The Bridge Group is a SaaS sales consulting firm that we hold in very high regard. They release outstanding sales data which can be found at their site, bridgegroupinc.com. We recently reviewed their “SaaS AE Metrics & Compensation Report” which compiles data from 287 executives at SaaS companies with median revenue of $27mm and median ACV of $32k. It’s well worth the read, and below I summarize some of the big take-aways.
38% of pipeline is from Marketing. This includes inbound SDR support. If your ACV is $5k to $25k, the share from marketing ranges between 48% and 60%. The larger your ACV, the less of your pipeline will come from marketing, but it is still very significant.
You need SDRs. 68% of companies use SDR, even smaller ones. High growth companies are twice as likely to use SDRs. 90% of companies have an outbound sales dev effort. On average, 74% of AE pipeline is sourced by Marketing, Inbound SDRs, and Outbound SDRs combined.
35% of companies rely on AE’s for expansion. Only 20% of companies rely on AE’s for renewal.
$300 per month on AE support. Excluding the CRM, the median spend on other technologies for AE’s is $300 monthly.
AE’s are more experienced. Average experience prior to hire is now 3 years. This is up from 2017’s average of 2.6 years. The average ramp time is 4.3 months.
Average tenure is 2.5 years. So after ramp, you have roughly 26 months of productive sales from a new hire. Median annual turnover is 28% whether voluntary or involuntary.
70 activities per day. On median there are 23 phone activities, 25 emails, 12 Linkedin actions, and 10 other.
Demos and quotas. Median demos sit at 5 per week per AE and median quota is $775k annual. 65% of AE’s achieve quota.
Median earnings. On target median is $158k split 50/50 between base and commission. 80% of OTE’s are over $100k. Median commission is 10% of ACV. The 75th percentile receive 12%.
Reps are distributed. 48% have reps in different locations. Offices are added through M&A and, increasingly, due to difficulty recruiting and retaining talent at headquarters.
Teams are small. The median number of reps reporting to a leader is 7. Managers make $156k, Directors make $218k, VP of Sales make $262k on median.
The full report is well worth the read and has charts and graphs for every metric. Again visit bridgegroupinc.com to get it.
Visit us at blossomstreetventures.com and email us directly with Series A or B opportunities at email@example.com. Connect on LI as well. We invest $1mm to $1.5mm in growth rounds, inside rounds, small rounds, cap table restructurings, note clean outs, and other ‘special situations’ all over the US & Canada.