Magic Number and Sales Efficiency | How to Scale Sales & GTM - SaaStr AI University
Net new ARR divided by prior-period sales and marketing spend. Above 0.75 is strong, below 0.5 signals a broken motion.
Magic Number and Sales Efficiency - a free lesson in How to Scale Sales & GTM at SaaStr AI University. Net new ARR divided by prior-period sales and marketing spend. Above 0.75 is strong, below 0.5 signals a broken motion. Key takeaways: • Magic number measures how much new ARR each dollar of go-to-market spend produces. • Above 0.75 means it is likely time to pour fuel on. Below 0.5 means fix the motion first. • A company growing 60 percent at a 1.2 magic number is worth more than one growing 80 percent at 0.4. Part of the free, self-paced How to Scale Sales & GTM course: https://saastr.ai/university/scale-sales-gtm