Are you under selling?

In last week's newsletter we covered what to do when the close rate is too high.

You can read it here if you missed it.

This time we are covering what to do when the close rate is too low.

I’m Nick Avaria, agency owner, and founder of Agency Acquisitions. Every week I share a client story, insights, and tips into scaling your agency faster, in 300 words or less. I’m ramping up my new Instagram account with daily videos and insights. Hit follow for daily insights on running an 8-figure agency.

Quick reminder of the 30-30 rule:

Pricing should have 2 key factors - I call it the 30-30 Rule:

1. Can you deliver the service for 30% or less direct cost (cost of the people and tools required)

2. A close rate of above 30%

There are two scenarios while close rates are too low:

1. While the direct cost is lower than 30%

2. While the direct cost is too high

When direct cost is lower than 30%

Easy fix - drop the price until the direct cost is around 30 to 35%. The price drop may help you get the closes at an appropriate rate.

Btw - this could obviously be a sales & marketing problem - but i’m not going to go here directly for now.

Most people, however, don’t have this problem.

When the direct cost is too high and the close rate is too low.

Again, we’re going to ignore the sales and marketing part of the equation here - at least directly. But the answer really does fall specifically in marketing.

The right move here is to create case studies about the amazing results you get people.

They need to have tangible results.

Now, this is where I give it the internal operations spin.

Each case study should have an internal and external component.

External is the sales/marketing piece.

Internal should be a training piece. Let me explain:

• Write the case study that outlines how:

  • We got the result for the client 

  • What the client already had going for them that helped the result

  • Said differently - we have to reverse engineer how we got the result

• Explain each variable and their contribution to the result

• Shoot a video where the most sr technical person walks through the nuance of why the results were what they were and how we can recreate the results with other clients.

• Focus on the:

  • Things we can control

  • Things we don’t control that we have to tell the client to do

My suggestion is that you first create the internal version of the case study.

After you create the marketing version it will be much more in-depth because of the lengths you went to create the internal educational version.

These will be the strongest and most persuasive marketing pieces.

Want the video recap on the 4-part series on scaling your agency to $10M+? 

Watch my latest Youtube video here where I break down the exact steps:

Ready to stop wasting time and start scaling your agency to 7 or 8 figures? Book a time with me this week to find out how to get started.

Nick