look this new agency SaaS model is giving me major multi-level marketing MLM Vibes it's
like Herbalife is back although instead of your local Yummy Mummy selling supplements that don't
work it's online gurus selling a business model that doesn't apply to 99 people and
I want to start off by saying that I think go high level is a great software I use it myself
although in this video I'm going to be breaking down the good and the bad of this SAS model and
why frankly I believe so many people are being misold an opportunity right now now firstly why
should you care about my opinion well I own an active seven figure agency still to this day I've
been around in this industry for longer than your favorite online Guru probably still at a nine to
five job and I've helped over 2 500 agency owners in various programs that I've built over the past
few years and in doing that I understand what it takes to be successful in this industry and trust
me when I say I have every good intention when recording this video because I want you to succeed
but sometimes you have to be the bearer of bad news so what actually is this agency SAS model
first of all it's a concept that's been created by go high level in the simplest form it's an
affiliate marketing scheme go high level is an agency software it's an all-in-one CRM
pipeline management click funnels replacement ad management tool right it does the full A to Z of
agency lead generation you can even use it to generate results for your clients right now go
high level got a significant amount of investment a couple of years ago it's a great software now I
use it in my agency but at some point within that investment I'm sure somebody who invested in high
level had a conversation so that we need to sort out this affiliate scheme we need to make this
more lucrative so high level made the decision to White Label their software and that simply means
that you can get rid of all of their branding and essentially look like you have your own software
product that you can then sell to your clients now where does this mix with smma well so so many
or I say so many a few online gurus out there started promoting this brand new business model
the new shiny object which is now agency Sasol smma SAS whatever you want to call it which is
essentially where you would instead of providing a done for you service for your clients typically
we'll approach a business let's say it's a local Law Firm for example and we'll provide them with
a lead generation service by running Facebook ads for them we might do a little bit of appointment
setting for them as well to make sure those leads are qualified but it's a full done for you service
whereas the SAS model promotes creating your own white label version of high level and then
selling people on a done with you service where essentially you have what's called a snapshot
which is a pre-built landing page maybe some ad templates using a tool like up hex again a very
great tool within its own right to then get law firms to run their own ads on the go high level
platform and manage them themselves sounds good in theory right people can sign up to this software
they'll pay 10 of the price that it might cost to work with an smma typically an smme might charge
1K for this lead generation service whereas with the SAS model you can get away with charging 200
a month because you're not doing anything for them it's a done with you service you're just
providing the resources you're providing the software so in theory the benefits of this are
you get your clients signed up on a monthly retainer they stay with that software for a
longer time because of the fact it's a lower fee than your agency when the reality is that
it's so much harder for you to generate results for a business like this because it's not that
difficult to actually manage Facebook ads it's not difficult for a local business an aesthetic Clinic
a gym a dentist whatever Niche you're going for it's irrelevant it's not difficult for that kind
of a business owner to go and learn how to run Facebook ads profitably for themselves if they
actually wanted to dedicate the time they could do this in one single afternoon and they could run
those ads and maintain them on a daily basis or every couple of days or so the reality is business
owners do not want to do it themselves that is why they pay agencies because they are busy running
the operations of their company and even now if they have this spur of motivation to go and launch
some ads themselves they watch a few videos on the weekend they might launch them on Monday but when
it comes to Friday it'll be down there priority list again because they'll be dealing with actual
real problems within their business that they've been dealing with for years and years and so at
that point they then go and call an agency to fix this for them and work on a done for you service
so regardless of whether you can sign up clients on your SAS model within the first month they're
going to realize that it takes a lot more time than you sold them it does to actually get results
for their business and then they're going to go seek a done for you service a conventional agency
service so let's say you do get some businesses that stay with you for an extended period of time
right they don't want to go work with an agency they want to do it themselves what kind of results
can they expect well presuming they're using templates that you've created for them landing
page templates if another 50 people are on this software or 100 people on this software those
landing pages are going to fatigue very quickly because everybody is using the same landing page
and the algorithm is going to recognize that the cpms are going to Skyrocket and people are
just going to get wise to the offers that are being put in front of them joint with the fact
that they're going to be using ad templates that have been replicated across a number of different
businesses with the only Nuance being the business name and maybe some colors on the creative
things are not going to last a long time at all so as an agency you're going to have to
be constantly creating new creatives and so okay Jordan what about if I just create a
training program why don't I just teach these people how to manage the ads themselves what's
the point in them using the software because then it just becomes a CRM so they're going
to recognize that they understand they know how to run ads maybe I don't even need to use
this software anymore maybe I don't need to pay 200 a month let me just get another CRM
that cost me 20 a month and run ads natively on Facebook directly why don't I just do that
and that's exactly what so many of your clients will do and so you will experience High churn
rate in this kind of a business model and it's been promoted as a low churn rate business if you
don't know churn rate is the rate at which you're losing clients now I've spoken to people that are
already operating in this SAS model who have tried it themselves who are experiencing 20 churn rates
up to 40 churn rates that means they're losing 20 to 40 percent of their clients every single
month because they're looking elsewhere and in most cases the number one reason people leave is
they join the software realize it's harder then they've been sold on it being and then they're
like oh [ __ ] it I'll just go to an agency to do this for me in fact don't take my word for it
let me show you a snippet of an organic catch-up call that I had with yandere who's the owner of V8
media one of the biggest agencies in South Africa who got roped into trying this agency SAS model as
part of their overall acquisition strategy what have you gotten the opinions on on that model
because we've worked with so many Beauty clinics we've created like almost like a beauty Clinic
done with you program yeah so we've got in we're getting Beauty clinics on board at 149 a month and
um I think we've signed like 25 of them in the last month or two years it's a nice what's
happening now is we're getting more Beauty business from it not people buying into the
program but actual leads coming in and doing buying are done for you Legion service so so
what we're doing is we're using we're leveraging that kind of like model um as to get leads onto a
call and then we convert them to done for you and then do the downsell as they're done with
you but you get go high level you get Apex you've got like templates so essentially it
just liquidates our ad spend um which which I see the use case for so I can obviously see
like that but but but even in you doing that you acknowledge that those people are still looking
for your done for you service Anders they're looking for someone to actually just do it again
high level white label and that's going to be their sole business model then they're
they're going to have a hard time because their clients are ultimately not going to
stay on that tool for long because they're going to be like [ __ ] this is hard now I
need to work with agencies the generator on the done with you model uh we do courses and
we've got we've got courses and there's one or two calls a week um I think the journey
was about 18 19 which is high like it's it's not low it's like 20 but obviously it can get better
but that's that's every month that's every month yeah that's a generation like it is feasible if
you want to make an interview or if you want to make two three thousand dollars a month then yes
you can do it but if you want to make 100 games I don't know and then as it started we were like
Hey we're actually getting clients from this let's just keep doing it and just downsell the ones that
kind of so now it's basically just a lead magnet yeah it's basically just the lead magnet actually
interesting so as you can see there yandro who by the way has over 60 active done for you
conventional agency clients has found that this SAS model is really not much more than a lead
magnet it's a great way to get leads in the door but they want to leave and have a conventional
agency service eventually so if you don't offer that done for you Service as well as an upsell
then you're going to be shortchanged just trying to repeatedly replace the clients you're losing
with new ones and so how do you even get clients well you can run ads well as a beginner you're
not going to have budget to run ads so that kind of rules that out and you can do Outreach you can
be outreaching to clients who offer them this new software product and you're going to get the exact
same conversion rate on your emails as somebody would offering a done-for-you service apart
from you're selling it for 200 or at Max 500 and somebody else is selling it for one thousand two
thousand because it's a done for you so they're getting the same conversion rate on their cold
emails the same amount of clients but they're making more money than you and they're going to
retain those clients for a longer period because it's a service that's not as easily replaceable
now the biggest problem that I find with this SAS model is the fact that it's really truly got the
potential to turn into an MLM and in fact it really kind of already is guru's breed gurus
and the moment we have this shiny object being promoted online this new business model and we
have people trying it so many new people think okay this is the new opportunity this is what
is going to make me Rich this is going to get me 10K a month and they start maybe they buy an
online course about smma SAS maybe they try to get a few clients maybe they sign a couple of
clients and make a few K but at some point they're going to realize it's not as easy as it's being
made out to be it's not this new shiny object it's just as hard as building a conventional
smma and then what they do is they say all the people making 40 Affiliates from go high level
I know why am I trying to sell a service for 200 a month to business owners my local chiropractor
when I can just sell this business model to other people who want to start this business model and
make 40 of that anyway reoccurring affiliate it's too attractive as an affiliate scheme for
agency owners to stay motivated for long enough to actually make it [ __ ] work because the
reality is people will always take the shortcut the people will always choose the lit path of
least resistance to making money so if that means sacking off their SAS agency and just promoting it
to everybody else then so be it and you don't even need to make an online course anymore to
promote the SAS model you just need to make a YouTube video saying Hey look I made 10K yeah
[ __ ] you did click the link in my description sign up to my affiliate scheme I get 40 then just
get the 40 of your sign up but then when also you give up and start promoting the business model to
your friends they're gonna get Affiliates off your Affiliates and so on and so forth right
so you make your own mind up I'm not saying this business model was a fast for everybody
I do believe there is a subsection of the market that will be able to make some good coin with this
yandere is an example of that someone who's built an extremely successful seven-figure agency and is
now essentially using the SAS model as a downsell to his done for you service because he recognizes
that these clients don't want to spend the money that he's quoting them they'll pay 200 a month
and they'll come to terms with the realization that done for you is better for them eventually
I see that tangible fit inside of the market there I also recognize that there will be someone that
has had a successful agency in the past that will be able to pull off this agency SAS model I don't
doubt that there are very successful agencies out there who just focus on this SAS model okay so
don't get butt hurt if you're watching this video but what I am saying is it's not realistic for 99
of people and it's misinformation to be promoting this model to new starters new starters would not
be able to make this business model successful if they were able to make it successful they'd
be able to make a normal smma successful and the reality is it doesn't matter what [ __ ] business
model you start it's gonna be difficult and when anybody's promoting a new shiny object that's
easier than everything else it just pisses me off because it's misinformation and it misguides
people for a very long time and then the biggest danger is these people start a business they fail
and then they don't try again they they're one shot of motivation and then they're out
because they were missold a business model that wasn't suitable for them in the first
place so I suppose what I'm saying is look if you're a beginner right now and you haven't yet
started your agency start a traditional agency a traditional smma you'll sign up clients at
the same rate for more money and they'll stay with you for longer and sure use software like
go high level to better Your Service delivery to offer appointment setting as well but don't fool
yourself into believing there are shortcuts to success and don't get sucked into shiny objects