Our Method Of Getting $100K+ Deals Easily

Summary

This video explores how businesses, particularly agencies, can increase profitability and foster stronger client relationships by implementing performance-based compensation models like revenue sharing and commissions. It highlights the importance of aligning incentives to drive better results, including offering bonuses for achieving KPIs. By positioning themselves as integral partners within a client's business, agencies can build trust and avoid being seen as mere external suppliers. The discussion also touches on how developing diverse skills and leveraging technology like AI can open up new opportunities for growth and innovation.

Takeaways

• 😀 Aligning incentives between agencies and clients (e.g., revenue shares or commission-based compensation) can lead to mutually beneficial outcomes.
• 😀 Even if a revenue share isn't feasible, increasing upfront fees can compensate for it, creating a win-win for both parties.
• 😀 Setting performance-based bonuses tied to specific KPIs (e.g., conversion rates) ensures that the agency's success is directly aligned with the client’s growth goals.
• 😀 Moving from a vendor-supplier relationship to a partnership approach creates stronger, more collaborative client-agency dynamics.
• 😀 Agencies that deeply integrate with their client's business operations are better positioned to spot growth opportunities and solve problems more effectively.
• 😀 A commission-based structure can improve team performance, as seen in the case of an account manager’s performance improvement after changing their compensation package.
• 😀 Incentivizing teams based on results and performance (e.g., conversion rate goals) encourages accountability and drive to achieve better outcomes.
• 😀 A partner-focused approach reduces the risk of clients cutting services, as the agency is seen as an integral part of the team rather than an external vendor.
• 😀 The combination of learning new skills and driving growth for clients opens up further opportunities for agencies, such as expanding into SaaS or consultancy services.
• 😀 AI tools can be leveraged to enhance business delivery, improve efficiency, and scale faster, which is essential for modern business growth.
• 😀 Identifying business problems (like discrepancies in reporting) can lead to innovations that open up lucrative opportunities, as exemplified by the creation of Hyros.

Q & A

What is the importance of aligning incentives between agencies and clients?

Aligning incentives, such as revenue sharing or performance-based commissions, ensures that both the agency and the client work towards common goals, leading to better outcomes for both parties. This creates a mutually beneficial relationship where the agency is incentivized to help the client grow, and the client values the agency's contribution.

How can agencies increase their income through performance-based models?

Agencies can increase their income by introducing performance-based fees, such as commissions or bonuses tied to key performance indicators (KPIs). For example, an agency might charge a higher upfront fee with a revenue share or offer bonuses based on improving metrics like conversion rates.

What is the role of bonuses in agency-client relationships?

Bonuses are a way to further incentivize agencies by tying additional compensation to the achievement of specific goals or KPIs, such as increasing conversion rates. This not only motivates the agency to perform well but also aligns their efforts with the client's objectives, creating a stronger partnership.

Why is it beneficial for an agency to operate as a partner rather than a supplier?

When an agency operates as a partner, it becomes more integrated with the client's business, fostering a deeper relationship and a shared commitment to success. This reduces the likelihood of the agency being cut when the client faces financial challenges, as the agency is seen as an essential part of the business's growth and strategy.

What are the potential downsides of operating as an external supplier?

Operating as an external supplier can make it easier for clients to cut ties, especially when they are looking to reduce costs. In this model, the agency is less integrated into the client’s business, and the relationship can be more transactional rather than collaborative.

How can agencies develop a wider range of skills by working closely with clients?

By working closely with clients, agencies have the opportunity to learn about different aspects of the business, identify growth opportunities, and develop new skills. This hands-on involvement helps agencies broaden their expertise beyond the initial service they provide, preparing them for future ventures or new business models.

What role does AI play in modern agency growth?

AI can streamline agency operations, enhance service delivery, and provide valuable insights that help businesses grow faster. By automating repetitive tasks and providing data-driven recommendations, AI allows agencies to focus on high-level strategy and improve client results, leading to long-term business success.

How does having a deeper relationship with a client benefit the agency?

A deeper relationship with a client allows the agency to gain insights into the business's challenges and goals, leading to more tailored solutions and better results. This also helps the agency spot new opportunities, which can lead to new business lines or ways to add value to the client's business.

What is the significance of tracking and improving conversion rates for an agency?

Conversion rates are a key performance indicator (KPI) for many businesses, and improving them directly contributes to business growth. Agencies that focus on improving conversion rates not only help clients succeed but can also earn performance-based bonuses, making it a win-win situation for both parties.

Why is it important for agencies to understand how their clients structure bonuses and commissions internally?

Understanding how clients structure their internal bonuses and commissions can provide agencies with valuable insights into the client's business culture and expectations. It helps agencies create performance-based compensation structures that are in line with the client's goals and incentivize both parties to work together toward success.