Optimal Marketing Spend in SaaS: Moving Beyond the S+M=ACV Rule

Jason Lemkin argues that while the S+M=ACV axiom provides a useful planning framework, SaaS companies should spend opportunistically on individual marketing programs that generate positive returns, as cheap organic and partner channels balance expensive direct acquisition. Once sales costs are predictable and the core engine works, companies can afford higher marketing spend than their models suggest, especially with high NRR customers whose lifetime value justifies aggressive acquisition spending.