Revealing SaaS Sales and Incomes
In today’s world, all businesses strive for quick and effective solutions. They want to boost their sales, have more income, and become more and more successful. If you or your business deals with cloud computing categories, then you may have heard about SaaS. Moreover, maybe you have been lately thinking of becoming a SaaS sales rep and making a lot of money. So, if all of these interest you then you should continue reading this article as we are going to discuss the main benefits of SaaS, its importance in business, learn how to increase SaaS sales, as well as, get acquainted with the salary of SaaS sales reps.
What are SaaS Sales?
SaaS product sales are one of the growing sectors all around the world. SaaS sales are the process of selling software products to the customer. As a SaaS Sales representative, you are going to be responsible for clearly understanding the requirements of the clients, recommending them the necessary products, negotiating the price of the product, and many more.
How much do SaaS Sales Reps Make?
If you are a communicative and active person and you are good at sales then you would probably like to become a Software salesperson. It is a highly demanded job today and the salary can be good enough if you work hard and become a senior salesperson.
First, let’s understand how your salary will be formed if you become a SaaS sales rep.
Well, the salary of a SaaS sales rep is not stable. Besides the fixed money that you get for sales, you also get the commission, as well as bonuses. In addition, your salary depends on your experience: you are a junior sales specialist, middle or senior salesperson. So, SaaS sales reps get a little bit more commission than just sales specialists. Usually, SaaS sales reps earn up to 10% commission, but it also may be different depending on the revenue. For instance, if a rep has a deal that is worth 10.000 $ then he or she will get 1000$.
Now, let’s understand how much you are going to earn as a SaaS sales rep depending on your experience level.
- Entry-level SaaS Sales reps’ average salary is around 48.000 $, but for example in the United States, an entry-level SaaS sales rep gets around 84.000 $ annually. For an entry-level SaaS sales rep position the company may require 0-2 years of experience.
- Mid-level SaaS Sales reps earn up to 79.000 $ on average. The company may require up to 5 years of experience to hire a mid-level SaaS sales representative.
- Senior SaaS sales reps can get up to 139.000 $ annually in the United States. The average salary for them is around 94.000 $. For the position of senior SaaS sales representative, the company can look for at least 7 years of experience.
Summing up, we can say that if you become a SaaS sales rep then you are going to earn almost 155.000 $ annually. This is probably the highest salary you might get. However, the lowest salary is 23.000 $ annually. And the average salary of a SaaS sales representative is 68.000 $ according to different statistical data.
Sales Compensation Plan for SaaS
The compensation policy for SaaS sales reps differs from company to company. The compensation strategy should show the core values of the company and its working culture. Besides, it is based on the size of the company, its financial resources, objectives, and certain unique characteristics of the business. The compensation motivates the employees to work better and better.
For example, when forming the compensation model the company may concentrate on certain principles, such as data-based compensation, and transparency of compensation. Besides, they make sure that everyone has equity, that is the compensation should reflect everyone’s ownership.
A compensation model can be built taking into account some important factors. They are the following:
- Experience Level of the SaaS sales rep – the experience of the employee is a great factor that will form her or his salary. For instance, senior-level specialists don’t need the training to understand their responsibilities. Thus, they demand more salary than others.
- Potential of the SaaS sales specialist – professional skills of the SaaS sales rep matter when the company forms the compensation calculator. The company should have a clear image of the key skills it needs for the specific job.
- Location – the cost of living is an important factor when determining salary. The cost of housing is also a key factor for it. Usually, in expensive cities, the salary is higher than for instance in rural areas.
- Demand and supply – when forming a compensation model should exactly know whether there are available employees in the area where it wants to hire SaaS sales reps. For example, you can find the best SaaS sales reps in the UK, Germany, Sweden, the Netherlands, and France.
Understanding SaaS Sales
If you are going to become a SaaS sales rep then you should clearly understand the sales process. So, now, let’s understand the stages of the SaaS product selling process.
The first stage is awareness – it is the first important step that will lead you to successfully sell your SaaS product. As people do not even know that they really need your product you should do everything to convince them that your product is the best for them. During this process, the company’s marketing team will be busy answering calls, but that may only partially satisfy people. During marketing campaigns, you should clearly emphasize the uniqueness of the product. You should have a complete sales strategy for this whole process.
The second stage is engagement – in this stage, you already have public attention. Your product is known to the public and there will be some people that would like to buy it. You should already find a balanced price to offer them.
The third stage is exploration – in this stage, it’s better to communicate by phone. You should actively talk to your clients, and make sure they get full support from the team. Don’t forget to ask the client whether they need more help or not.
The fourth stage is conversion – in this stage, you have already sold your product. Well, you should celebrate it but you should not forget to organize meetings for your marketing team and keep track of their growth. Besides, it is desirable to analyze the sales process, to understand your strengths and weaknesses.
Common Mistakes to Avoid in SaaS Sales
While selling software products you should avoid some mistakes not to harm your company.
The common mistakes that SaaS sales representatives may make are the following:
- Having unrealistic quotas – in order to avoid financial problems and achievable goals the company should set reasonable quotas. So, before setting the quotes it is desirable to do market research and not waste the resources of the company.
- Exaggerating discounts – discounts can be a great help to the sales process. It appeals to clients and may be good for the company. However, you should not overuse them not to lower the revenues. Discounts can be useful for the short term in the case of selling SaaS products.
- Ignoring KPIs – KPIs or Key Performance Indicators help you measure the successes of your company. They can be conversion rate, win rate, customer acquisition cost, revenue churn, and many more. The company should pay strong attention to this if it doesn’t want to fail.
So, in this article, we discussed SaaS sales. We got acquainted with the average salary of the SaaS Sales representative depending on their experience level. Besides, we dived deep into the compensation model of the company.
We pointed out the key factors that are taken into consideration when the company wants to create a compensation strategy for its employees. Those factors were the experience level, location, demand and supply, and professional skills of the sales representative.
Besides, we discussed the stages of selling SaaS products. We also analyzed the mistakes that you should avoid when selling a SaaS product. As you saw, SaaS sales professionals are highly demanded in the market today. So, if you are thinking of becoming a SaaS sales representative then you will definitely earn a lot of money. Of course, it depends on the country you are going to work in. As you remember, the United States pays a lot more than other countries. To sum up, we can say, that SaaS sales reps truly can make a lot of money and advance their career.
- Canva Free vs Pro: Comparison in 2023 - February 24, 2023
- What Are the Most Popular SaaS Examples - January 27, 2023
- How Can I Sell SaaS Through a Blog - January 27, 2023