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The Ratio of Engineers to Sales People in Billion Dollar SaaS Startups

3 pointsby ttunguzover 11 years ago

1 comment

mathattackover 11 years ago
I&#x27;m not sure how to interpret this, since it&#x27;s in relative dollars not absolute. Is it, &quot;Companies overspend on everything relative to revenue when they don&#x27;t have much, and then it shrinks as revenue grows over time.&quot;?<p>My observation on SaaS firms is they hire a lot of sales relative to R&amp;D. This isn&#x27;t rocket science, it&#x27;s part of the model. Over time revenue ramps up because it&#x27;s recurring, and the revenue grows quicker than fixed fees.<p>Is there something else to interpret in the data?