B2B Growth Fast-growing SaaS companies have a SECRET
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Apr 16, 2024 Casey Hill, ActiveCampaign’s Senior Growth Manager, joins to discuss the secret of fast-growing SMB SaaS companies: high-value deals supporting 20%+ of revenue. Insights on transitioning to target larger accounts, creating content for big clients, building trust, and securing mega deals through relationship building.
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Hybrid Revenue Model
- Many SMB SaaS companies exceeding $10M ARR have large deals (10-100x average) contributing significantly to their revenue.
- This challenges the traditional dichotomy of focusing solely on either upmarket or horizontal SMB strategies.
Cash-Neutral Upmarket Expansion
- Secure upmarket deals cash-neutrally by partnering with customers to build needed features.
- Recover costs by leveraging the developed infrastructure for future large clients.
The Private Upmarket Push
- Publicly, companies emphasize SMB focus, but privately, they pursue mid-market and upmarket deals for stable revenue.
- This is driven by declining net revenue retention in the SMB segment and the stickiness of larger accounts.