Episode Details

Are you struggling with low agency profit margins? Are you tired of not winning the engagements you want and deserve? Did you know there's an art to pricing in order to unlock 20X more revenue? That's 20X more than you are making right now!

When it comes to pricing, there are two common problems I see many agencies struggling with:

1. Low profit margins.
2. Not winning the engagements they should be.

Back in the day, I wanted to win high-profit engagements. I wanted the retainer clients because of the predictable income. I knew the combination of higher margins and predictable business would yield a healthy business and steady cash flow. But why is it so hard to accomplish? In my experience, it goes back to your approach.

Land 20x More Revenue by Making it an Easy Decision for Buyers

If you have a hard time landing the business you want it's probably because you're making it a difficult decision for the buyer. How? You're selling the wrong thing first. Pitching a big project or long-term contract from the get-go is like proposing marriage on the first date. It's a HUGE COMMITMENT to ask when you haven't proved your worth yet. So the issue here is you haven't created the perfect offer.

Mastermind member, Chris used to deal with this very issue. He owns an SEO agency and was charging $5,000 a month in month-to-month contracts. This was hindering his growth because clients normally stay with the agency for about 6 months, meaning they're worth just $30,000.

There were three things we needed to do in this scenario:

• Make it an easier decision for the potential client.
• Raise his pricing.
• Transition to a long-term contract.

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Steps to Creating the Perfect Digital Agency Offer

In order to 20X revenue, you need to have a plan. That starts with developing a foot-in-the-door offer, which is a small, low-cost offer that demonstrates your value as an agency. This type of offer should be low-commitment and a very easy 'yes'... an offer they can't refuse :) How can you benefit from having a foot-in-the-door offer? Well, clients who buy this offer are 20 times more likely to give you more money down the line. Overall, people are more likely to buy from you once they already know, like, and trust you.

It's natural that you want to sell your core service first -- that's your money maker! However, it's a huge commitment for your prospect, and therefore a harder decision to make. YOU know your agency is awesome but they still have concerns and questions. It's not a clear decision... yet. The solution here is to ease into a paid relationship first with a foot-in-the-door offer that highlights your expertise.

A lot of folks tend to over-complicate their foot-in-the-door offer so I created a tool to help agency owners develop your offer. Just go to agencymastery360.com/convert and download this free resource call the Foot in the Door Decider.

How to Build a Digital Agency Offer Ladder

The next step we did for Chris was to create an offer ladder, beginning with a foot-in-the-door. Start b