The Best Type Of Agency In 2024

The other day, I tweeted:

“The most underrated problem for agencies is having zero leverage.

EG:

• No employee training/operational edge

• If you can't turn a $25/hr employee into $100/hr of output, you will struggle to have profit. Simple as

That's why eCom ppl get pissed about how shit agencies are lol”

The reason I tweeted that is because I know a few people in eCom who constantly complain about agencies, and I know plenty of agency owners who complain about how sh*t their competitors are.

To me that just sounds like opportunity.

The fundamental understanding here is that in an agency business you are trading time for money.

At the start, you trade your time for money.

Then you scale and you are trading someone else’s time for money.

If you are trying to trade a $20/hr employee’s time for $250/hr, the results will suck and the client will churn.

But if you can pay the employee $20/hr, then train them to create $250/hr of value?

You’re in the green.

The reason I bring this to you is because when someone buys agency services, if you just try and outsource it to some random from Ukraine, you are pretty much never making it.

People buy agency services because of the systems, processes and talent you have in place.

If you can build better systems, processes and talent than your competitors, then you have the ability to command higher prices because you can get better results at scale.

You can’t just charge a client 4k/mo then pay an employee 4k/mo because they are ‘talented’ though. Then you have no profit.

You need to be able to create a gap between what you can create vs what you have to pay for it.

AKA - you have to create leverage, or the ‘gap’ between what the client pays vs what you pay will not be big enough to have profit.

This is kind of a higher level concept, read it a few times if you didn’t follow.

The best type of agency in 2024 is the agency that can create these operational edges so they can charge good enough prices and still take home fat profit.

This is done by:

• Having A+ employee training

• Having A+ internal processes/project management

• Using AI where possible

• Using the best softwares

• Hiring from cheaper countries, but training the talent so they’re actually good

• Having A+ content (for marketing AND employee training)

• Having A+ recruiting processes

Basically, the agencies with leverage will just dominate everyone else in terms of profit.

You can grow to multi 6 figs in revenue, but if you have no profit, what’s the point?

I will make a YouTube video on this soon. It is probably the most important thing in your business.

If you have questions about it, DM me on Instagram.

Other than that,

Namaste