• Sales/Marketing Expense Ratio

  • Feb 28 2025
  • Duración: 23 m
  • Podcast

Sales/Marketing Expense Ratio

  • Resumen

  • Common practice is to measure Sales and Marketing expenses as a percentage of revenue, which in the SaaS industry ranges between 20% - 60% based upon stage, growth and efficiency. CAC and Growth discuss an alternative metric which measures the ratio between Sales expenses and Marketing expenses, known as the Sales/Marketing Expense Ratio.

    During this episode topics discussed include:

    • Sales and Marketing expense as percentage of revenue benchmarks
    • Sales and Marketing expense ratio - value and insights
    • What a 2:1 Sales and Marketing expense ratio means
    • What drives a changing Sales and Marketing expense ratio
    • Customer Acquisition Cost Efficiency metric - CAC Ratio vs S&M Expense Ratio


    If you are interested in measuring the allocation of the GTM budget between Sales and Marketing, this is a great episode and listen.

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