Build a Predictable Sales Pipeline for Your Agency
[00:01:03] - Accidental Agency Owners
[00:01:24] - From $500 Websites to a $13 Million Agency
[00:01:46] - Importance of Systems and Clarity
[00:02:28] - Empowering Employees
[00:03:23] - Budgeting and Financial Struggles
[00:04:14 ]- Life-Changing Questions
[00:04:56] - Five Roles of an Agency CEO
[00:08:49] - Positioning Your Agency
[00:09:49] - Avoiding the "Me Too" Agency Trap
[00:11:38] - Simplifying Your Offerings
[00:12:09] - Understanding and Charging for Value
[00:13:14] - Building Trust with Strategy Sessions
[00:14:30] - Transitioning to Retainers
[00:16:17] - Increasing Client Value
[00:17:06] - Handling Client Remorse
[00:17:28] - Qualifying Prospects (NBAT)
[00:18:33] - Getting the Budget
[00:19:55] - Pricing Strategies
[00:21:00] - Researching Clients
[00:22:09] - Setting Expectations
[00:22:30] - Prospecting and Niche Selection
[00:23:22] - Podcasting as a Strategy
[00:24:35] - Three Pillars of Prospecting
[00:28:27] - Biggest Mistakes Agencies Make
[00:29:50] - Specialization and Pricing
[00:30:05] - Creating Your Own Silver Bullet
Almost all agency owners created their agency by accident. In the 90s I created a website to make fun of a friend who looked a lot like Justin Timberlake. I called it N’SHIT. Yes, I was that mature. It got very popular very quickly and before I knew it people were offering me money to create websites for them.
It was 1999 and I had no idea how to run a business, so of course I charged $500 for my first one. Those first years the agency grew rapidly until it didn’t. It felt like we hit a plateau and I didn’t quite know how to move past that. It came to a point where I thought about giving up and just taking a job.
In that moment, I lacked the necessary systems to grow my agency and I lacked clarity on my goals and overall direction to get anywhere in this business. Two questions were key to getting me to work from a place of clarity: Do you know what you want to do every day? What don’t you want to do ever again?
Biggest Mistakes You Can Fix Right Now
Not picking a niche
There is a reason why specialty doctors get paid a gazillion dollars vs. the generalists. Stop being afraid to niche down because you might push one or two clients away. Losing those clients will free up time to work on better ones.
Some people niche down and then feel the need to further specialize once they see the results. Finding your niche market is a big step in building a predictable pipeline and finding your ideal audience and will help keep your competition at bay. Now you’ll be seen as an authority in one segment of the market because providing focus allows you to become an expert and once you show you get your clients business, they’ll trust you more and, once that happens, it’ll be easier for them to choose to work with you.
Not charging enough
Securing client’s trust and respect for your expertise will also help you gain the confidence to raise your prices. It’s a tricky subject for many agency owners who are afraid of losing clients if they raise prices. However, think about this, if you find you’re always busy and don’t have time to think about the agency’s overall goals and direction, you’re probably not charging enough.
Yeah, it’s hard to do. But if you want to ensure you’re turning a profit, you need to implement a system for you and your team to track the hours they’re spending on projects.
How do you know how much to raise your rates?
Surprise – it starts with tracking your time! We would use the time we tracked previously to figure out what to charge on similar projects. We would know from the previous records how much time it took for each phase of a project. This gave us an accurate judgment of how many hours it would take to complete the work.
But setting your rate doesn’t stop there. You also need to add to it for profitability and unknowns. For example:
100 hour project + 25% for profitability + 25% for unknowns
So essentially, that 100-hour project is charged as a 150-hour project. Whatever you end up charging, at the very least, you need to make sure you know how long it takes you to do the project.
N.B.A.T Framework
Understanding the Need, Budget, Authority, and Timing of a client’s project is crucial in building a successful relationship and providing effective solutions. These four factors are key in determining whether a potential project is a good fit for both parties and are what I call the N.B.A.T framework.
NEEDS: Understanding the client's needs is essential in tailoring your services to meet their specific requirements. By asking questions and actively listening to their goals and challenges, you can demonstrate your expertise and show that you are invested in their success. This also helps in identifying any potential gaps or opportunities that you can address with your services.
BUDGET: Discussing the budget early on in the conversation is important to ensure that both parties are aligned on financial expectations. By being transparent about pricing and discussing budget constraints, you can avoid any misunderstandings or conflicts down the line. This also helps in determining whether the project is financially viable for both parties.
AUTHORITY: Identifying the authority within the client's organization is key in streamlining decision-making processes and ensuring that you are speaking to the right person. Ask questions about who holds the decision-making power and involving key stakeholders in the conversation. This way, you can avoid delays and miscommunications that may arise from dealing with the wrong person.
TIMING: Lastly, consider the timing of the project to manage expectations and set realistic deadlines. By aligning on timelines and ensuring that both parties are on the same page regarding project milestones, you can avoid any misunderstandings or delays that may impact the success of the project.
5 Roles of an Agency CEO
Implementing the right systems and correcting the most common agency owner mistakes provided clarity that helped me define the roles I would focus on as the agency CEO. That time will come, but even if you’re not quite there, you should be aware of the roles you’ll take on once you make that transition.
Set the vision.
Coach and mentor the leadership team.
Understand the agency’s finances.
Be the face of the agency.
Maintain key relationships.
Learn to Enjoy the Journey
If you do all this I guarantee you’ll get over the most common hurdles agency owners face when growing their competition. However, the most important part is that you love what you do and enjoy the journey. Agency life is a roller coaster and you’ll find you’re always either in the storm, heading to the storm, or just got out of a storm and enjoying a quiet period before the next one. So learn to enjoy the journey.
While the destination may be the ultimate goal, it is the process of overcoming challenges, learning new skills, and building relationships that can be the most rewarding part of entrepreneurship. By finding joy in the day-to-day tasks and celebrating both successes and failures, you can stay motivated and energized throughout your business journey.
