The Metrics Agencies Need To Be Profitable

If you run an agency of any sort, especially a marketing agency, listen up. You don’t want to miss this episode.

Today I have with me my good friend, and special guest, Marcel Petitpas of Parakeeto. Marcel and I go back a number of years, and collaborated a number of times inside Dan Martell’s SaaS Academy. Marcel has gone on to become one of the preeminent experts on the subject of agency profitability.

In this video you will learn these things:

1. How to think through the decision to hire in-house or to outsource.
2. The one metric ALL agencies should be tracking and most are not.
3. The metrics an agency should be tracking:
   1. Revenue
   2. AGI – Agency Gross Income
   3. Delivery Costs
   4. Average Cost Per Hour (ACPH)
   5. Average Billable Rate (ABR)
   6. Utilization (and why that matters)
   7. Delivery Margin
4. What pass-through expenses are and why they matter;
5. What to do to change each of these metrics, and the single best way to make your agency more profitable.
6. Why you need to identify the things people are doing that are below their pay grade.
7. How to avoid the “agencies just use the lowest cost labor possible” conundrum.

Finally, we’ll cap it off with the Agency Profitability Flywheel and How Agencies Make Money.

You don’t want to miss this one.

Screenshots are below. Enjoy the brain nuggets from Marcel!