AWS Serverless Application Model (SAM) is an extension of AWS CloudFormation, consisting of two major components: SAM template specifications and SAM CLI. To get the most out of SAM templates, reuse common patterns using nested applications, minimize code by defining Globals, enable features with SAM Parameters and Mapping tags, safely deploy functions with AutoPublishAlias and DeploymentPreference, and enable security with Policy Templates. These tips can help simplify the development process and reduce complexity in building serverless applications on AWS.