How are SaaS and Enterprise Software Sales Different?

You might have come across SaaS sales job descriptions stating “x years quota achieving sales success, preferably/ideally in enterprise software sales (and SaaS sales)”. For anyone who has done or at least has familiarity with both SaaS and enterprise sales, there are clearly some differences… or are they clear?

In an attempt to clarify without “stereotyping” too much, here’s my quick take on some key differences:

* What is being sold:
SaaS: A relationship (long-term to get the recurring revenue)
Enterprise Software: A product (relationship is also important so more products can be sold)
* Sales mode:
SaaS: Sell over the phone/web, sometimes in person for large or strategic deals
Enterprise Software: Mostly sell in person. Meetings can also take place on the phone/web
* Sales productivity:
SaaS: More deals/rep, sales cycles tend to be days to weeks
Enterprise Software: More revenue per rep, higher cost for sales. Sales cycle can be weeks but more often are months

These differences may not keep over time. With proliferation of mobile computing and Web 2.0, end users / software customers have become more comfortable with and increasingly demand more SaaS offerings. Channel partners are also looking to get in the SaaS wagon as their businesses face narrower margins on current offerings. Software vendors, to stay competitive, continue (and for some, start) offering more with a SaaS model. The gap between SaaS and enterprise software selling are narrowing, driven by the three parties’ shift to SaaS. Would you be surprised to see in the not-so-distant future, that all software sales are done on the low-risk, pay-as-you-go model?