The Agency Profit Podcast

This podcast episode delves into the importance of utilization rates for agency profitability. It discusses the historical context and challenges in measuring utilization, emphasizes the impact on agency profitability, and introduces the Parakeeto framework for calculating utilization. The episode also explores the formula for utilization, the distinction between delivery hours and billable hours, and the significance of a consistent metric aligned with a broader management framework.

Karl Sakas, agency owner and leadership expert, discusses four stages of agency involvement, clarifying swim lanes for roles and responsibilities, values, goals, and resources for decision-making, developing high-functioning leadership, hiring strategies, trust and feedback, effective communication, the power of meetings, and leadership training.

Tim Burke, Agency success through 3rd party partnerships. Importance of shared values and relationships. Agency as an extension of the client. Setting proper expectations. Results-focused communication. People and infrastructure in agency success. Recognition of external expertise. Retaining a team with shared vision. Shift in agency focus and pricing models. Delivering and receiving value. Call to re-evaluate pricing models.

Melissa Morris, agency operations expert, discusses the importance of operations in agency success, common challenges agencies face, the issue of scope creep, team clarity and training, integrating operations early, starting with a conversation when dealing with agency owners, focusing on the desired output and quality of project management tools, documenting processes, her DISCO framework for refining workflows and processes, the right time to create SOPs, team training, and the importance of the tool stack and addressing team training.

Guest Mandi Ellefson, founder of Creative Agency Success, discusses the challenges of scaling a consulting agency, including limitations in managing direct reports and the need for middle management. They also explore misconceptions about scaling, the importance of delivering big outcomes to clients, improving product and keeping promises, and the role of executive leadership in scaling a business.

This podcast discusses the importance of client lifetime value in agencies, the need to increase customer lifetime value and implement recurring fees, delivering real value to clients through regular meetings, maximizing agency profitability through pricing, and measuring client lifetime value.

QUICK LINKS:• The Agency Profitability Toolkit - Get the templates, formulas, and frameworks we've used with our consulting clients to help them double their profitability in under 60 days, absolutely free• For more information on our Agency Profitability Systems and Consulting, check out parakeeto.com• Love the podcast? Leave us a review on the platform of your choice at this link• Want to see/read more about this episode? Then do make your way to parakeeto.com/blogGUEST LINKS:GoWPQuickly HireGoWP FaceBookABOUT: Emily is the Chief Operating Officer for GoWP, a company helping agencies grow through their dedicated staffing and via white-label WordPress service development. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

Entrepreneur and business growth specialist, Chris Moore, discusses the benefits and strategies of growing agencies through acquisition, including financing options, common mistakes to avoid, and the opportunity presented by retiring business owners. He emphasizes the importance of multiple income streams, team building, and exploring off-market acquisitions.

QUICK LINKS:• The Agency Profitability Toolkit - Get the templates, formulas, and frameworks we've used with our consulting clients to help them double their profitability in under 60 days, absolutely free• For more information on our Agency Profitability Systems and Consulting, check out parakeeto.com• Love the podcast? Leave us a review on the platform of your choice at this link• Want to see/read more about this episode? Then do make your way to parakeeto.com/blogGUEST LINKS:Jason's author pageAgency MasteryJason's Blog Jason's PodcastLinkedInYouTubeABOUT: Jason is one of the prominent thought leaders and coaches for digital agencies in the space. He's literally written the book for growing an agency from nothing to two eight-figure agencies. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

The podcast explores the changing landscape of agency rates and pricing models. It discusses the importance of understanding billable rates and setting target rates. The factors contributing to a drop-off in agency rates are also explored. The chapter emphasizes the need for setting appropriate rates based on team composition and compensation. Strategies to improve the average billable rate and measure agency profitability are also discussed.