How to Add Additional Revenue to Your Digital Marketing Agency
The biggest mistake newborn agencies make is to strive for high-ticket clients right from the onset. While it’s a good idea to have high ticket clients onboard to generate instant revenues, the strategy won’t take you any far as it has a fundamental flaw.
A large number of low-ticket clients is always better than having a small number of high-ticket clients. There are two primary reasons for that. The first reason is that this industry has a super high churn rate, which is three months only. Secondly, it’s much more challenging to win a new client than upselling an existing client or offering them recurring services.
So, you should choose your method of prospecting carefully. We have laid out this entire process to help you understand the best practices recommended by Chad Kodary, the CEO of DashClicks, to grow your agency and boost its revenues.
Mantra: You need to LOWER CHURN to improve revenue growth in your agency. So, every step you take to reduce churn will ultimately help you increase your revenues and survive as a business.
1. Start With a Low Barrier to Entry Products
The best way of prospecting is to start with an irresistibly low barrier to entry products that people can buy easily. For a digital agency, it can be a professional-grade website. DashClicks tool InstaSites allows you to create instant websites for your clients within seconds.
With InstaSites, you can create a beautiful looking instant website based on a niche-based template and ready with content and graphics. It will provide a truly transformational experience for your prospects. You can offer a completely professional-looking website for $199 + $40 per month. So, it will become a source of recurring revenue for you for at least the next six months.
The fact is that a website is an inexpensive product that brings with it a lot of value. It’s easy to sell to build relationships with a prospect. Furthermore, it takes a lot of time to make a professional website, but with DashClicks tools, you can instantly create a ready-to-use website. If you share how the website will look like, they will be impressed with your speed and skills.
2. Use a Value Ladder Approach for Upsells & Downsells
After selling the website, you shouldn’t sit idle. Instead, you should call up your client and ask them for feedback. Since most of your clients are probably local businesses such as roofers, plumbers, home services providers, masons, and carpenters, they must promote themselves as local businesses on the web.
They need to get their directory listings fixed as there can be several inconsistencies due to manual errors which can prevent your customer from being able to contact you. The customers who search for local businesses or services through their mobile phones or local directories such as Yelp can’t find you if you have an incorrect building number mentioned there.
Price rebuttals are common, but if there is any other reason stopping them from buying your product or service, you can convince them of the value of the product versus its price. For example, you can push directory listing services to boost their local SEO and attract more local traffic.
88% of people who search for a local service on their smartphones visit the store the same day.
3. Sell Recurring Services (Monthly Payments)
The best way to become a millionaire is to have multiple clients paying you recurring fees every month rather than a few clients paying a one-time hefty fee.
What is a Recurring Payment?
Just like you pay for Google Apps, Kindle Unlimited, Netflix, loan repayments, kids’ school fees, and perhaps your website hosting, there are millions of people and agencies who make recurring payments for a service.
Recurring billing happens when you allow a merchant to automatically charge you for specific services as per the schedule mentioned in your contract.
Many household items, electronic goods, and furniture items are available on a recurring payment basis from different merchants and physical and online stores such as Amazon. Recurring transactions are so common that the total volume of annual recurring transactions in the US alone is estimated to be around $473 billion in 2021.
Here are a few ways you can sell recurring billing to your customers:
- Make recurring payments the standard way to buy or subscribe to your digital services.
- Give many options to your customers and support as many payment types as possible.
- Don’t overcharge and introduce a fair price point that your customers find easy to pay.
Here are the recurring methods suggested by Chad. If you buy white label services from DashClicks, you can easily offer your clients the following recurring subscriptions. DashClicks will do the fulfillment:
- Create a website through InstaSites in a matter of minutes and sell it to your prospect @ $49/month + $199 Setup Fee
- When they become your customer, share with them the value of local SEO for incoming traffic and sales and offer Directory Listing Services @ 199/month + $99 Setup Fee. Again, source these white label services
- Offer them Social Media Posting services and charge $399/month + $99 Setup Fee
- Offer them SEO services and charge $699/month + $199 Setup Fee
- Offer them PPC services and charge $999/month (roughly) + $699 Setup Fee
Irresistible Sales Formula Training Course
Conversion of leads is the biggest challenge for marketing and salespeople. Here is an irresistible sales formula from Chad Kodary, the CEO of DashClicks, that will help you turn leads into high-value clients. The training course introduces you to proven prospecting systems that will assist you in filling the pipelines with qualified leads and teach you how to make those leads an irresistible offer.
Get Access to all our courses, tools, training & curriculums, mentors, and communities including Dash University and Call Center Secrets. To create a successful marketing agency, you can join Dash Elite Program and you’ll get free access to all of the above.
Note: Watch this video to know more about the Dash Elite Program.
4. Offer Promotional Prices on Long-Term Commitments
People are not likely to say yes to every sales offer, but they love discounts and offers. Capitalize on this psychology and offer them an irresistible package on long-term commitments. Shift your positioning and review your prices. Pick up your phone and check if they are hesitating to say yes to your previous offer.
If so, offer them a much better-discounted price for the long-term commitment. This trick will likely work and help you to add another customer to a recurring payment contract. It will boost your cash flow and offer you the ability to survive for a long time.
5. Build a List
None of your campaigns will succeed if you don’t have a list of prospects. Lists are essential as marketers aptly say that the money is in the lists. Email lists, social media followers’ lists, and even telephone numbers obtained from similar or lookalike databases can do the trick.
The more extensive the list, the more money you are likely to make. Use these lists for email marketing campaigns and social media campaigns.
6. Build a Sales Team
Building a sales team is highly crucial to a digital agency. But, what about its structure and sales strategy?
Chad further explains it in this way. You can build a sales team of tele-callers, and sales reps referred to as “fronters” and “closers,” respectively. You can generate a list of your prospects as per the services you offer and your physical location. In this list, you can also include people who have:
- Visited your website
- Expressed interest in your business during an event, a meeting, or online interaction.
Source: Top 10 Fastest Ways To Add Additional Revenue to Your Agency
7. Overdeliver Since the First Customer Interaction
To decrease churn, you must overdeliver since your first customer interaction. If you make it a part of your mission statement, it will not go unnoticed, and soon people will get to know about you through word-of-mouth publicity. The standard churn rate is 3-5%, so, if you can manage it within this limit, you’re doing a great job.
Over-delivering never fails to impress your customers, and it gets acknowledged almost immediately. Overdelivering leads to customer delight and loyalty, and it helps you boost your brand image. It also dramatically reduces the churn rate, which is a significant challenge for the agencies.
8. Create an Easy Onboarding Experience
Onboarding can be tedious both for you and for your clients because of lengthy documentation and paperwork. DashClicks white label dashboard makes onboarding a smooth process by taking care of all the repetitive tasks. DashClicks’ intelligent onboarding process automatically gathers essential information from your clients. You can buy the service from DashClicks’ fulfillment store and automatically allow your clients to access the white-labeled onboarding platform.
Most agencies complete the onboardings themselves, which chews up lots of your time, straining precious resources. The best way is to send them straight to your client via your white-labeled dashboard.
It will also help reduce churn in a big way.
9. Educate Your Customers
Educate your customers to reduce churn and grow your revenues. Certain aspects of digital marketing require education, especially when you’re running a campaign, and your client has no clues about its purpose, scope, TAT, and estimated time to expect results. As a result, the churn rate is often high in SEO projects.
The core services such as SEO require a lot of communication between the client and the agency because people are generally unaware of its value, dos and don’ts, methodologies, and complications.
When you hire white-label SEO or digital marketing services from DashClicks, you also get access to a host of educational material from DashClicks such as their highly informative blog, Video blog, Marketers Mindset Podcast, Webinars, Private Facebook Group, and Support Center.
- Video Blog
DashClicks’ video blog is highly beneficial for the agency owners as it shares proven digital marketing strategies directly from the successful agency owners, including Chad Kodary, the CEO of DashClicks.
- Dash University
Dash University is DashClicks’ education and training venture explicitly launched to help agency owners succeed in this challenging marketplace. Branded as a “university for agency owners,” Dash University educates you on what works and what doesn’t.
Dash University invites its members every week to a new live online training. With four distinct training styles, it helps you absorb all the information with minimal effort. Engagement and entertainment are the salient features of the university, so you can learn complicated stuff without feeling overwhelmed.
10. Increase Communication With Your Clients
ARC triangle is often used in Scientology, a 20th-century belief system invented by L. Ron Hubbard. The ARC triangle has three components:
The triangle is often used to describe the dynamics of human relationships and emotional connections. Affinity is the degree of affection or love between two persons to be described as the emotional state. Reality reflects the state of mind or agreements on what is real. It forms the basis of our behavior toward others.
Communication is considered one of the most crucial in all of the three elements, and it happens through the exchange of ideas. According to Scientology, improving communication will improve all three aspects of the ARC triangle, including affinity and reality. So, if you drag one corner of this triangle, you’ll also have to pull the other two in equal proportion to keep the triangle in its original shape. According to these principles, most of the human survival issues emanate from ineffective communication.
Similarly, in the business environment, it’s essential to establish effective communication. Poor communication will always result in conflicts, misunderstandings, and a lack of trust.
11. Offer Full Transparency
Your business relations become more vital when you have complete transparency. It leaves no room for mistrust and confusion, and as a result, the relationships last longer. Maintain transparency in terms of costs, business policies, and other vital issues. Your clients will appreciate that and reciprocate it with loyalty and long-term business.
These were some of the ways to add additional revenue to your digital marketing agency. Most of the methods recommended by Chad are already tested. Surrounding yourself with the people who have already done it is the best way to learn from them. Mentors and business coaches can help, but they can’t provide you with expert advice because they don’t have the experience of running an agency and marketing it. For expert advice, you can look forward to someone who’s been doing marketing for quite some time. A mastermind community can also help.