Sep 22, 2021
Summary:
In today's episode, we break down some of the ways that we maintain predictable revenue. Retainers can be used by any agency to keep their income consistent. But they bring other potential issues. It’s also important to invest in a great team that consistently does great work. This is a simple yet effective way to increase returning clients and has the potential to increase your revenue. “Your journey towards predictable revenue is never over.” -Ancient Agency Exposed Proverb
Top 3 Curtain Pulls in this episode:
For more tips, discussion, and behind the scenes:
About The Guys:
Bob Hutchins: Founder of BuzzPlant, a digital agency that he ran from 2000-2017. He is also the author of 3 books. More on Bob:
Brad Ayres: Founder of Anthem Republic, an award-winning ad agency. Brad’s knowledge has led some of the biggest brands in the world. Originally from Detroit, Brad is an OG in the ad agency world and has the wisdom and scars to prove it. Currently, that knowledge is being applied to his boutique agency. More on Brad:
Ken Ott: Co-Founder and Chief Growth Rebel of Metacake, an Ecommerce Growth Team for some of the world’s most influential brands with a mission to Grow Brands That Matter. Ken is also an author, speaker, and was nominated for an Emmy for his acting on the Metacake Youtube Channel (not really). More on Ken:
Show Notes:
[1:26] Brad open’s today’s episode by discussing this week’s topic. He asks, “How do you stabilize your revenues so that there's some consistency, over a longer period of time?”
[2:18] Ken asks about the seasonality of Brad and Bob’s agencies.
[3:09] Brad talks about how although some months are lower than others, it has become more predictable.
[3:51] Ken says that as an agency, “you should never accept seasonality.”
[4:43] Bob mentions the role outgo plays when an agency is stabilizing their income. He also says that “the way that you engage customers and clients has a lot to do with the stability of your income.”
[9:52] Brad talks about the challenges of not having retainers.
[11:15] Ken mentions the importance of having foresight when trying to stabilize your income.
[11:53] Ken talks about how oftentimes with seasonality, it can be feast or famine.
[13:31] Ken discusses how, “it's a challenge to not get into a scarcity mindset.”
[14:40] Bob talks about how investing in excellent people and doing excellent work can help stabilize your income.
[17:42] Bob begins a discussion that unpacks the various meanings of retainers
[20:04] Ken talks about how his agency uses different retainers and some potential incentives to help convince clients that a retainer is in their best interest.
[22:34] Bob mentions his agency’s use of retainers and some of the methods they use.
[24:26] Brad discusses the way his agency uses retainers and points out that even retainers are flexible and can change. “if we didn't have 50% of our billings being retainers, it would be a lot more difficult to manage our cash and understand what's coming in.”
[27:16] Bob asks, “What are other ways that you can stabilize your income?”
[33:17] Brad talks about how, “as agencies, we don't plan out our customer business correctly.”
[34:09] Bob tells a story about how he used a client’s desire to move funding from his agency to work with another agency as an opportunity to suggest other ways his agency could help them. “there's always an opportunity, there's always something you can do for that customer”
[36:42] Brad talks about how seasonality can make you feel like, “we're either hustling or double hustling.”
[37:34] Ken discusses how even during a lower season, agencies should always have something to do that either brings in other sources of income or invests back into the agency. “there's always something to do. The challenge is, is does that something create revenue right now or in the future?”
[38:45] Ken wraps up by talking about the scarcity mindset and the challenges of trying to get out of it. “the leader needs to have a mindset of balance and stability.”