Article · 6 min read

Everything is Sort of the Same at a Given ACV

Jason Lemkin · SaaStr, by Jason Lemkin Free Intermediate

Lemkin's point is that almost everything about your company, from the sales team to support to marketing spend, is set by your contract value, not your logo count. When each customer pays a lot, you can afford planes, sales engineers, and high touch service a low price business never could. Useful for turning a high value model into concrete operating choices.

  • Your contract value, not your customer count, decides how you sell and support.
  • High value deals justify expensive, high touch go to market.
  • Overcharge when the customer is large; the economics reward it.

The question it answers

  1. My total market looks small, but each customer is worth a lot. Can a low-count, high-value market still work?

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