SaaS Glossary
Essential terminology for white-label SaaS entrepreneurs
Understanding SaaS terminology is essential for building and growing your white-label business. This glossary covers the key terms you'll encounter when working with HighLevel and running a SaaS business.
A
ARR (Annual Recurring Revenue)
The annualized value of recurring subscription revenue. Calculated as MRR x 12. A key metric for measuring SaaS business growth and valuation.
C
CAC (Customer Acquisition Cost)
The total cost of acquiring a new customer, including marketing, sales, and onboarding expenses. For HighLevel SaaS businesses, typical CAC ranges from $800-$1,500 per client.
Churn Rate
The percentage of customers who cancel their subscription in a given period. Monthly churn of 4-7% is typical for SMB-focused SaaS. Lower churn means longer customer lifetimes and higher LTV.
CRM (Customer Relationship Management)
Software for managing interactions with customers and prospects. HighLevel is an all-in-one CRM that includes marketing automation, communication tools, and sales pipeline management.
D
DKIM (DomainKeys Identified Mail)
An email authentication method that helps prevent email spoofing. Essential for email deliverability when setting up your white-label SaaS.
DMARC
Domain-based Message Authentication, Reporting & Conformance. An email authentication protocol that works with SPF and DKIM to improve email deliverability.
L
LTV (Lifetime Value)
The total revenue expected from a customer over their entire relationship with your business. Calculated as Average Revenue Per User / Churn Rate. Higher LTV means more valuable customers.
LTV:CAC Ratio
The ratio of customer lifetime value to acquisition cost. A healthy SaaS business targets a ratio of 3:1 or higher. Below 3:1 suggests unsustainable growth.
M
MRR (Monthly Recurring Revenue)
The predictable revenue a SaaS business earns each month from subscriptions. The primary metric for measuring SaaS business health and growth.
N
Net Revenue Retention (NRR)
Measures revenue retained from existing customers including expansions, contractions, and churn. NRR above 100% means you're growing revenue from existing customers.
O
Onboarding
The process of helping new customers get started with your software. Strong onboarding is critical for reducing churn - the first 30 days often determine long-term retention.
R
Rebilling
HighLevel's system for billing clients for usage-based services (SMS, email, phone calls). You set markup percentages and automatically charge clients through their payment method.
S
SaaS (Software as a Service)
A software distribution model where applications are hosted in the cloud and accessed via subscription. Customers pay monthly/annually rather than purchasing software outright.
SaaS Mode
HighLevel's white-label program that allows agencies to rebrand and resell the platform as their own software. Included in the Agency Pro plan ($497/month).
SMB (Small and Medium Business)
Businesses with fewer than 500 employees. The primary target market for most HighLevel white-label SaaS businesses. SMB clients typically have higher churn but lower acquisition costs.
SPF (Sender Policy Framework)
An email authentication method that specifies which mail servers are authorized to send email on behalf of your domain. Essential for email deliverability.
Sub-Account
In HighLevel, each client gets their own sub-account within your agency account. The Agency Pro plan includes unlimited sub-accounts, allowing you to serve unlimited clients.
W
White-Label
A product or service produced by one company that other companies rebrand and sell as their own. HighLevel's white-label program lets you completely rebrand their platform.
Workflow Automation
Pre-programmed sequences of actions triggered by specific events. In HighLevel, workflows automate tasks like email sequences, appointment reminders, and lead nurturing.
Ready to Apply These Concepts?
Now that you understand the terminology, explore our guides to see these metrics in action.