These days, agencies tend to get caught up in near-constant talk of creativity, innovation, and disruption. But all that noise can drown out the real reason you’re in this business: to make money. The truth is that you’re trying to make a living -- for yourself, your family, and your employees. And no matter how hard you work to serve clients, when you don’t make money, it’s pretty tough to sustain enthusiasm. Even when you are making money, this is a tough business. That’s why it’s crucial to avoid certain catastrophic mistakes agencies make every day. Draining Water From Your Own Pool Even smart agency owners make some of these painful mistakes. They don’t willfully sabotage their own efforts, but they fail to realize the long-term impact these seemingly innocuous decisions carry. You might even recognize yourself in these five financially draining errors -- and not realize how harmful they are to your bottom line. 5 Mistakes That Will Bankrupt Your Agency 1) Your pricing is too basic. Nine times out of ten, agencies present clients with a single price and package. However, when you do this, nine times out of ten, they’ll push back. Instead, always give them three options. Build the middle option first because this is the one they’re likely going to choose. This option should be your ideal sale and what’s really best for the client. According to a study on the center-stage effect, consumers feel that options put at the center of a range of options are the most liked. Once you’ve constructed your “middle” option, strip some of those deliverables away to create a first option. This bare-bones option is priced about 20 percent to 25 percent lower than [...]