In episode #118, I cover an important sales and marketing efficiency metric, the Cost of ARR. As our GTM team scales, it usually splits into new business hunters and the “farmers,” or our expansion team. We can calculate the cost of ARR expansion and benchmark our performance.

- Fully-burdened sales and marketing expense

- Allocate between new and existing

- Pick your time period and average sales cycle

- Benchmark your performance

Cost of ARR blog post: https://www.thesaascfo.com/saas-cac-ratio/

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