How to choose your primary route‐to‐market under $5M ARR

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Under $5M ARR, the biggest mistake is spreading across too many motions before one is profitable and repeatable.​

The goal is simple:

• Pick one primary route‑to‑market where CAC payback is within 12 months.

• Then layer the next motion only when the first is working.​

Practical pointers

• For ACV under 5k USD and low complexity, PLG/self‑serve is usually the most efficient primary motion.​

• For ACV 5k-25k USD or moderate complexity, a product‑led + sales‑assist or light sales‑led motion works best.​

• For ACV above 25k USD and high complexity, a sales‑led motion with AEs and CSMs is usually required.​

• PLG companies often grow faster (median 35% vs 26% for non‑PLG) and spend 39% less on sales and marketing for similar growth, but usually start with lower ACV.​

• Sales‑led companies often see initial ACVs 3-5x higher than PLG peers, which can justify higher CAC if payback is within target.​

• Below $5M ARR, aim for CAC payback of 12 months or better; 11 months is a common median for $1-5M ARR SaaS.​

• If a motion cannot reliably win customers within your CAC payback target, it should not be your primary route‑to‑market.​

• Add a second motion only when:

  • You have one motion with repeatable win rates and stable CAC payback.

  • You can staff and measure the new motion separately (own funnel, own KPIs).​

Final learnings

• Choose the motion that best matches ACV and complexity, not the trend of the year.​

• Commit to one primary route‑to‑market until it is demonstrably efficient; only then earn the right to add the next.

That's it for today's article! I hope you found this essay insightful.

Wishing you a productive week ahead!

I always appreciate you reading.

Thanks,
Chintankumar Maisuria