Let’s assume you are targeting a Magic Number of 0.75. This means you book $0.75 in won ARR (annual recurring revenue) for $1 in total Sales & Marketing (S&M) investment. Some companies do even better, but anything above 0.75 is generally considered good. Now let’s assume marketing makes up 25 percent of the total S&M number. Partners benchmarks: <$15K new logo deal size: 42% Marketing % of S&M investment $15K-$75K new logo deal size: 29% Marketing % of S&M investment >$75K new logo deal size: 22% Marketing % of S&M investment Again, we note that companies with larger deal sizes tend to spend proportionally less on marketing as a percent of the total.
(The Keybanc Capital Markets Technology Group bulgaria whatsapp phone number Private Company SaaS Survey also has benchmarks on marketing as a % of total S&M investment.) So, we divide the marketing percentage by the Magic Number, we get 25% / .75 = 0.333, meaning you need to spend $0.33 in marketing to get $1 in new logo ARR, and that your marketing budget would be a third of your new logo bookings target. Voila! You have a budget benchmark your CFO can buy into. (You can obviously adjust this based on your own Magic Number and marketing investment percentage).
) IDC also publishes what they call the People to Program ratio (which combines programs and other), which often lands around 60-65 percent programs (though this data is skewed by large companies with large budgets) and 35-40 percent people. Personally, I think 60 percent programs (including other) and 40 percent people is a good target. So, let’s take the $0.33 in marketing to get $1 in new logo ARR we calculated in the prior section, and multiply that by 60%. This gets us 60% x $0.33 = $0.20 in marketing programs for $1.0 of new logo ARR (and $0.