My Client Just Cracked 50% Profit

How we got there in 5 months

I’m writing this on Aug 1st and one of my clients already had his July numbers fully finalized.

Aside from the fact that having your month-end books fully ready in under 1 business day is completely wild, the results that we worked through together were the real highlight.

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. For exclusive video content, make sure you hit Subscribe on my YouTube channel.

After 5 months of working together this marketing agency hit the 50% profit mark.

Let’s break down the numbers:

Now, based on the image above you might be thinking. How could someone scale profit by 13% per month for 2 months?

It seems crazy; and it is.

What makes this even better is that you are probably thinking:

“They must have done layoffs,” or “I bet you that’s not sustainable”.

The answer: we didn't do any layoffs and they are already projecting between 55-62% profit for August.

We did 3 things in a specific order to make this happen - and I’ve got a breakdown of each of them. 

  1. We put my 7 key dashboards into place so we could get an overview on the numbers. 

    1. Get the dashboards and an overview of system here.

  2. Established accountability systems for performance and specific data that employees were held to.  

    1. Overview of my KPI signature system for employees here.

  3. Overhauled the client retention systems that supported their core product. 

    1. Stop losing clients when you start doing this at your agency.

This made the following possible: 

In Q1 churn (clients turned over) averaged 33.8% per month

In Q2 + July churn averaged 4.9% per month

This is how we reduced costs as a % of top line revenue. 

We fixed the leaky bucket.

This meant that the top line revenue almost doubled but the majority of those incremental dollars went straight to the bottom line.

Did we know we could do it: yes, absolutely

Was this easy: No. But nothing significant happens easily.

If you want to check out how to fix the Top 5 Agency Killers of Profit and Scale here you can see it here.

Until next week,

Nick