Revenge of the SMB: Zoom & Shopify Got Even More SMB at $4B ARR, Not Less

SaaStr

As Shopify crossed $4B ARR, it actually got a bit more SMB. It’s just its SMB customers grew even faster — at $4B in ARR! So SMB revenue at Shopify grew to 74% at $4B, up from 72%. And as Zoom crosssed $4B in ARR, it actually got a lot more SMB.

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Why SMB and Enterprise Sales Have Nothing In Common

SaaStr

Let’s break down for example what SMB sales at low price points typically is, and indeed needs to be, to scale: SMB SaaS companies are overloaded with “leads” They often have so many that they cannot follow up with all of them.

SMB 239
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Networking Technology: SMB

SaaS Metrics

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. Networking Terminology network protocol smb protocol wannacry attack

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“What Are You Seeing? #001” with Romain Lapeyre, CEO of Gorgias: 2,500+ SMB E-Commerce Customers

SaaStr

001” with Romain Lapeyre, CEO of Gorgias: 2,500+ SMB E-Commerce Customers appeared first on SaaStr. I’m kicking off a new series at SaaStr on the #1 question everyone asks me, and I think is asking: “What Are You Seeing?”

SMB 200

The Ultimate Guide to SMB Conferences of 2020

Nimble - Sales

The post The Ultimate Guide to SMB Conferences of 2020 appeared first on Nimble Blog. Have you already decided which of the countless conferences and events across the globe you want to attend in 2020?

SMB 76

How To Sell Software To Small Business: Successfully Selling SaaS to SMB in 2021

Nimble - Sales

The post How To Sell Software To Small Business: Successfully Selling SaaS to SMB in 2021 appeared first on Nimble Blog. The COVID pandemic rang the bell of change for humanity. We rushed for a break from normalcy with the curiosity of schoolchildren.

SMB 76

“The Secret to SMB Sales” Accel Partner Andrei Brasoveanu and Doctolib Chief Development Officer Agnes Bazin

SaaStr

The first step in success with SMB clients is to recognize that it’s not a one size fits all scenario. Companies need a specialized approach for SMB accounts, different than the tactics used for Enterprise. Andrei Brasoveanu will sit down for a conversation with Agnes Bazin Doctolib on how to create a targeted and effective sales process tailor-made for SMB. We knew from the beginning that we had to be excellent in SMB sales because basically there is no other way around it.

SMB 107

Swipe debit card, get stock; In defense of the IPO; New models for SMB lending, and more

Andreessen Horowitz

… The post Swipe debit card, get stock; In defense of the IPO; New models for SMB lending, and more appeared first on Andreessen Horowitz. This first appeared in the monthly a16z fintech newsletter. Subscribe to stay on top of the latest fintech news. . IN THIS EDITION.

SMB 99

Selling to Enterprise (Just Like Selling to SMB… Right?)

Sales Hacker

How do I get promoted from SMB/MM to enterprise? When one LoB closes… How Do I Get Promoted from SMB/MM to Enterprise? The post Selling to Enterprise (Just Like Selling to SMB… Right?) In my early years as a leader, I remember one of the first eye-popping conversations I had with an account executive (AE) on my team.

SMB 56

“The Secret to SMB Sales” Accel Partner Andrei Brasoveanu and Doctolib Chief Development Officer Agnes Bazin (Video + Transcript)

SaaStr

The first step in success with SMB clients is to recognize that it’s not a one size fits all scenario. Companies need a specialized approach for SMB accounts, different than the tactics used for Enterprise. Andrei Brasoveanu will sit down for a conversation with Agnes Bazin Doctolib on how to create a targeted and effective sales process tailor-made for SMB. We knew from the beginning that we had to be excellent in SMB sales because basically there is no other way around it.

SMB 116

From SMB to Enterprise: A 2-Step Strategy to Boost Adoption & Growth

Sales Hacker

Enterprise sales is hard, which is why most businesses start as an SMB org and grow into an enterprise org. So let’s look at how to drive sales in a high-growth situation, so the transition from SMB to enterprise is smoother (and faster). 2 rules for transitioning from SMB to enterprise. The post From SMB to Enterprise: A 2-Step Strategy to Boost Adoption & Growth appeared first on Sales Hacker.

SMB 79

Weekly Walk with Deputy’s Global President & SMB Team Sales Manager, Steve Power & Laura Bartkiewicz

OpenView Labs

The post Weekly Walk with Deputy’s Global President & SMB Team Sales Manager, Steve Power & Laura Bartkiewicz appeared first on OpenView Labs. Weekly Walk

SMB 46

PODCAST 53: Transitioning to Move Upmarket from SMB to Enterprise w/ David Katz

Sales Hacker

He also gives us a framework for how to move upmarket, and the requirements for taking a company from the SMB space all the way to the enterprise. Strategies for moving upmarket, and how to transition from SMB to enterprise. One of the things we’re going to be talking about today is how to move upmarket and how to take a company that’s been focused on high volume SMB, high velocity sales, and move them into the enterprise.

SMB 67

InsightSquared’s Dreamforce 2017 Sessions for Sales & Sales Operations Professionals

InsightSquared

Mike Wolff, SVP, Commercial Sales, at Salesforce, Adrian Rosenkranz, Head of SMB Marketing at Salesforce, Peri McDonald, Regional Vice President, Customer Success at Salesforce and Fred Shilmover, co-founder and CEO of InsightSquared. Market, sell and support: best practices from SMB leaders — Wednesday, November 8 at 1 – 1:40 p.m., Cost-effectively marketing & selling to, servicing, and retaining SMB customers is daunting for any organization.

SMB 150

SMB Owners Share Their Payment Pain Points in WePay’s State of Small Business Payments 2020 Survey

wepay

The post SMB Owners Share Their Payment Pain Points in WePay’s State of Small Business Payments 2020 Survey appeared first on WePay Blog. A ton has happened this year around the world – it’s been a rollercoaster – especially for small businesses.

SMB 64

Three Counterintuitive Points about SMB SaaS

Tomasz Tunguz

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. In any given freemium user base, small-office/home-office (1 to 20 employee shops) users tend to be a few times larger in size than true SMB customer (20 to 500 employees).

SMB 40

The Pressure to Move Up Market Facing SMB SaaS Startups

Tomasz Tunguz

When an SMB SaaS startup is young with quickly growing revenues, more of the same works. For some SMB SaaS companies, generating this kind of lead volume even at scale isn’t a challenge. But many SMB SaaS startups eventually outstrip their initial user acquisition channels whether they be word-of-mouth, content marketing, mobile app distribution, channel partnerships. ARR 1 5 10 25 50 100. New Customers per Year 1333 6667 13,333 33,333 66,667 133,333.

SMB 40

The Characteristics of the Most Attractive SMB SaaS Companies

Tomasz Tunguz

What are the attributes of the ideal SMB SaaS company, an entrepreneur asked me recently. I believe that the next wave of SaaS companies will be centered around workflows, Event Driven SaaS , and this extends to SMB SaaS. I don’t have the answer to building an amazing SMB SaaS company. It’s a good question. There are product, marketing, and sales attributes to that ideal company that successful SaaS business have exemplified in the past. Product.

SMB 40

The Most Successful SMB SaaS Acquisition Channel Ever Built

Tomasz Tunguz

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. Thomas Hansen was Worldwide Vice President of SMB at Microsoft. After all, he’s built the most success SMB SaaS channel ever.

SMB 40

The Secret to SMB SaaS Distribution

Tomasz Tunguz

SMB SaaS companies cannot afford to pay for distribution. The most successful SMB SaaS companies (Zendesk, Expensify, Square) build communities to drive distribution. At 2 to 4% conversion to paid rates and $5 to $10 monthly subscription fees, the breakeven CPC for these products on search is $0.40. The average Google click costs three times this and the iOS average cost-per-install is more than twice as expensive.

SMB 40

Guide to Buying SaaS Accounting Software and Top 5 Solutions

SaaS Metrics

Buying SaaS Services best accounting software best accounting solutions saas accounting solutions SMB accounting solutions top 5 accounting

SMB Update: End-of-Year Hurdles for Small Businesses

wepay

While most of us are occupied with shopping and travel for the holidays, small & medium-sized business (SMB) owners have even more end-of-year issues to navigate. In our second national SMB & Money Survey , we developed a better understanding of how the holiday season impacts entrepreneurs and their businesses. As a partner to platform businesses, we’ve developed best practices to quash SMB pain points.

SMB 40

SaaS Blogs Not to be Missed

OPEXEngine

Pros and Cons: SaaS SMB vs. Enterprise Models. SaaS companies selling in the SMB market are structured operationally very differently from SaaS companies selling in the enterprise market.

SMB 56

Are SMB SaaS Companies Valued Differently than Mid-Market SaaS Businesses?

Tomasz Tunguz

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. The data indicates that SMB companies trade on average at 8.1x In the SMB and Mid-Market, there’s quite a bit of variance.

SMB 40

SMB update: WePay survey finds payment challenges galore

wepay

The WePay SMB & Money Survey , a national survey of 505 U.S. Data from the WePay SMB & Money Survey reveals additional benefits for SMBs that accept payments online. The post SMB update: WePay survey finds payment challenges galore appeared first on WePay Blog. What’s it like to run a small business? What obstacles do small business owners face? small business owners, addressed these and other questions.

SMB 40

The Defining Characteristics of Successful SMB SaaS Startups

Tomasz Tunguz

At first glance, SMB SaaS companies, those who sell Software-as-a-Service to small to medium businesses, may seem like any other software company. Successful SMB SaaS companies have reinvented their businesses eschewing the expensive enterprise sales model in favor of end-user centric marketing, support and product development. SMB SaaS companies sell to a highly fragmented market. Effective SMB products also prequalify customers through the Product Qualified Lead.

SMB 40

Successful SMB SaaS Companies Have a 2 Step Value Proposition

Tomasz Tunguz

On first glance, SMB SaaS companies, those who sell Software-as-a-Service to small to medium businesses, may seem like any other software company. SMB SaaS companies sell to a radically different market than enterprise software companies. On the other hand, SMB SaaS companies sell to firms with 10 employees and $400k in annual payroll. SMB SaaS companies need to reach and market to 1,000 times more companies than their enterprise counterparts.

SMB 40

The 5-Step SMB Sales Call Follow-Up Framework [Templates]

Sales Hacker

For years now, I’ve taught a simple follow-up framework to salespeople and RevenueZen clients who are going after SMB and mid-market buyers — perfect for when you’re talking directly to the decision maker and there are only a few stakeholders involved. The post The 5-Step SMB Sales Call Follow-Up Framework [Templates] appeared first on Sales Hacker. Whether they want to admit it or not, prospects rely on us as salespeople to usher them along the sales process. But here’s the thing….

SMB 61

What’s a Good Net Retention Rate in SaaS?

SaaStr

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. Developer-focused, but still fairly SMB.

Do SMBs Need Customer Success? 100% For Sure If You Also Have Sales Involved

SaaStr

If your SMB product requires or has a salesperson involved in closing, that’s a clear sign you also want a human being involved in making sure that customer is a success post-sale, too. Just assign a certain amount of ARR per each SMB customer success manager.

Is The SDR Model Broken?

Predictable Revenue

Throughout the webinar, Aaron and Collin discuss what needs to happen industry-wide to get things back on track, and to change the industry in 2020 to bring the SMB Outbound SDR model back to life.

SMB 163

5 Interesting Learnings From Wix at $1 Billion+ in ARR

SaaStr

Efficient at SMB marketing — an ~8 month CAC. We saw in this series other SMB leaders like GoDaddy and Xero need to get well into Year 2 to go profitable on a new customer, but Wix gets there in just 7-9 months. Quite an incredible SMB success story!

SMB 244

HubSpot’s Growth Accelerates to 41% at $1.1B in ARR. And New Customers Grew Even Faster.

SaaStr

And what we see is that SMB is on fire in SaaS. HubSpot is adding a breathtaking number of SMB customers at $1.1B And it shows the Best of Times for SMB SaaS have only just begun. Hubspot didn't just grow an incredible 41% in Q1'21 to $1.1B in ARR. It accelerated.

SMB 276

How to Drive NRR Over 100% With SMBs

SaaStr

Shopify sells roughly 75% SMB / 25% enterprise, and while it hasn’t always disclosed its NRR (many SMB leaders don’t), what disclosure there has been in the past was around 100%. Pretty good for SMB SaaS.

SMB 200

5 Interesting Learnings from Xero. As It Crosses $650m in ARR.

SaaStr

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! Xero’s SMB churn isn’t zero. Aim for that at least in your SMB segment if you can, and if you can provide at least as much value as Xero. Customer Lifetime Value is 81 months, from SMB That’s impressive.

SMB 213

SMB or Enterprise - Which is the Better Go To Market in SaaS?

Tomasz Tunguz

SMB to mid-market to enterprise or straight to enterprise?” In exchange for these benefits, SMB startups cede the enterprise market early on. Oracle (enterprise) bought Netsuite (SMB) for $9.3B. A friend recently asked, “Which path is better for SaaS startups? ” It’s a key strategic question for many founders building software companies. Startups that initially target small to medium businesses benefit from several key advantages.

SMB 44

5 Interesting Learnings from Shopify at $4 Billion in ARR

SaaStr

It would be so helpful to know, as the #1 leader in SMB eCommerce, and also one of the very top leaders in SaaS SMB overall. But enterprise isn’t growing faster than SMB as it often does as you scale. #7.

SMB 236

Are Hubspot and Salesforce competitors?

SaaStr

Yes, it has SMB customers. And Hubspot is very SMB. Q: Are Hubspot and Salesforce competitors? Barely. Yes, on the surface, Hubspot competes with Salesforce. It’s 4 core products also 4 core product for Salesforce: Sales, Marketing, Support, and Service.

SMB 169

The More Enterprise You Are, the More Visible the CEO Should Be

SaaStr

But Box became 95%+ enterprise by revenue over time, and Dropbox is still 95% SMB and smaller and consumer. But — Dropbox is much more of a consumer and SMB focused product. Yes for sure.

5 Interesting Learnings from PagerDuty at $250,000,000 in ARR

SaaStr

It’s also an interesting contact to Zoom , Zendesk and Slack , which recently have seen enterprise and SMB growth be about equal post-Covid. #2. This is top-tier NRR for a product with many SMB customers.

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