Question 1

What's the main difference between SMB vs Mid-Market companies?

Accepted Answer

SMB companies typically have fewer than 500 employees and under $10M annual revenue, while mid-market companies range from 100-1,000 employees with $10M-$1B revenue. The key difference lies in decision-making complexity: SMBs have 1-2 decision-makers and faster cycles, while mid-market involves 3-7 stakeholders and longer 4-9 month sales processes.

Question 2

How long does it take to close deals in each market segment?

Accepted Answer

SMB deals typically close within 1-4 months due to simpler decision-making processes. Mid-market sales cycles range from 4-9 months due to multiple stakeholders. Enterprise deals take 9-24 months, involving extensive evaluation, security reviews, and complex approval processes across multiple departments.

Question 3

Should I start selling to SMBs or go straight to Enterprise?

Accepted Answer

Start with SMBs unless you have specific competitive advantages (network, expertise, funding) in larger markets. SMBs offer faster feedback loops, shorter sales cycles, and lower resource requirements to build momentum. Success with SMBs creates case studies and references that enable upstream movement to mid-market and enterprise.

Question 4

What are small and medium-sized enterprises (SMEs)?

Accepted Answer

Small and medium-sized enterprises (SMEs) are another term for mid-market companies, typically having 100-1,000 employees and $10M-$1B annual revenue. They represent the growth-focused segment between small businesses and large enterprises, requiring solutions that balance personalization with scalability.

Question 5

How many decision-makers are involved in each segment?

Accepted Answer

SMB purchases typically involve 1-2 decision-makers (often the owner or CEO). Mid-market deals involve 3-7 stakeholders across departments like IT, finance, and operations. Enterprise sales require buy-in from 8+ people, including C-suite executives, department heads, legal, finance, and end-users.

Question 6

What's the revenue potential difference between market segments?

Accepted Answer

SMB deals typically range from hundreds to low thousands of dollars annually. Mid-market contracts often span thousands to hundreds of thousands annually. Enterprise deals can reach millions of dollars with multi-year commitments, but require proportionally higher investment in sales resources and longer development cycles.

What's the Difference Between SMB vs Mid-Market vs Enterprise Sales? Guide & Examples

You have scrolled so far, don't stop now! Connect with our experts.