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When removing the smallest companies from the distribution, we find growth rates for companies using mainly Internet distribution lagged. Companies with mixed distribution strategies appear to be more agile and reported the highest growth. There was no distinguishable difference between growth rates for field sales vs. inside sales dominated companies. Rates are largely in line with last year’s survey.

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More Growth Strategy Stats

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

55% of SaaS companies rate Customer Retention as the key metric to measure