SMB SaaS
topic on 5 shows · 10 statements across 10 episodes
Lenny's Podcast 
the Neon Show 
the Official SaaStr Podcast 
Top Founders 
20VC
10 statements about SMB SaaS, every show
Padelford: Single-feature SMB products cannot build billion-dollar businesses
“No single thread, especially in SMB is probably high value enough to be alone for you to do alone and create billions of dollars of return.”
Lang: SMB SaaS cannot scale if CEOs help close $6,000 deals
“When you built like a high velocity sales motion, you gotta find the systems to make it scale. And it can't be that, oh, you know, we need someone to help close to steel. Let's bring in the CEO when the deal size is only like, you know, six, seven, eight K ACV…”
Lemkin: I always pass on SaaS startups lacking top-decile churn rates
“And when I meet any startup like for investing or anything, if the churn is not top decile for a low end product, I'm always out. It's almost unsolvable. It's almost unsolvable. This three to four percent a month churn rate that a lot of SMB stuff, it's almost…”
Kellogg: Good CAC ratio benchmark is 1.5 for enterprise, 1.0 for SMB
“I'd say a 1.5 or less is in enterprise. I mean, here we are back to your question. The bigger the deals, the more permission you have. So an enterprise, I might go one five. In SMB, I might go one O.”
Wittenborn: Consumer App Churn Resembles SMB SaaS After Year One
“The insight that we've had with some of the first companies we invested in is that the churn is usually high in the first year, and then from the second year on, it looks very much like SMB SaaS churn.”
Lemkin: Complex SMB SaaS requires a 1:1 post-sales to sales headcount ratio
“What I've learned is that SMB SaaS now, that does True onboarding. That's like, it's not instant deploy, right? You can't deploy in 60 seconds. I find, typically speaking, their total onboarding plus success plus sales headcount equals their sales headcount. I…”
Bhat: Indian SMB SaaS startups must launch globally from day zero
“Unless you're selling to very large enterprise SaaS, I'm not sure starting with India and trying to go global should be the playbook. You can just start global, right? If you're doing SMB, just start global. How does it matter where the SMB is sitting? And mak…”
SMBs Resist Long Contracts, Making Transactional Pricing Essential
“I think is where transaction is so important to the real value is that like small businesses don't want to sign up to big contracts, right? So you need to generate revenue through value and that's usually easier to do through transactional basis because they'l…”
Negative churn is impossible for self-serve SMB SaaS
“I don't know anybody in the SMB space who has no churn or negative churn. Negative churn is always, is for higher paid customers.”