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54%
Co's offer
PS along w/
Subscriptions
25%
Co's give quota
relief for PS but
no commissions
Avg. PS Rev
as % 1st
Year ACV
25%
3
Months new
ISR Ramp Time
60%
$2.2-2.5k 6
$150-180k
4-5x
$130k
$630-720k
1:7
3x
1:5
50%
50%
60%
30% $80-100k 60%35 1:75
2
70
60%
40%
10
$70k
1:2
20%
80%
36% 93%
8.5%
6%
55%
40%
87%
13%
15%
30%
30:70
66%
91%
50%
90% = 81%
2%
6 40% $5.5-7k 3-4
$200-330k $800k-1.3M$220k
3-5x 4:15x
Co’s give quota
relief on 1st
year ACV only
Co’s pay
~ nothing for 2+
yrs on contract
Avg. quota
achievement
Avg.
commission on
NBB ARR quota
Avg.
commission on
upsell ARR
Co’s pay full
commission
for upsells
Co’s offer
add’l team
bonuses
NBB from
new logos
NBB from
net upsells
Conversion
rate: SQL to
opportunity
Conversion rate:
Opportunity
to closed deal
Ratio vertical mkt
territories: geo
Co’s offer trials
(try-before-
you-buy)
Months new
BDR ramp time
Calls/contacts
per day
Cold calls
MQL
follow up
Target # of
SQL’s/wk
OTE: 60/40
Base/Variable
Ratio
BDR : FSR
of BDR teams
report to mktg
Promoted
from BDR
MRR
per deal
ARR
quota per Q
Closed
deals per Q
ARR annual
quota
Ratio
ISR quota:salary
Beg. Q pipeline
coverage
Ratio
Manager : ISR
Ratio
SEs : ISR
OTE:
50/50 B/V
Co’s compensate
on Cust. Sat
(e.g. NPS)
Co’s compensate
on renewal ARR
AMs
responsible
for upsell ARR
Time spent
on customer
support
OTE:
70/30 B/V
Co’s give bonus
for cust. case
study/press
Avg. acct
renewals per Q
Avg. Ratio
AMs : customers
Median
annual gross
$ retention
Retention
equiv. in
SMB vs. VSB
Churn in VSBs is
uncontrollable
on avg.
Median renewals
commission
rate
Months new
FSR ramp time
Promoted
from ISR
MRR
per deal
Closed
deals per Q
ARR quota
per Q
ARR annual
quota
Ratio
FSR quota:salary
Beg. Q Pipeline
Coverage
Ratio
ISR:FSR
OTE:
50/50 B/V
1:3
Ratio
SE: ISR
30-50%
Avg.
NPS score
BUS DEV
REPS (BDR)
INSIDE SALES
REPS (ISR)
FIELD
REPS (FSR)
NEW BUSINESS
BOOKINGS (NBB)
RETENTION
ACCOUNT MANAGERS PROF. SERVICES
INSIGHT’S PERIODIC TABLE
OF SAAS SALES METRICS
MQL = Marketing Qualified Lead
SQL = Sales Qualified Lead
Net Upsells = Upsells less customer downgrades
OTE = On-Target Earnings
SMB = Small-Medium business < 1000 employees
VSB = Very Small Business < 50 Employees
MRR = Monthly Recurring Revenue
ARR = Annual Recurring Revenue
ACV = Annual Contract Value, equ. to ARR Quota
SE = Sales Engineer/Solution Architect
B/V = Base Salary/Variable Salary
Legend:

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Situation Analysis | Management Company.
 

SAAS Software as a Service B2B Metrics Benchmarks Conversion Rates

  • 1. 54% Co's offer PS along w/ Subscriptions 25% Co's give quota relief for PS but no commissions Avg. PS Rev as % 1st Year ACV 25% 3 Months new ISR Ramp Time 60% $2.2-2.5k 6 $150-180k 4-5x $130k $630-720k 1:7 3x 1:5 50% 50% 60% 30% $80-100k 60%35 1:75 2 70 60% 40% 10 $70k 1:2 20% 80% 36% 93% 8.5% 6% 55% 40% 87% 13% 15% 30% 30:70 66% 91% 50% 90% = 81% 2% 6 40% $5.5-7k 3-4 $200-330k $800k-1.3M$220k 3-5x 4:15x Co’s give quota relief on 1st year ACV only Co’s pay ~ nothing for 2+ yrs on contract Avg. quota achievement Avg. commission on NBB ARR quota Avg. commission on upsell ARR Co’s pay full commission for upsells Co’s offer add’l team bonuses NBB from new logos NBB from net upsells Conversion rate: SQL to opportunity Conversion rate: Opportunity to closed deal Ratio vertical mkt territories: geo Co’s offer trials (try-before- you-buy) Months new BDR ramp time Calls/contacts per day Cold calls MQL follow up Target # of SQL’s/wk OTE: 60/40 Base/Variable Ratio BDR : FSR of BDR teams report to mktg Promoted from BDR MRR per deal ARR quota per Q Closed deals per Q ARR annual quota Ratio ISR quota:salary Beg. Q pipeline coverage Ratio Manager : ISR Ratio SEs : ISR OTE: 50/50 B/V Co’s compensate on Cust. Sat (e.g. NPS) Co’s compensate on renewal ARR AMs responsible for upsell ARR Time spent on customer support OTE: 70/30 B/V Co’s give bonus for cust. case study/press Avg. acct renewals per Q Avg. Ratio AMs : customers Median annual gross $ retention Retention equiv. in SMB vs. VSB Churn in VSBs is uncontrollable on avg. Median renewals commission rate Months new FSR ramp time Promoted from ISR MRR per deal Closed deals per Q ARR quota per Q ARR annual quota Ratio FSR quota:salary Beg. Q Pipeline Coverage Ratio ISR:FSR OTE: 50/50 B/V 1:3 Ratio SE: ISR 30-50% Avg. NPS score BUS DEV REPS (BDR) INSIDE SALES REPS (ISR) FIELD REPS (FSR) NEW BUSINESS BOOKINGS (NBB) RETENTION ACCOUNT MANAGERS PROF. SERVICES INSIGHT’S PERIODIC TABLE OF SAAS SALES METRICS MQL = Marketing Qualified Lead SQL = Sales Qualified Lead Net Upsells = Upsells less customer downgrades OTE = On-Target Earnings SMB = Small-Medium business < 1000 employees VSB = Very Small Business < 50 Employees MRR = Monthly Recurring Revenue ARR = Annual Recurring Revenue ACV = Annual Contract Value, equ. to ARR Quota SE = Sales Engineer/Solution Architect B/V = Base Salary/Variable Salary Legend: