The #1 Reason for Low Profits in Agencies (and How to Fix It)

Author

Nick Avaria
January 12, 2025

Most agencies are sitting on untapped profit potential. The culprit? A lack of proper data architecture and dashboards. 

This single issue silently eats into profitability, yet it’s completely fixable.

Hey, I’m Nick Avaria, agency owner, and founder of Agency Acquisitions. I help overworked agency owners scale to 7 & 8 figures while working less hours per week.

If you’re on LinkedIn, and we’re not already connected, send over a request to get in touch.

Here’s what might be happening in your agency:

  1. No Comprehensive Dashboards: Most agencies lack a structured way to view the key metrics that drive performance. At a minimum, you need dashboards for seven critical areas: Sales, Marketing, Client Results, Client Satisfaction, Productivity, Resources, and Finance.

  1. Limited Dashboard Access: Even when dashboards exist, they’re often underutilized. Managers may not have regular access or aren’t held accountable for reviewing them. It’s like having a treasure map but never following it.

  1. No Client Success Measurement: Client satisfaction is often gauged through anecdotal feedback rather than structured metrics. This leads to opinion-based decision-making, creating internal conflicts and stalling progress.

Why This Matters:
Data-driven agencies perform better. Here’s a startling statistic: Only 5% of agencies have robust data systems, and not coincidentally, this same 5% enjoys profit margins above 35%. 

With proper dashboards and systems, agencies continuously make better decisions, driving iterative improvements and unlocking hidden profits.

The Payoff:
With accurate dashboards and data architecture, you’ll gain clarity about your agency’s health in less than 10 minutes a week. 

This clarity replaces hours of manual conversations and guesswork, enabling your team to focus on solutions instead of debating opinions.

Key Fixes You Can Start Today:

  • Build dashboards for each of the seven key areas.

  • Focus on measurement of client satisfaction using a blend of quantitative (e.g., Net Promoter Score) and qualitative methods.

  • Update dashboards regularly (weekly, monthly, and quarterly) and ensure they’re shared with and used by your management team.

👉 Coming Next Week: A step-by-step guide to setting up these dashboards, measuring key metrics, and holding your team accountable.


Check this concept out in-depth here in this short video below: 

Want a complete list of the essential metrics for your agency? What about a Master Dashboard?

Get them here:

Want to find out how we can increase profits at your agency in 2025?

Book a time with me this January to connect about how we can implement dashboards and systems to make it happen.

Nick