SaaS Sales: A Guide to the Growing Sales Industry

The advent of software as a service (SaaS) ushered in a new way of doing business and a variety of potential sales roles for professionals with the interest and skills for the job. Developing web-based software applications has numerous benefits to businesses, from communicating with consumers to simplifying data management solutions. 

Web-based applications make managing a business easier. They are cost-effective and accessible from devices such as laptops or mobile phones. These applications allow seamless installation and integration with other systems, improving business operations with minimal maintenance or interference. 

Another added benefit of SaaS models is that they help businesses secure client data. Users can back up and protect the data by implementing security tools such as multi-factor authentication. Read on to learn more about SaaS models and how to start a career in this field.

What does SaaS stand for?

SaaS stands for software as a service. It offers a cloud-based alternative to physical software products, providing more widespread accessibility to these applications via the internet. These software applications are typically accessible through a website or application. When purchasing SaaS, high upfront costs are avoidable for businesses since subscription-based and pay-as-you-go models grant access to features, allowing you to pay for what you need. Multiple options are often available to fit your budget and company size. 

You are likely already using SaaS applications. Web-based email services, including Gmail and Microsoft Outlook, are examples of SaaS that allow you access from any device as long as you have internet access. Businesses can purchase applications and services that are accessible similarly and have specific benefits based on their needs, such as customer relationship management and enterprise resource planning software. 

Overview of the SaaS industry

SaaS applications provide value for businesses across many industries and provide extensive opportunities. Various companies succeed in the SaaS space, offering diverse solutions built to fit the differing needs of individuals and organizations alike. In 2023, the industry was worth more than $273 billion, according to Fortune Business Insights [1]. Projections anticipate this number will reach $1,228.87 billion by 2032 due to an 18.4 percent growth rate across the industry [1]. Some of the largest public SaaS companies are Adobe, Microsoft, Alibaba Cloud, IBM, Google, and Salesforce [2]. 

Read more: What Is a Cloud Engineer? Building and Maintaining the Cloud

SaaS sales job duties and earning potential

In software as a service sales, multiple positions often play a role in the sales process. Entry-level positions typically include a sales development representative and a business development representative. In these positions, you will identify and create interest from prospective customers and generate leads for account executives. You will also qualify leads that are found before moving potential customers on to the account executive. The salary for a sales development representative averages $49,944 ($77,597 with commissions and bonuses) [3], with business development representatives making an average of $60,458 ($102,598 with commissions and bonuses) [4]. 

Account executives also play an integral role since this position requires closing sales. To do that, you’ll first help customers understand how their product can solve their problems. Succeeding as an account executive means maintaining customer relationships to ensure your product meets their needs. The average salary in this role is $22,184, with an average of $153,069 with commissions and bonuses [5]. 

Beyond these positions, the SaaS sales field offers other potential opportunities for different career paths. For example, you could become an account manager, work on developing long-term relationships with existing clients, and provide any support they may need after the deal has closed. An account manager earns an average of $67,219 annually or $118,550 with commissions and bonuses [6].

If you’re interested in a leadership position, you might opt for a sales manager job overseeing the entire sales team, including sales development representatives and account executives. In this role, you will oversee a team, tracking their performance and ensuring they reach sales targets. Account managers make $83,674 ($166,705 with commissions and bonuses), according to data from Glassdoor [7]. 

As you rise through higher ranks in your career, you can become a vice president of sales, carrying the overall sales success of the entire company. This involves building your sales staff and developing strategies to grow sales. With the added tasks and responsibility comes an increase in earning power. As a VP of sales, you could make an average base salary of $167,923, potentially making an average of $377,269 with bonuses and commissions [8]. 

How to succeed in SaaS sales

As a sales development representative, you will likely hear  “no” often, but it's important to maintain your confidence and build strategies to overcome and minimize objections. Developing the following skills can help you find success more consistently in your sales career:

Understand the product

Understanding the product you sell down to the last detail helps you answer any questions or concerns about features and allows you to be confident when presenting your product. To take your product knowledge to the next level beyond understanding features and benefits, read customer testimonials to learn any problem areas from people using the product. 

Understand customers’ needs.

Develop and utilize active listening skills to grasp your customers' needs and ensure they feel heard. Doing so allows you to understand customers’ unique pain points and ask relevant questions. Ultimately, customers who feel heard and understood can feel confident in your solution.

Use data to your advantage.

You can implement data-driven strategies in many ways to optimize sales success. By leveraging data, you can identify which leads are more likely to convert into customers, saving you time attempting to sell to people who are unlikely to buy. You can also gain valuable insight into which communication methods and strategies lead to successful sales more often. Knowing simple things, such as the best day to reach out to a potential customer, can help optimize your sales approach.

Read more: What Is Data-Driven Decision-Making (DDDM)?

Network

Networking offers a valuable way to generate leads and find more opportunities to make sales. One reason networking is so important is its ability to give you referrals from your existing network. LinkedIn is useful for identifying potential connections and promoting your expertise, but focus on building quality connections online rather than sheer volume. 

Read more: What Is Networking? How to Grow Your Network

Tips for getting a SaaS sales job

With the SaaS industry projected to grow steadily in the coming years, job opportunities will remain available for those with the necessary skills and work ethic to succeed in this competitive industry. Completing a tech degree, while not required, can be valuable in demonstrating your ability to understand SaaS products. Developing transferable skills, such as communication and negotiating skills, can help smooth the path forward. Sales experience in industries other than SaaS is also beneficial and a great way to gain relevant experience without working in tech.

Next steps in SaaS sales

SaaS sales roles are part of an in-demand field with many career growth and advancement opportunities. On Coursera, you can find highly rated courses where you can develop demonstrable skills for a career in SaaS sales. For example, you can learn how to become a more efficient and effective negotiator with the University of Michigan’s Successful Negotiation: Essential Strategies and Skills or strengthen your sales skills and knowledge with Professional Selling: 3 Steps to High-Performance Specialization, offered by the University System of Georgia. 

To prepare for an entry-level position in SaaS, you can earn a Salesforce Sales Development Representative Professional Certificate. This certificate program allows you to develop strategies for sales success and prepare a portfolio for your interviewing process.