This article is going to make me well hated by 90% of marketing agencies that service the damage restoration industry. If you are one of those agencies and are reading this article, please know that from the bottom of my heart...
I don't fucking care.
Most marketing agencies in this industry repackage a software called GoHighLevel and sell it as a custom software to restoration companies hundreds of % marked up. It is , a trend that emerged within the restoration industry as the lazy solution that is collecting big money for agency owners: marketing agencies rebranding GoHighLevel’s white label solution and selling it to restoration companies at exorbitant prices. This practice leaves restoration companies paying far more than necessary for services they could access directly at a fraction of the cost.
Here are some common phrases you will hear when it is being peddeled by these agencies:
1. “Streamline Your Restoration Projects with Our All-in-One Platform”
2. “Boost Your Leads and Conversions with Targeted Marketing Automation”
3. “Manage Your Clients and Jobs Seamlessly from One Dashboard”
4. “Enhance Your Online Presence and Drive More Business”
5. “Automate Follow-Ups and Stay Top of Mind with Your Clients”
What is GoHighLevel?
GoHighLevel is an all-in-one marketing platform designed to help businesses manage their customer relationships, marketing automation, and sales processes. It offers a white label option, allowing agencies to rebrand the platform and present it as their own solution. While this white labeling is perfectly legal and can be beneficial, some agencies exploit this capability to deceive clients about the origins and true cost of the service they are purchasing.
The Unethical Practice
The unethical practice in question involves agencies taking GoHighLevel’s white label solution, slapping their logo on it, and selling it to restoration companies at a steep markup. These agencies often position the platform as a proprietary, custom-built solution specifically tailored for the restoration industry. Restoration companies, unfamiliar with the actual source and cost of the platform, end up paying significantly more than they would if they subscribed directly through GoHighLevel.
Here are some key issues with this practice:
1. Lack of Transparency: Agencies do not disclose that the platform they are selling is actually a white-labeled version of GoHighLevel. This lack of transparency prevents restoration companies from making informed decisions about their software purchases.
2. Inflated Costs: By marking up the price of GoHighLevel significantly, agencies are taking advantage of restoration companies. These inflated costs do not necessarily correspond to additional value or unique features but are simply a way to increase the agency’s profit margins.
3. Deceptive Marketing: Agencies often market the rebranded platform as a unique solution developed in-house, which can mislead restoration companies into believing they are purchasing a custom-built tool specifically designed for their needs.
4. Dependence on the Agency: Restoration companies may become overly reliant on the agency for support and future modifications, believing they are tied to a proprietary system. This dependence can limit their ability to switch providers or seek competitive bids.
The Impact on Restoration Companies
The primary victims of this unethical practice are restoration companies, which often operate on tight margins and cannot afford to overspend on essential business tools. By paying inflated prices for a rebranded GoHighLevel platform, these companies may experience several negative consequences:
• Reduced Profit Margins: Higher software costs eat into the company’s profits, reducing their overall financial health.
• Limited Budget for Other Tools: Spending excessively on a marketing platform means less budget for other essential tools and services that could enhance business operations.
• False Sense of Customization: Believing they have a unique, custom solution, restoration companies may not seek out or invest in other tools that could better meet their needs.
Ethical Marketing Practices
To combat this issue, it is crucial for marketing agencies to adopt ethical practices and maintain transparency with their clients. Here are some guidelines for agencies:
• Full Disclosure: Agencies should clearly disclose when they are reselling a white-labeled product and explain the origins of the platform.
• Fair Pricing: Markups should reflect the actual value added by the agency, such as additional support, customization, or unique features, rather than simply inflating the price.
• Honest Marketing: Agencies should avoid misleading claims about the nature of the platform and focus on providing genuine value to their clients.
For restoration companies, it is essential to conduct due diligence when selecting a marketing platform. Ask potential vendors about the origins of their software, compare prices with other solutions, and seek reviews or testimonials from other users.