With the emergence of product led growth (PLG) companies there is a need for new metrics. The traditional SaaS metrics and growth rates are becoming out of date.
Essentially, Natural Rate of Growth removes paid channels to calculate growth. As OpenView states, "One way to think about it is how fast a company grows without even trying-before layering on incremental investments in sales and marketing. We're looking to pinpoint the percentage of your recurring revenue that comes from organic channels and starts with your product."
The formula to calculate Natural Rate of Growth is pretty simple. We've shared a Google Sheet template you can use to get started below: