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sas sales versus service sales what's the difference you like my you like my lisp i sound like sylvester the cat so anyway what's the difference well sas first of all stands for software as a service and service is an agency so sas would be something like our company botfuse which is a chat bot that lives on your website and provides you know software as a service it's a software that provides the service of being a chatbot now service business would be more like our agency x27 where we go out and we find leads for other businesses it's a done-for-you service other services businesses might be web design or web development or mobile design and development coding branding pay-per-click marketing services anything like that is a services business and i have experience with both scaling up bot fuse and scaling up x27 i have a lot more experience in service sales but sas sales are something i've touched and let's talk about the difference between the two i know enough now to know the difference between sas sales and service sales and i'll tell you which one's my favorite in this video so stick around this video is brought to you by email 10k learn how to book meetings with billion dollar brands and take your company to the next level at email10k.com the first one is the ease of sign up and demo people are used to with software signing up for either a free trial or booking a quick demo call and they'll do that no hesitation so it's actually a lot cheaper to book a demo call for sas via inbound than it would be with a service with services you're going to run into higher costs on every channel if you're doing pay-per-click it's going to cost you 60 or 70 bucks a lead or more if you're doing cold email it's going to cost you three or four dollars a meeting or more versus with sas they'll come in inbound you can post on product hunt there's a marketplace for selling software as a service some people are hungry for it so booking those initial demos is going to be a lot cheaper than it would be trying to sell an agency service that's not to say that it's expensive to book meetings for your agency like i said cold email is very cheap or free if you just send via gmail account cold calling also works great for agency services the biggest difference between the two in terms of cost is you can spend a lot more time finding the perfect clients for your service because the pricing is so much higher at x27 we charge our clients about six figures a year so we can spend a lot of time getting those 100k deals but with bot fuse the software where it's 49 a month we have to spend less time finding each client because we make way less for each client which brings us to the next point which is the user experience the experience in software is all about building the perfect product that works every time that customers aren't gonna have to complain about and it delivers what it says that's software it's an engineering problem with services it's a people problem so you're going to have to make sure that you're hiring high quality people you're going to spend money on that you're going to follow a specific process and there's going to be a lot of legwork involved just to get the same end result of the software which is delivering what you promised it takes a lot more work to deliver what you promised on the agency side than it does on the software side the trade-off being you're making a lot more money as an agency per client than with software but the scalability of software is higher so you can have a lot more clients on software without it breaking versus an agency might break even at six clients i've seen agencies break down but a lot of agencies even if you're running 20 30 clients and making 10 million dollars a year you're still gonna be dealing with the same issues as the freelancer trying to get his upward guys to do their work versus software businesses where you have infinite scalability and that's one reason why we made bot views and why we're developing other software products is because we see that we see the hard limit that comes on services yes it's easy to make money in the beginning but it's not easy to make a lot of money in the long run for that you need software which actually brings us to the next point which is scalability once the product is built in software yes you're gonna have to do iterations and all that but it's basically built versus with an agency you can't scale it without doing the same amount of work for client number 200 as you did for client number one it doesn't get easier with every client another difference between sas and service is performance tracking with sas because you're not hopping on calls and there's not really any soft skills needed you can track everything pretty concretely meaning you know that x number of people come to the website and those people buy directly using the buy it now button without needing a demo so they can just do it and we actually experienced this with our education startup email 10k we're not hopping on sales calls before people buy our course so we see this specifically we know if we send this much traffic to the site we'll have this number of buyers and so if we increase traffic we can get more buyers or if we increase the conversion rate and keep the same amount of traffic we can get more buyers and it just becomes a numbers game with services sales now we're dealing with sales people we have over three sales people at x27 so each one of those is gonna have a different close rate and have different issues that are gonna have to be solved again it's a people thing versus sas where it's automatic now some sas companies do have sales teams as well especially for larger enterprise deals and then they run into the same people issues that we're dealing with at x27 so it's not exclusive there is overlap especially when you want to get into bigger deals and it makes sense to have a sales team for me price-wise it does not make sense to have a sales team for a 15 or even a 50 per month product because how much is their hourly rate so unless you're paying your sales people less than let's say 10 bucks an hour because if they're spending five hours to get one close then you're barely breaking even or not even breaking even so if they can close deals quickly and they have a very high close rate then maybe it makes sense but you're gonna have to really finagle that pricing to make it work for a 50 a month product versus with an agency if it's a 20 000 website or you're charging 4 000 a month for marketing it becomes a lot easier to pay salespeople to close for you another big difference between sas versus service is in the negotiation process in service businesses a lot of people think that you're more flexible on price and sometimes you are because the offer is different per client unless you're super productized versus on sas you see the thing on the website it's 50 bucks a month you're either going to buy it or not there's not really a negotiation that can happen except at the highest enterprise levels of the sale which means you're avoiding a lot of negotiation headache by selling sas versus selling a service and the other big difference which we talked about a few times in this video already is pricing sas is going to be lower priced than an agency so if you're someone like me who loves seeing massive numbers come in at once in the bank account then you might get more fulfillment closing a hundred thousand dollar deal or a million dollar deal i know i'm having a hard time even concentrating on how to get a 50 a month client for sas so instead i do videos like this where i can talk one-to-many and hope that that works out while other people on my team that are more into generating the 50 sales work on the 50 sales i know for me i just get such a rush out of these massive amounts of money coming into the bank at once so it depends on the type of person you are do you get more thrill from big numbers or do you get more thrill from stacking a bunch of small numbers and creating a snowball of wealth and those are some of the differences between sas sales and software sales this video is brought to you by email 10k so you don't have a business idea huh do you want to know what the best business to start is regardless of market conditions check out the free presentation at email 10k.com we have over 200 students that are crushing it using this business strategy even during this time so check that out email 10k.com thanks for watching the video be sure to smash that like button to encourage this type of content on youtube just go ahead and tap that like button that would be very very helpful subscribe for more videos like this we do a ton of videos on sales training and entrepreneurship so check those out and i'll see you soon thanks for watching i'm alex berman