Revenue Concentration Red Flags
Concentration patterns that signal a SaaS target's revenue is fragile and churn-exposed.
How to use: scan the list against your current situation. Each item you check is a risk worth addressing before it becomes a problem.
- Top customer exceeds 10% of ARR
- Top 10 customers exceed 40% of ARR
- Single industry exceeds 50% of revenue
- Single geographic market exceeds 60%
- Founder-led relationships with top accounts
- No customer success coverage on top 10
What to do if you see these
If more than 2-3 of these flags apply to your churn due diligence tool situation, treat it as a structural issue, not a one-off. The compounding effect of multiple red flags is greater than the sum of the individual risks.
ChurnLens can help: SaaS revenue quality & churn risk due diligence. The platform surfaces these risks automatically so you can act before they escalate.