SaaS Sales

Sales is an integral part of any company's lifeblood, from start-ups to huge corporations. While the sales process can be the same across many industries, you need to consider some critical differences when dealing with sales in the SaaS industry. Here is everything you need to know about SaaS sales.

What Is SaaS Sales?

SaaS (Software as a Service) sales can be confusing, especially to individuals who are new in the tech realm. It is the process of selling software delivered as an online service to customers. This type of software is usually subscription-based, meaning customers pay a recurring fee to use the software on an ongoing basis.

Is SaaS Sales Lucrative?

Yes, selling SaaS is lucrative. Actually, it is among the fastest-growing industries of all time with many SaaS sales jobs. The good thing about SaaS is that it employs three aspects, making it an attractive career choice for many people.

High Software Margin

The profit margins for these types of companies are high because they are considered services. If you sell any type of physical product, you must purchase or produce those goods before selling them and making a profit.

But with SaaS, all you need is your labor and you're off to the races. This makes SaaS sales quite lucrative. There are no production or material costs to worry about.

High-Growth of SaaS Market

Currently, the SaaS market is estimated to be approximately $152 billion, which is projected to grow to $208 billion by 2023. With numbers like that, it seems difficult not to want to get involved in SaaS sales. Additionally, if you're passionate about new technology and enjoy working with entrepreneurs, then SaaS may be a great career field for you.

Is Selling SaaS Difficult?

Yes, selling SaaS is difficult. It's a highly competitive industry, and there are many unknown factors. There are also huge barriers to entry for new sellers and the result may be that you won’t generate enough leads in the beginning. All of these difficulties make it very hard for sellers to close deals. Fortunately, there are things you can do to make the process easier!

1. Research Your Buyers

You need to know everything about your buyer before approaching them. What are their goals? What stage are they in? What specific features will help them reach their goals? Do they have any competitors? If so, what makes them different from those competitors? How can you best communicate with them? These questions should be answered before making contact with potential customers.

2. Get On The Phone

The way to get past all that difficulty is through talking directly with potential clients. Phone calls are more personal than emails or messages and give you an opportunity to learn more about your customer's business needs.

Another great way to learn more about the pains of potential clients is to ask current clients. When speaking with current clients, remember to keep them updated on the progress made and try to offer solutions for their current problems.

Also, ask open-ended questions to understand how they use your product, and share success stories from other customers. You may adjust your marketing and sales messages and tactics with the information they supply.

3. Set Up Partnerships

Partners are a great way to move past the competition. Are there companies that deliver complementing services to yours? Share resources with each other and help grow each other's business at no extra cost. Many business owners enjoy working with others who understand their industry well, so it's always worth trying to partner up.

How Is SaaS Typically Sold?

The way SaaS is sold depends on the pricing and the complexity of the product. If a company needs coordination between several persons or departments, the sales process is more complex. You basically need every member of the buying committee to be onboard. More simple solutions may very well be sold without a salesperson involved. There are three commonly used SaaS sales models.

1. Self Service

The least expensive sales model to sell SaaS is the freemium approach. The software is typically sold by providing a free trial of the SaaS offering. The customer is given a free period to use the software and then subscription pricing is scheduled. Some vendors charge immediately after the trial period expires.

Usually, this self-serving approach does not involve a sales team. However, marketing is essential to make this sales model a success. This model is mainly used when the SaaS has a low price point and where the software doesn’t require implementation.

2. Transactional Sales

This sales model requires more effort to implement, but not as much effort as Enterprise Sales. Usually, this type of sales is also more expensive than the self-service model. But not as expensive as the Enterprise approach. Transaction Sales also don’t have long sales cycles.

3. Enterprise Sales

The most complex software products are sold with the Enterprise Sales approach. It involves long sales cycles and large and complex contracts, and the buying committee contains multiple disciplines within the clients' organization. Also, software sold with the enterprise sales approach always requires a greater effort to implement.

Is SaaS a Good Industry?

Yes, the SaaS industry is great, thanks to the constant stream of successful companies entering the market. There are also several career paths available in the industry, including;

Software Development

If you're on the software development team, then your job responsibilities include developing, testing, and deploying new applications. In a more senior position such as project manager or lead developer, your work includes overseeing and leading small teams in all aspects of software production. This means the SaaS industry has room for growth because there will always be customers looking for new solutions.

Product Management

The SaaS industry also has plenty of opportunities for product managers, with some specializing in B2B (business-to-business) marketing, B2C (business-to-consumer) marketing, product strategy, pricing, and packaging.

All these positions require an understanding of business models that involve generating revenue from end-users on a recurring basis.

Sales and Marketing

Along with account executives, business development teams are growing within the SaaS industry. This is particularly true of companies selling a subscription-based product or service where they need a constant stream of new customers as existing ones churn out.

For example, if your sales team is focused on Google Apps for Work, every time an enterprise customer's contract ends, you'll have to find another customer.

Project Management

This is another high-value position in the SaaS industry that requires a combination of scheduling, forecasting, and reporting skills as well as experience working with numerous stakeholders. For example, it's important for you to understand your product manager's requirements, customer service issues, and IT support problems before creating a schedule.

Want To Start Working in SaaS Sales?

In a nutshell, SaaS Sales is a lucrative and rewarding industry that is not as difficult as it may seem. It requires a lot of dedication and hard work to succeed, but with the right amount of passion and commitment, anyone can become successful.

Discover your opportunities here

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