According to Gartner, SaaS will see a 21.5% growth in spending in the coming year. SaaS sales is imperative to this growth, and maintaining the right talent is vital to continued success. This article explores how to become the right talent for a successful career in SaaS sales.
What is SaaS Sales?
SaaS sales is selling or representing web-based software. SaaS, short for Software as a Service, is an industry where a company’s main product is web-based software. Sales in the SaaS industry entails representing this software to prospective buyers and interested parties.
What are SaaS sales professionals responsible for?
- Lead generation
- Nurturing relationships
- Closing deals
- Reaching KPIs
SaaS sales is essentially the same as any sales role with additional technical aspects such as online demos and Zoom calls. The sales team is often responsible for a large number of a SaaS company’s revenue and is entrusted with bringing in new clients as well as nurturing existing ones.
Is SaaS Sales A Good Career Choice?
A career in SaaS sales is a good path to take to enter the SaaS industry or if you are looking for an entry-level job in a successful company where you can work your way up. SaaS sales is an exciting, ever-changing career path with numerous avenues for career advancement.
Advantages of a Career in SaaS Sales
- High demand for SaaS sales professionals – There is a high volume of sales roles advertised on job boards at all times.
- Rapid industry growth – The SaaS industry is expanding rapidly and constantly, increasing its need for sales reps.
- Role flexibility – Sales reps tend to work in shifts, meaning communicating with a sales manager can help you set your schedule to your preferences.
- Commission – On-target earnings are often part of compensation schemes in sales, where extra bonuses and commissions are earned when targets are reached.
- Long-term prospects – Growth and career advancement in SaaS sales is constant, and you can see a positive turnaround in short periods of time. Climbing the career ladder in sales is an integral part of the role, and this is no different in the SaaS industry. In fact, it’s more prominent given all the growth in the industry.
Key Skills You Need to Break Into a SaaS Sales Career Path
As in any job, to become employed in the SaaS sales industry, you have to possess a set of skills that will aid you in your role as well as benefit the company with the success you will provide.
Hard Skills
- Familiarity with CRM tools – Using tools like Salesforce, Slack, and Zoho is a daily occurrence in SaaS Sales.
- Data Analysis – Tracking sales data and KPIs and analysing information will help improve overall performance.
- Product / Technical knowledge – Understanding SaaS products and the product you’re selling will help your sales process in conveying information you believe in.
- Lead generation and prospecting – Research and discovery of potential new clients are two of the basic foundations of sales.
- Sales process and pipeline management – Understanding different sales tactics, striking up deals and converting prospects into clients.
- Demo and presentation skills – A successful salesperson requires presenting a product clearly and confidently, whether it is for a pen or software.
- Cold calling and email outreach – Successful cold calling and email outreach are both skills learned over time and require practice to make perfect.
Soft Skills
- Communication skills – You should be able to explain complex concepts clearly to all manner of audiences, whether they’re technically inclined or not.
- Negotiation skills– In this profession, haggling, price and benefit negotiations are all too common. You will need to be persuasive, stand your ground, or find a middle ground to satisfy your client.
- Relationship-building skills – after generating a lead, a sales professional will need to establish a relationship with the client to retain their business.
- Perseverance – In this line of work, rejection is extremely common and persevering through the difficult periods of low volume (if any) sales is part of the job description.
- Adaptability – Adjusting sales processes and approaches to each client’s specifications.
- Problem-solving – Customers will lay out the problems they are facing. You will have to be able to provide the best solution while selling the SaaS product.
- Time management and organisational skills – SaaS Selling means scheduling meetings with potential customers, hitting your KPI before the end of the period and liaising with management.
How to Build Skills for SaaS Sales Careers
The skills mentioned above are applicable skills to learn for SaaS sales and can easily be learned through different avenues. Of course, as no one is born perfect, you can also use practice to improve skills you may already have.
Luckily, training courses and online resources are available in abundance online and can be accessed at any time to provide you with the information you need to begin learning the necessary skills you need.
Many tools used by SaaS businesses also offer free trials that could allow you to familiarise yourself with them before you jump into the deep end of the job.
Additionally, you can discuss with your manager or a peer if it would be possible to shadow them. This will allow you to gain first-hand experience of how the role ought to be done and familiarise you with new ways to tackle the role.
SaaS Sales Career: What’s the Right Fit for You?
SaaS sales roles are some of the more common and readily available job opportunities in the job market. Though sales positions are available, skillsets, experience and career progression will vary for each role.
Obtaining a role will depend on your strengths, experiences and the outlook of your future career. Whether you want to be in sales leadership or strategy and business development will play a part in the choices in your career progression.
Sales Development Representative (SDR)
Sales development representatives are one of the entry-level positions available in SaaS Sales. The bread and butter of sales reps are cold calls, email outreach, persuasion and organising meetings for Account executives.
Responsibilities:
- Focus on outbound prospecting and lead generation.
- Identify potential customers, research their needs and qualify leads.
- Reach out to prospects through cold calls, emails and social media.
- Schedule meetings and demos for Account Executives (AEs).
- Act as the first point of contact in the sales process.
Career Progression:
- Sales Development Representatives are promoted to Senior Sales Development Representatives. This is then followed by the title of Account Executive (AE) or Account Manager.
- Some SDRs may transition into roles in Customer Success or Marketing based on their strengths.
Explore the common structure of B2B SaaS marketing teams here.
Account Executives (AEs)
Account executives are in charge of qualified leads and sales accounts. They will conduct demonstrations and negotiations before closing deals.
Responsibilities:
- Responsible for the full SaaS sales cycle from initial contact to closing deals.
- Conduct product demos and presentations tailored to customer needs.
- Negotiate pricing, contract terms and subscription models.
- Work closely with SDRs for lead handoffs and qualification.
- Meet revenue targets and contribute to the bottom line and company growth.
Career Progression:
- Account Executives, after succeeding in their role, will obtain Senior Account Executive status. This is then followed by either Sales Manager or Enterprise Account Executive.
- Top-performing AEs may move into Sales Leadership or Strategic Accounts.
Account Manager
Account managers are in charge of existing clients, focusing on customer retention. They upsell, cross-sell and renew client accounts with the company.
Responsibilities:
- Manage and grow customer relationships.
- Focus on renewals, upselling and cross-selling opportunities.
- Ensure customers see continuous value in the SaaS product.
- Work with Customer Success teams to address customer needs.
- Act as the primary contact for long-term client engagement.
Career Progression:
- After the Account Manager role, a successful employee will get promoted to the Senior Account Manager role, followed by the choice between Key Account Manager or Customer Success Manager roles.
- You could also opt to transition into sales leadership or enterprise sales.
Customer Success
Customer success managers ensure clients gain value from the product. This increases customer retention and provides support.
Responsibilities:
- Ensure customers achieve their goals using the SaaS product.
- Drive product adoption and provide onboarding support.
- Act as a trusted advisor, offering strategic guidance to clients.
- Handle customer retention, reducing churn rates.
- Gather feedback to improve the product and customer experience.
Career Progression:
- Starting with Customer Success Manager, you would be promoted to Senior Customer Success Manager, after which the next step would be Director of Customer Success.
- You can also transition into account management or sales leadership roles instead.
Sales Manager
Sales managers are among the highest levels of SaaS sales professionals. They lead the sales teams and departments, setting sales targets, developing sales strategies and conducting general project management for the sales department.
Responsibilities:
- Lead and mentor a team of SDRs, AEs, or Account Managers.
- Set sales targets and ensure the team meets revenue goals.
- Identify pain points, develop sales strategies and optimise the sales process.
- Provide training, coaching and performance reviews for the team.
- Collaborate with other departments to align sales with business goals.
Career Progression:
- After Sales Manager, the natural next step is the Director of Sales, followed by the VP of Sales role.
- Some may opt into revenue operations or executive leadership roles instead.
How to Get Into SaaS Sales with No Experience
You can get into SaaS sales with no experience by gaining the skills necessary, optimising your LinkedIn and starting with work experience roles like internships or sales associate roles. You can always further your skills by working on certifications and skill growth that will add substance to your resume and improve your chances of getting the job.
First, start simple. Learn about the role you intend to apply for. This would be an entry-level position that you could qualify for with little to no experience. The skills needed would include communication, negotiation, technical know-how, etc.
Next, use your previous experience. Any previous roles that might have entailed some transferable skills like project management, technical skills or customer service. In fact, even with no experience at all, you may still have some transferable skills from school or any extracurricular activity you take part in.
You can also add new skills to your resume using online resources. Free trials and product demos for commonly used sales tools. Online communities may have information to help, even free courses that will help you gain the knowledge you need to launch yourself into sales.
In fact, making connections and networking with industry professionals online or even offline will help you get your foot in the door. Whether by referral or just mentorship, leveraging a network is one of the best ways to get into sales – and is great practice for the job, too!
After getting into the community, start by looking for an internship or a junior sales role in a SaaS company. In the lower level and internship roles, you will be able to make mistakes and learn easily without the pressure of a high-paying, high-pressure role. You will also be able to watch sales professionals and pick up pointers from them on the job.
Luckily, some recruiters specialise in SaaS sales roles. Getting in touch and working with a recruitment agency specialising in SaaS, like Live Digital, would help you identify roles that may be a good fit for your skillset and interests. They would also help you to hone your resume into being a presentable and professional SaaS sales representation of yourself.
What to Expect in a SaaS Sales Job
A typical, realistic day in the life of a SaaS sales rep would usually entail clocking in at whatever hour the SDR’s shift is set to be. Once they’ve checked the schedule, they begin their day with lead generation and outbound prospecting, approaching potential customers using cold calls or email.
This can be a difficult part of the job as SDRs inevitably receive many rejections before a positive response and can feel pressured to qualify a lead early in the month to avoid last-minute KPI cramming.
Once a call has gone well or an email has been responded to, SDRs then qualify the leads by looping in the Account Executive. At this point, an SDR would be expected to rinse and repeat the process, after which the executive would demonstrate the product, close the deal, and follow up with clients and the customer success team.
SaaS Sales reps can find it hard to strike up a work-life balance when they have targets to hit. Whether time is passing by too quickly, they encounter a string of emphatically uninterested customers or some customers who request callbacks out of hours. SDRs are often pressured to work outside their allotted time in order to hit KPIs on time.
That said, SaaS companies often offer compelling compensation packages with high commission rates or external benefits that motivate SDRs to work so hard.
Meanwhile, in leadership roles, Sales Managers and Directors spend their time strategising, analysing performance metrics and coaching their teams. They oversee pipeline health, ensuring SDRs and AEs are meeting quotas while fine-tuning outreach strategies.
They may step in for high-stakes negotiations or improve sales processes to improve conversion rates. Sales leaders also oversee team morale and business goals, knowing that burnout can decrease performance.
Sales managers often collaborate with marketing and product teams to align messaging, address customer pain points and refine positioning. While the pressure remains high, leadership roles come with the reward of shaping company growth and driving revenue at scale.
What Can You Expect to Earn in SaaS Sales?
Salary ranges for SaaS sales jobs will vary depending on the seniority of the role, location, company size and more. As this is a sales job, the compensation scheme might also entail a base salary that is separate from commission rates tied to the sales or KPIs.
Entry-Level Positions
- The average salary for a SaaS sales rep in the UK is £38,400 per year.
- However, salaries can range from £15,000 to £52,500, depending on factors such as location and experience.
Mid-Level Positions
- The median annual salary for SaaS skills across all positions is £65,000.
- For roles outside of London, the median salary is £60,000.
- In London, SaaS sales professionals can expect a median salary of £75,000.
Senior Positions
- SaaS Sales Managers have a median salary of £68,750 per year.
- Senior Sales Director roles can offer On-Target Earnings (OTE) of around £180,000, with a 50:50 split between base salary and commission.
Regional Variations
- Scotland: £79,850
- South East: £43,913
- West Midlands: £41,094
- London: £40,0382
On-Target Earnings (OTE) / Commissions
On-Target Earnings (OTE) represent the total compensation a sales professional can expect if they achieve their sales targets, combining base salary and performance-based commissions or bonuses.
Commission rates and OTE in SaaS Sales can vary widely based on factors such as deal size, sales strategy, company policies, and regional economic conditions. Thus, you should evaluate thoroughly the compensation structures within a company and consider regional cost-of-living differences when assessing a potential role.
Commission Structures
- International rates: The typical international commission rate for SaaS sales professionals is around 10% of sales revenue.
- UK-based standards: Some UK-based companies implement tiered commission structures, starting at 2% and increasing up to 7% for sales exceeding targets.
- US Influence: Following acquisitions by US private equity firms, certain UK companies have adopted American-style commission structures, leading to more competitive compensation packages.
- KPI-Oriented Bonuses: Beyond standard commissions, some organisations offer bonuses tied to key performance indicators (KPIs). For instance, a UK sales professional reported a separate KPI-oriented bonus of 30% in addition to the commission structure.
- Annual Bonuses vs. Regular Commissions: Many UK companies still utilise an annual bonus structure rather than regular commission-based systems, impacting cash flow and earnings predictability for sales professionals.
London and the South East:
- Senior Sales Roles: Positions such as Sales Directors in SaaS companies often command base salaries ranging from £115,000 to £180,000, with OTEs reaching between £140,000 and £280,000.
- Enterprise Account Executives: Average base salaries are approximately £39,810, with total compensation around £64,002 per year.
- Other Regions: While specific figures are less available for regions outside of London and the South East, it is likely that compensation packages are lower.
The Future of SaaS Sales: What Are The Prospects?
The future of SaaS sales is closely tied to the future of the SaaS industry. Gartner predicted that overall end-user spend for SaaS will hit $299 billion in 2025. The SaaS market is heavily and steadily expanding, with worldwide spend on public cloud services expected to reach $723 billion in 2025.
Not only is the SaaS market expanding rapidly, but the depth of SaaS markets is staggering, now branching out into horizontal and vertical SaaS. Niche sectors like FinTech and MarTech are constantly popping up, and it seems like there are multiple SaaS solutions for everything.
According to Gartner, 75% of SaaS providers are expected to adopt product-led growth strategies for new customer acquisition by 2025. This trend will impact how sales teams approach customer acquisition and engagement.
SaaS Sales, providing the foundational corner of revenue for SaaS companies, are only likely to grow alongside the industry. Trends will emerge where SaaS sales roles will be required to gain more knowledge and be more practised in certain skills, but this will not negate the need for a sales rep and a sales team.
Emerging trends like AI and machine learning Integrations will only enhance SaaS sales careers and require a step up in the object of selling. Personalisation and global expansion will all be part of the sustainable growth strategies taken up by SaaS sales teams.
Ready to Start Your SaaS Sales Career?
The SaaS industry is always ready to accept newcomers, especially those keen to get started and find success. If you’ve followed all the steps to success and think you’re ready to begin, check out our available job opportunities here and get started today!
