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 334

Sales Hiring SMB Enterprise Metrics 334

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 200

Sales Hiring SMB Sales Recruiting Payment Methods 200

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 310

SMB Scale Startup Enterprise 310

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 325

Enterprise Scale SMB Investment 325

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 269

SMB Customer Lifetime Value AWS Churn 269

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 283

Customer Lifetime Value SMB Churn Scale 283

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 274

Merchant Services Revenue SMB SaaS 274

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 273

Marketing SMB Scale Revenue 273

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 318

SMB Cloud Scaling Investment 318

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 62

SMB Cloud Engineering Enterprise 62

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 284

Sales Hiring Scale SMB SaaS 284

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 302

Machine Learning Artificial Intelligence SaaS Consulting 302

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 284

Scale Sales Recruiting Sales Hiring Sales 284

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 228

Scale SMB Churn Scaling 228

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 301

Compensation Scale Sales SMB 301

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 349

Sales Hiring Headcount Scale Engineering 349

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 254

Systems Review SMB Cloud Enterprise 254

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 299

Customer Success Sales Hiring Scale Headcount 299

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 272

Marketing Sales Social Media SMB 272

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 194

Scale SMB Sales SaaS 194

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 291

Enterprise B2B Scale SMB 291

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 282

Payment Solutions Payments Travel Scale 282

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 119

Sales Recruiting SMB Scale Sales Hiring 119

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 274

Sales Recruiting Sales Hiring Sales SaaS 274

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 273

Mobile Scale SMB Travel 273

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 111

Sales Recruiting SMB Scale Sales Hiring 111

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 328

Sales Recruiting Sales Hiring Scale Sales 328

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

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 262

Scale SMB Enterprise Branding 262

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 273

Scale Sales Recruiting Sales Hiring Scaling 273

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 284

Sales Hiring SaaS Headcount Compensation 284

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 268

Sales Hiring Part-Time VPE Scale Underperforming Technical Team 268

SaaStr

DECEMBER 22, 2023

Lesson 3 — Embrace the Mid-Market Often, people think there’s a binary choice between SMB and Enterprise. They’d then take those ideas to other verticals and ask if that would be useful for them, too. It ended up making the product better for everyone.

Scale 306

Scale Scaling Strategy Sales Hiring 306

SaaStr

SEPTEMBER 14, 2022

In particular, Nuez recommends drawing lessons from the book Rocket Fuel , by Gino Wickman, on how “visionaries” and “integrators” can forge incredible collaborations. In the early days, UserZoom struggled with deciding whether its target market should focus on enterprise or SMB. Define and focus on one target persona.

Scale 246

Scale Venture Capital Sales Hiring SMB 246