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Complete Guide for SaaS Sales Representative

Complete Guide for SaaS Sales Representative!

Software-as-a-service (SaaS) is a cloud software product that’s accessed, managed, and used on the internet by customers instead of downloading onto computers or mobile devices. 

The concept is easy and simple as the customers pay an annual or monthly fee to use the software. So, as a sales representative, it’s your responsibility to secure paying customers for the cloud software and make sure existing subscribers remain subscribed.

The growth potential is infinite as the core product never changes and can accommodate an unlimited number of users. 

In this guide, you will get a clear roadmap for building a winning team by becoming a SaaS sales representative. 

What Are SaaS Sales?

SaaS Sales

SaaS sales are the process of selling software to clients through a website or an online portal. Salespeople focus on making the customer’s business more successful. This usually involves saving their time, money, or human resources. 

For every SaaS rep, Service and attention are the main strategies in converting prospects to customers.  Well, SaaS sales products are usually based on a subscription-based pricing model. That means your customers will repeatedly buy the product every month, quarter, or year.

Sometimes SaaS product packages are highly customizable in terms of features. This brings out the attention to the sales cycle as prospects negotiate which features they need for their business.

What Is the Main Difference Between Selling SaaS Products To Others?

The SaaS model is very complex and products deal with complicated business processes such as revenue delivery from subscriptions, compliance, and payments, and retaining customers over a while. 

To ensure that the prospect understands exactly how to use the product, every sales rep should provide awareness and information on the product. 

“Educational selling is very important for my team,”

                                   –Kyle Ferretti, who is US Sales Manager at SEMRush

This knowledge is essential for prospects because unless they have an understanding of the product’s capabilities, they won’t feel confident enough to buy the product. 

So, every SaaS salesperson should understand the customer’s problems then explain how the product will help them. 

How does the saas sales model work?

The SaaS sales model will help you to know how many sales reps you should hire, how you can interact with your customers, and how you’ll close the deal.

There are mainly three types of SaaS sales models that organizations mostly use. So, it’s important to choose the model that best suits your offerings.

Transactional Model

Transactional Model

Transactional sales involve selling software to SMEs over the phone. Since the cost involved with this level of software is higher, the buyer will need more personalized service. So, you’ll need a sales team for that. 

Software sold by the transactional model is customizable to cater to the needs of a customer. The sales team will have to undergo training that will help in exhibiting a comprehensive working knowledge of the product and meet monthly or quarterly sales targets.

For instance, For example, when someone reads about your product or signs up for a free trial, a sales rep will reach out to that prospect and convince them to fully subscribe to it.

Customer Self-Service

Customer Self-Service

Some companies prefer a self-service model in which they sell lower-priced SaaS products at a high volume such as a Medium membership, Spotify subscriptions, or a phone plan. 

This model does not require active sales reps in the process. Website content helps users through the prospecting stage and encourages them to sign up or buy the product. Though sales reps will answer questions, users will sign up on their own.

Enterprise sales

In this sales reps engage with entire companies, attempting to close bigger, more complex by selling software at low volume and high price. Enterprise sales people generally spend months working along with prospects to answer their questions, give a demo on software, and meet with stakeholders to finalize the decision.

For instance, SaaS companies offering expensive and complex products like ERP software costing around $50,000 per year often use this model.

So before selling, every sales rep should know the ASP (Average Selling Price) that a prospect expects including customer service, a better business relationship, a signed contract, and invoicing.

Average Selling Price = Total Revenue Earned from selling a Product ÷ Total number of Products Sold

How much do saas sales representative make?

According to glassdoor the average base salary for a SaaS salesperson is $48,820. Whenever a salesperson meets or exceeds the quota, Commission is usually added to the base pay. 

SaaS reps generally have a higher base pay than other salespeople as they deal with complex technical products, which require highly specialized knowledge.  

SaaS Sales Commissions

Sales reps usually receive a commission when they close a new business or renew existing accounts. It is based on monthly or annual recurring revenue. 

Some companies award commissions only when a new client submits payment. This avoids the risk of the customer churning quickly and reneging on the agreement. 

In other cases, companies might provide commission based on the percentage increase in the sales target. This commission structure encourages reps to focus on closing larger deals. 

Is SaaS sales a good career?

SaaS is a rapidly growing industry that offers amazing pay and performance-based compensation. When you jump on board in a sales role, you’ll initially start as a Sales Development Representative.

The role in this position is to make initial contact with customers whom you think will utilize the product. 

Also, technology job prospects are bright, when it comes to computer and software sales. The job market is expected to increase by 25% between 2019-2029. Hence, the demand for SaaS sales professionals will continue to grow.

How to become a software sales rep?

An entry-level sales representative job will help you to get into the tech and startup world. Despite competition for sales positions, the field is a fairly accessible field for recent college graduates or entry-level employees. 

The easiest ways to get a break into the SaaS sales industry without having any directly related experience are- 

  • Through Sales Representative Training Programs.
  • Sales Representative Internship.
  • Applying to High Commission Potential Positions.
  • Reaching out to Your Network.

So, if you can successfully leverage your ‘soft skills’ into a demonstrated aptitude for selling, then you can easily break the barrier and enter into this industry. 


SaaS sales is a complicated and rewarding process that provides immeasurable value to your prospects and customers. With the tips and strategies of a SaaS sales representative, you will be able to start a lucrative career. 

Always keep in mind- 

  • Choose a SaaS sales model that fulfills your business goals. 
  • Integrate your marketing and sales teams to work together.
  • Applying outbound and inbound lead generation strategies.
  • Delivering excellent customer service at all stages.
  • Retain your customers and build relationships with them. 

So, invest in your SaaS efforts and optimize for your unique qualities to achieve high-momentum growth.

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