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Old Ways, New Needs: Justin Perreault on SaaS Sales Cycle

December 19, 2008 - Palo Alto, CA

As more and more enterprises move to Software as a Service for the applications they need, the way SaaS companies sell now is becoming as important as what they sell. In today’s enterprise market, many SaaS companies still are using traditional approaches that rely heavily on direct salespeople. These approaches are expensive, cumbersome, and simply do not suit the way customers want to buy now. SaaS companies have a good opportunity succeed, even in today’s tough economy, but to do so, they must evolve away from strictly traditional sales models and toward hybrid selling methods that combine the best points of the old ways with new Internet marketing and sales techniques.

SaaS enterprise selling models are a critical factor for today’s VCs investors as well. In fact, VCs who invest in the software industry today will not even consider funding SaaS companies whose sales and marketing plans do not reflect the new realities of the market. Discussions and guidance on the types of sales models necessary for success in today’s market are an integral part of the investment process for both potential and existing portfolio companies.

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