SaaS metric benchmarks from over 600 companies
Back in 2014, when I made the risky move of publicizing our entire revenue dashboard, I had no idea what I was getting myself in to. I just knew that information was something that, selfishly, I wanted access to as a new business.
I wanted to break down the “Yeah bro! Hockey stick growth!” mentality that was so prevalent in startup culture. Of course, I wasn’t the only (or even first) company to make transparency a part of our company culture. Folks like Buffer and Groove had been doing it for quite a while. I wanted to keep that momentum going. As a company, we worked to help other businesses do the same with Open Startups.
Now, we’re taking the next big step with Open Benchmarks.
How it works
We group the revenue metrics in to cohorts by average revenue per user (or average sale price as some folks refer to it). It’s how much the average person is paying for your product each month.
In addition to MRR, Lifetime Value, Churn and Growth, we’re also surfacing some interesting stuff about pricing…
…and failed charges.
There’s a heck of a lot more there, so go dig around.
The metrics likely aren’t what you’d expect
One of the first things you’ll likely think when you view the metrics is “Sweet goodness, these numbers aren’t nearly as good as I’d have guessed!” Which is why I believe transparency is so beneficial to the startup community.
Media coverage around startups weighs heavily on the extremes…you only read about the unicorns or the companies that burn to the ground. But that’s not where 99% of business live. In addition, other SaaS benchmarks are heavily skewed towards enterprise companies and they’re only released once a year.
Our goal with Open Benchmarks is to give a live view in to the world of normal startups. And the fact is, most normal startups have, at the very least, a couple of metrics that really need a lot of improvement.
That’s the point of this, to show how average building a startup is for most people…to show that it really is a struggle to get to where you want to be and that it’s a slog and that you shouldn’t be distracted by the outliers.
At Baremetrics we want to equip business, and benchmarking is one way we aim to do that.
Note: This doesn’t represent the entirety of the SaaS world and isn’t as scientific as I’d like it to be. It’ll get better over time as a wider range of companies use Baremetrics, but it’s a start.