Problem - Your agency has hit a road block. you either need more clients or to create more value with existing clients:
Every agency owner is going to reach a point when scaling where they have 2 options to increase revenue:
- Increase the amount of clients thus increase costs.
- Increase the value provided to existing clients
In our opinion, the most effective way to increase revenue rapidly while still maintaining decent profit margins is to charge more to existing clients.
Now…does this mean you just 2x the price without doing anything else?
Well, some people get away with this. We prefer to switch clients to a performance-basis!
What Our Customers Do to Fix This
Agencies (especially inside DAAS) use their leverage they have with AudienceLab data and switch their biggest clients to a performance-basis.
This means that their clients pay a lower retainer however they will take a percentage of revenue and/or charge per lead call.
Here is an example:
You have a client paying you $2,500 per month to manage their Facebook Ads which generates consistent revenue.
Now you can insert a SuperPixel, create a reactivation campaign and charge additional for the revenue you bought in (that they would never have had before).
This is just 1 of 50+ different performance models you can use.
Real Examples of Customers Doing This
Phillip Uses the data to partner with whale clients and create 6-7 performance deals - even getting equity in their company:
Why This Is Important
When one of our founders (Adam) started his agency over 6 years ago. He and his team generated over $70m for their clients selling luxury real estate. The client made a whopping 6 figure commission…and their team was paid $1,500.
If you are delivering a great service, simply charging retainer is not enough. Charging based on performance is the next step to scale beyond 7 figures…and the data provides the leverage to do this!
