SaaS — software as a service — is software you rent by the month or year instead of buying once and installing. It runs in the cloud, updates continuously, and is billed per user or per plan. SaaS is the model behind most tech sales, and it changes how selling works: because revenue is recurring, a customer is worth many times their first invoice, which is why companies invest so much in SDRs and BDRs to keep the funnel full.
In plain English
Instead of paying once for software you own, you pay a subscription you keep. That small shift is huge for sales. A sold SaaS account keeps paying month after month, so the value of winning it compounds, and losing it to churn matters. The sales cycle is also demo-driven: a prospect rarely buys software without seeing it work, which is why the demo is the centerpiece of the tech-sales funnel.
Why it matters to you
If you're heading into tech sales, SaaS is the market. The account executive runs demos and closes; the SDR books the meetings that make the funnel work. SaaS commission and OTE are the benchmark you'll hear quoted, and the recurring-revenue logic is why the quota and the career are built the way they are. Know what SaaS is and you understand the economy your whole first job runs on.