Continues to amaze me how many great founders don’t appreciate the cost of distribution and sales, and the fundamental impacts to pricing and deal velocity by targeting different customers with different channels
At $1B revenue, ServiceNow & Atlassian spent 70% of revenue on sales & marketing + research & development. ServiceNow: enterprise sales 49% Sales & Mktg, 22% R&D $335k revenue per customer Atlassian: self serve 22% Sales & Mktg, 48% R&D $8k revenue per customer Both work well.
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Early investment in sales and marketing can lead to distribution being an enduring asset. It's a really interesting dynamic.https://twitter.com/chetanp/status/1181611796395806721?s=20 …
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Thanks for sharing! It’s awesome to see these solid numbers compared with usually our intuitions
https://twitter.com/cindybisv/status/1195762911253131270?s=21 …Very interesting numbers
So it’s not a myth Sales & Marketing spending gets in the way of R&D budget (for enterprise software)?
For smaller co’s, this could mean, with limited VC funding (or revenue/profit), you must be very mindful of
$ads dollars vs engineer$hiring. https://twitter.com/chetanp/status/1195759517658517504 …Prikaži ovu nit -
Absolutely! There are so many different ways to build great enterprise software businesses.
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The portfolio of products is wildly different though isn’t it? Atlassian has almost a dozen products.
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ServiceNow has a fairly board product portfolio (see below). However, I think both methods work really well depending on the target customer and revenue per customer.pic.twitter.com/3HcjogVlMv
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Can you share some numbers about Twilio?
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Thank you for the suggestion for future posts!
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48% towards R&D speaks volumes about Atlassians IP. Betwernn'per customer' means an account or end user ?
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Yes, per account
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