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It is often worth providing good financial incentives in the form of discounts to encourage this behavior. The metric that we use to track how well your sales force is doing in this area is Months up Front.

Getting paid more upfront usually also helps lower churn. This happens because the customer has made a greater commitment to your service, and is more likely to spend the time getting it up and running. You also have more time to overcome issues that might arise with the implementation in the early days. Calculating LTV and CAC

The Metric “Months up Front” has been used at both HubSpot and NetSuite in the past as a way to incent sales people to get more paid up front when a new customer is signed. However asking for more money up front may turn off certain customers, and result in fewer new customers, so be careful how you balance these two conflicting goals.

For Entrepreneurs.com

More SaaS + Software Stats

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

More Growth Strategy Stats

The median annual unit churn for SAAS companies was 10% in 2016

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

When venture capitalists participate in seed rounds, the average round size is 3x larger

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

SaaS IPOs have more than doubled over the last 12 years

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”