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Dear SaaStr: What is The Average Ratio of Support Staff to Customer Count in SaaS? Typically support consumes about perhaps 5%-7% of your revenue at scale (excluding customer success) in most SaaS models. It could be more or less, but that’s a rough way to think about it. Another 5%-7% go to core infrastructure costs (AWS, Azure, Snowflake, etc). And that leaves you at the 75%-85% gross margins traditional SaaS companies have.
Wait – is it Friday? Nope, it is indeed Saturday. Dropping into your inbox with a Saturday special today, and here’s why: this week was a particularly busy one, capped off by our first GTMfund dinner of the year. Speaking of which, GTMfund’s value proposition perfectly illustrates this week’s main newsletter topic: the critical importance of messaging and positioning.
Dear SaaStr: What are some common reasons for the failure of startups? How can these mistakes be avoided to increase their chances of success? My experience across leading 30+ seed investments, including 4 billion+ exits so far, on why startups fail: Not 200% committed to winning no matter what. Even the smartest founders aren’t always 200% committed.
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In the latest installment of our What’s New series where SaaStr’s very own CEO and Founder, Jason Lemkin, sits down with the top CEOs and leaders in SaaS to discuss What’s New, what’s top of mind, and what every SaaS founder should be thinking about – Jason sits down with Matt Mullenweg , CEO of Automatic and Co-Founder of WordPress.
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