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SaaS Fundamentals

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Welcome to Sales Fundamentals, the starting point for anyone looking to break into the world of tech sales, or sharpen their foundations.

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This section is designed for aspiring and early-stage sales professionals (SDRs, BDRs, and beyond), and will walk you through the core concepts, terms, models, and tools that drive the SaaS sales world.

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From understanding how SaaS companies operate to how deals are structured and pipelines are built, this is your foundation. Whether you’re preparing for your first interview or already working in your first role, these guides will help you speak the language, ask better questions, and accelerate your learning curve.

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What you'll learn in this section:

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  • What SaaS actually is (and why it matters)

  • The core sales roles and responsibilities (SDR, BDR, AE)

  • How SaaS companies build and structure their sales teams

  • CRM basics and how to use them effectively

  • Prospecting tactics and outreach tools

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SaaS Fundamentals – Origins, Types, and Evolution

What is SaaS?

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Software as a Service (SaaS) is a cloud-based software delivery model where users access applications over the internet, instead of installing and maintaining them on local machines or servers. This model has revolutionized the way software is purchased, delivered, and used.

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Core characteristics:

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  • Subscription-based pricing (monthly or annual)

  • Hosted in the cloud

  • Multi-tenant architecture

  • Regular, automatic updates

  • Accessible from any device

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A Brief History of SaaS

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  • 1960s–1970s – Mainframe Era: The roots of SaaS go back to centralized time-sharing systems.

  • 1990s – ASPs (Application Service Providers): The first attempt to deliver software over the internet.

  • 1999 – Salesforce launches: The birth of modern SaaS as we know it.

  • 2000s–2020s – The Cloud Era: SaaS becomes the dominant software model for business.

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Types of SaaS Products

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By Audience:

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  • B2B: Salesforce, Slack, Workday

  • B2C: Spotify, Netflix, Dropbox

  • B2B2C: Stripe, Twilio

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By Function:

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  • Horizontal SaaS: HubSpot, QuickBooks

  • Vertical SaaS: Procore, Veeva

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By Deployment:

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  • Pure SaaS | Hybrid SaaS | Managed SaaS

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SaaS Maturity Levels

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  1. Web-enabled software

  2. Cloud-native platforms

  3. AI-driven applications

  4. Composable, API-first tools

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Looking Ahead: The Future of SaaS

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  • AI-native tools

  • Industry-specific micro-SaaS

  • Embedded analytics

  • Low-code/no-code platforms

  • Deeper integrations via API-first design

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Understanding these fundamentals is the key to excelling in SaaS sales, whether you're cold calling, writing outreach emails, or speaking with a VP of Sales. The more you understand how your buyer’s world works, the more credible and confident you'll be.

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See the video below to explain SaaS more deeply. 

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