SaaStr · 2022-06-13 · 1451d

Why Absolute Churn and Sales Cycles Shouldn't Obsess Early-Stage SaaS Founders

Jason Lemkin argues that while churn and sales cycle metrics should be tracked, early-stage SaaS companies (pre-$1-2M ARR) should not obsess over them as strategic priorities. Instead, founders should focus on customer acquisition, utilization, and hiring great leaders who will naturally optimize these metrics as the business scales.

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Metrics in this report

Business Journey Duration

7-10years

typical

SaaS company maturation timeline

Target ARR Before Obsessing Over Churn

1-2M

minimum

SaaS companies starting to focus strategically on churn as metric

Typical Sales Cycle Duration by Deal Value

1 week to 18 monthstimeframe

range

$20/month to $250k+ deals