Great read, Kyle! However, I believe the underlying assumption/thesis for these numbers is that you're building in the low-cost geographies and selling in developed western markets.
Do you've by what factor these numbers would change if you're building in a low cost geo (i.e. India) and selling in a similar low cost geo (i.e. South East Asia)?
I was confused by the sudden popularity in ARR per FTE and thought it was mostly driven by VCs and venture-backed startups…and now I’m even more confused.
I don’t understand why a bootstrapped business would pay so much attention to a metric which pretty much just serves as a benchmark to other companies rather than focus on profitability or ARR per compensation $ as you suggest.
How does that changes if you have a meaningful % of your FTEs based off-shore employees vs all US based?
If it's 100% of shore vs 100% US, do you still expect the same? What if it's 50/50 or 20/80 or 80/20...
Great read, Kyle! However, I believe the underlying assumption/thesis for these numbers is that you're building in the low-cost geographies and selling in developed western markets.
Do you've by what factor these numbers would change if you're building in a low cost geo (i.e. India) and selling in a similar low cost geo (i.e. South East Asia)?
Wouldn't profit by employee be a better metric?
Great read, Kyle! Thanks for putting it together
I was confused by the sudden popularity in ARR per FTE and thought it was mostly driven by VCs and venture-backed startups…and now I’m even more confused.
I don’t understand why a bootstrapped business would pay so much attention to a metric which pretty much just serves as a benchmark to other companies rather than focus on profitability or ARR per compensation $ as you suggest.