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Professional services play a minor role for most companies, with the median company booking P.S. revenues on new deals equivalent to 16% of first year subscription contract value. Median P.S. margins are approximately 22%. These results are consistent with last year’s results.


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The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

Is your SaaS business viable?

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

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

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”

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

Analyzed 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

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers