Annual Contract Value (ACV)
Annual Contract Value (ACV) is the average annual revenue per contract. If one customer pays $120K/year and another pays $60K/year, your average ACV is $90K. Enterprise SaaS companies obsess over ACV because it determines whether they need a sales team or can rely on self-serve.
Definition
The average annual revenue per contract. If one customer pays $120K/year and another pays $60K/year, your average ACV is $90K. Enterprise SaaS companies obsess over ACV because it determines whether they need a sales team or can rely on self-serve.
Related Terms
More Business & Contracting Terms
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POC - Proof of Concept
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Prototype
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Wireframe
A basic sketch showing the layout and structure of a page without any design polish. Think blueprint, not finished building. It's about where things go, not how they look.
Mockup
A high-fidelity visual design showing exactly how the final product will look. Unlike wireframes, mockups include colors, typography, and real content.