SMB - SaaS Brief

Can We Even Afford to Do SMB Sales in the U.S. Anymore?

SaaStr

SEPTEMBER 19, 2023

based SMB sales positions. Almost every SMB SaaS company I work with has moved most of its sales team outside the U.S. Almost every SMB SaaS company I work with has moved most of its sales team outside the U.S. These all sprung up as more cost-effective centers of excellence for SMB and even some mid-market sales reps.

SMB

SMB Scale Sales Hiring Sales

When the Enterprise Vendor is Cheaper Than the SMB Vendor

SaaStr

AUGUST 21, 2023

So we reached out to the leading SMB vendor. 5x more for the SMB vendor! $50k 50k plus a migration fee (almost $100k total, really) for the SMB Vendor vs. $15k a year today for The Enterprise Vendor. But the SMB vendor is pushing hard to monetize its biggest SMBs the most. That’s huge for an SMB.

SMB

SMB Enterprise Scale Pricing

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

SaaStr

APRIL 28, 2021

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%. 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.

SMB

SMB Enterprise Scaling Revenue

Webinars

Value-Driven AI: Applying Lessons Learned from Predictive AI to Generative

How to Achieve Product-Market Fit

MORE WEBINARS

My Favorite Apps of 2022 (As an SMB): Gusto and Bill

SaaStr

NOVEMBER 26, 2022

So this is just a personal post, not as an investor or blogger or community runner, but as an SMB owner. ” as an SMB. Favorite #01 as an SMB Admin: Gusto. Favorite #02 as an SMB Admin: Bill. It might be — I don’t actually care as the “boss” at an SMB. Running “SaaStr Inc.”

SMB

SMB Systems Review Management

The Challenge with SMB SaaS: High Growth Can Only Mask High Churn For Just So Long

SaaStr

JULY 26, 2022

So in theory, SMB SaaS is better than enterprise, at least 9 times out of 10: Deals close much faster. But beyond all the other Pros and Cons of SMB vs enterprise, there’s one looming issue with SMB SaaS: Churn. SMBs go out of business, and quickly. SMBs pay monthly, and often scrutinize every expense.

SMB

SMB Churn SaaS Scale

How Salesforce Runs Its Internal Forecasting Process with Salesforce’s VP Sales Strategy & Programs and RVP SMB Sales

SaaStr

NOVEMBER 27, 2023

During SaaStr Annual , Eric Huff, VP of Sales Strategy and Programs, and Theresa Stevens, Regional VP of the SMB sales team, shared an “under the hood” look at how Salesforce does its internal forecasting using Salesforce.

Forecasting

Forecasting SMB Sales Strategy

Why SMB and Enterprise Sales Have Nothing In Common

SaaStr

FEBRUARY 7, 2021

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. At EchoSign, we gave 150 qualifed leads a month to our SMB reps ($99/month product).

SMB

SMB Scale Sales Hiring Enterprise

BowtiedCocoon: Top SaaS SMB AEs have $125k OTEs. But The Best Ones Make $261k.

SaaStr

APRIL 16, 2022

Per LinkedIn data, SMB AEs at some of the top SaaS and B2B companies have: an average base salary of $70k, an average OTE of $125k, and. SMB AE | TOP 30 Sales Organizations. The post BowtiedCocoon: Top SaaS SMB AEs have $125k OTEs. And it’s super helpful. the best, top reps make $260k. Or more than 2x their OTE.

SMB

SMB SaaS AWS B2B

Zoom at $4.5B in ARR: Enterprise is Growing 24%, But SMB Churn is Dragging Overall Growth Down to … 1% for 2024

SaaStr

FEBRUARY 28, 2023

While Zoom Enterprise is growing at a healthy clip, churn is over 3% a month for its SMB customers As a result, it’s now predicting 1% growth next year 1% pic.twitter.com/i2k2W9QbVX — Jason Be Kind Lemkin  (@jasonlk) February 27, 2023 So Zoom has just been the craziest story of all time in SaaS. It probably couldn’t last.

SMB

SMB Churn Enterprise SaaS

Scaling The Top SMB SaaS Companies: What It Takes with GGV Capital Managing Director Jeff Richards and GGV Capital Partner Tiffany Luck (Pod 647 + Video)

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

Scale SMB Merchant Services SaaS Payments

Secrets to SMB at Scale with Hubspot CEO Yamini Rangan and SaaStr Founder & CEO Jason Lemkin (Pod 616 + Video)

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. The past few years have kicked off an unprecedented wave of digital expansion.

Scale

Scale SMB Scaling SaaS

10 Learnings on High-Velocity Sales to SMB with Gorgias CEO and VP of Sales

SaaStr

JULY 11, 2023

So many teams are hiring SDR/BDR teams, and it’s really tough to make that work in SMB sales. The post 10 Learnings on High-Velocity Sales to SMB with Gorgias CEO and VP of Sales appeared first on SaaStr. Who will be looking for this product? Who is the likely and ideal buyer? Segment: What segment are you pursuing? Mid-Market?

Sales Hiring

Sales Hiring SMB Sales Recruiting Sales

Acquiring 10,000 SMB Customers Solely from Data with Gorgias CEO Romain Lapeyre (Pod 527 + Video)

SaaStr

FEBRUARY 12, 2022

Gorgias CEO Romain Lapeyre has successfully scaled the Gorgias SMB customer base from 1,000 to 10,000 by relying on data. The post Acquiring 10,000 SMB Customers Solely from Data with Gorgias CEO Romain Lapeyre (Pod 527 + Video) appeared first on SaaStr. Build A Map. Impact: 25% improvement over one year.

SMB

SMB Scale Data Scaling

Networking Technology: SMB

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

SMB Technology Communication

7 Secrets to a Successful SMB Go-To-Market Strategy with PayFit Co-Founder and CEO Firmin Zocchetto and Accel Partner Philippe Botteri (Pod 576 + Video)

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

SMB Sales Hiring Scale B2C

Only 11% of Public SaaS Companies Sell Just to SMBs

SaaStr

AUGUST 29, 2022

SMB SaaS has a lot going for it: – Millions of them – Short sales cycles – Easier compete. But, it's often hard to get to $100m ARR selling just to SMBs. sell just to SMBs pic.twitter.com/Po1I2aMaBK. So many VCs and others have gotten more and more excited about SMB SaaS. Millions and millions more.

SaaS Payments

SaaS Payments SaaS Scale SMB

SMB, Mid-Market, or Enterprise Sales: Which Is Right for You?

Sales Hacker

JANUARY 9, 2023

Related: How to Transition from SMB to Enterprise: Tips from 3 Experts. SMB, mid-market, and enterprise defined. SMB, mid-market, and enterprise defined. Selling to SMB. SMB, mid-market, and enterprise: What’s the difference? SMB: Small and Medium-Sized Businesses. Benefits of selling to SMB.

Scale

Scale SMB Enterprise Sales

10 Learnings Scaling from Consumer to SMB to Enterprise with Grammarly’s Head of Organizations Revenue Dorian Stone (Podcast 520 + Video)

SaaStr

JANUARY 21, 2022

Dorian Stone , Head of Organizations Revenue at Grammarly, is here to share lessons from his experience of scaling the company from consumer to SMB to Enterprise to help you steer your expansion efforts in the right direction. The admin, influential decision-makers, and consumer sales reps can be the same people in a Consumer or SMB setting.

Scale

Scale SMB Enterprise Scaling

GTM 58: How Stripe SuperCharged their SMB Team with Meka Asonye

Sales Hacker

AUGUST 29, 2023

And…monthly bonus podcast episodes dropping the first Thursday of every month The post GTM 58: How Stripe SuperCharged their SMB Team with Meka Asonye appeared first on GTMnow.

SMB

SMB Scale Sales Hiring Compensation

5 Interesting Learnings From Bill at $1.2 Billion in ARR

SaaStr

NOVEMBER 1, 2023

Well, fast forward to today and it’s truly an SMB powerhouse. How is SMB SaaS doing today? Most SMB-focused businesses need shorter CACs to make the model wok, but with 111% NRR, Bill can invest at > 12 months here. Billion in ARR, it’s still growing 48% year-over-year. Yes, 48% at $1.2 Billion in ARR.

SaaS Payments

SaaS Payments Payments Payment Services Payment Solutions

SMB Sales Strategy: How to Sell to SMB Customers in 2023

CloseSaaS

FEBRUARY 15, 2023

Selling to SMB companies is a useful skill, especially in 2023. More businesses exist today than ever before. Here’s how to sell well!

SMB

SMB Strategy Sales Business

BrandPost: 5 New Year’s Resolutions for Every SMB

IT World

JANUARY 10, 2022

In this post, we offer up five battled-tested network technologies and strategies that can bring more speed and agility to most small- or medium-sized businesses (SMB), perhaps even while lowering costs. As we (thankfully) close the books on 2021, it’s time to think about how best to promote business growth in the new year.

SMB

SMB Strategy Technology Business

The State of Software Buying: From SMB to Enterprise with G2’s CMO

SaaStr

DECEMBER 1, 2021

The post The State of Software Buying: From SMB to Enterprise with G2’s CMO appeared first on SaaStr. Key Highlights: Adopt a product-led growth mindset. Treat your customers like your best marketing partners. Focus on your NRR > ARR.

Software Review

Software Review SMB Software Enterprise

The Typical Startup Saw a 24% Increase in Sales Cycle in 2023

Tom Tunguz

MARCH 27, 2023

Startups selling to enterprises have increased 36%, twice those of Mid-Market & SMB focused companies. Mid-market & SMB distributions skew left with up to 10% of businesses reporting a decrease in sales cycle during the period. This figure is statistically significant with a p value of 0.0005.

Startup

Startup SMB Sales Headcount

5 Interesting Learnings from Shopify at $6.8 Billion in Revenues

SaaStr

OCTOBER 11, 2023

But the explosion of SMB commerce and the price increase to the SMB Shopify plans has meant Plus revenue growth hasn’t outpaced the overall growth of the company’s SMB base. Shopify would be much smaller if it hadn’t gone upmarket and pushed Plus more and more. Sometimes this stuff is a bit noninuitive.

Payments

Payments Revenue Merchant Services Payment Solutions

BrandPost: The SMB Guide to Securing Employee Personal Devices

IT World

MAY 6, 2022

Although this may be convenient for employees, it creates significant security risks for the small and midsize business (SMB). Or, they are storing information in the device memory outside of the protected corporate application. To read this article in full, please click here

SMB

SMB Data Business

How To Manage Customers In Microsoft 365 [formerly Office 365] for SMB

Nimble - Sales

JANUARY 25, 2021

The post How To Manage Customers In Microsoft 365 [formerly Office 365] for SMB appeared first on Nimble Blog. On the other hand, there’s some confusion going on with the […].

SMB

SMB Management Technology

How to Transition from SMB to Enterprise: Tips from 3 Experts

Sales Hacker

FEBRUARY 14, 2022

They sit around a table and share actionable insights about their company’s transition from SMB to enterprise sales. . There’s one nightmare scenario every company wants to avoid when they make the transition from SMB to Enterprise. Pivoted away from having CSMs for SMB, replacing it with a support team to close tickets faster.

SMB

SMB Enterprise Scale Outbound Sales Team

Annual or Monthly Payments for SMBs? Data from Zoom, Freshworks, Expensify, Squarespace, and More

SaaStr

OCTOBER 21, 2023

Dear SaaStr: What is the average percentage of annual vs. monthly plan sold for a BtoB SaaS startup targeting the SMB market? 90% of Smartsheet’s SMB customers pay annually. 20%+- will pay annually to save money. Most would rather skip the discount and pay less now. 38% of Freshworks customers pay monthly.

SMB

SMB Data Churn SaaS

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

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. For salespeople, things began looking worrisome pretty quickly. Specifically, for those […].

SMB

SMB SaaS Software Business

What’s a Good Net Retention Rate in SaaS?

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. Developer-focused, but still fairly SMB. And mostly SMBs. 119% net revenue retention.

SaaS

SaaS Retention SMB Churn

5 Interesting Learnings from HubSpot at $2 Billion in ARR

SaaStr

MAY 10, 2023

23% Customer Count Growth Leads to 30% Revenue Growth, but NRR dips to 104% HubSpot is still very much SMB, especially the “M” of SMB. But maintaining 100%+ NRR allows them to grow meaningful faster in revenue than in customer count, even from SMBs. Including HubSpot. #4. Q1 is a strong quarter historically. #8.

Scale

Scale SMB Headcount SaaS

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

SaaStr

APRIL 15, 2020

001” with Romain Lapeyre, CEO of Gorgias: 2,500+ SMB E-Commerce Customers appeared first on SaaStr. The post “What Are You Seeing?

SMB

SMB Cloud Innovation Data

5 Interesting Learnings from RingCentral at $2 Billion in ARR

SaaStr

MAY 18, 2022

RingCentral is a very interesting case study in SaaS of starting very SMB, way in the early days of SaaS in 1999, keeping at it … and then tilting upmarket to going much more enterprise post-IPO. Fast forward to today, they are 27% SMB and 63% Mid-Market and Enterprise at $2B in ARR growing 33%. 5 Interesting Learnings: #1.

SMB

SMB SaaS Enterprise Revenue

Gartner: Software Spend Will Grow 13.8% in 2024, to Over $1 Trillion For The First Time

SaaStr

NOVEMBER 6, 2023

If you’re selling software to SMB merchants and outside of tech like Shopify and Toast and Monday , things are pretty, pretty good, if in some ways still harder than before. So things are all over the place these days.

Software

Software Merchant Services SMB Azure

What is an SMB? Small to Medium-Sized Business Definition, Examples, and What Sales Needs to Know

CloseSaaS

OCTOBER 21, 2022

What is an SMB? Here's how to navigate the SMB sales process. A Small to Medium-Size Business is smaller, savvier, and has less time to waste than larger companies.

SMB

SMB Sales Business

SaaS Capital Survey of 1,500 SaaS Companies: High NRR Startups Grow Twice as Fast

SaaStr

SEPTEMBER 2, 2023

First, SMB SaaS almost always has lower NRR, especially in the earlier years, and that hasn’t stopped HubSpot and Toast many others from getting mighty big. But, the best in SMB SaaS do tend to have higher NRR, especially as they scale. This wasn’t obvious to me.

SaaS

SaaS Startup SMB Retention

Which Customer Segments are Healthiest During the Downturn?

Tom Tunguz

FEBRUARY 20, 2023

Do public software companies with largely enterprise customer bases benefit from superior growth to their peers with mid-market or SMB focuses? SMB businesses benefited from a post-Covid surge when the US re-opened - a phenomenon that seems to abate with time.

SMB

SMB Enterprise Software Sales

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

SaaStr

JUNE 7, 2021

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. Support has to handle a lot of routine SMB issues anyways.

Customer Success

Customer Success Scale SMB Sales

5 Interesting Learnings from Toast at Almost $800,000,000 in ARR

SaaStr

AUGUST 24, 2022

SMB sales (most of Toast) is very tough to do without a highly efficient and effective sales force. Many SMB leaders have to get very, very good at outbound because of the limited deal sizes. An SMB price point where you can afford to pay the reps reasonably well, but again, where margins are tight.

SaaS Payments

SaaS Payments Scale SMB Payment Solutions

What’s the Difference Between SMB vs Mid-Market vs Enterprise Sales? Guide & Examples

CloseSaaS

SEPTEMBER 15, 2022

SMB vs mid-market vs enterprise sales—should you be going after small fish or whales? Learn how enterprise sales is different from SMB or mid-market sales & how to choose the right market.

SMB

SMB Enterprise Sales Marketing

5 Interesting Learnings from Squarespace at $1 Billion in ARR

SaaStr

APRIL 26, 2023

Having said that, many SMB players were hit hard in 2022. Zoom’s SMB customers shrunk for the first time ever, for example. Diversifying into the restaurant space makes sense — it’s one of the largest segments for SMB commerce. New customers only grew 3%. That’s very mature.

Scale

Scale SMB Churn Revenue

5 Interesting Learnings from Zoom at $4.3B in ARR

SaaStr

JUNE 8, 2022

ARR, Zoom was an SMB powerhouse, with Enterprise growing. SMB is now saturated at $4B ARR and not growing, but Enterprise is picking up the slack and growing faster than ever. Enterprise NRR is now 123%, but than means SMB is now well under 100%. ARR … which it did in just 1 year (!!)

SMB

SMB SaaS Enterprise Scale

Can We Even Afford to Do SMB Sales in the U.S. Anymore?

When the Enterprise Vendor is Cheaper Than the SMB Vendor

Webinars

Trending Sources

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

Webinars

My Favorite Apps of 2022 (As an SMB): Gusto and Bill

The Challenge with SMB SaaS: High Growth Can Only Mask High Churn For Just So Long

How Salesforce Runs Its Internal Forecasting Process with Salesforce’s VP Sales Strategy & Programs and RVP SMB Sales

Why SMB and Enterprise Sales Have Nothing In Common

BowtiedCocoon: Top SaaS SMB AEs have $125k OTEs. But The Best Ones Make $261k.

Zoom at $4.5B in ARR: Enterprise is Growing 24%, But SMB Churn is Dragging Overall Growth Down to … 1% for 2024

Scaling The Top SMB SaaS Companies: What It Takes with GGV Capital Managing Director Jeff Richards and GGV Capital Partner Tiffany Luck (Pod 647 + Video)

Secrets to SMB at Scale with Hubspot CEO Yamini Rangan and SaaStr Founder & CEO Jason Lemkin (Pod 616 + Video)

Top SaaStr Content for the Week: Gorgias CEO, Postman CEO, Waze Head of SMB Sales, Klaviyo SVP Marketing, and More!

10 Learnings on High-Velocity Sales to SMB with Gorgias CEO and VP of Sales

Acquiring 10,000 SMB Customers Solely from Data with Gorgias CEO Romain Lapeyre (Pod 527 + Video)

Networking Technology: SMB

7 Secrets to a Successful SMB Go-To-Market Strategy with PayFit Co-Founder and CEO Firmin Zocchetto and Accel Partner Philippe Botteri (Pod 576 + Video)

Only 11% of Public SaaS Companies Sell Just to SMBs

SMB, Mid-Market, or Enterprise Sales: Which Is Right for You?

10 Learnings Scaling from Consumer to SMB to Enterprise with Grammarly’s Head of Organizations Revenue Dorian Stone (Podcast 520 + Video)

GTM 58: How Stripe SuperCharged their SMB Team with Meka Asonye

5 Interesting Learnings From Bill at $1.2 Billion in ARR

SMB Sales Strategy: How to Sell to SMB Customers in 2023

BrandPost: 5 New Year’s Resolutions for Every SMB

The State of Software Buying: From SMB to Enterprise with G2’s CMO

The Typical Startup Saw a 24% Increase in Sales Cycle in 2023

5 Interesting Learnings from Shopify at $6.8 Billion in Revenues

BrandPost: The SMB Guide to Securing Employee Personal Devices

How To Manage Customers In Microsoft 365 [formerly Office 365] for SMB

How to Transition from SMB to Enterprise: Tips from 3 Experts

Annual or Monthly Payments for SMBs? Data from Zoom, Freshworks, Expensify, Squarespace, and More

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

What’s a Good Net Retention Rate in SaaS?

5 Interesting Learnings from HubSpot at $2 Billion in ARR

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

5 Interesting Learnings from RingCentral at $2 Billion in ARR

Gartner: Software Spend Will Grow 13.8% in 2024, to Over $1 Trillion For The First Time

What is an SMB? Small to Medium-Sized Business Definition, Examples, and What Sales Needs to Know

SaaS Capital Survey of 1,500 SaaS Companies: High NRR Startups Grow Twice as Fast

Which Customer Segments are Healthiest During the Downturn?

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

5 Interesting Learnings from Toast at Almost $800,000,000 in ARR

What’s the Difference Between SMB vs Mid-Market vs Enterprise Sales? Guide & Examples

5 Interesting Learnings from Squarespace at $1 Billion in ARR

5 Interesting Learnings from Zoom at $4.3B in ARR

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