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The Digital Agency model is broken

Joel Norton  |  May 3, 2021

I believe the digital agency model is broken.

At its core, it’s based on an outdated time-centred pricing model, which can be difficult to differentiate, and oftentimes low margin.

Some agencies operate on a retainer model. Whilst this typically covers the cost of your team and provides you with monthly recurring revenue making it easier to plan, it can be low margin and feel like you continually have to justify the expense with your customer.

Or you may deliver customised done-for-you projects. Project-based services are resource intensive for both delivery, and sales, and are prone to scope creep which reduce your margin. It can also be highly stressful to ensure you have another project ready to go at completion, or face losing more margin.

Bottom line, either model can be difficult to scale.

The good news is, there is a better way.

Here are my thoughts on the New Agency Model.

The New Digital Agency Model

Looking for a more profitable and scalable business model?

If your annual revenue is $1M plus, and you want help to grow and scale high margin recurring revenue, schedule a call for a chat via the form below.

I'll ask you a couple questions to learn about your business and see if I can help you achieve more money, freedom and purpose.

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Joel Norton

Joel Norton is an agency growth specialist, and founder of Agency Leaders Academy. Joel helps agency owners who are struggling to get to the next level, to create a thriving business that is not dependent on them. That starts with his foundational program, “The Agency Profit Accelerator”, which helps agency owners to attract better quality, high value clients they LOVE, are EASY to work with, and who PAY you more.

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