Maximise Your Agency Growth With Intentional Profitability

28th June 2021

Is your digital marketing agency profitable on purpose, or by accident? At Digital Agency Coach we’ve worked with hundreds of agency owners over the years, some of whom were unaware of their profitability stats.

Many agencies end up being profitable by accident, as a positive consequence of the year’s work. In this article, we share our insights on turning an intentional and deliberate profit.

Is Your Profitability An Afterthought Or Is It Achieved By Design?

At Digital Agency Coach, we always recommend approaching profitability with intention and purpose. This approach can feel foreign and a little acquisitive at first, but it’s important to remind yourself that it’s completely genuine and moral to design your business in such a way that it earns you money.

Having a profit-driven mindset enables you to reinvest into your business, enhance the quality of your service and grow your agency.

How A Profit-Driven Mindset Delivers Better Results

Agencies who generate anywhere from 0–12%* profit are generally doing so by accident. These agencies usually no profit strategy in place and the year-end results are unpredictable and often speak for themselves.

Those digital agencies turning anywhere between 13–22%* profit, are almost always doing it on purpose. The closer the number lies to 22%, the more deliberate and considered the profit is. The lower the number, the less intentional their outcomes have been.

And as for those generating a profit percentage anywhere north of 22%*, we classify those guys as purposeful, profit machines. These digital agencies know their services, their clients, their team, and their business like the back of their hand. Their sales pipeline and financial systems are geared toward driving high volume, quality leads which convert.

*These figures are general only, actual profit margins will depend on the agency size. Large organisations with substantial overheads typically will have tighter margins.

How Can You Start Intentionally Turning A Profit?

1 — Gross Profit Margins

2 — Utilisation

3 — Poor Performers

4 — Reporting

5 — Pricing

6 — Market Conditions

Are You Ready To Become Intentionally Profitable?

Ready to begin? Start by asking determining which of the three levels of profit and intention describes your agency. If you’re turning a profit anywhere south of 20%, it’s time to change your mindset and address these six ways to increase your profitability.

Watch Our Free Video Class: Profit On Purpose (7min) & kickstart your journey toward profitability

Of course, if you have any questions or would like to chat with one of our Digital Agency Coach Consultants, please Get In Touch — they’d love to help.


About Janusz Stabik - Digital Agency Mentor

I'm an ex-agency founder now coach and mentor to digital agencies and trusted by Google and Forbes to deliver agency growth programs across the globe.

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