The Agency Accelerator Why Agencies Are Not Profitable - The Pathway to 30%+ Net Profit with Robert Patin
Are you struggling to maximise your agency's profitability in today's competitive market?
Discover the foolproof strategies for achieving 30%+ net profit with Robert Patin in this week’s Agency Accelerator podcast.
In this episode, you'll learn how to shift from time-based selling to value-based selling, analyse client profitability, and make strategic business decisions that drive your agency's success.
You'll gain insights into increasing your agency's profitability, building value-based client relationships, and making strategic decisions for long-term success.
Tune in now to uncover the secrets of achieving 30%+ net profit and revolutionise your agency's profitability!
Time Stamp
[01:34] A definition of net profit
[03:00] What are typical agency net profits?
[05:00] Why are so many agencies at the lower end of net profit (10%)?
[06:34] Stop measuring your hourly rates and start measuring average earnings or effective bill rate
[09:00] Stop selling time to clients!
[12:48] What are the first steps to increasing profit margins?
[15:32] Are there alternative ways to measure capacity and efficiency besides using time recording?
[17:55] Why you should increase your prices (taking a value-selling approach)
[22:50] Steps to increasing profits
[27:35] When we are in an investment phase, how long should it be and how do we know we are making the right investment?
Quotations
“The thing I want to do most is often right behind the thing I want to do the least!” - Robert Patin
“When we sell time to clients we focus on the wrong thing and disregard our years of experience and our strategic insights” - Rob Da Costa
“Make decisions that are not emotionally based - hence the importance of a plan” - Robert Patin
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Useful links mentioned in this episode: