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Other types of B2B companies also have to sell, but SaaS companies are pretty unique due to their zero marginal cost of sales. Physical product companies have t
by toasterlovin 3y ago
Other types of B2B companies also have to sell, but SaaS companies are pretty unique due to their zero marginal cost of sales. Physical product companies have to sell AND buy inventory in order to be able to sell more. Services companies have to sell AND hire and train more billable employees in order to sell more.
- billyfcksalot 3y agoBoggled that you think the sales cost for a SaaS company is 0 - it's typically close to the first year's billing total. To grow revenue, a SaaS company will hire more salespeople, among other things. Let's not spread pure nonsense
- creamyhorror 3y agoThey mean near-0 marginal cost of goods sold (software service), presumably.
- toasterlovin 3y agoSorry, I meant cost of goods sold, as the other commenter noted. We're in agreement: basically the entire cost to grow revenue is selling expenses because the main function of a B2B SaaS is sales.