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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At its core, it’s based on an outdated time-centred pricing model, which can be difficult to differentiate, and oftentimes low margin.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 empowers ambitious agency owners to build a profitable business that runs and grows without them.

His "Agency Profit Foundations" program helps agency owners to double their fees in 90 days, whilst his signature program "Agency Leaders" helps them to attract and convert high value customers, and scale their business.

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