TLDR Marketing · MISCELLANEOUS
A NEW NORTH STAR GROWTH METRIC FOR COMPANIES OF ALL SHAPES AND SIZES
Summary from the TLDR Marketing newsletter
Average revenue per employee (ARR divided by the number of full-time employees) is an indicator of how healthy a growing company is. It’s an efficiency metric that helps companies keep headcount at a reasonable size, relative to revenue. Companies should avoid going below $200,000 ARR per FTE wherever possible.