Read time: 4 mins
In this week’s issue, I want to talk about why you should turn your service based digital marketing agency into a SaaS based digital marketing agency so you can make more sales and reduce churn as a Local Small Business Consultant or Digital Marketing Agency Owner…
If you’re struggling to get clients or making more sales then you’ll want to pay close attention…
Sometimes it can be difficult to sell digital marketing services to local small businesses for a variety of reasons…
Namely, they can’t wrap their heads around what you actually do for them or how exactly they will benefit from your services.
With that being said…
Let’s jump in!
What Is A SaaS Digital Marketing Agency?
First let’s define ‘SaaS’ for those of you who are not familiar with the terminology…
SaaS stands for Software as a Service.
Meaning that a particular piece of software is delivered and licensed via subscription online rather than bought and installed on individual computers.
SaaS has become extremely popular as of late…
Especially when it can automate tasks that were once done manually or not at all.
This is why SaaS is so invaluable for local small businesses who are either not capable of or don’t have the time to do these tasks themselves.
But these are tasks that are absolutely vital to the success of the business…
Wherein lies the value.
So a SaaS digital marketing agency wholly focuses on providing software that helps a local small business with their digital marketing by either offering a…
- Do-It-Yourself (DIY) or…
- Done-For-You (DFY)
solution.
Depending on a local small businesses overall needs and capabilities.
Why You Should Become A SaaS Digital Marketing Agency
You should become a SaaS digital marketing agency because plain and simply it’s just easier to sell.
But that’s not all…
There’s no guesswork.
Meaning, software is software and it will always perform exactly the same way (assuming you have it configured in a way to produce a desired outcome or result).
And when you can demonstrate that along with what they will actually have at their disposal…
It makes it a no-brainer to go with a SaaS digital marketing agency over a service based digital marketing agency…
Where the local small business owner has to *imagine* what the ‘service’ will do for them.
Another benefit to SaaS, is a reduction in churn.
Churn is that ugly word in the subscription world that no one ever wants to talk about…
It’s the one aspect of the subscription model that makes it sometimes a bit difficult to run the business.
However, typically once a local small business is vested into a software solution…
It becomes a tedious task for them to make the switch from their current solution to another SaaS provider.
And as long as the price point is fair…
Meaning that it’s NOT taxing the local small business to make the payment each month.
How To Sell Your SaaS Digital Marketing Agency To Clients
First let me tell you how NOT to sell SaaS to clients (or local small businesses)…
DO NOT talk about the ‘bells and whistles’ the software has.
DO talk about their most pressing problem(s) and their desired outcome(s).
Essentially you want to use the K.I.S.S. method…
- Keep
- It
- Simple
- Silly
Because if you don’t do that you will potentially open a can of worms that can get out of control very quickly.
I heard an analogy recently from Shaun Clark the co-founder of HighLevel SaaS…
He said something along the lines of if you had a plumbing problem…
And the plumber came to your house to fix the problem…
He wouldn’t start sharing about the brands of his tools…
Or which tools he would even use.
And you wouldn’t care…
As long as he fixed the problem.
So why in the world do you think a local small business owner would ever care about what ‘tool(s)’ you are going to use to *fix* their problem?
They don’t.
And it’s a huge mistake to think they do…
And even worse to talk about the features of the SaaS.
In fact, it just potentially allows the local small business owner to voice an opinion about the SaaS that they should not have an opinion about…
Simply because they have no knowledge in this matter.
Just like you and I don’t have a clue about what the best tools are for the plumbing job (that is unless you’re actually a Plumber or former Plumber).
You have to remember that…
You’re the expert when it comes to digital marketing.
Not them.
You!
So keep that in mind the next time you talk to a local small business owner who NEEDS your help.
How To Price Your SaaS
There’s no right or wrong answer here.
It simply comes down to what makes the most sense for their business (and yours).
As a good rule of thumb…
I think it’s best to stay under $1,000 per month.
I believe the sweet spot is somewhere between $500 – $1,000 per month.
Of course that really depends on the particular SaaS.
In this case if we’re talking about HighLevel SaaS that’s definitely where I would price it.
However, if we were talking about my Social Posting SaaS then I would say that would be too much to charge…
Which of course is why I like to charge $100 – $200 per month for that SaaS.
The question is are you a Service or SaaS based digital marketing agency?
Perhaps it’s time to make the switch…
It’s definitely something to think about.
I’ll leave you with that.
See you next Monday.
1. Free your time and scale your Digital Marketing Agency without increasing your workload by getting easy to sell recurring clients in 8 weeks or less here.
2. Build better, faster “Hybrid Sales Funnel Websites” which are proven to reduce bounce rate and generate more leads & sales here.
3. Easily schedule & recycle 18,000+ images in over 101+ niche/industry specific image packs here.
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5. Level up your knowledge through training programs & done-for-you digital assets specifically for Local Small Business Consultants and Digital Marketing Agency Owners here.
6. Turn your social media profiles into lead generating landing pages here.
7. Remove the complexity, confusion, and overwhelm when it comes to connecting all the tech with sales funnels, email marketing and paid ads here.
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