How much should a SaaS company invest in professional services?

A rough yardstick is that most enterprise-focused SaaS companies tend to get about 10%-20% of their revenues from professional services.

Now how much to invest is a different question. Many enterprise SaaS companies lose money on services, and only provide them to support the deals and deployments — and success. In that case, implicitly, they are spending more than that 20% to help their customers.

But some do make services profitable, for sure.

Net net, in bigger deals ($50k-$100k+), charge for services if you can. Up to 20% of the ACV is usually OK and you will still be seen as a software business, not a services business.

And then do them as inexpensively as you can — but don’t sweat it if you just break even on services. That’s usually good enough.

View original question on quora

Published on December 7, 2018

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