Why all gurus end up in SaaS (and sell you “info”)

Summary

This video reveals the hidden truth behind popular online business models like dropshipping, info products, and personal branding. It emphasizes that the real money is made by software companies who offer affiliate commissions, not from the businesses they promote. The creator discusses the power of recurring, passive income from software platforms like Shopify and GoHighLevel, and how content creators are paid to promote them. The message encourages viewers to rethink traditional business models, advocating for building assets that generate sustainable, predictable income, rather than relying on one-time sales or hustling.

Takeaways

• 😀 The business world is largely driven by software companies that profit through affiliate marketing and recurring commissions from creators and users.
• 😀 Many online business models, such as dropshipping, info products, and agencies, are tied to software platforms that make money by offering recurring commissions to promoters.
• 😀 Successful content creators and gurus make most of their money not from the business model they promote but from affiliate commissions tied to software subscriptions.
• 😀 People who promote online business models like dropshipping or info products are often earning commissions through software platforms like Shopify or Clickfunnels, not from the business model itself.
• 😀 Affiliate marketing is a key element in how online business models are structured, with software companies taking the majority of profits while creators promote the tools.
• 😀 Even though creators make money from their affiliate links, software platforms like Shopify, Clickfunnels, and others generate most of the wealth by collecting large amounts in recurring subscription fees.
• 😀 Personal brand-building and community marketing also rely on the use of software tools, often promoting products with affiliate commissions behind them.
• 😀 The true wealth in online business comes from recurring income through software, not from selling a single product or service.
• 😀 One of the key elements of online business success is generating passive, recurring income rather than relying on one-time sales.
• 😀 The business models promoted by gurus often focus on short-term gains, but real long-term wealth comes from building a system that generates recurring income.
• 😀 True financial freedom in business comes when you can create a model with predictable, passive income—allowing you to live without being tied to a job or constant work.

Q & A

What is the main theme of the video script?

The main theme of the video script is the hidden role of software companies and affiliate marketing in the success of online business models, like dropshipping, info products, and personal branding. It argues that the real profits are being made by the software platforms, not the individuals promoting the business models.

How does the script explain the concept of dropshipping?

The script suggests that dropshipping became popular because of software platforms like Shopify, which incentivize creators with affiliate commissions. These creators promote the dropshipping model, believing it’s the key to wealth, while the software company actually profits the most from the recurring income generated by users subscribing to the platform.

What role do software companies like Shopify and Clickfunnels play in these business models?

Software companies like Shopify and Clickfunnels provide the infrastructure for business models like dropshipping and selling info products. These companies offer affiliate commissions, which encourage influencers to promote their platforms. As a result, they generate massive recurring revenue from subscriptions, while the creators earn passive income through their affiliate links.

What is the connection between personal branding and affiliate marketing?

Personal branding is promoted as a way to make money online, but the script points out that creators often use affiliate links to platforms (like Clickfunnels or GoHighLevel) to monetize their audience. By promoting these tools, they earn recurring affiliate commissions, making them wealthy while selling the idea of personal branding as a business model.

Why does the script call the business models promoted by online gurus a 'software game'?

The script refers to it as a 'software game' because the real money is being made by the software platforms, not the business models themselves. Influencers and gurus may appear successful, but the long-term wealth comes from the recurring affiliate commissions earned by promoting these platforms.

What does the script suggest about the sustainability of business models like dropshipping and selling info products?

The script argues that these business models are not sustainable in the long term unless they are linked to recurring, passive income from software platforms. For most people, these business models may only bring short-term success or failure, while the real wealth comes from the software companies profiting off the creators' affiliate marketing efforts.

What is the significance of 'attractive characters' in the context of online business models?

'Attractive characters' refer to content creators who use personal stories and transformations (like weight loss or business success) to sell business models. The script suggests that these stories are powerful because they create emotional connections with the audience, making it easier for the software companies and influencers to sell their products and services.

How does the script illustrate the difference between creating content and making money through affiliate marketing?

The script illustrates this by showing the creator's own experience with GoHighLevel. By uploading just 28 videos, they earned nearly $2 million in passive income, highlighting how affiliate marketing through software can generate huge profits with minimal ongoing effort, compared to the constant work required to run a traditional business.

What does the script suggest about the idea of recurring income in business?

The script emphasizes that recurring income is crucial for long-term financial success. It highlights that businesses based on one-time fees or non-recurring income are unsustainable, whereas businesses generating recurring income (like software affiliate marketing) create predictable, long-term wealth.

Why does the script say that business models like dropshipping are essentially 'pyramid schemes'?

The script argues that dropshipping and similar business models are akin to pyramid schemes because they rely on affiliate marketing, where individuals at the bottom make money by selling access to software or services, rather than generating real value from products or services. The true profits are made by the software companies, not the people promoting the models.