In “The Rise of the SAS Model: A New Approach to Digital Marketing,” Jason Wardrop discusses the flaws of the traditional model of digital marketing agencies and introduces the SAS model as a more sustainable alternative. According to Wardrop, the traditional model, known as SMMA, relies on selling time as a service and charging high monthly fees, which is not affordable or practical for small local businesses. In contrast, the SAS model focuses on selling software tools and systems, allowing for scalability, easier client acquisition, and better results. By charging a lower monthly fee for software and additional fees for done-for-you services, the SAS model offers a more attractive and affordable option for businesses. Wardrop offers a Launch Your Business Challenge for those interested in learning and implementing this new model, providing templates, funnels, and guidance for success.
By transitioning from the traditional model to the SAS model, businesses can overcome the challenges of client retention and scaling. The traditional model, which relies on selling time as a service, often leads to losing clients after a few months due to the high costs and complex billing structure. However, the SAS model, which sells software as a service, offers a more cost-effective and streamlined approach. By leveraging software tools and systems for client fulfillment, marketing agencies can save time, reduce overhead costs, and have more resources to focus on client acquisition and growth. With the SAS model, businesses can offer a lower monthly fee for software and additional fees for done-for-you services, providing a more attractive and affordable option for clients. Wardrop’s Launch Your Business Challenge offers valuable insights and resources to help businesses successfully implement the SAS model and thrive in the digital marketing industry.
The Traditional Model of Digital Marketing Agencies
In the traditional model of digital marketing agencies, the primary focus is on selling time as a service. These agencies charge high monthly fees to their clients for the work done by their team on various marketing activities. This approach has been the industry standard for a long time, with agencies positioning themselves as experts in social media marketing and other digital advertising strategies. However, relying solely on selling time as a service is not sustainable, especially for small local businesses.
Charging high monthly fees for their services can often be a significant financial burden for small businesses. These businesses have limited budgets, and allocating a large portion of it toward monthly marketing fees can be challenging. It becomes even more challenging when there’s no guarantee of results or return on investment. This model puts local businesses at a disadvantage and limits their ability to compete effectively in the digital landscape.
The SAS Model: A New Approach
To address the challenges faced by small local businesses, a new approach called the SAS (Software as a Service) model has emerged in the digital marketing industry. Under this model, agencies focus on selling software tools and systems instead of selling time. By shifting the focus to software, agencies can provide scalable solutions for their clients and improve client acquisition capabilities.
In the SAS model, agencies offer clients access to software tools and systems that automate and streamline marketing processes. This automation allows for more efficient and effective campaigns, resulting in better results for clients. Instead of charging high monthly fees, agencies charge a lower monthly fee for access to the software, and additional fees for done-for-you services, such as ad setup and management.
This new model offers several benefits for both agencies and their clients, making it a more attractive and sustainable option for businesses.
Benefits of the SAS Model
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Increased Scalability: By shifting from selling time to selling software, agencies can scale their operations more effectively. Instead of being limited to a small number of clients they can handle based on their team’s capacity, agencies can now serve a larger number of clients through the use of software automation.
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Higher Profit Margins: With the SAS model, agencies can achieve higher profit margins. Selling software allows agencies to leverage technology and tools that can serve multiple clients simultaneously, reducing the need for extensive manual labor. This increased efficiency translates to higher profitability.
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Lower Financial Risk: The SAS model reduces the financial risk for both agencies and clients. Agencies no longer need to rely solely on monthly fees to sustain their business. The lower monthly fee for software, coupled with additional fees for done-for-you services, provides a more sustainable revenue stream. For clients, the lower monthly fee makes digital marketing services more affordable and less of a financial burden.
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More Attractive and Affordable Option for Businesses: The SAS model makes digital marketing services more accessible to small businesses. The lower monthly fee combined with improved results and scalability makes it a more attractive option for businesses looking to establish or enhance their online presence.
Launch Your Business Challenge
In line with the SAS model, Jason Wardrop offers a Launch Your Business Challenge for those interested in implementing this new approach to digital marketing. This challenge provides participants with templates, funnels, and guidance on successfully implementing the SAS model in their own businesses. By participating in this challenge, entrepreneurs can gain valuable insights and strategies to effectively transition to the new model.
The Launch Your Business Challenge aims to equip participants with the necessary tools and knowledge to navigate the evolving landscape of digital marketing. It provides a comprehensive framework for implementing the SAS model, enabling entrepreneurs to take advantage of its benefits and achieve success in their ventures.
Implementing the SAS Model
Implementing the SAS model requires careful planning and execution. Here are the key steps involved:
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Identifying and Developing Software Tools: The first step is to identify and develop software tools and systems that will serve as the foundation of the SAS model. These tools should automate various marketing activities and provide value to clients.
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Creating Pricing Structures: Once the software tools are in place, agencies need to create pricing structures that are attractive to clients while also ensuring profitability. This involves determining the monthly fee for software access and additional fees for done-for-you services.
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Building Client Relationships: Building strong client relationships is crucial in the SAS model. Agencies should focus on providing exceptional customer service and support, delivering value beyond just the software, and cultivating long-term partnerships with clients.
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Offering Done-for-You Services: In addition to software access, agencies can offer additional done-for-you services to enhance the client’s experience and results. These services can include ad setup, campaign management, content creation, and more.
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Measuring and Delivering Results: It’s essential for agencies to accurately measure and report the results achieved through the SAS model. This transparency helps build trust with clients and allows for continuous improvements in marketing campaigns.
Success Stories
The SAS model has proven successful for many businesses that have made the transition. Numerous case studies highlight the quantifiable results and positive impact on revenue that can be achieved through this new approach. Clients have experienced improved ROI, increased customer engagement, and higher conversion rates when working with agencies that employ the SAS model. Testimonials from satisfied clients further demonstrate the effectiveness of this model in delivering results and driving business growth.
These success stories serve as inspiration and evidence of the transformative potential of the SAS model in the digital marketing industry.
Challenges and Potential Drawbacks
While the SAS model offers many benefits, there are also challenges and potential drawbacks to consider. These include:
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Educating Clients on the SAS Model: Implementing the SAS model may require educating clients on the shift in approach and the value it provides. This education process requires effective communication and transparency to ensure clients understand the benefits of the new model.
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Potential Resistance to Change: Clients may be hesitant to switch from the traditional model to the SAS model due to resistance to change. Overcoming this resistance requires highlighting the advantages and results that can be achieved through the new approach.
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Managing Client Expectations: With the SAS model, clients may expect immediate results due to the use of software tools and automation. Agencies need to manage client expectations and clearly communicate that results may take time to manifest.
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Ensuring Software Reliability and Updates: The effectiveness of the SAS model relies heavily on the reliability and continuous updates of the software tools being used. Agencies need to ensure that the software remains up to date, secure, and efficient to deliver optimal results to clients.
Navigating these challenges requires open communication, ongoing education, and a commitment to providing the best possible service and results to clients.
Future Trends in Digital Marketing
As the digital marketing landscape continues to evolve, it is anticipated that the SAS model will gain even greater popularity. The shift toward software-based solutions is driven by the increasing demand for automation, efficiency, and scalability. The SAS model offers agencies and clients alike the flexibility and profitability needed to thrive in a rapidly changing industry.
Furthermore, there will be a greater focus on scalability and automation in digital marketing. The ability to serve a larger number of clients while optimizing processes will become critical for agencies. This trend aligns perfectly with the SAS model, making it a highly relevant and valuable approach for the future of the industry.
Conclusion
The SAS model represents a transformative approach to digital marketing, empowering small businesses with more affordable and scalable options. By shifting the focus from selling time to selling software, agencies can provide cost-effective solutions that deliver better results for their clients. The SAS model’s benefits, including increased scalability, higher profit margins, lower financial risk, and enhanced affordability, make it a game-changer in the industry.
Jason Wardrop’s Launch Your Business Challenge offers entrepreneurs the opportunity to learn and implement the SAS model effectively. By providing templates, funnels, and guidance, the challenge equips participants with the tools to succeed in this new era of digital marketing. As the industry continues to evolve, embracing the SAS model is key to transforming the digital marketing landscape and driving business growth for both agencies and their clients.