Are you interested in a career in SaaS/tech sales but don’t know where to start? Our comprehensive guide outlines the essential steps you need to take to break into this exciting industry. From gaining relevant experience and building a strong resume, to networking with industry professionals and developing essential sales skills, this article provides a detailed roadmap to help you succeed in SaaS sales. Whether you’re new to the industry or looking to take your sales career to the next level, our guide has everything you need to know to get started.

1. Develop a strong understanding of the SaaS industry: To be successful in SaaS sales, it’s important to have a thorough understanding of the industry you’ll be working in. Read up on industry news and trends, and gain a solid understanding of SaaS business models and key metrics.
2. Gain relevant experience: While it’s not always necessary to have previous sales experience, it can be helpful to have some relevant experience in the SaaS industry. Consider starting out in a customer service or support role at a SaaS company to gain experience working with customers and learning the ins and outs of the industry.
3. Build a strong resume and cover letter: When applying for sales positions in the SaaS industry, your resume and cover letter should highlight your relevant experience and skills. Be sure to include any sales experience you have, as well as any relevant education or certifications.
4. Network with industry professionals: Attend networking events and conferences to meet people who work in SaaS sales. This can be a great way to learn more about the industry and make valuable connections.
5. Prepare for interviews: Before going into an interview for a SaaS sales position, do your research on the company and their product. Be prepared to talk about your sales experience and how it relates to the SaaS industry.
6. Develop strong sales skills: In addition to industry knowledge, strong sales skills are essential for success in SaaS sales. Work on developing your communication, negotiation, and relationship-building skills.
7. Consider additional training or education: Depending on your level of experience and education, it may be helpful to seek additional training or education in sales or the SaaS industry. Consider taking courses or certifications to further develop your skills and knowledge.

ARR vs. ACV: Understanding the Differences

If you’re involved in the SaaS industry, you may have heard the terms “ARR” and “ACV” thrown around. But what do they mean, and why are they important? In this article, we’ll take a closer look at these two metrics and explain the key differences between them.

What is ARR?

ARR stands for “annual recurring revenue.” It is a metric that represents the amount of revenue a company can expect to generate in a year from its current customer base. To calculate ARR, you take the total amount of revenue generated from subscription-based products or services in the past 12 months and divide it by the number of months in that period. For example, if a company generated $1 million in subscription revenue in the past year, its ARR would be $1 million.

ARR is an important metric for SaaS companies because it provides a clear picture of their revenue stream and growth potential. By tracking ARR over time, companies can identify trends and make informed decisions about how to allocate resources and invest in new products or features.

What is ACV?

ACV stands for “annual contract value.” It is a metric that represents the total value of all contracts signed with new customers in a year. To calculate ACV, you take the total value of all new contracts signed in the past 12 months and divide it by the number of months in that period. For example, if a company signed $2 million worth of new contracts in the past year, its ACV would be $2 million.

ACV is an important metric for SaaS companies because it provides a clear picture of their sales performance and growth potential. By tracking ACV over time, companies can identify trends and make informed decisions about how to invest in sales and marketing activities.

Key Differences between ARR and ACV

While ARR and ACV are both important metrics for SaaS companies, they measure different things and serve different purposes. Here are a few key differences to keep in mind:

1. Time frame: ARR measures the total amount of revenue generated from current customers over a 12-month period, while ACV measures the total value of all contracts signed with new customers over a 12-month period.
2. Customer focus: ARR is focused on current customers and their subscription revenue, while ACV is focused on new customer contracts and their total value.
3. Predictive power: Because ARR is based on existing customer revenue, it is a more stable and predictable metric than ACV, which is based on new customer contracts and may fluctuate more.
4. Sales and marketing focus: ACV is a key metric for sales and marketing teams, as it represents the value of new customer contracts and helps to identify trends in sales performance. ARR, on the other hand, is more relevant to finance and operations teams, as it represents the total revenue generated from subscription products or services.

Conclusion

ARR and ACV are both important metrics for SaaS companies, but they measure different things and serve different purposes. By understanding the differences between these two metrics and tracking them over time, SaaS companies can gain valuable insights into their revenue streams and growth potential. Whether you’re focused on finance, operations, sales, or marketing, it’s important to keep both metrics in mind as you work to grow your SaaS business.