SaaStr · 2012-10-16
· 4978d
Scaling in SaaS: Why People Scale Harder Than Product
Jason Lemkin argues that while scaling SaaS product infrastructure is 10x easier than consumer internet due to lower computational demands, scaling the organization is significantly harder. SaaS companies require diverse functional teams (marketing, sales, support, business development) much earlier than consumer companies, and founders must commit 50% of their time to recruiting leaders across unfamiliar areas or risk failure.
Metrics in this report
Annual Recurring Revenue Target
1,000,000$
baseline
minimum ARR milestone requiring full functional team
Founder Time Allocation to Recruiting
50%
recommended minimum
for successful scaling of SaaS company
Infrastructure Capacity per Server Cluster
1,000,000users
median
EchoSign historical performance