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What is the percentage of the ARR comes from channel/ resellers/ partners in Saas companies?
Hello! Thanks for your great question about what percentage of the ARR comes from channel/re-sellers/partners in SaaS companies. The short version is that while my colleagues and I diligently searched everywhere on the internet, trying to find any information we could on ARRs for SaaS companies, partners, re-sellers, and channels as requested, we were unable to answer find or triangulate an answer to your question about what percentage of the ARR comes from channel/re-sellers/partners in SaaS companies. Our searches included: Academic databases, corporate websites, industry reports, trusted media sites, user forums and review sites, but this information simply cannot be found, as it does not exist. While we were unable to find the answer to your question, we compiled some information we hope you will find useful.
SUGGESTION FOR FURTHER RESEARCH
We think that to answer your question, the information on ARRs and on the percentage of ARRs that comes from re-seller/channel/partner programs needs to be gathered by some sort of market or research survey.
INTRODUCTION
We were able to compile a list of 15 SaaS companies that have some sort of partner/channel/re-seller programs. That list is in alphabetical order here:
3. Atlassian
7. Insightsquared
9. Marketo
14. Salesforce
The median SaaS company spends somewhere between 50-100 percent of its sales revenue on marketing. An example of a very successful SaaS company that spends little on marketing is Atlassian. Atlassian is a sales company that has grown to approximately $320 million in annual revenue with only a very small sales staff. "The consensus price target for the company is $29.11, equating a return of 20% from its current trade price," (Atlassian, May 3, 2016). Over the last 3 years, Atlassian has spent just 12-21 percent of their revenue on customer acquisition.
Profitable growth is naturally the primary financial goal of SaaS companies, which involves retaining existing customers and adding new sources of revenue while keeping costs down. Unlike some other SaaS companies, Atlassian has been profitable for five years in a row now. They have virtually no sales force and they spend much less on marketing than most SaaS companies. Atlassian primarily relies on word-of-mouth as their marketing strategy, and has seen great success.
Some of the top SaaS companies or apps in 2017 are: Box (partnered with IBM and Microsoft as channel partners), Slack (which has collaboration programs), Dropbox, Docusign, Webex, Confluence, Zendesk, and Meraki.
2. Salesforce.com
3. Box
4. Amazon Web Services
CALCULATING ARR
To determine SaaS metrics, such as calculating customer rate of return, for example, Joel's magic number provides companies an easy way to calculate. The Real eyes website provides comprehensive definitions and calculations for ARR and other important metrics for SaaS companies.
CONCLUSION
To wrap it up, the percentage of the ARR comes from channel/re-sellers/partners in SaaS companies cannot be found on the internet. We think that perhaps this information is something SaaS companies are keeping private, and until they start sharing that information, we do not think changing any search parameters will help. We were able to compile a list, however, of 15 SaaS companies that have some sort of partner/channel/re-seller programs, as well as some additional information we hope you find helpful.
Thanks for using Wonder! Please let us know if we can help with anything else!