SaaStr

JUNE 2, 2022

Two things though did get hit harder — SMB Churn and Upsell s. Customers kept buying more SaaS than ever, which masked all-time high churn in SMB accounts. SMBs just plain went out of business in ’08-’09. So our gross SMB churn spiked to a crazy high of 5.5% That never even slowed down.

SMB 361

SMB SaaS Churn Enterprise 361

SaaStr

DECEMBER 12, 2023

Enterprise reps tend to close more ($1m+), and SMB reps less (maybe $500k), with $750k net new bookings per year the median. or so a year to take home those comp levels, and an SMB rep likely $800k or more. In any event, that’s good median data. And how many hit quota?

Sales Hiring 335

Sales Hiring SMB Enterprise Metrics 335

SaaStr

JULY 11, 2023

So many teams are hiring SDR/BDR teams, and it’s really tough to make that work in SMB sales. For example, Gorgias has the following deal stages: The “Demo Booked” stage means the meeting has been set up on the calendar. The post 10 Learnings on High-Velocity Sales to SMB with Gorgias CEO and VP of Sales appeared first on SaaStr.

Sales Hiring 203

Sales Hiring SMB Sales Recruiting Payment Methods 203

SaaStr

JANUARY 20, 2022

How to check on a competitor's growth plan: 1/ Search on LinkedIn how many sales reps they have 2/ Multiply by $500,000 ($250,000 if SMB). That's how much in bookings they plan to add this year. That’s how much in bookings they plan to add this year. And thus their ambitions for bookings in the next 12 months.

SMB 315

SMB Scale Startup Enterprise 315

SaaStr

JUNE 7, 2024

Klaviyo has SMB roots but is pushing hard at $50k+ deals as it approaches $1B in ARR. To start adding eight figures and then nine figures of new bookings a year, it can really help to focus on bigger customers. At some point, 98%+ of us eventually go upmarket: Canva is now going all-in on enterprise … at $2B+ ARR :).

Enterprise 327

Enterprise Scale SMB Investment 327

SaaStr

MAY 19, 2019

What lessons can we learn from this huge Kiwi SMB success, for other founders? Here are a few: All the way until $600m+ ARR, the majority of Xero’s new bookings and revenue still came from Australia and New Zealand! Most of the companies in this 5 Interesting Things Series have had net negative churn from SMBs (e.g.,

SMB 270

SMB Customer Lifetime Value AWS Churn 270

SaaStr

JANUARY 12, 2021

Here are a few: All the way until $600m+ ARR, the majority of Xero’s new bookings and revenue still came from Australia and New Zealand! Most of the companies in this 5 Interesting Learnings Series have had net negative churn from SMBs (e.g., Xero’s SMB churn isn’t zero. And the U.K. Churn is 1.1% It’s 1.1%

Customer Lifetime Value 288

Customer Lifetime Value SMB Churn Scale 288

SaaStr

MAY 18, 2021

Squarespace is almost all not just SMB, but self-service. Its net revenue retention at IPO was about 130% and the majority of its new bookings come from its existing customers. Today, 73% of Salesforce’s new bookings come from its installed base. Their new revenue retention is about 85%.

Merchant Services 279

Merchant Services Revenue SMB SaaS 279

SaaStr

OCTOBER 5, 2023

It’s now adding more new bookings than HubSpot Marketing Hub. It’s more than halfway there, it’s growing much faster, and importantly, its new bookings appear to be higher than HubSpot’s Marketing Hub. WIll be fascinating to see where both end up in a few years.

Marketing 278

Marketing SMB Scale Revenue 278

Tom Tunguz

FEBRUARY 26, 2025

To end this conversation on pricing, I’ll quote Lawrence Steinmetz who wrote a book on sales called How to Sell at Margins Higher Than Your Competitors: “The first thing you have to understand is the selling price is a function of your ability to sell and nothing else.

SaaS Payments 283

SaaS Payments Pricing Strategy Scale 283

SaaStr

FEBRUARY 13, 2021

SMB growth in Cloud and SaaS is still going strong! There’s no seeming ceiling to the number of SMBs than can now buy SaaS and Cloud products. in annual bookings. Million More Customers in 2020. Freemium is back! A bit of a challenge to the notion of the power of brand at scale. They did acquire 1.4 Google Domains).

SMB 321

SMB Cloud Scaling Investment 321

SaaStr

NOVEMBER 9, 2022

Five9 has fully moved from an SMB product to a true enterprise one, now with well over 100 million dollar customers. #2. The majority of HubSpot’s revenue is international, for example, and for Five9, its international bookings grew 78% last quarter and revenue 40%, far higher than the overall. #4. 5 Interesting Learnings: #1.

SMB 63

SMB Cloud Engineering Enterprise 63

SaaStr

SEPTEMBER 15, 2023

Mathrubootham always wanted to build a multi-product company and booked 40 domains when starting Freshworks in 2010. Big Bet #4: Go After Bigger Fish — Overlay Field Motion Over Inbound People often assume inbound is all SMB, but one of the things Freshworks realized early on is that you can close larger deals with inbound.

Sales Hiring 289

Sales Hiring Scale SMB SaaS 289

SaaStr

APRIL 7, 2021

. “SaaStr 419: How To Collaborate, Manage & Work with Developers with Jeff Lawson, CEO of Twilio and Jason Lemkin” Jeff has been speaking >a lot< on this topic with his book, so we took a much deeper dive than others on this and related topics. How to build amazing products at scale. #4.

Scale 243

Scale SMB Churn Scaling 243

IT World

JANUARY 10, 2022

As we (thankfully) close the books on 2021, it’s time to think about how best to promote business growth in the new year. 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.

SMB 106

SMB Technology Strategy Business 106

SaaStr

APRIL 8, 2020

Hiver’s Free Shared Inboxes for SMB. Click here for OWL Labs’ “household” management tool helps you book workspaces and schedule responsibilities in the home so you can work productively with partners, roommates, children — all under one roof. Where can I find the deal? during the COVID-19 pandemic.

Machine Learning 307

Machine Learning Artificial Intelligence SaaS Consulting 307

SaaStr

JUNE 9, 2021

The end result: In one quarter we nearly doubled new business and total bookings. In my book none of these changes required any particular genius. So, to me, it was a no brainer to start moving our SMB and Midmarket AEs upmarket to handle bigger accounts because they were just plain better sales people. Common sense.

Scale 290

Scale Sales Recruiting Sales Hiring Sales 290

SaaStr

MAY 23, 2023

Enterprise Quota:OTE ratios are higher (5x+), SMB is a bit lower, but at the end of the day, you need to close 4x-5x what you take home. #2. Enterprise SDRs Typically Have to Book 5 SQLs Per Month, Mid-Market SDRs About 20. Yes, 50/50 Base/Variable for AEs remains the standard, and 4x-5x+ Quote:OTE ratio remains the standard.

Compensation 306

Compensation Scale Sales SMB 306

SaaStr

MARCH 31, 2019

RingCentral somewhat later in life is growing into a true enterprise-play at $1b+ in ARR vs. the SMB play it was in its earlier and middle days. 40% of new bookings are from existing customers. Some of us go upmarket early, some later, but most of us go there eventually. At least to some extent.

Systems Review 259

Systems Review SMB Cloud Enterprise 259

SaaStr

JANUARY 29, 2021

Really, we’ll want more than this toward the middle of the year because we’ll be adding so much net new bookings / MRR. Hubspot is a bit more SMB-y than the model above … but both are good comps. That’s a yielded quota). Budget for 25 at least. Maybe 8 SDRs to support the sales reps in outbound, screening, etc.

Sales Hiring 350

Sales Hiring Headcount Scale Engineering 350

SaaStr

SEPTEMBER 8, 2021

To deliver X leads per month to sales, so sales can hit its revenue and bookings number. But this is way too complex and downstream a metric for SMB sales and higher volumes of qualified leads. It leads to way too much “best efforts” talk and actions. This is simple to measure and the most traditional metric for marketing in SaaS.

Marketing 281

Marketing Sales Social Media SMB 281

SaaStr

FEBRUARY 14, 2024

One thing that has positively changed for customer success, especially for the SMB-focused, is far larger onboarding teams. This is great news because onboarding is one of the best ways to bring down churn for SMBs. If they own a $2M book of business, they should have 250. It’s the critical piece for customer retention.

Customer Success 304

Customer Success Sales Hiring Scale Headcount 304

SaaStr

SEPTEMBER 8, 2019

The numbers are often a smidge higher with SMB sales too. In many cases, reps just can’t close quite as much revenue with SMBs, and if the reps are in higher expense locations, that can force you to pay more than 20%. Even for SMBs, you still eventually need to approach 20%. Top reps often close 2x-3x more than a mid-pack rep.

Scale 199

Scale SMB Sales SaaS 199

SaaStr

AUGUST 8, 2019

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. They’re the leading booking management platform for doctors. Want to see more content like this?

Sales Recruiting 127

Sales Recruiting SMB Scale Sales Hiring 127

SaaStr

OCTOBER 3, 2023

Finding product market fit Moving from SMB to Enterprise or vice versa Achieving Enterprise repeatability Strategic expansion Borland has experienced all four stages at three different companies and knows what teams and functions look like for each stage of growth.

Enterprise 297

Enterprise B2B Scale SMB 297

SaaStr

OCTOBER 31, 2023

The new app was extremely customer-focused and solved problems for people, like Doordash or Netflix might do, but within Enterprise and SMB. What the Navan team has discovered is that a CFO might say to use Concur or American Express to book, but more than 50% of employees are booking outside of those.

Payment Solutions 288

Payment Solutions Payments Travel Scale 288

SaaStr

FEBRUARY 12, 2022

A new VP of Sales doesn’t always double sales in 30 days — although it can happen in SMB sales. More a risk in a very stretch VP of Sales that’s never owned the overall ARR / bookings number. A lot of veteran SaaS revenue leaders protested, but most of them, upon reflecting on it, came to agree the point was right.

Sales Recruiting 279

Sales Recruiting Sales Hiring Sales SaaS 279

SaaStr

JUNE 3, 2022

hint, you can book multiple sessions at once, so try that if there are a couple at the same time you want to go to to help you plan your day. 7 Secrets to a Successful SMB GTM Strategy with PayFit and Accel. You should plan on booking your Braindates before you arrive to Europa.

Mobile 278

Mobile Scale SMB Travel 278

SaaStr

AUGUST 8, 2019

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. They’re the leading booking management platform for doctors. Want to see more content like this?

Sales Recruiting 113

Sales Recruiting SMB Scale Sales Hiring 113

SaaStr

MARCH 22, 2021

Their SMB customers quintupled, right? And so what happened was, even though they added a thousand customers paying $100,000 or more a year, actually the revenue count skewed more SMB, because they grew even faster. billion in new bookings in the next 12 months. It’s crazy. X, or rather I guess 2.5 That’s crazy.

Scale 274

Scale SMB Enterprise Branding 274

SaaStr

JANUARY 21, 2020

It’s an SMB SaaS company in the healthcare technology vertical. My velocity lane, PatientPop’s SMB SaaS, eight units a month, $13,500 contract. If you’re an SMB SaaS business, I would recommend hiring SMB SaaS salespeople. I can’t get my team to book enough outbound demos.”

Sales Recruiting 332

Sales Recruiting Sales Hiring Scale Sales 332

SaaStr

OCTOBER 4, 2023

Then everyone in the world was on Zoom selling flowers and yoga and things meant to be sold in person, so churn peaked at 3.6%, which isn’t terrible for SMB, but was higher than none. This is a CIO purchase, and Okta bookings didn’t go to zero but hit the biggest impact in Q1 of 2023 and boomed in Q2 of last quarter.

Sales Hiring 289

Sales Hiring SaaS Headcount Compensation 289

SaaStr

MARCH 3, 2023

For SMB mid-market, it’s typically around 2-3 months. Simon Sinek shares this concept in his book, Leaders Eat Last. If they’re not, you likely need to fix something within your business. Set correct goals for the sales team and the right ramp for their quotas. Typically, we see a 5-month ramp for an enterprise sales rep.

Scale 278

Scale Sales Recruiting Sales Hiring Scaling 278

The Angel VC

APRIL 6, 2019

The main reason is that I grew up as a consumer software and consumer Internet founder, and even though I had already spent about five years as a SaaS investor when I wrote the post, my experience was heavily skewed towards SMB SaaS. Let’s take a step back.

SaaS 277

SaaS Scale Business SMB 277

SaaStr

JUNE 13, 2021

Let me book-end it: When I was a VP at a Fortune 500 tech company, it took 2.5 It’s not just about the software itself once you leave the SMB stage. Q: How long does it take to implement Salesforce for a mid-size company? Probably 6–12 months. Really longer with the initial evaluation. Phase I: Evaluation. Stakeholder discussions.

Enterprise 179

Enterprise SMB Scale Startup 179

SaaStr

FEBRUARY 2, 2021

Folks like Whereby that focus on SMBs mainly grew a stunning 5x in 2020, and I am sure Google Hangouts (or whatever it is called now) grew like a weed on the consumer/SMB side.]. Did all the benefits go to #1? ” Similarly, DropBox reported big gains from HelloSign, the player it acquired. [And Sometimes it may not matter.

SMB 198

SMB Cloud Trends Enterprise 198

SaaStr

SEPTEMBER 24, 2020

Signs of a mis-hire at VP of Sales : Revenue Per Lead, or at least Net New Bookings, Do Not Go Up in 1 Sales Cycle. SMB reps doing enterprise deals. If their bag of tricks doesn’t work at least a little ASAP, they can’t do it. No one great joins them in first 60 days. Everyone else? They hire weak, too junior folks.

Sales Hiring 269

Sales Hiring Part-Time VPE Scale Underperforming Technical Team 269