by competitors embracing this hybrid approach. But you can automate 30%-40% of support for real … with top 10% CSAT. A 50/50 Sales Team. 50% are AI.
a Month Churn especially SMB churn remains Zoom’s biggest challenge at its mature state, but it’s been pushing customers to annual and longer contracts and more. It’s dropped “Video” from its name as it has gone communications and AI-first: $4.7B And it still trades at 5x ARR. #1. a month, down from 3%. #2.
The SMB sales team was incentivized purely on logo acquisition rather than revenue. Whereas in usage-based you have to be laser-focused on making sure that your customers are going live, adopting, and using the product as intended.” She explains: “Our smallest segment sales team was focused on activating customers.
Rough quotas of $500k for SMB, $700k for mid-market, and $1m for enterprise are fairly common and good rough guidelines. For example: If your goal is adding +$1m ARR this year, and you have 2 reps, each rep’s quota might be $500K in new ACV. Make sure quotas are realistic but challenging enough to push performance.
Enterprise sales cycles will always be longer than SMB deals—it’s just the nature of the beast. Run Paid Pilots or Smaller Deployments : Offering opt-outs after 60-90 days or starting with smaller deployments can help prospects commit faster. Prove your value incrementally and build trust along the way. Show Up in Person.
Start Planning for Enterprise Earlier Than You Think The biggest mistake SaaS companies make? Waiting too long to start their enterprise planning. ” 2.
For SMB sales, quotas closer to 3x OTE are common, while enterprise sales can push closer to 5x. Early Growth ($1M–$10M ARR): Once you’ve hit some traction, quotas should start aligning with your sales model. A good rule of thumb is to set quotas at 3x to 5x the rep’s fully burdened cost (their on-target earnings, or OTE).
How Much Time Should a CEO Be Involved With Customers When you have a high-velocity SMB motion that’s still sales-driven, how much time should the CEO spend in sales and with customers? And the more products they buy, the higher the NRR. Those are two separate considerations. Daniel talks to at least 5-10 customers every week.
Net Dollar Retention >110% and GDR of >95%: The Power of Being a True Operating System ServiceTitans NRR consistently exceeds 110%, even with SMB-heavy customers. While ServiceTitan started as an SMB-focused platform, theyve steadily moved upmarket. Just above non-GAAP break-even (3% non-GAAP margins) 110% NRR and 95% GRR $10.5B
Many SMB SaaS companies with $20M ARR and decent growth get acquired for $100M+. You’re already in a good spot to compound growth steadily. If you can maintain 50% growth and keep churn low, you’ll likely hit $20M ARR or more in that timeframe, which is a sweet spot for strategic acquirers.
The company is successfully evolving from its SMB roots into a serious enterprise software contender. The ability to maintain NDR above 110% at this scale from a still primarily SMB base proves their land-and-expand model continues to work effectively and customers find ongoing value in the platform.
AI Speakers: CEO Snowflake + CEO Observe: Where B2B Applications Are Going CEO Box Aaron Levie: AI, Agents and The Next Era of SaaS COO Google Cloud Francis deSouza: Hyperscalers: The Future and More CTO Rubrik: Co-Founder & CTO, Arvind Nithrakashyap CTO Neo4j: Philip Rathle (Valuation $2B+): How Revolut Left Salesforce and More: Rolling Your (..)
Top 10 Strategies Toasts CRO Uses to Crush Sales Quotas So a little while ago Toasts CRO Jonathan Vassil joined Sam Blond on SaaStr CRO Confidential on how Toast built one of the strongest but toughest rocketship in sales: a lower gross margin, lower ACV ($10k), sales-led SMB sales motion. Even with SMB Sales. Field-Based Sales Model.
The SMB Problem (And Opportunity) If your ACV is $50K+, this is solvable. The companies that figure out how to systematize this training process will win the SMB market. This is exactly what I was doing with our daily QA sessions. You hire Forward Deployed Engineers. They do the training. They handle the edge cases.
Today it’s at: $800m ARR Growing 22% 20% Free Cash Flow Margins Modest re-acceleration in revenue growth and new customer count — but not NRR Roots are SMB, but 60% of ARR comes from mid-market and enterprise today And a $4B market cap, so 5x ARR Freshworks is getting a bit of a second wind, which is great to see!
The most common challenges associated with vertical SaaS are competing for adoption against popular legacy or traditional SaaS solutions, a smaller lead pool that may soon exhaust, and managing the expectations of consumer-like SMB customers. Q: How can Vertical SaaS companies manage SMB customer expectations? What is Vertical SaaS?
Recent data from 2023 shows: The average startup saw a 24% increase in sales cycle length compared to early 2022 Enterprise-focused companies experienced a 36% increase, twice that of Mid-Market and SMB focused companies Usage-based companies suffered greater increases in sales cycle than seat-based companies: 29% vs 21% Enterprise-focused companies (..)
As a “prosumer” app there is overlap for SMB and freemium B2B apps. So Chime is ready to IPO, and while it’s not SaaS or true B2B today, there are enough interesting lessons for us to learn from. products Non-GAAP Profitable (just), but profitability increasing quickly We’ll see where it trades.
For businesses selling predominantly to SMB customers, these benchmarks are all slightly lower given the higher-churn nature of SMBs. I consider >120% best in class for companies selling to SMBs (like Bill.com).
Horizon 1: Individual Creators & SMB & Internal Apps (2025-2027) TAM: $2-12B This represents the current market: (1) individuals and small teams who need functional software, but lack technical resources or budget for custom development, (2) internal tools for more sophisticated tech teams, and (3) prototyping and proof-of-concept.
It Takes Mobile Business Apps 222 Days to Hit $10,000 ACV An interesting remind for SMB and freemium apps … to earn it. But if they are using it and getting value, the RevenueCat data is a reminder to be patient here. It may even be better if they convert later, and get more value. #3.
For example: At Adobe Sign / EchoSign, we learned that SMB leads who hadnt used our product at least 3 times were far less likely to convert. Dont Convert Too Early Converting leads too early is a common mistake. If a lead hasnt been properly qualified, it will clog your pipeline and waste your sales teams time.
We Just Won’t Need as Many SMB Sales Reps. But 1 and 2 call closes for SMBs? At least, the best AEs. The mid tier AEs? We may or may not need them anymore (see next point). 2025 And The Rise of the Mech AE (Account Executive) 7. And VPs of Sales Will Need to Learn to Manage AIs Just as Much As Their Human Reps.
A few ways to do it: Company Size (SMB, Mid-Market, Enterprise) : Splitting by company size almost always works once you have 2-3 sales reps hitting quota. SMBs often require a high-velocity sales motion, while enterprise deals are slower and more relationship-driven.
This will be particularly transformative for SMB-focused businesses doing high-volume, transactional deals. The AI knows every product detail, never oversells, tailors recommendations to company size, and can instantly close simple deals.
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