NutsBoltsNDeals

Account executive

ARR by Segment

Curious what you savages would consider SMB, MM, and ENT based on ARR. I've seen various numbers and wanted to get a consensus.

Side-note: if I sell a deal that is $100k ARR for a 5 years contract with some upfront fees, it may be $700k TCV but would the $100K ARR still denote it as MM?

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Sunbunny31

Politicker

Sr Sales Executive 🐰

Our company segments by revenue, not deal size.

While we don't sell to SMB, we do sell MM, and consider anything below $1B in revenue MM, and anything above $1B in revenue Enterprise.

It's possible to have a $50K Enterprise deal and a $100K MM deal; just depends on what the company needs.

edit for clarity

oldcloser

Arsonist

💀

that's bunny with a B

CadenceCombat

Tycoon

Account Executive

This.

NutsBoltsNDeals

Valued Contributor

Account executive

Thanks for the clarity…now I understand why I couldn’t find an answer after repeat google searches of “ARR for mid market vs enterprise”. Classic scenario of asking the wrong question.

Sunbunny31

Politicker

Sr Sales Executive 🐰

You came to the right place to get some answers. :)

poweredbycaffeine

WR Lieutenant

☕️

Well, segments are typically deemed by FTE or Revenue, not ARR.

ARR averages for each segment vary greatly by industry. Also depends on pricing model, ie per seat, per month, per year, etc.

Hard to put your finger on it with such a fine point.

HVACexpert

Politicker

sales engineer

Right.

Enterprise to one company could be MM to another.

Kosta_Konfucius

Politicker

Sales Rep

Every company I have worked with does this through employee count or revenue of the company not deal size.

Feels like it will cause SMB and Mid Market to give bigger discounts so it does not go to the other team

CuriousFox

WR Officer

🦊

Depends on what you are selling broseph

Maximas

Tycoon

-2

Senior Sales Executive

Yes,I believe..

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NutsBoltsNDeals

ARR by Segment

10 comments

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