From selling product (Enterprise SaaS), to selling services, what to expect?

Hi All,


I`ve been selling enterprise SaaS in the HRTech for the pat 4 years. This being my first tech sales job (other sales position i held were not in tech), I wanted to ask you guys, if anyone of you has shifted from selling product, to selling services in tech?


I`ve been approached for some sales positions in services oriented tech companies, but don`t know what to expect. Is it harder, easier to sell services? Quotas more easily attainable?


Appreciate any feedback here :)


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6
jefe
Arsonist
4
๐Ÿ
Like @TennisandSales , I've only sold services alongside software.

I'm wondering why you're making this move. SaaS tends to have much better margins and faster payouts.

With services, you're often only comped after hours have been completed, and have been invoiced and paid. It can take months or years to see the full value of your sales.
TennisandSales
Politicker
3
Head Of Sales
if we are making the case for Saas this is a GREAT point. Services gets REAL hard to scale since you can only move as fast as your people can. and you need more ppl to get more customers or you need to land large customers that will pay more for the same amount of time.
jefe
Arsonist
4
๐Ÿ
It was a big reason I left one company. Couldn't keep up with what I was selling and had trouble finding talented developers with the right skills to fill the gap.
oldcloser
Arsonist
2
๐Ÿ’€
To be fair, who actually can keep up with what youโ€™re selling.
jefe
Arsonist
2
๐Ÿ
Too true, my friend
ZVRK
Politicker
2
Enterprise Account Executive
Thatโ€™s a great point about when youโ€™re getting comped. Ill need ask around about that too.
TennisandSales
Politicker
2
Head Of Sales
I have only sold services when paired with the software I sell. (you can use the product for free and just buy services, or buy a higher level of the software with a license + software)

so not exactly what your looking to get into. But here are a few questions I have asked my self when switching companies:

1. is ether of these companies recession proof? if funding dries up what would get cut first? The services? or the software you sell now? 2.Is there an advantage in industry v industry? Or is it more company specific. (it might not be easier to hit quota in services overall, but at specific company it might be but that has more to do with the company not the industry.) 3. Is it the right time to leave your current org? 4 years is a solid time and im sure you are starting to crush it, why leave now?

ZVRK
Politicker
1
Enterprise Account Executive
Iโ€™ll start with โ€œwhy leave nowโ€: i could be in a position to double my base. This could mean substantial improvement of my familyโ€™s financial security.

Is it the right time? Personally for me, itโ€™s never the right time, i tend to stick around. Precious job i had was for 8 years.. however, again, things have been a bit stagnant the past year so makes you think. Staying here, i can only negotiate something like a 10-15% raise end of year probably. Venturing out, as i said , i have a shot at doubling my base.

I wouldnโ€™t put any of these companies under recession proof, but the one Iโ€™m at now probably comes third ( Iโ€™m selling into hr, and hr spending tends to get cut first..)

One of them might have an advantage as its in data engineering, cloud operations.. these areas are i demand always as i see it.
TennisandSales
Politicker
1
Head Of Sales
doubling your base is a very very good ready haha!
Pachacuti
Politicker
2
They call me Daddy, Sales Daddy
Look at it like the product is the Service. Selling is selling - you need to determine who the buyer is and their buying criteria. Also, how they buy. So in the end, a widget is a widget.
ZVRK
Politicker
0
Enterprise Account Executive
Youโ€™re right, iโ€™ll do some proper research before making a decision to go forward with any of the options for sure.
Phillip_J_Fry
Opinionated
2
Director of Revenue
I made the jump from IT monitoring software to managed IT services. It's been interesting. Services can often be viewed as 'nice to have'. People aren't often in a rush to make a major change like shaking up their IT/cyber strategy, especially if they've been doing it a certain way for a decade.
Sales cycles are a lot more complex and a lot more centered around executives since its a major organizational change.
ZVRK
Politicker
1
Enterprise Account Executive
Iโ€™m currently selling a โ€œnice to haveโ€ platform for enterprises, so what youโ€™re describing right now is the exact thing thatโ€™s frustrating at my current job :) itโ€™s getting super tough to establish value with large organizations for something they view as a โ€œluxuryโ€ solution. Iโ€™m hoping that with services, youโ€™re at least bidding for a project that already has exec buy in and sponsorship.<br><br>Hereโ€™s example - customers will often times pay more to a MS Power Bi implementation partner for their services ti implement, setup, create reports for them, then they will for the actual Microsoft licenses.<br><br>This is where my dilemma comes from , is it not โ€œeasierโ€ to sell services than the actual licenses?
oldcloser
Arsonist
2
๐Ÿ’€
Having spent a few minutes in the BI space, this exact dilemma sounds like itโ€™s got โ€œgrass is greenerโ€ all over it in a time when budgets are just plain tight. I really donโ€™t know which is โ€œeasierโ€ to sell.

Counter example- Where would you rather be, at IBM selling Watson ML solutions or at the data pipeline company selling the ETL necessary to make Watson work?

Chicken or egg to me. ๐Ÿคท๐Ÿปโ€โ™‚๏ธ
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