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What's it really like working outside SaaS?

Insights & learnings from The Quota Hunter

Introduction

Over the last 10 weeks, I’ve learned about fascinating industries from coffee, telecom, shipping & logistics, credit cards, asphalt, PEO, and so much more. Zooming out over the last 2-3 months, I’ve also had casual conversations with more than 50 salespeople in all types of industries outside of SaaS.

Throughout all of these interactions, my approach has always been to simply learn from these salespeople with no agenda (and I certainly haven’t sought out people who “LOVE” their job).

The type of questions I’ve asked include:

• What does your company sell/do?
• What’s your role?
• What’s a typical “day-in-the-life?”
• What’s your earning potential?
• What do you live the most about your job?
• What do you like the least about your job?
• What’s your advice for someone looking to break into your industry?

In almost every single conversation, I’ve heard distinct themes that are fairly different than what I’ve seen, experienced, and heard from SaaS sellers.

It’s certainly not all roses and sunshine, however, there seem to be some clear advantages for certain people with specific interests and skillsets to work outside of SaaS.

Enough foreshadowing, time to dig in!

Themes & learnings

Like everything in life, there are positives and negatives for working in any industry.

Here’s some of the positive themes I’ve heard:

1. Build diverse skills: In SaaS, it is common to own one piece of the sales process i.e. prospecting, closing, onboarding, customer success, etc. Outside of SaaS, many salespeople have an opportunity to work full-cycle where they close deals and manage relationships. Many find this type of environment more fulfilling because they can control the customer journey while flexing & building more sales muscles that keep them interested & well-rounded.
2. Residual commissions: Instead of only earning commission when deals close, many industries outside of SaaS offer opportunities to earn commission for years, and in some instances, throughout the life of a customer as they increase their spend and/or renew. This structure is typically found in jobs where someone works full-cycle which is fairly prevelant outside of SaaS.
3. Reduced saturation & competition: This is a theme I’ve heard over and over again again that helps in a few areas. First of all, most salespeople I’ve talked with outside SaaS say they can book meetings far easier & faster through cold calling than what’s common in SaaS. In addition, there are certainly industries outside SaaS with far fewer competitors than you’d find in cybersecurity, martech, etc. which can equate to a higher win rate and greater chance of maintaining a customer over the long-term.
4. Reduced pressure & burnout: It’s clear that in many of these industries, hunters are less stressed than what I’ve seen from most SaaS salespeople. Either they work in a role that doesn’t require 40-60 hours to get ahead, or, they bust their a$$es over the first 1-2 years and can take their foot off the gas a bit going forward knowing they have built up a strong customer base that generates residual commissions.
5. Longer tenures: Based on research I’ve seen on SaaS, the average tenure of a salesperson is only about 1.8 years! From the conversations I’ve had with salespeople outside SaaS, they (and many colleagues) have been at the same company for 5, 10, even 20 years. The longevity & staying power outside SaaS is a massive benefit!
6. Less risk of layoffs: In most conversations I’ve had, salespeople have stated their companies are stable with no risk of layoff. Many of these industries have seasonality, though, which could mean higher quotas in the “boom” periods and lower commissions in the “off months” which, from my experience, isn’t a typical commission structure in SaaS.

Here are some of the negative themes I’ve heard:

1. Economic sensitivity: Certain industries like real estate, construction, manufacturing, financial services, automotive (and more) can be highly sensitive to economic cycles. A recession can lead to reduced demand, lower sales, and job instability (which could lead to layoffs).
2. Market Volatility: Financial services, commodities, manufacturing, etc. can be highly volatile, with sales opportunities fluctuating based on market conditions, regulatory changes, or geopolitical events. I heard from several sellers that the upcoming elections have impacted sales (esp. when selling a good or service that is considered a capital expenditure or CapEx).
3. Regulatory & compliance challenges: Industries such as pharmaceuticals, healthcare, and finance are heavily regulated, requiring salespeople and companies to follow complex laws and standards. Navigating these regulations can be challenging and may slow down the sales process.
4. High barriers to entry: Certain industries, such as aerospace, energy, or biotech, require specialized knowledge or technical expertise that may be difficult to acquire without significant training or experience (which could bar someone from entering an industry they’re interested in). That being said, many sellers I’ve talked to have taken a “step back” in their career (title & financially) to get into an industry they’re very interested in that requires this knowledge.
5. Certification and Licensing: Some industries require certifications, licenses, or extensive training before you can begin selling. Similar to the above, this can be a barrier to getting a job or requiring a step-back to pursue.
6. Work-life barrier challenges: “Return to office” is something every industry has experienced post-covid, both in SaaS and outside of SaaS. That being said, there appears to be a high number of non-SaaS sales jobs that need to be completed “on-site” in a facility somewhere in addition to a high-percent of sales jobs that are considered “outside sales” roles where you’d meet clients in-person. For people craving a life working from home at their computer, there could be fewer of these opportunities outside of SaaS (especially if you’re targeting high earning potential).
7. Lower salaries: Lower salaries in non-SaaS industries isn’t the rule, however, in many industries (esp. non-technical ones), salaries will be lower than what you might find in SaaS. That being said, there could be an ability to experience fewer peaks and valleys in earnings (and in many cases, salespeople outside SaaS have an opportunity to earn substantially more than most SaaS sellers - especially if they can nurture & grow accounts).
8. Equity as a component of compensation is less common: There are definitely non-SaaS companies that are VC/PE-backed where you could earn equity, but from what I’ve seen and heard, fewer companies outside of SaaS offer equity to employees.

For more information on this topic, you can check out the Career Path Exploration Tool currently being built.

I'd love your opinion on this page. Check it out and share any feedback on what you like, don’t like, and other ways this tool can become a better resource for you! Email Jay@quotahunters.com

Do you want to contribute to The Quota Hunter?

We're still early in this journey and want to go so much deeper in our research. If you (or someone you know) is a salesperson outside of SaaS, please send Jay Green a note (Jay@quotahunters.com) so I can meet you/them and learn about your experiences 🙏.

Thanks in advance!