Agency owners constantly ask me why they are always busy but are not making more money. The answer?—we write off too much time and overservice our clients to the death of our agencies.  How do we figure out how badly we are writing time off? What is your billability, and what is your utilization? Billability is how many hours your employees are working doing billable tasks, tasks that can be billed directly to a client you already have. Utilization is “hours” you actually assign to an invoice to a client. You do not have to bill by the hour, but it still starts with figuring out how many hours a task will take and adjusting your flat fee you charge your clients accordingly. Billability should always be more than your utilization. Your goal should be 65% of all available hours are utilized, meaning your billability average should be 75%. Keep in mind you will almost always overservice your clients. Every billable hour will not actually be billed, and that is okay as long as you stick to the goals above. One problem could be that your agency has too many people and employees are taking more time than necessary to complete tasks. This is called Parkinson’s Law. Each task you assign with a due date or time will use the full amount of time available to complete it, even if it can be completed quicker. You might have too many people, and there is not enough work to keep each of them busy at a pace that is reasonable. Another problem is overservicing your clients. Be clear with your team about how many hours there is to work on a project. People go over because [...]

When business owners are brainstorming new ways to grow their revenue, they first jump to their prospective new client list. Prospective clients who become new clients of yours are great for building revenue, but I argue to look at your current clients instead. Most of your new revenue should come from your existing clients, approximately 60-70%. Here are a few reasons why: You’ve already earned their trust. They’re accustomed to sending you money every month or every quarter. You’ve already demonstrated how smart you are and how much value you are providing. You are embedded within business on some level, and you have an opportunity to show how you could grow their business. These four things will add up to become an easier and faster sale than seeking out new clients. One of your responsibilities as a business owner is to teach your Account Executives (AEs) how to grow their book of business. Think of every AE as a franchisee and yourself as the franchisor; this will help open their eyes to this growth process. AEs will start thinking of how to grow their book of business instead of just maintaining it so that all of your clients are happy and satisfied with your services as they currently are. Additionally, they will start to see that if they are growing your business with the clients they are currently managing, you will give that AE more accounts and clients to manage—which helps them in the long run. There will be some pushback at first, feeling overwhelmed with their current workload. Start by breaking down agency math for them, showing them how much of the agency’s revenue goes towards adjusted growth income (AGI)—the money the agency gets [...]

Public speaking is something many people fear — even visionary CEOs. Tesla’s Elon Musk, for example, has publicly chastised himself for his lackluster performances. Even if you’re not Musk-level famous, public speaking is an essential skill. It could be argued that every time you speak, you’re doing so to influence opinion, inspire action or stir up a certain feeling. You’d better know how to present like a pro. If you’re a business owner, speaking might arguably be one of the most powerful tools in your arsenal. I realized this recently when I interviewed Michael Port, a best-selling author on the subject. He reminded me that great speeches have changed the world many times over—like Martin Luther King Jr.’s “I Have a Dream” speech. What most successful speakers like Port will tell you is that natural talent only takes you so far. The key is practice. Many of the best public speakers approach public speaking as a craft that can be honed through dedicated persistence. Use the following tactics to improve your skills, whether you’re giving a big presentation, pitching to a potential client or even having one-on-one conversations with your employees. Home in on your goal — Figure out why you are speaking and why your audience wants to listen. Are you educating, persuading, or simply connecting with them? Your goal will help you decide which tactics you will use to engage your audience. Rehearse, but wisely — Steve Jobs practiced his speeches thoroughly, and it paid off. His keynote addresses were legendary, even praised by rival Bill Gates. Rehearsing will make you feel more comfortable and more likely to achieve your objective. A good rule of thumb is to spend less time on low-stakes [...]

I repeatedly hear other agency owners lament their inability to find that mythical salesperson who can sell to prospects so owners don’t have to. My response is always the same: Are you sure that person isn’t already inside your agency? From my experience, successful salespeople have typically grown up in the agency (or at least in the agency world). Rather than a sales background, however, these potential sales stars often come from account services. These potential salespeople might not be perfect in all areas at first. Some might struggle with closing deals, for example. What they should have, however, are all the other qualifications of a great salesperson: excellent at building relationships, encourages long-term partnerships and upsells existing clients on your services. If you’re ready to look within your agency for the next dream salesperson, take your time. Put a lot of thought into why this person would flourish in a sales role, and ensure this person has the following qualifications: Knowledge of your agency and the industry it serves—This person must be fluent in your agency, its services and how it has helped clients reach new levels of success. The salesperson’s expertise should also extend to clients’ industries and verticals; otherwise, she won’t have productive conversations about how your agency can solve prospects’ pain points. Confidence—A successful salesperson must be able to naturally speak with authority. She should be comfortable reaching out and speaking to a wide range of people—from marketing associates at networking events to CMOs to business owners she targets with specific outbound marketing efforts. Sales Skills—The ability to create and maintain relationships is the foundation of any good salesperson. She must also know how to ask strong questions while also boasting [...]