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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At its core, it’s based on an outdated time-centred pricing model, which can be difficult to differentiate, and oftentimes low margin.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, ex-agency CEO, empowers ambitious agency owners to achieve profitable growth and freedom.

Joel understands the challenges you face: the stress of inconsistent revenue and profit, the exhaustion of long hours, and the anxiety of not knowing how to break through to the next level.

He works with agency owners who feel stuck... Struggling with too many low-value clients, opportunities being slow to close, and feeling like everything is dependent on them.

Joel helps you build scalable processes to attract high-value prospects, convert them faster, and grow customer value, all while empowering your team to create a profitable, self-managing business.

If you’re ready to create a business that works for you—not the other way around—Joel can help you make it happen.

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