Why Your Cost of Sales Generally Doubles As You Scale


One of the biggest things first-time founders intuit wrong is how much sales efficiency plummets … just as it is getting good. Usually, most SaaS start-ups follow a pattern where the CEO starts off doing founder-led sales. Then, after she hires a few sales reps, and makes a few mistakes. Continue reading on SaaStr.


Notes On This Article

I can think of a few well funded early stage companies that got stuck in this sales efficiency trough. $10M in ARR seems to be the tipping point for SaaS success; how much cash did it take to get there, what are the economics going forward.

Jason Lemkin does a great job explaining the economics at play across three common scenarios in the march towards $10M in ARR.

– Rob