Profitability by client – Agency Management Tip for Owners
Unreimbursed Partner Expenses – Agency Management Tip for Owners
Let's talk about unreimbursed partnership expenses. An unreimbursed partnership expense are expenses that you pay for out of your personal pocket that you don't get reimbursed for. Let's say you're a start-up, or let's say you've had a tough year and you couldn't run all those pass-throughs through the business like normal. You still can take a tax advantage. The way it works is, first of all, this has to be covered in your operating agreement between your partner, in your partnership, or in your S Corp if you are a sole owner. Watch »
You can’t carry the load forever – Agency Management Tip for Owners
For many of you, you've been riding the profit line really tight since probably fourth quarter of 2022, and then all through 2023, things have been tight and a struggle for you and you have kept your good people and you have been waiting and kind of betting on the come, hoping that the work would come because clients and prospects were saying, “Yep, we're going to do it. Yep, we're going to do it.” But how long can you carry the load and not make money? Watch »
Get the most from your credit cards – Agency Management Tip for Owners
I know that sounds crazy, but the reality is most agencies use their credit card pretty liberally. We have a lot of expenses we run through on our cards and we want to make the most of credit card benefits. We can create our own currency by choosing the right credit card. Watch »
Repeat what matters – Agency Management Tip for Owners
This is a simple but very important reminder, worthy of repeating. When we are communicating with our team our clients, or our prospects we need to bake in opportunities for repetition. When we repeat what matters, we verbally underline and bold it... and that leads to retention and action. Watch »
Using your all team meetings well – Agency Management Tip for Owners
The start of the year is an opportunity to really rethink how you're going to show up in the new year. And we think about it from a goal perspective. We think about it from a resolution perspective. I want you to think about it from your team meeting perspective. Watch »
Are you living your values out loud?
Our agencies are bound by a set of values or beliefs. But I don't think we often think about how we make sure that we are really transparent about how we're living those beliefs. I'm wondering how you visibly live out those values, to show to your team and your clients that those values are something that are really meaningful to you and that you've made a commitment. By the way -- that's regardless of the inconvenience or the cost to honor that and to be true to that. Watch »
Can your employees actually buy your agency?
In our initial M&A conversation with many owners, they’ve mad a false assumption that they have to find an outside buyer because their employees couldn’t possibly afford to buy their agency. Beware of assumptions! Watch »
How are agencies making money doing video?
I recently got asked this question: Is there a way to properly manage a client's organic social media and still make a profit? So much goes into creating video content. Are most agencies getting away from truly beneficial organic reels? It's so high touch. So yes, there's a way, but it's usually a collaboration with the client and agencies who are making money doing organic social videos or doing a couple of things. Let's look at what they're doing. Watch »
Payroll ratios what’s too low
In the realm of business payroll management, it's crucial to maintain a payroll ratio of around 55%. However, we often come across marketing agencies with a payroll ratio as low as 45% or 50%, sounding an alarm for potential operational issues. This situation indicates a risk of either underpaying key personnel, putting the agency at risk of losing valuable staff, or operating with inadequate staffing levels. In the competitive landscape, especially in the US or North America, sustaining an adjusted gross income (AGI) allocation of less than 55% to your team poses significant challenges. While managing expenses is a valid concern, striving to keep payroll below 55% may inadvertently strain your team. It could signify a shortage of personnel or, more concerning, an underpayment issue. Despite improvements in the job market for employers, the reality remains that highly skilled employees are in demand and susceptible to recruitment efforts from headhunters, other agencies, and even clients. To foster a thriving marketing agency, maintaining an appropriate payroll ratio is not just about managing costs but also about ensuring the well-being and satisfaction of your team, which is crucial in retaining top talent amid the constant recruitment pressures. Watch »