How much better would your life be if we could add $10K a month in recurring revenue to your agency?
Well, this model here shows exactly how to add $10K a month of recurring revenue to any agency, no matter your experience or what your current revenue is.
This method was shown to me when I just couldn’t get my head around how to increase our income.
But to figure out exactly how you can add $10,000 a month to your recurring revenue, we need to take a look at a bookshelf and a see-saw.
If you draw out a bookshelf with one shelf and two supports. And also draw a simple see-saw.
When I talk about adding $10,000 a month if you’re at zero a month recurring revenue and all of your revenue is project-based, you might be thinking what am I going to deliver people?
If you’re currently at $10,000 a month or $100,000 a month in recurring revenue you might be thinking how can I add another $10,000 a month in recurring revenue?
And if you’re a zero revenue overall you might be thinking how am I going to generate $120,000 worth of business?
The number 1 question I get is what am I going to deliver? Often what that means is you don’t know how to answer when the customer asks “What exactly do I get?”
A few years back, I had a serious diagnosis of cancer and I had a lot of kidney surgery that had to get done before I could do chemotherapy. I was in and out of surgery for about a year, and I remember feeling nervous and scared the first time my surgeon said we had to perform multiple operations. He also took me through the process of how the recovery would look like when they were making incisions, possible nerve damage, and the length of the recovery time because I’m going to have to go through my abs and a few other places. I’ve got tons of scars all over my body and I remember him telling me this. Throughout all of it, I wasn’t more afraid of anything it was making me more confident in his ability.
The doctor didn’t just come in and say “Okay, we need to perform an orchidectomy on you, we need to do some surgery on your kidneys, you know we’re going to figure it out”. That would terrify me and no doctor has ever said that to you.
What you laid out is he had a plan for me and he showed me the process and that’s exactly what I want to show to you and the first kind part of this is what my surgeon wrote down in front of me and I was like that’s genius, I’m stealing that from my agency. He told me he had a plan and what they were going to do. Your customers want to know that you’ve got a plan and want to know how you’re going to help them.
I’ll show you the biggest mistake that agency owners make when it comes to figuring out what to deliver. But first, we need to figure out “the plan”.
The first time I showed this to one of my customers after I’ve been using it for a while, they often found that their customers were asking “What do I get?”
We could have a couple of different prices if we’re aiming for $10K a month could be 100 x $100 clients or 5 x $2000 clients. I would rather try and find 5 clients but the price doesn’t matter yet.
Sarah, who was a client of ours used to struggle with this. Every customer seemed to want something different. And she was making a massive mistake. She felt she had to tailor the delivery to each client. But, I showed her a super simple solution, just like how my doctor did during my surgery.
Remember that huge mistake I mentioned earlier? The one that Sarah was making?
Well, that’s everything to do with the see-saw. We’ve got three parts to our service:
- What they pay
- What we deliver
- What they get or the result
I’m going to make life easy for us and I’m going to choose a price along the lines of $2000 a month because that means that when we have five of these clients, it’s easy to hit that $10,000 revenue.
But now the question is what do I deliver to balance out the seesaw so that they feel like they’re getting $2000 worth of value?
Whenever I brought this up to people in the past, especially agency owners they’ve wondered what I should include and the first thing they do is they’re worried about adding more to their workload.
I was particularly worried about adding more to her workload, I didn’t want her to feel she was already working 40 hours a week. I don’t want to add a more complex product just for profit or to the increased revenue only to further add to her workload.
She also worried about what others were delivering for a similar price and she was worried that her customers and leads would say it was too expensive.
Here’s the mistake that a lot of funnel builders make, they’ll say to balance this out their going to offer email and this is something that Sarah did. She offered full funnel builds, social content creation, copy creation, social media management, hosting, and unlimited calls to her for two grand. And of course, the idea is that she would be exhausted if she was doing this for 1 client alone yet 5 clients.
What we need to do is make sure that whatever we’re offering is hyper-scalable and they get two grand’s worth of value without us feeling we’ve done two or three grand worth of work.
I want you to ask yourself or your client what would be worth $2000 to them. It sounds very obvious but what would be worth $2000 to them regardless if they’re working with you or not? Or what would be worth you know $497 a month or whatever it might be.
Features are leveraged so you don’t want to add too much but for them to feel they’re getting $2000 worth of value, we have to balance this out with something else other than the features.
If we take someone like Sarah, what she was doing is working with people in the physical product space, things like home furnishings and fitness products. They were usually midsize e-commerce businesses and she had 5 – 6 current clients and most of them were doing social media work with her.
What they wanted was more returning customers, that was the thing that they were building their business on.
The first thing we did was we offered an audit, and found they were missing targeting specific previous clients. And Sarah worked out that their average client per sale was $100. If we were able to get them 20 sales that would be $2000 a month.
Now, we’ve changed what we’re offering because you don’t need to do full funnel building, hosting, unlimited support, or social media stuff. Chances are a few email campaigns and some copy are going to find those returning customers and balance out that $2000.
If you’re able to say we can help you get 20 clients a month it massively reduces what you need to deliver in terms of leverage.
We’ve got a Plan, Problem, and Support. We’re going to do a few variations, the bad doctor, Sarah was doing, a good doctor, and what you’re going to do.
When your customers say what exactly they get for the $2000 a month, $10,000 a month, or $100 a month, once you see this you’ll be able to apply this to software, coaching, consulting, and projects.
The bad doctor said they didn’t have a plan. Sarah was doing it custom and bespoke each time. The good doctor said they’ve got a plan and he has a process.
What you’re going to do is you’re going to outline the plan. You’re going to say you’ve got a three-part plan. The first part of that might be some kind of audit.
Here’s the part where it really gets into it, most clients are like what do I actually get? You’re going to say it seems that you have three core problems.
If we look at the bad doctor, when they say they do it differently each time they essentially don’t know what the problem is, and by not telling me what the problem is it kind of freaks me out.
Sarah was bespoke each time and she had to tailor how she worked with each client. Every single problem was different.
The good doctor, they know what they’re working on and they know what the problems are.
For you, with your client, you want to highlight their top three problems that you’ve discovered. Either through your research, having discovery calls with them, or whatever it might be.
And the final thing, what most people want is to know what the support is. Once you’ve got that it’s clear to them that this investment is worthwhile.
The thing is, now that you know how to leverage your skills and create a product that brings in $10,000 a month, you need a long-term term marketing and sales plan for your agency to consistently hit 5 figures per month. That’s why I’ve got this video here showing you how to hit $20,000, $30,000, and beyond this year with your marketing agency. It’s a total 1-year revenue growth plan for your agency, from start to finish.
