The World Wide Web has spurred a variety of profitable niche markets since its creation. These days, one of the most lucrative ways to profit from the Internet is to set up a digital agency. In a nutshell, such firms provide a variety of services to their clients such as web design and SEO. Many also offer a plethora of Web-based marketing options.
While there are many “lean” digital agencies in the world, some have a real problem with profit. Or, more to the point, making a lot of it. Sure, clients demand results for their money. But, is your agency doing more and charging less? If so, you need to reverse that position! Here’s how you can do that.
Learn how to delegate
The thing about many digital agency leaders is they tend to try and do everything in-house. Sure, the people in those agencies are experts at things like web design and optimization. But, is there anyone in them that is good at credit control or offline marketing?
In business, it makes sense NOT to be a Jack of All Trades. Instead, you should be delegating the things you aren’t that hot on. Meanwhile, you keep the stuff in-house that make your agency such an industry leader!
Don’t focus on services that generate little profit
The last thing you want to do is have your staff work on projects that doesn’t give you much profit! As you might expect, it makes more sense to sell services that don’t need much effort on your part.
Once you start focusing on what matters and stop selling the “loss leaders” your agency will grow! Don’t spend your days busting your butt for small change.
Don’t undersell your services
A lot of digital agencies think that undercutting their competition is a good idea. In fact, the opposite is often true! Why? The answer is simple: your potential clients won’t think you are good enough for them.
Have you ever wondered how the top agencies seem to grow, even though they charge a lot? The thing is, they justify their prices by offering a premium service. If that’s what your agency wants to do, it needs to reflect that in its pricing.
Never stop marketing your brand
So, you might think that gaining a few lucrative clients is enough to keep your agency growing. Except that’s the wrong approach to take! What happens if your customers go elsewhere or even out of business?
It’s important that you keep seeking out new customers to expand your agency. And you can only do that by marketing your brand on a regular basis! The cost of Google AdWords and even sponsored posts on Facebook is quite small. Keep your ad campaigns going, and you’ll keep getting juicy new projects to work on!
Hand over small clients to a partner agency
As you’ve read earlier, it makes sense to maximize your profit by doing as little as possible! It’s likely you have some clients that seldom spend much money with you.
Instead of trying to get them to increase their budget, consider offloading them. You will then have the time to concentrate on the lucrative high-earning clients. Plus, you could even earn a commission for giving someone else your small clients!
Thanks for reading today’s article!
(Image Credit: Small World Social )