Marketing School - Digital Marketing and Online Marketing Tips How to Make Your Agency Profitable in 2025
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Dec 7, 2024 Marcel Petitpas, CEO and co-founder of Parakeeto, shares his expertise on boosting agency profitability. He discusses the interconnectedness of agency operations and reveals the cycle of insolvency that many agencies face. Key metrics like delivery margin and average cost per hour are spotlighted as essential for financial success. Strategies for optimizing pricing and maximizing operational efficiency are also covered, providing valuable insights for agency owners looking to thrive in 2025.
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Cycle of Insolvency
- The "cycle of insolvency" traps agencies in a loop of winning business, hiring, then needing more business.
- This cycle can continue even at large revenues, causing founders to make less despite growth.
P&L Limitations
- Traditional P&Ls often lack actionable insights into profitability issues.
- Accountants focus on minimizing taxable income, potentially obscuring operational reality for agency owners.
Accuracy vs. Precision
- Focus on key profitability metrics and benchmarks, prioritizing accuracy over overly precise data.
- Simple insights are often more actionable than complex, potentially misleading information.