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I’ve started 3 multi-million dollar agencies (including the #1 ranked Google Ads agency in the world). Here’s what I have learned:
An agency only has 3 real value props (I call them the “3 Ps”): people, processes, programs. Invest in them in this order. Great people will yield great processes. Great processes will give you great programs. Great programs will increase your valuation more than anything else.
Productize your services and then give people pricing up front. This immediately repels the wrong customers and accelerates the sales process with the right ones.
Custom pricing is a combat sport. And fighting with a potential client means, win or lose, you ultimately lose because you’ve manufactured a combative relationship with someone you’re more accountable to.
Don’t discount. Charge what you’re worth and then stick to it. There’s no happy ending for a discounted relationship. Don’t be seduced by the promise of future business. If you do good work, the future business should be assumed.
You’ll profit most from tasks that can be repeated. You can never charge enough for custom (bespoke, adhoc, whatever you want to call it) work. Use these projects as your sandbox for learning but don’t expect to make your money here.
Many see the shift from custom to scalable projects as a tragedy because custom is where you get to be most creative. You have to decide: are you an artist or an entrepreneur?
A bad client is never, ever, ever worth it. Ever. Pay attention to red flags. Manage expectations. Identify clients who aren’t mission appropriate and coach them out early and often.
When someone buys your agency, they’re buying your agreements. Make sure you are properly contracted with every single client, make sure your contracts are rock solid, and make sure they’re assignable. A good contract attorney is worth their weight in gold here.
