Do you ever feel like you’re generating more revenue but can’t seem to figure out why that’s not translating to more profit and more money in YOUR pocket?
Well if that’s you then today is your lucky day!
Today we’re going to talk about “3 Simple Ways to Increase Your Digital Agency Profits Right Away”.
So let’s jump right into it.
Number 1: Improve your Churn Rate.
Churn rate refers to the number of clients who cancel on you every single month.
Did you know that a 5% improvement in Customer Churn can mean a 25% or more increase in profit???
Keeping clients happy and keeping them working with you longer is KEY to a profitable agency.
So keep your clients happy with more communication, more deliverables, and better results and you’ll never have to worry about churn ever again.
Number 2: Reduce Your Cost of Goods Sold.
Cost of Goods Sold typically refers to the labor that you pay to complete those client projects like building websites, doing design work, running ads, etc.
And some of the most successful agencies keep their Cost of Goods Sold to around 30%.
When your COGS are that low then you usually have more budget to re-invest in the leadership team to help you scale.
If your Cost of Goods Sold is too high then
a) you aren’t making enough profit on those projects
b) you won’t be able to give yourself a raise and
c) you won’t be able to hire the leaders to help your agency grow.
So control your Cost of Goods Sold by reducing what you pay for all your projects to go out the door and you’ll have more money to add to the bottom line.
And finally Number 3: Increase Your Prices!!
If you can increase your prices on your Projects or Your Monthly Retainers, while also maintaining your Cost of Goods percentages, then you’ll naturally improve your profits.
Just think, if every month you can increase your average retainers by $100/mo, then that adds up to major bucks by the end of the year and as long as you can keep your costs down, it will mean major profits for your agency.
And the best part is that DUDE can help you with all 3 IMMEDIATELY.
We can help you improve your retention by doing more of the implementation for your clients on a monthly basis.
Things like site speed optimization, monthly updates and changes, and even just putting up blog posts.
We handle all that and clients will stick with you longer when you deliver them results.
Then since we charge a flat-rate for unlimited web design and development, you can rest assured that your Cost of Goods will always remain at the percentage that you need.
And finally, since DUDE has your back everyday, you’ll be able to sell more, raise your prices, and deliver more results to your clients while we do all the implementation.
So if you’re interested in learning how DUDE can help you improve the profitability of your agency then just click the link and we’ll walk you through a Profitability Analysis using our proprietary Pro Forma and we’ll show you exactly how we can give you the People AND Processes so you can take on more projects and scale PROFITABLY.