Net Profit Margins vary by size of the company. As you can see below, EBITDA for companies < $60 million of revenue ranges between -39% in the early days to -6% as the company scales. Public Net Profit Margins can be found on Yahoo Finance.

Gross Profit Margins also vary by size. As you can see below, Gross Profit ranges between 77%-80%.

All data obtained from Pacific Crest Survey.

Why hasn’t financial modelling been automated?

OnPlan, has developed a modular approach to building financial models. In this approach we have a hub consisting of an income statement, balance sheet, cash flow, KPIs and reporting. We can attach any number of spokes to this hub for revenue, staffing, expenses, inventory, capitalization, dashboards and on.

The effect is to get you 80-90% to building a complete financial model. From there a user (either you or OnPlan team members) can tailor the remaining portion to meet their particular needs. While this is not automated, per se, it takes a significant amount of the routine work out of financial model building.

What is a typical commission for a sales professional selling software as a services (SaaS)?

Commission for selling SaaS varies by whether it is field sales or inside sales. As you can see below the field sales averages 12% on a fully loaded basis vs. 10% for inside sales.

Also, it’s worth noting that commission increases somewhat as the ACV increases per the chart below.

Both sets of data were obtained from the Pacific Crest 2016 SaaS benchmark survey.

OnPlan is a financial modeling platform that helps to model and benchmark your company’s performance against the Pacific Crest and other relevant industry surveys.

What is the average customer acquisition cost for a SaaS company?

The average cost of customer acquisition (CAC) for a SaaS company varies based on several factors.

One of the biggest factors is the primary means of selling the software. As you can see CAC ranges between 0.29x of sales price when using “Internet Sales” to 1.28x for a “Field Sales” approach. Note take the CAC divided by the price to arrive at the ratio.

Another significant factor is the type of business you are selling into. Selling into SMBs who tend to purchase online is more efficient than selling into enterprises who tend to have more decision makers and tend to be sold into by field sales teams. See the chart below.

All data obtained from the 2017 Pacific Crest SaaS survey.

What would be a good framework to model cost per lead for a B2B SaaS product with a ACV of ~25K?

The Pacific Crest Survey provides a great starting point to answer this question.

If you have a $25K ACV, then I would say you are targeting Enterprise/Middle Market customers in the segment below. Which gives us a Median CAC ratio of 1.21.

We would also assume that 30% of our CAC is coming from marketing as opposed to sales (see the overall first column below).

Combining these data points in Excel , we end up with a Cost Per Lead (CPL) between ~$100 to ~$500.

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