TLDR Marketing · MISCELLANEOUS

A NEW NORTH STAR GROWTH METRIC FOR COMPANIES OF ALL SHAPES AND SIZES

kevanlee.substack.com3 min read

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.