---
title: Laws for Successful SaaS Businesses
description: Laws for Successful SaaS Businesses
---

[![e-Zest logo\_An accion lab company\_Colour](https://blog.e-zest.com/hubfs/images/Logos%20with%20Tagline/Corporate/SVG/e-Zest%20logo_An%20accion%20lab%20company_Colour.svg "e-Zest logo_An accion lab company_Colour")](https://www.e-zest.com/)

- [WORK](https://www.e-zest.com/our-work)
- [SERVICES](https://www.e-zest.com/our-services) 
    - [Product Engineering](https://www.e-zest.com/digital-product-engineering-services)
    - [Enterprise Data Services](https://www.e-zest.com/enterprise-data-services)
    - [Digital Commerce](https://www.e-zest.com/digital-commerce-services)
    - [Digital Operations](https://www.e-zest.com/digital-operations)
    - [Digital Consulting](https://www.e-zest.com/digital-transformation-consulting-services)
    - [Digital Experience Design](https://www.e-zest.com/digital-experience-design)
- [INSIGHTS](https://blog.e-zest.com/)
- [CAREERS](https://www.e-zest.com/careers)
- [ENTERPRISE DATA SERVICES](https://www.e-zest.com/enterprise-data-services)
- [GENERATIVE AI](https://www.e-zest.com/generative-ai)
- [Healthcare](https://healthcare.e-zest.com)
- [Contact Us](https://www.e-zest.com/contact-us)

- ![Elevating Product Engineering with AI and ML](https://blog.e-zest.com/hubfs/Elevating%20Product%20Engineering%20with%20AI%20and%20ML.jpg)

  [BLOGS](https://blog.e-zest.com)
  
  #### Elevating Product Engineering with AI and ML

  As technology evolves and customer choices broaden, there is an increasing ...

  [Read more](https://blog.e-zest.com/elevating-product-engineering-with-ai-and-ml)
- ![e-Zest – An Accion Labs Company gets Recognition as a Contender in the ISG Provider Lens™ Study on Digital Engineering Services 2024](https://blog.e-zest.com/hubfs/e-Zest%20%E2%80%93%20An%20Accion%20Labs%20Company%20-%20Gets%20Recognition%20as%20a%20Contender%20in%20the%20ISG%20Provider%20LensTM%20Study%20on%20Digital%20Engineering%20Services%202024.jpg)

  [NEWS](https://blog.e-zest.com/news)
  
  #### e-Zest – An Accion Labs Company gets Recognition as a Contender in the ISG Provider Lens™ Study on Digital Engineering Services 2024

  We are delighted to announce that e-Zest – An Accion Labs Company has been ...

  [Read more](https://blog.e-zest.com/news/e-zest-an-accion-labs-company-gets-recognition-as-a-contender-in-the-isg-provider-lens-study-on-digital-engineering-services-2024)
- ![e-Zest Solutions supports Digital Pune Mission](https://blog.e-zest.com/hubfs/blog-files/Digital%20Literacy%20Bus%20e-Zest.png)

  [CSR](https://blog.e-zest.com/csr)
  
  #### e-Zest Solutions supports Digital Pune Mission

  **Pune, India:** e-Zest Solutions, a leading digital technology innovation ...

  [Read more](https://blog.e-zest.com/csr/e-zest-solutions-supports-digital-pune-mission)

- [Work](https://www.e-zest.com/our-work)
- [Services](https://www.e-zest.com/our-services)
- [Insights](https://blog.e-zest.com)
- [Careers](https://www.e-zest.com/careers)
- [Enterprise Data](https://www.e-zest.com/enterprise-data-services)
- [Generative AI](https://www.e-zest.com/generative-ai)
- [Innovations](https://www.e-zest.com/innovations)
- [Healthcare](https://healthcare.e-zest.com)
- [About](https://www.e-zest.com/about-us)
- [Contact](https://www.e-zest.com/contact-us)

- [Blog](https://blog.e-zest.com/)
- [News](https://blog.e-zest.com/news)
- [CSR](https://blog.e-zest.com/csr)

- [![Linkedin Icon](https://blog.e-zest.com/hubfs/icons/linkedin_icon_white.svg)](https://www.linkedin.com/company/e-zest-solutions/)
- [![Twitter Icon](https://blog.e-zest.com/hubfs/twitter-logo-silhouette%20(5).svg)](https://twitter.com/ezest)
- [![Facebook Icon](https://blog.e-zest.com/hubfs/facebook-app-logo%20(4).svg)](https://www.facebook.com/61259256638)
- [![Instagram Icon](https://blog.e-zest.com/hubfs/instagram-logo%20(4).svg)](https://www.instagram.com/ezestsolutions/)
- [![Youtube Icon](https://blog.e-zest.com/hubfs/icons/youtube_icon_white.svg)](https://www.youtube.com/user/ezestcorporate)

[![Go to top icon](https://blog.e-zest.com/hubfs/AA%20Assets/top%20button.svg)](https://blog.e-zest.com/laws-for-successful-saas-businesses/#top)

Hit enter to search or ESC to close

Insights

e-Zest members share technology ideas to foster digital transformation.

- [Blog](https://blog.e-zest.com)
- [News](https://blog.e-zest.com/news)
- [Podcasts](https://www.e-zest.com/podcasts)
- [Healthcare](https://blog.e-zest.com/healthcare)
- [CSR](https://blog.e-zest.com/csr)
- [Whitepaper](https://blog.e-zest.com/whitepaper)
- [Playbook](https://blog.e-zest.com/playbook)
- [Media Kit](https://www.e-zest.com/media-kit)

# Laws for Successful SaaS Businesses

[Satish Chavan](https://blog.e-zest.com/author/satish-chavan)  Mar 04, 2008

[software as a service(SaaS)](https://blog.e-zest.com/topic/software-as-a-servicesaas) [Technology](https://blog.e-zest.com/topic/technology) [outsourced product development (OPD)](https://blog.e-zest.com/topic/outsourced-product-development-opd)

- <https://www.linkedin.com/shareArticle?mini=true&url=https://blog.e-zest.com/laws-for-successful-saas-businesses/&title=&summary=&source=>
- <https://twitter.com/intent/tweet?source=https://blog.e-zest.com/laws-for-successful-saas-businesses/&text=Laws%20for%20Successful%20SaaS%20Businesses>
- <https://www.facebook.com/sharer/sharer.php?u=https://blog.e-zest.com/laws-for-successful-saas-businesses/>
- <https://www.instagram.com/ezestsolutions/?u=https://blog.e-zest.com/laws-for-successful-saas-businesses/>

 Interesting post from Byron Deeter on Sandhill where they studied more than hundred SaaS companies and came up with following laws for building highly successful SaaS businesses.

- Key business metrics for SaaS companies should be CMRR (Contracted Monthly Recurring Revenue) and Cash and not bookings
- It takes at least $300K of CMRR to climb the Sales Learning Curve - Stop at three sales reps until at least two of them are making $100K MRR quotas.
- As soon as you have climbed the Sales Learning Curve, begin ramping your sales force by hiring renewal-oriented account managers.
- Channels are very hard for SaaS companies to build, so do not base your plan on SIs and traditional ISVs. You will need to sell directly for a long time.
- Stay local - Prove your business in your market first.
- Invest early in backup and disaster recovery, but stick to one data center till listing
- Single instance, multi-tenant - Have only one version of the code in production. Say no to on premise deployments
- Savvy online marketing is a core competence (sometimes the only one) of every successful SaaS business.
- Constantly trade off cash vs. growth
- SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway

 Thoughts worth pondering for companies already having SaaS delivered products or planning for it.

At e-Zest, we have been providing similar kind of recommendations to our customers as part of SaaS delivery consulting services and its quite satisfying to see that research findings are in line with what we have been recommending for quite some time .

- <https://twitter.com/intent/tweet?source=https://blog.e-zest.com/laws-for-successful-saas-businesses/&text=Laws%20for%20Successful%20SaaS%20Businesses>
- <https://www.facebook.com/sharer/sharer.php?u=https://blog.e-zest.com/laws-for-successful-saas-businesses/>
- <https://www.linkedin.com/shareArticle?mini=true&url=https://blog.e-zest.com/laws-for-successful-saas-businesses/&title=&summary=&source=>

### Similar Blog

[Software Product Opportunities If you are a technology startup, ISV or established technology or business services provider, Gartner strategic technology ... By Satish Chavan Apr 01, 2008](https://blog.e-zest.com/software-product-opportunities/)

[![Subscription Commerce – New Era of Convenience Shopping](https://blog.e-zest.com/hubfs/Subscription%20Commerce%20opt1.png) Subscription Commerce – New Era of Convenience Shopping One of the lasting behavioral impacts of pandemic is realization that for most people geographical location has become irrelevant ... By Satish Chavan Jul 01, 2021](https://blog.e-zest.com/subscription-commerce-new-era-of-convenience-shopping)

[![Frictionless authentication for improving customer journey in digital commerce](https://blog.e-zest.com/hubfs/Frictionless%20authentication%20in%20digital%20commerce.jpg) Frictionless authentication for improving customer journey in digital commerce The ThreatMetrix® suggests that if an authentication method is made non-intrusive, then it can boost online revenues by 2 to 5 ... By Satish Chavan Oct 25, 2017](https://blog.e-zest.com/frictionless-authentication-for-improving-customer-journey-in-digital-commerce)

[![5 key considerations for B2B e-Commerce](https://blog.e-zest.com/hubfs/use%20this%20satish.png) 5 key considerations for B2B e-Commerce Digital commerce is becoming the key initiative for enterprise digital transformation. Cloud-first strategies, personalized user ... By Satish Chavan Aug 29, 2017](https://blog.e-zest.com/5-key-considerations-for-b2b-e-commerce)

[![Object Oriented Design Principles for Organization Structure and Design](https://blog.e-zest.com/hs-fs/file-3520297398-jpg/blog-files/object-oriented-design-principles.jpg) Object Oriented Design Principles for Organization Structure and Design While using object oriented design principles and patterns for architecture and design of software projects, I realized that some ... By Satish Chavan Oct 21, 2015](https://blog.e-zest.com/object-oriented-design-principles-for-organization-structure-and-design/)

[![Why DevOps?](https://blog.e-zest.com/hs-fs/file-3419272646-jpg/blog-files/devops.jpg) Why DevOps? Building software is a team game. It requires collaboration of various stakeholders from business and technology functions. Even ... By Satish Chavan Sep 23, 2015](https://blog.e-zest.com/why-devops/)

## Helping Organizations Thrive in the Digital Age

[Contact Us](https://www.e-zest.com/contact-us)

- [About](https://www.e-zest.com/about-us)
- [Services](https://www.e-zest.com/our-services)
- [Work](https://www.e-zest.com/our-work)
- [Insights](https://blog.e-zest.com/)
- [Healthcare](https://healthcare.e-zest.com/)
- [Accion Labs](https://www.accionlabs.com/)

- <https://www.linkedin.com/company/e-zest-solutions/>
- <https://twitter.com/ezest>
- <https://www.facebook.com/eZest/>
- <https://www.instagram.com/ezestsolutions/>
- <https://www.youtube.com/user/ezestcorporate>

- Dallas
- Detroit
- Hannover
- Vienna
- London
- Pune

 © 2025 e-Zest Solutions

- [Privacy Policy](https://www.e-zest.com/privacypolicy)
- [Cookie Policy](https://www.e-zest.com/cookie-policy)

 Contact us

 Contact us

e-Zest is a leading digital innovation partner for enterprises and technology companies that utilizes emerging technologies for creating engaging customers experiences. Being a customer-focused and technology-driven company, it always helps clients in crafting holistic business value for their software development efforts. It offers software development and consulting services for cloud computing, enterprise mobility, big data and analytics, user experience and digital commerce.