I earlier wrote how you need to get out of DIY mode and get leverage through people, experts, and software to grow your agency or service business.
Here are the key people you need on your team to grow your agency fast.
A Facebook ad expert, a salesperson, a project manager, and a recruiter.
If you sell to B2B brands then you may need a PPC/Google Ads expert on the team.
Get them on board as soon as you can.
The Facebook or PPC ad expert will get you leads, the salesperson (you can be the one by the way) will convert those leads, the project manager will coordinate with clients and organize delivery and the recruiter will get new talent on board who will help you do the work.
Be smart and bold about your ad investment.
Smart by not overstretching your finances in the beginning.
And bold by continuing to scale your ad investment with every additional client you onboard.
Use commonsense. If you want to get leads that will give you a client with a retainer of $4000/month, then it is not practical to only invest $400 in ads. So, be realistic as you set out to achieve your goals.
If you only have $400 to spend then it is good to aim for a client with $1000 in the monthly retainer. That way you can breakeven in the first month, given that you work on 40% profit margins, and start savings profits to accrue in account in all subsequent months for as long as the client remains with you.
Aim for a 40% profit margin that I shared above or higher which is easy to get with a focus on profitability and selling to the right clients.
- Win your first retainer client by investing a logical budget to run lead gen ads.
- Once you get the first client converted through these paid ad efforts, deploy a part of the additional profit to scale your lead generation efforts.
- Save 10% of the additional profits you get through the first retainer client and invest everything else in ads to generate leads and onboard another client.
- Continue to use this approach and now invest 30% of revenues that you save from the 1st retainer client, and 15% of revenues from the 2nd retainer client. Rest 15% use for hiring. This means that your ad budget for the lead gen campaign will be 1.5x of the previous campaign giving you an opportunity to grow faster than earlier.
Keep on repeating this to a point where you are investing 10-20x of your initial advertising budget for lead generation.
This may sound too good to be true because you are not there yet and you haven’t experienced it but it can mean 5 new clients joining your agency each month 9-12 months from now.
Every 3-4 months pause advertising for 45-60 days to review and improve your campaigns and conversion process.
And, for this process to work your offer, messaging and conversion funnel should be working to some extent. That’s why it’ll be helpful if you have tested your offer, messaging and conversion funnel for organic traffic and leads.
This approach can put you in the 10x growth mode, however unreal or difficult that may sound.
What would change for you when you witness this kind of growth in your business?
Think about it, and if it excites you, take action.