This post is by Tomasz Tunguz from Tomasz Tunguz
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One way of measuring the efficiency of a company’s revenue model is to benchmark revenue per employee. Google and Facebook, the two most efficient companies, generate $1M per revenue per employee per year. Setting aside those exceptional cases and focusing instead on SaaS companies, the typical average revenue per employee is about $190k to $210k per year. The histogram above shows the ranges for publicly traded SaaS companies. In the scatterplot above, which compares revenue per employee to revenues (in log10 scale), the outliers pop out.