Many agency owners believe that adding more services equals more value, but this is not always the case. Jesse P. Gilmore uses examples of agency owners who are trading time for money or offering services outside their competency to illustrate the problem. Jesse emphasizes that creating the right offer for the right client is like printing money for both parties. He suggests that agency owners focus on creating scalable and profitable offers to free up time and open up profitability for business growth.
Episode 74: Scalable, Profitable Offers
You are now listening to Leverage for Growth. Hey everybody this is Jesse P. Gilmore founder of Niche in Control and creator of the Leverage for Growth, welcome to the daily leverage edition.
Today’s topic is this “Scalable & Profitable Offers”. Sit back, relax and welcome to today’s daily leverage.
So this morning, I was doing my morning routine of stacking and reflecting on a live stream I did last week on the 5 main obstacles holding 6-figure agency owners back from 7-figures.
Today, I am going to dive into one of the main obstacles as many times these obstacles are things that people come to accept as normal and are unaware of the actual problem
Let’s solve that today by talking about when your offer is either not scalable or not profitable
So the problem is, is that a lot of times when we create offers, we think that value is based around how many things we can put into the package, right? And ultimately when we’re starting to look at an offer, sometimes we are creating an offer that is actually not scalable or not profitable. What I mean by that is that a lot of times as agency owners, one of the services that people hold onto would be like consulting. Maybe that’s part of what got them to the six figure level, but when you realize that consulting is basically trading time for money, That is not an offer that is scalable for an agency owner, for an example. Another one is based around profitability. A lot of times when an agency owner is working with a client and the client’s needs change and they need a service that maybe the agency owner does not currently provide, ultimately starting to look at how could we provide that and starting to offer different services that are not necessarily within their competency. Maybe they’re relying on a new contractor or a new vendor to be able to do it. And what happens is that they’re only taking a percentage of whatever that service is. And it’s not really a profitable service. And a lot of times when agency owners do this, they’re actually spending more time with that client than it actually was worth. So there is no profit that actually comes out of it.
And this problem leads towards the pain of actually feeling like the… There’s kind of a resentment with the client that they wanted a certain thing, you offered it, and then all of a sudden things don’t go as planned. And then there’s frustration about the whole agreement in the first place. And this emotional kind of thought that in order for you to keep a client, you have to keep on offering different things of whatever their needs are, as opposed to focusing on your competency, leads towards a not scalable or not profitable offer.
This reminds me of when I was working with one of our previous clients, Scott, and he was charging by the hour. And so every time that he took on a new client, he basically was logging hours in order for him to do it. And what this led towards was an understanding that the systems that we were building, we were getting everything out of Scott’s head into systems and procedures to actually make it to where he could do better work. better results for the client and less time. And his current model was making it to where he wasn’t really incentivized to implement these systems. Kind of a weird cognitive dissonance thing that was going on. And ultimately we had to look at his offer and his packaging that he had in his services and be able to make it both scalable and profitable.
And going through these exercises with Scott allowed him to look at what he was offering differently than what, you know, is just his service. And it wasn’t really based around time anymore, it was based around results. And by doing so, it allowed him to free up his time to focus on getting client results in the least amount of time. So it was a win-win. And the systems allowed him to go on vacation with his wife. And he went, I talked with him, you know, a couple months ago and… He took a three-month vacation in the Philippines.
And so, and it’s all based around not being tied to these hours and actually creating an offer that’s both scalable and profitable. Within three months of working together, he ended up doubling his profit margins, which is really, really awesome. And so, if you’re listening to this, and right now you have not, you know, you don’t have an offer that is either scalable or profitable. I would suggest going to one of our live events or you can message me on any one of the social media channels and I can get you into our private agency community where it’s all based around an understanding of these different topics such as value and profit and scalability and so forth. But with that, there is an understanding that if you don’t have an offer that is both scalable and profitable. And that is one of the things that you need to start doing once you’ve gotten everything out of your head and you’ve started to be more in control of your time. Starting to look at the offer allows you to scale.
So why is this important? Many times as entrepreneurs, we view value as the service that we’re providing. And we think that if we just add more services, it adds more value. The problem is that this is not actually the case. And this is ultimately what makes it so it’s a not- not a scalable offer or not a profitable offer. And when you create the right offer for the right type of client, it’s basically like you’re printing money for both parties because ultimately as a marketing agency owner, your main goal is to get client results. If you’re incentivized to get client results the right way, then there’s a win-win for both parties. And by doing so, you’re able to free up your time and open up profitability to scale your business the right way.
Now it’s time for the daily leverage. So where in your world, in your business, have you been focusing on an offer or offering your services in a way that is neither scalable or profitable? And once you have located where you have had that kind of offer, where it’s not scalable, where it’s not profitable, and you know what you need to change, my question to you is this. What are you willing and able to do about it today?
That is the end of the daily leverage. This is Jesse P. Gilmore. You’ve been listening to Leverage for Growth podcast. If you are enjoying these daily leverage and agency leverage episodes, make sure to subscribe on Apple or Spotify now