Ensuring your agency is profitable

It’s not a stretch to say most agencies would like to be in “growth mode”. If that’s true, then why are so many of them just trying to survive? Why are so many going around in circles, month after month and year after year?


I know the answer to these questions because I was faced by them in the past.

 

Back when I was running my agency, I lacked a clear sales plan. I didn’t deeply understand who my customers were (through proper use of a customer persona). I didn’t know how to structure a sales funnel, and move prospects from oblivious bystanders to dedicated clients.


Without these things, you’ll struggle to build a profitable business. With them, it becomes much easier to find your ideal clients, improve your bottom line, and get your business moving in the right direction again.


Getting Paid What You’re Worth

Many agencies fall into the trap of selling their time, rather than the value they provide.  By this, I mean they price by the hour, the day or even give a time-based flat fee.

 

The issue with this is that it makes it easy for prospective clients to compare your price to competitors (even when their work isn’t quite as good as yours). This in turn leads to your work being undervalued. You either offer them a discount or lose the work - and most agencies don’t turn down work.

One of the most important shifts you need to make is selling your customers on the value they get from your work. It’s a matter of talking about outcomes, not outputs - what benefits will they get from the work you complete?


Read my detailed article on value pricing and selling.

Building value

Think of it this way: If you could hire a coach or consultant to increase your revenues by 25% and profitability by 40% in the next year, how much would that be worth to you?

 

Alternatively... how much would you pay a coach or consultant for 6 days of their time?


The end result is the same in both scenarios (dramatically increased profitability and revenues), but the way the question is framed almost certainly impacted the value you assigned to the consultant in both cases.

 

Understanding how to sell based on value (not time) is vital for your business. It will allow you to do more profitable work, deliver better end products to your clients, and increase retention rates.

 

If you’re ready to win more profitable business than ever before, why not get in touch to find out more?

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