Hey there, it’s Mike Cooch with Services That Scale. I’m thrilled to dive deeper into what I’m calling the Anti-Agency Opportunity.
You may already be aware of the seismic shifts happening in the digital marketing landscape. I’m here to guide you through the data that supports why the anti-agency model is the key to unlocking real success in the next five years.
The Landscape of Digital Agencies
Firstly, let’s address the elephant in the room—the traditional agency model. We’ve all heard about the allure of starting a digital agency, promising small businesses increased visibility through digital marketing.
While the potential revenue from small businesses is colossal, the reality is that the traditional agency, based on selling time and talent, is a problematic business model.
Many agencies struggle to build a healthy, profitable business, with average revenues hovering around $250,000 per year.
The rollercoaster of inconsistent revenue and profitability is inherent in the agency model, leaving founders constantly chasing the next project and billable hours.
This instability is exacerbated by the fact that small businesses can’t afford to pay enough for the time and talent agencies provide.
Unpacking the Anti-Agency Opportunity
So, what exactly is the anti-agency opportunity? It’s about building a business that not only provides value to small businesses in the digital marketing space but does so in a way that is scalable, profitable, and generates recurring revenue.
The key here is moving away from the agency model, where success is contingent on selling time and talent and embracing a model built around technology, automation, and services that deliver tangible value.
The anti-agency opportunity revolves around selling access to automation technology platforms or automated technology services.
Instead of relying on your time and talent, the focus shifts to the actual technology and automation you deliver to clients, earning high-margin recurring revenue.
It’s a departure from the traditional agency model, offering a more sustainable and scalable approach.
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Enter HighLevel
Until recently, tapping into the anti-agency opportunity meant developing your technology or services. However, a game-changer has emerged, shaking up the industry—HighLevel.
This company has revolutionized the landscape, providing a platform that empowers agencies to deliver scalable, profitable services without the need to create the underlying technology.
I want to emphasize my bias here—I’m genuinely excited about HighLevel. Having been deeply entrenched in this industry for over a decade. I’ve never witnessed a company effecting such positive change at such a rapid pace.
HighLevel’s innovative approach has led me to fully commit to not only running my businesses on their platform but also advocating for it within the industry.
The Power of Automation and AI
What makes HighLevel truly stand out is its commitment to automation and the integration of artificial intelligence.
The company is at the forefront of infusing AI capabilities into its platform, opening up new dimensions for agencies and small businesses alike.
One groundbreaking feature is the AI chatbot. It enables businesses to capture opportunities from website visitors with questions, inquiries, or those seeking directions.
This AI-driven responsiveness eliminates the need for businesses to hire additional staff or invest heavily in services.
As a result, agencies can provide these cutting-edge solutions and enjoy substantial recurring revenue, all through the HighLevel platform.
Understanding the Market Dynamics
To truly grasp the magnitude of the anti-agency opportunity, let’s delve into some industry statistics.
We often hear about the vast number of small businesses—32 million in the United States alone. However, it’s crucial to recognize that not all of these businesses are viable clients for agency services.
Research from Zen Business indicates that only around 20% of these 32 million businesses generate annual sales exceeding $200,000.
This insight immediately trims down the potential client pool for agency services, as businesses with revenues below this threshold are unlikely to allocate significant budgets for digital marketing services.
Additionally, a significant portion—43%—of small businesses estimate their sales to be less than $50,000 per year.
This underscores the financial constraints that many small businesses operate under, making it challenging for them to allocate substantial budgets to agency services.
Breaking Down Digital Marketing Spending
For those small businesses that do invest in digital marketing, the spending is often modest.
Approximately 47% of small businesses spend less than $10,000 per year on digital marketing. This budget is spread across various services, with over 52% directed towards website maintenance, design, and hosting.
When we examine businesses with fewer than 50 employees, a majority spend less than $500 a year on web hosting and email list management.
Even larger businesses with over 50 employees spend an average of $63,000 per year on various digital marketing services.
These figures highlight that, while there is spending on digital marketing, it’s distributed across different areas, with no single category commanding significant budget allocations.
The Massive Market Potential
Despite the challenges and limitations of the traditional agency model, the overall spending by small businesses is substantial. Key sectors, such as website hosting and marketing software, present massive market potential.
For instance, HubSpot, a major player in this space, reveals in their investor presentations that the market for marketing, sales, service, CMS, and operation software is projected to reach $51 billion in the current market and is expected to grow to a staggering $77 billion by 2028.
This demonstrates significant growth potential in the industry over the next few years.
Moreover, a substantial portion of this spending comes from small businesses, specifically those with one to 99 employees.
Currently, small businesses are investing around $15 billion in the software types that HubSpot provides. Looking ahead, this number is anticipated to rise to $20 to $25 billion in the next five years, underlining the increasing reliance on such software solutions.
The web hosting market is another robust sector, set to experience rapid growth, primarily driven by small businesses catching up with the digital trend.
Projections estimate the web hosting market to reach $395 billion by 2030, showcasing a compound annual growth rate of 20% during this period.
These staggering figures emphasize the substantial monetary flow in this domain, and the implications for those who can tap into this market are immense.
The Anti-Agency Opportunity Unveiled
Now, let’s zero in on the core of the anti-agency opportunity.
Contrary to the misconception that small businesses are reluctant to spend on third-party digital marketing services, recent statistics indicate that only about 25% of small businesses currently invest in such services.
This means that a significant chunk of the overall spending is directed towards fundamental services like software, web hosting, SMS, email, and phone services—essentials that businesses need to survive in today’s digital age.
This is where the anti-agency opportunity shines. By leveraging high-level software, agencies can position themselves as providers of essential services. Such as software, web hosting, website design, and more.
The integration of AI capabilities, like the AI chatbot, further enhances the value proposition for small businesses.
With the ability to capture leads and handle customer inquiries efficiently, businesses use these AI-driven tools. It can significantly improve their customer service without substantial additional costs.
The Strategic Importance of Timing
Timing plays a pivotal role in capitalizing on the anti-agency opportunity.
Once a small business integrates a software platform into its operations, migrating to an alternative platform becomes a daunting and unlikely prospect.
The pain and disruption involved in transferring customer records, training teams on a new system, and overall logistical challenges make businesses reluctant to switch.
This is a key advantage for those who embrace the anti-agency model. By getting businesses on board with your chosen platform—in this case, HighLevel—during this critical period of rapid adoption, you position yourself as a long-term partner.
The difficulty of switching platforms creates a significant barrier for competitors, securing your position and ensuring a stable, long-lasting revenue stream.
The AI Revolution and its Impact
The introduction of AI capabilities, particularly in the form of AI chatbots, is a game-changer in the anti-agency landscape.
Small businesses can now harness the power of AI to enhance their customer interactions, capture missed opportunities, and provide a level of service previously reserved for larger enterprises.
As a channel partner utilizing the HighLevel platform, you have the unique opportunity to offer these advanced AI-driven services to small businesses.
By doing so, you not only contribute to their success but also position yourself as a forward-thinking and innovative provider.
The adoption of AI is set to create a landslide of opportunities for small businesses, and by aligning your services with this transformative trend, you become an invaluable asset to your clients.
The Anti-Agency Advantage Over Traditional Models
The anti-agency model outshines traditional agency models in several ways.
While traditional agencies often grapple with high churn rates, low profitability, and short-term wins, the anti-agency approach allows you to enjoy both upfront cash flow and long-term recurring revenue. This is achieved through automation, efficient use of technology, and delivering services that align with the fundamental needs of small businesses.
Selling services that are directly tied to automation platforms like HighLevel provides a unique advantage. Instead of constantly hunting for new clients and projects, you establish a foundation of recurring revenue that grows organically.
This not only offers financial stability but also frees up time and resources for strategic business development and scaling.
Seizing the Anti-Agency Opportunity
In conclusion, the anti-agency opportunity is not just a trend; it’s a fundamental shift in the way businesses operate in the digital age.
HighLevel, with its cutting-edge technology and commitment to AI integration, stands at the forefront of this transformative wave.
As a channel partner, your focus should be laser-sharp on bringing as many small businesses as possible onto the HighLevel platform in the next three to five years.
The unprecedented adoption of these software tools, coupled with the strategic timing advantage. It positions you to build a lucrative business with substantial recurring revenue.
I’m deeply invested in supporting agencies to fully leverage HighLevel and capitalize on the anti-agency opportunity. I’ve designed a program called the High Leverage Agency, tailored specifically for those keen on embracing this transformative model.
When you sign up for HighLevel through my referral, you gain complimentary access to this program. Along with various bonuses and coaching calls to support your journey!
All the best,
PS – I made six shifts in my approach to building my business. It allowed me to grow quickly and stop trading my time for money. You can learn them here 👈🏻
PPS – Here are two ways to get involved with our community of entrepreneurs. Both will give you everything you need to go from where you are today to running a successful seven-figure agency:
Click here to sign up for HighLevel CRM through me. All of my HighLevel CRM customers get access to Moguls for FREE—Just part of the huge Bonus Package I provide.
Click here to join Moguls directly. You’ll get access to all of our live boot camps, content, and community. That has helped folks just like you scale to seven figures and beyond!
