Adapting Agency Pricing with Performance-Based Retainers

Points of Interest

• 00:01 - 00:21 - Introduction: Marcel introduces the episode and guest Chris Rudolph, a business coach specializing in helping agency owners grow their businesses and improve their lifestyles.
• 00:21 - 01:05 - Chris’s Background: Chris shares his journey from starting in the fitness industry to coaching agency owners, emphasizing his accidental entry into the agency space.
• 01:05 - 02:41 - Why Agencies?: Chris explains his focus on agencies, driven by their unique challenges and his passion for helping agency owners develop CEO skills they typically lack.
• 02:41 - 03:11 - Changes in the Agency Landscape: Discussion on how COVID-19 and economic changes have affected agency pricing, scoping, and client retention strategies.
• 03:11 - 06:17 - Opportunities from Disruption: Chris highlights how disruptions can open up opportunities for agencies ready to adapt, especially in terms of performance retainers.
• 06:17 - 09:18 - Hybrid Retainer Model: Chris introduces his hybrid model combining flat fee retainers with performance-based components to balance risk and reward.
• 09:18 - 11:09 - Determining the Base Retainer: The conversation dives into how to calculate a base retainer that covers costs and a margin, ensuring agencies don’t lose money on performance-based contracts.
• 11:09 - 18:59 - Setting Performance Fees: Tips on simple and effective ways to structure performance fees based on net sales, ROAS, or cost per lead, depending on the agency’s services.
• 18:59 - 27:09 - Audit Process for Client Acquisition: Chris describes the process of conducting audits for potential clients to assess fit and demonstrate value before proposing a retainer model.
• 27:09 - 35:26 - Retaining Clients Through Transition: Strategies for transitioning existing clients facing churn or cancellations to the hybrid performance-based model as a way to retain their business.

Show Notes

• Connect with Chris through his profile: Chris Rudolph on LinkedIn
• Freedom Agency Coach

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