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S&M efficiency in SaaS has not scaled: Revision history

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14 December 2025

  • curprev 00:0800:08, 14 December 2025 PC talk contribs 1,715 bytes +1,715 Created page with "Below we compare the change in revenue at the time a SaaS company IPO’d to the sales and marketing spend in that same year. That simple formula is the “Sales Efficiency”. For example, if revenue for a SaaS company grew from $100mm to $150mm while S&M spend was $80mm, the Sales Efficiency would be calculated as ($150-$100)/$80mm resulting in $0.63 of new revenue for every $1 in S&M spend that year. Observations and data are below: file:S&M_efficiency_in_SaaS_1.jp..."