Dear SaaStr: What Are The Characteristics of a Good SaaS Product?

A good SaaS product is one that after 18–24 months at least, propagates enough of its own leads to create a self-sustaining business.

The customers are happy enough, the problem solved is important enough, the solution differentiated enough in a significant way … that the customer base self-propagates.

By no later than $1m in ARR, you should be growing at least 80% or more year over year without adding to demand generation, i.e. organically.  If you aren’t, you probably don’t have true product-market fit.  You may be close, but not there yet.

if you do hit that level of organic growth, it’s time to Go Bigger. Add in a killer sales VP, a great VP of Demand Gen, an experienced VP of Customer Success … and then … magic happens. That gets you the extra turbocharging beyond that 80% (or whatever the exact number is) of organic growth. This team will then take you from 80% to 120% or 80% to 160%.

A related post here:

5 Signs You (Finally) Have Early Product-Market Fit

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