INDEX / SAAS
Agency-to-SaaS Hybrid (Done-For-You + Software)
Run a productized service agency that uses proprietary software to deliver results, then sell the software as a standalone SaaS to clients who want the DIY tier.
01 THE IDEA
Nathan Barry describes Brendan Dunn's model with Writ Message / Slice and Dice: build software for a specific marketing problem (email segmentation and personalization), discover that customers don't use it properly, then launch a done-for-you agency that uses that software as the engine. The agency generates immediate cash flow and creates perfect case studies, while the software compounds as a recurring SaaS business underneath. Clients enter as agency customers and convert to software subscribers.
This hybrid model solves the two biggest problems in each model independently: agencies have poor scalability but great cash flow and client intimacy; SaaS has great scalability but terrible early cash flow and high churn from underutilized products. The combination — agency validates and activates software customers — creates a self-reinforcing flywheel. Greg also has a real-world example with boring marketing.com (SEO agency with proprietary AI software) that could be unbundled into a standalone SaaS.
02 THE NUMBERS
$200K – $5M
$30K + 300h
$15K + 120h
6/10
21 · GROWING →
software product development, agency operations/delivery, sales and marketing, domain expertise in the target vertical, fundraising or cash flow management
03 THE VERDICT
This is the highest-ceiling model discussed in the video and is backed by Nathan Barry's own story with ConvertKit. The agency de-risks software development by generating revenue and real customer learnings before the SaaS is standalone-ready. The main risk is organizational discipline — founders must resist scope creep from agency clients to protect software investment. Pick a niche where you have deep operational expertise and where proprietary tooling creates a real performance edge over off-the-shelf software.
Verdict: BUILD. Don't have the ~300 hours it takes? Get matched with a vetted builder who does — we review every brief by hand and intro you to up to 3 builders.
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04 THE FIELD
- Webflow (originally agency-model adjacent)est. 2013GROWING · ADDED 2026-06-07
DOMINANT NO-CODE WEB PLATFORM, GREW FROM DESIGNER COMMUNITY
Grew by enabling agencies and then converting their clients to direct SaaS customers — similar flywheel.
- Jasper AIest. 2021DECLINING · ADDED 2026-06-07
EARLY AI WRITING LEADER NOW UNDER PRESSURE
Attempted agency-style services alongside SaaS but struggled to differentiate as LLMs commoditized.
- SEMrushest. 2008STEADY · ADDED 2026-06-07
CATEGORY LEADER IN SEO SOFTWARE ~25% MARKET SHARE
Pure SaaS SEO tool that the boring marketing.com model is positioning against with a hybrid approach.