The Evolution of Social Media Marketing Agencies and the Rise of SaaS

Over the past decade, the digital marketing landscape has seen a significant transformation. The rise of social media has given businesses new opportunities to connect with customers and reach their target audience. With the advent of Facebook advertising, social media marketing agencies started sprouting up, offering businesses a way to leverage these platforms for growth.

In the 2014-15 era, Ty Lopez and other industry influencers were selling the laptop lifestyle as a Facebook ads specialist. The business model was simple, charge a fat retainer, anywhere from $1500 to $2000 per location, to run Facebook ads for local businesses. The ease of Facebook ads and the promise of leads made this a popular business model. However, as the years have passed, this social media marketing agency (SMMA) model has become anemic and is on the brink of extinction.

Enter SaaS, the new business model that has revolutionized the digital marketing landscape. Instead of being just a Facebook ads specialist, business owners can now say, "I own a software company." This new business model immediately creates a perception of legitimacy, as mom and dad start thinking of it as a legitimate business. The SaaS model has also opened up new opportunities for businesses to provide value to their customers in a subscription-based model. This model has made it possible for businesses to smooth out their revenue, ensuring a steady stream of income and stability for their operations.

HighLevel, a SaaS company, provides a clear example of this transformation. They started out as an agency operating system, but as they talked to different agencies with different business models, they realized that it's the model that matters. They saw the success of subscription-based models in industries like pest control and IT, and they decided to emulate that model. By offering their services as a subscription, they have created a business that is scalable, profitable, and provides value to their customers.

In conclusion, the evolution of the digital marketing landscape has led to the rise of SaaS. This new business model has made it possible for businesses to provide value to their customers in a subscription-based model, ensuring stability and profitability. The perception of legitimacy has also increased, making it easier for business owners to share their business with others and attract new customers. The days of the SMMA model are coming to an end, and the future belongs to SaaS.