Strategies To Improve Your Agencies Margins

Did you know that the average profit margin of the 50 top-performing marketing agencies in the country is just 10.4%?

Even without adding more clients, there is much room for improvement.
Today, we’re sharing strategies to improve your bottom line and make you more money.

Offer High Value, Low-Cost Upsells, and Cross-Sells:

Getting a prospect to become a client is the hardest part, but offering upsells and cross-selling is accessible once they cross that line. Think about how much extra cash is lost in the grocery store checkout line. You’ve already bought everything you need, but additional offerings of chocolate, gum, and magazines add to the total purchase price and consistency. The same can happen in your business. We’ve tested it and made hundreds of thousands of dollars by offering small upsells.

Outsource Manufacturing to Reduce Overhead:

Instead of paying overhead, you need to hire employees, taxes, rent, coffee, or Friday lunch, and you can outsource deliverables for a fixed price and pay your employees to manage the process. It’s probably not worth your time to bring anything that isn’t your core service in-house (at least not at first), and you may be able to improve your margins by outsourcing dramatically.

Offer Premium Packages:

A certain percentage of your clients will always be willing to pay more for the better service you offer. Time and again, we have been experiencing this in our own business.

When we started our business, our 1st product was $100, and someone bought it. Then we made a version that cost $600″¦ and someone bought it. Then we combined several products and offered a high-end package at $500, and someone bought it. But it would never have happened if we didn’t have the offer. It was relatively easy to execute, but we had to offer it.

Try offering a more Costly, premium package and watch your revenue and margins grow!

Productize Your Services and Create SOPs:

When you customize every product, running a scalable operation that hurts margins becomes increasingly challenging. But if you can productize your services, you can define your processes and scale. It allows you to make more sales, reduce costs and ensure you get what you promised to the client.

For example:

If you run an email marketing organization, you can sell a package of several emails per month.

If you run a web design agency, you can sell websites through multiple pages.

When you manufacture and package your services, you can eliminate all the margin wasted from customization.

If you follow these tips, your margins will increase, and your business will run more smoothly.


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