      SaaStr · 2021-09-15
      · 1723d
    

Strategic Hiring Timeline: Why You Must Begin 2022 Staffing Now

SaaStr founder Jason Lemkin argues that SaaS companies targeting 2022 revenue goals must begin hiring sales representatives, marketing staff, and customer success teams immediately in Q4 2021, not waiting until January. Due to the 30-90 day ramp period for new sales reps and the monthly revenue recognition model in SaaS, delaying hiring creates an insurmountable deficit for Q1 and subsequent quarters that cannot be recovered within the fiscal year.

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Metrics in this report

ACV Monthly Recognition Rate

8.33%

standard

Percentage of Annual Contract Value recognized monthly (1/12th of ACV)

ARR Growth Threshold

20$ million

maximum

ARR level at which monthly revenue recognition constraints become less critical

Net Revenue Retention (NRR)

120%

example

Example NRR rate that enables doubling revenue in 4+ years without new customer acquisition

Sales Headcount Multiplier

1.5x

minimum

Minimum multiplier for planned sales headcount to account for attrition and inefficiency

Sales Rep Onboarding Duration

30-90days

range

Time required to scale a new sales representative to productivity