If you’re known for quality work, chances are your business is growing.
The pressure of a successful business can demand you expand to keep up…
But, expansion comes with a cost.
This is a painful lesson for many growing agencies.
It is hard to find people who are as skilled as you are, at a rate where you can still make money after paying them their wages.
So, what are your options?
A: Raise your rates, and potentially break what has been working and price yourself out of a job.
B: Find lower quality or overseas labor where you can make a buck, but risk your reputation for quality.
Neither one of these sound like great options…
You can probably see why this is a delicate dance that agencies who want to grow must play.
It is one I had to navigate in my own agency.
While raising prices is one way to increase profit margins…
There is another way to do it too.
Let me explain…
I started finding what I call “Hybrid” services for my agency.
These are services I can sell at a high margin because I leverage software (instead of people) to deliver the result for a client.
Let me give you one example…
I use software to help my clients attract more real 5-Star reviews. (Something every business needs help with BTW.)
The software does the work of sending out email drips and SMS messages to request reviews without me having to manage it.
It works in the background (inexpensively) and I can focus on other things.
It doesn’t matter if I sell 10 clients on this, or 100…
Since the software does most of the work, I don’t have to hire more people and increase expenses.
I get to keep more of the money I collect.
This helps me boost the profitability of my business without growing my team.
What’s also cool is these services tend to be recurring, meaning I get to charge the client every month and build up my recurring revenue.
I love being able to count on revenue coming in every month.
It’s dependable income that gives me more confidence to do things like make strategic hires or raise my prices without fear of losing it all.
Now, review management is just one example of a hybrid service, but it’s a good one and I want to go deeper on this so you can use this in your own business…
I’ve recorded a how to video on how to start a very successful online review business and get clients fast.
In the video, I’ll show you…
- The software I use.
- How I charge clients for this.
- How much I make selling the service.
- How much time it takes to set up.
- How to find clients (or identify existing ones) who will be easy to sell.
- My campaign for reaching out to prospects for this service.
You will learn a ton from this and it will change the way you see things.