• What is the SaaS Magic Number?
  • What is the SaaS Magic Number?
  • What is the SaaS Magic Number?
Originally published: 16/03/2018 13:18
Publication number: ELQ-26957-1
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What is the SaaS Magic Number?

Video explaining how to calculate the SaaS Magic Number, alongside how you go about interpreting the result.

This video covers:

-How you calculate the SaaS Magic Number
-How you calculate the formula, example included
-Explanation of what the SaaS Magic Number actually is
-Learning what a good SaaS Magic Number is
-Key things you should take into account when using this metric

What is the SaaS Magic Number?
It;s considered a sales efficiency metric because we're comparing output to sales and marketing spend. So it measures the year's worth of revenue growth, not bookings, for every dollar spent on sales and marketing. Another way to think about it is the cost of new and/or expansion revenue. So if your SaaS Magic Number is 0.5, it required one dollar of sales and marketing spend to achieve fifty cents of annualized revenue gain.
So is that good or bad?

This video explains all you need to know about the SaaS Magic Number so that you can attain a better grasp of the concept, how to calculate it, and how to use it.

Length: 3 minutes 46 seconds

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