T
T

Tatertot

Business Development Executive

Executive
Executive
Executive
+5

How important is a recurring book of business?

Transitioning into the Saas world as we speak. Coming into the final stages of multiple interviews and I can't help but wonder if a recurring book of business is even a thing? 

My current role, digital marketing sales, your book is everything. New sales commission is good, but what you really value is what you get paid month after month from people who are still doing business with us. 

Is this the same in Saas? Is it something I should be asking about or is commission from
new business the only focus? 
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funcoupons
WR Officer
7
👑
Really depends on the organization and what the product is/how the departments work together.

In my company, I'm only responsible for securing new business. We have a client success team responsible for renewing contracts and upselling. I don't have a book of business. 
poweredbycaffeine
WR Lieutenant
3
☕️
In SaaS you are typically selling annual contracts, renewing on an annual basis. You would likely have an AM or CSM behind you doing the renewal work and keeping them on as a client.

What are you going to be selling so we can help better advise?
mitts2
Politicker
2
Account Executive
I get paid on new biz and upsells. If I am able to build a good relationship with a buying team, I can go back to that well a few times for solid upsells on product or increased volume. The product needs to prove itself but if the client is invested, that usually works itself out.
UrAssIsSaaS
Arsonist
2
SaaS Eater
Need a little more context here because there are a few different ways SaaS companies comp AE's and how they define your scope of work. 

My current team is responsible for new logos but are comped based on recognized revenue so their deals have an aspect of recurring revenue. 
Diablo
Politicker
1
Sr. AE
Hey Tot, good question - as funcoupons mentioned it depends from company to company you might have to ask them. We also get paid for getting new biz and CS is responsible to keep low churn and have the existing ones to renew. However, if I sign multi-year deals in the first go, I will get paid for all those years.
Justatitle
Big Shot
1
Account Executive
Depends on if they’re asking you to be an AE focused solely on acquisition or an AM focused on recurring revenue.

some companies will do a blended role of AE/AM which I have done and it’s not fun but usually you are paid more for that so that’s nice.

in Software acquisition is very important but recurring revenue seems to be scrutinized more as that shows stability in the company and that you aren’t churning clients left and right.

good luck in the interview processes. 
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
At my previous employer, the customer was immediately converted to the AM team after the first sale, which was a departure from the previous plans, which was to not transition that account until the new FY.  What this did to the AEs was make that first sale very important and put the onus on them to make that sale as comprehensive as possible, as it immediately removed that customer from any add on sale, even a month later.

Most companies don't immediately remove a customer after that first sale, even for net-new reps, giving the AEs the remainder of the FY to close more business/upsell that customer before the reset of quota/territory etc., that would occur at the beginning of the year, so watch for that.

Some companies, like the smaller one I'm at now, will attach AEs to existing accounts  if they're targeted for ARR growth.   I work in tandem with AMs on those accounts to bring in new revenue from new LOBs.  It's a lot of work to understand these customers and maintain a presence in the account calls, but the benefit is that I've been handed some accounts that are ready to buy in order to supplement my hunting for new logos during this ramp period.   However, I am not responsible for the renewals, only new ARR, so it's not really a book of business in that regard.

I have also worked in a situation where I was responsible for renewal of certain key customers in my region.  Any attrition was a real bear, as you'd have to make up that $$ on your new logos.  Being in a hole based on customer experience you have no control over, often held over from prior years before the account was assigned to you,  is something I'd never want to be part of again.  So, if that's what you mean by book of business, it's possible that it comes with its own issues.
payton_pritchard
Executive
0
RSM
Will probably vary a bit across companies, you should absolutely ask them to talk you through what you'll be responsible for and how you'll be compensated. 

In my experience it's probably more likely that you'll only be getting commission on new revenue, but you'll have to ask each company this.

A recurring book of business is pretty much the revenue concept behind a SaaS business as a whole though -- most contracts will be annual subscriptions with company success and valuation being based of off their ARR metrics
SQL
Contributor
0
Senior Manager of Sales
This is highly dependent on the SaaS product you sell. At my company, all sales are immediately passed to the AM team. There are a few products that add NBB monthly because of how the client uses them. The monthly residuals are a tiny portion of what is needed to hit quota.
The larger the company, the less likely you manage the client post sale. Most bigger companies want you to focus on NBB. They build your comp plan around it and the plan will incentivize new logos.
MCP
Valued Contributor
0
Sales Director
Recurring revenue IS the SaaS model, but generally sales people only get paid on new business and usually for only a set period of time. Depending on the size of the org, upsell is generally the responsibility of CS. The AEs job is to land logos.

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