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 »
Does your environment tell your story?
Does your office, or your zoom background, or however you present yourself, even your RFP proposal covers truly express who you are as an agency? Is it expected? Is your website expected? Does it look like everyone expects it to look? And if so, could you dig down one or two more layers and find something that would be surprising, that would be delightful, that would make somebody think more about who you are and how you think and how you work together, either with your own team or with the clients that you serve. Watch »
Can agency employees think like an owner?
Many agency owners want their employees to think like an owner. And what we mean by that of course, is we want them to care as much about the business as we do and we want them to make decisions that are in the best interest of the agency rather than themselves or even their department. In some cases, we're talking about a leadership team. But the reality is it's pretty hard to think like an owner when you've never been an owner and when you don't have the weight things like can I make payroll this month? Watch »
What’s the biggest mistake agency owners make?
There are many challenges that come with some pretty big consequences when you own an agency. But the greatest consequence is when the agency owner does not build wealth outside the agency while they still own it. Watch »
Grow what you have
Many agencies have new business meetings, and what that usually means is that you are bringing a task force or a small subset of your team together, and you're talking about what's in the pipeline, prospects, what you're doing to attract new clients to the agency, to have an opportunity to sell to them. But very few agencies have a sales meeting focused on existing clients. Watch »
Love Your Niche
There are a lot of reasons to choose a specific niche for your agency, but one trumps all the others. Do you love it? Watch »
What to do with an out-of-date employee
Agency owners are very loyal to their people and rightly so. They helped us build the agency we have today. But what happens when your shop outgrows an employee and they aren't interested in staying relevant? Watch »
Are you getting enough paydays?
Most agency owners are underpaid. Are you missing out on some of the ways you can compensate yourself as an owner? Watch »
Improvement Plan
For many agency owners, giving team members constructive feedback, growth goals, and course correcting bad habits and behavior is not easy. That's partially because we often do the work that the employee needs to do. Watch »
One Message
Clients are notoriously slow at responding to email, but there's a trick to speeding things up. Stop stuffing 5 lbs of info into a 1 lb bag! Watch »
