SaaStr

OCTOBER 25, 2024

A rough yardstick is that most enterprise-focused SaaS companies tend to get about 8%-10% of their revenues from professional services. It’s SMB. Salesforce similarly on the enterprise side has built a huge ecosystem to do the services work for them. HubSpot gets about 2.3% of its revenue from services.

Investment 298

Investment SaaS SMB Enterprise 298

SaaStr

APRIL 28, 2021

One of them is a challenge to the rule that at some point, you have to go enterprise to really scale. Another is a related challenge to the idea that SMBs, since they don’t pay all that much, sort of “max out” These rules are still true in many cases. As Shopify crossed $4B ARR, it actually got a bit more SMB.

SMB 322

SMB Cloud Enterprise Scaling 322

SaaStr

OCTOBER 16, 2024

It’s been around for decades but has continued to iterate, expanding into the enterprise, the contact center, and so much more. Even With a Big Enterprise Push for Years, 60% of Revenue Still From Mid-Market and SMB RingCentral closed 20 $1M+ TCV deals last quarter. Fast forward to today, it’s at: $2.43

Scale 284

Scale SMB Compensation AI 284

SaaStr

FEBRUARY 5, 2025

And when it IPO’d, it was still solidly an SMB solution. Today it’s a very enterprise solution, solving much bigger problems. Leaning More into Free Even as it goes more enterprise, and see a decline in SMB / Commercial accounts, PagerDuty is still leaning in more on Free. As has PagerDuty.

SMB 276

SMB B2B Enterprise Scale 276

SaaStr

AUGUST 21, 2023

So it was interesting when we tried to migrate off an existing enterprise-focused marketing tool we use. 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.

SMB 246

SMB Enterprise Scale Pricing 246

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. Enterprises take decades to go under.

SMB 363

SMB Churn Payment Services SaaS 363

SaaStr

JANUARY 9, 2025

Many that are self-serve and SMB-focused can start off without a sales team … for a while. But it had and has a very large channel that sells its product into the enterprise, and a lot of internal resources that support the channel. But as it went toward IPO, 50% of its revenue came from bigger, enterprise deal.

Scale 274

Scale Sales Hiring Sales Headcount 274

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 273

SMB Churn Enterprise Engineering 273

SaaStr

DECEMBER 28, 2024

It’s tough to spend even $1m a year effectively on most digital spend for most categories of B2B software: Putting aside Unicorns and folks that have raised monster rounds, in my experience, most enterprise SaaS companies struggle to deploy more than $40k-$50k a month on Adwords effectively. To a point.

B2B 261

B2B B2C Marketing SaaS 261

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 313

SMB Scale Sales Hiring Sales 313

SaaStr

DECEMBER 1, 2021

And 85% of all decisions are made in under six months, including 82% of buying decisions at enterprise organizations. The post The State of Software Buying: From SMB to Enterprise with G2’s CMO appeared first on SaaStr. So what’s powering this speedy conversion process? Well, it’s partially due to new ways of buying.

Software Review 284

Software Review SMB Enterprise Software 284

SaaStr

MAY 21, 2021

Yes you can win in many cases by remaining “hidden” as CEO — but the more enterprise your customer base is, the more important getting out there and being out there is. But Box became 95%+ enterprise by revenue over time, and Dropbox is still 95% SMB and smaller and consumer. Let’s contrast Box and Dropbox. Few tweets.

Enterprise 339

Enterprise SMB Scaling Revenue 339

SaaStr

APRIL 2, 2025

Today it’s at: $800m ARR Growing 22% 20% Free Cash Flow Margins Modest re-acceleration in revenue growth and new customer count — but not NRR Roots are SMB, but 60% of ARR comes from mid-market and enterprise today And a $4B market cap, so 5x ARR Freshworks is getting a bit of a second wind, which is great to see!

Scale 263

Scale AI SMB B2B 263

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. Overview: Grammarly’s Enterprise Evolution. Enter your email below for the latest SaaStr updates.

Scale 246

Scale SMB Enterprise Sales Hiring 246

SaaStr

JANUARY 8, 2025

When Lindsey joined, she inherited an already built-out self-serve/PLG model for small businesses and a mid-market and enterprise sales, customer success, and post-sales team. But at the start of its expansion play, Checkr’s enterprise motion failed, and sales cycles were slow, taking up to a year for $100k & up deals.

Revenue 293

Revenue Scale Sales Hiring Compensation 293

SaaStr

JUNE 7, 2024

So this may seem like a pretty specific post, but it’s a big and real issue I see so, so often these today in SaaS companies at scale, from $20m-$200m+ ARR: They’re reacting to tougher times by going “more enterprise” That can make a lot of sense. I hear this again and again. Which makes them even more valuable.

Enterprise 325

Enterprise Scale SMB Investment 325

SaaStr

APRIL 30, 2024

How do you build GTM efficiency in SMB sales? While this title is SMB-oriented, the advice applies to Mid-Market and Enterprise, too. The post How to Build Go-to-Market Efficiency in SMB Sales with Owner.com CRO Kyle Norton appeared first on SaaStr.

Scale 301

Scale SMB Sales Hiring Sales 301

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. Provide an enterprise-grade product that is easy to buy, easy to use, and easy to dock.

Scale 261

Scale SMB Scaling Innovation 261

SaaStr

MAY 10, 2021

SaaStr Enterprise 2021 is our next MEGA Digital Event and the line-up is incredible: Registration has just kicked off, and the core sessions are FREE, so sign-up here. “Enterprise, SMB and Everything In Between: How to Build a Business that Scales With Your Customers with Zendesk’s CTO.” Register here. #2.

Enterprise 284

Enterprise CTO SMB Scaling 284

SaaStr

NOVEMBER 27, 2024

How to Make Onboarding Work for SMBs While in some cases, selling to SMBs is easier than Enterprise in many ways, one way in which it’s fundamentally harder is onboarding. The expansion can only come from selling SMBs new products. Mangomint doesn’t have that. And the more products they buy, the higher the NRR.

SaaS Payments 257

SaaS Payments Payments Payment Solutions Payment Services 257

Tom Tunguz

FEBRUARY 26, 2025

Enterprise-focused companies with usage-based pricing bore the greatest increase at 44%. Often, a straight UBP pricing model doesn’t scale into the enterprise. This behavior is commonly observed with luxury goods, but it also manifests in SaaS sales processes, particularly for enterprise customers.

SaaS Payments 276

SaaS Payments Pricing Strategy Scale 276

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. Enterprise.

SaaS Payments 346

SaaS Payments Scale SMB PayPal 346

SaaStr

APRIL 1, 2023

The SMBTech economy is very different from enterprise software, and there is massive opportunity to capture it. 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. SMBTech is primed for growth.

Scale 245

Scale SMB Merchant Services Payment Methods 245

SaaStr

NOVEMBER 21, 2020

130%+ in the enterprise, and for top B2D products. 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. And mostly SMBs. As It IPOs.

Retention 349

Retention SMB SaaS Enterprise 349

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 244

SMB Sales Hiring Scale B2C 244

SaaStr

OCTOBER 3, 2023

PST, Bo Borland, founder, and CEO of playbuilt, shares four steps for creating repeatable success at every stage of growth, specifically in B2B Enterprise. Moving From SMB To Enterprise — A combination of pre-sales like solution or sales engineering, customer success, and a more robust revenue ops function.

Enterprise 291

Enterprise B2B Scale SMB 291

Tom Tunguz

MARCH 27, 2023

Startups selling to enterprises have increased 36%, twice those of Mid-Market & SMB focused companies. The distribution chart above shows about one-third of enterprise sales cycles take 50% or longer than last year to complete. But the latency isn’t evenly distributed.

Startup 350

Startup SMB Headcount Sales 350

SaaStr

JUNE 27, 2019

Erica has led New Relic through massive growth, scaling the company’s enterprise business 10x since she joined the business pre-IPO. Erica will share the five critical steps (and some lessons learned along the way) for scaling in the enterprise. A little bit more about our journey to the enterprise. And so let’s dive in.

Scale 238

Scale Enterprise Scaling Sales Hiring 238

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. 100k+ customers are now the engine, not self-serve SMBs. Enterprise NRR is now 123%, but than means SMB is now well under 100%.

SMB 339

SMB Enterprise Engineering Scale 339

SaaStr

JANUARY 2, 2021

We can see that NRR for tiny customers is probably about 100%, as it is for other SMB leaders. And then 140% as the deals get more enterprise. While Asana isn’t going super -enterprise, its larger accounts are fueling the most growth, growing twice as fast as average. 100% very-small business /125% mid-sized / 140% large.

SMB 363

SMB Enterprise Cloud Churn 363

SaaStr

MAY 1, 2024

And the enterprise business, while starting to taking off, couldn’t overcome the gravity from so many small customers that didn’t need quite as much Zoom as they did during lockdown. Fast forward to today it’s a different, more enterprise Zoom. It had 110%+ NRR from SMBs! 101% NRR in Enterprise.

SMB 299

SMB Scale Banking Enterprise 299

SaaStr

MARCH 20, 2023

Case shares the playbook for the “messy middle” to prevent the very predictable problems you run into in the middle ground of the mid-market, that space between SMB and enterprise. The unit economics in the mid-market can be much more attractive than in SMB. Enterprises have all sorts of requirements, like security reviews.

Scale 243

Scale Enterprise Scaling SMB 243

SaaStr

FEBRUARY 1, 2022

Toast’s SMB NRR is 114% today — but it took 4 full years just to get to 100%. A reminder that you don’t need to settle for sub-100% NRR from SMBs. And also that, with SMBs, it can take a while and a lot of value-add and learnings to get that NRR over 100%. And it’s the true magic in scaling SMB SaaS.

Scale 363

Scale SMB SaaS Scaling 363

SaaStr

FEBRUARY 19, 2022

SurveyMonkey was relatively slow to go enterprise, which suited it well for a long time. That journey here: Most of us don’t stay SMB forever. A few other examples: Slack started off almost 100% self-serve with no sales reps, but at $1B was 50% enterprise. PagerDuty was almost entirely SMB at IPO, at $125m in ARR.

SMB 341

SMB SaaS Enterprise Software 341

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. An enterprise rep at Salesforce probably has to be able to close $1.5m or so a year to take home those comp levels, and an SMB rep likely $800k or more. And how many hit quota?

SMB 334

SMB Sales Hiring Enterprise Metrics 334

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%. of revenue.

SMB 312

SMB Enterprise Scaling Revenue 312

SaaStr

JUNE 7, 2021

And all enterprise and mid-market products do. The grey area is often with SMBs. 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. The post Do SMBs Need Customer Success?

Customer Success 353

Customer Success Scale SMB Sales 353