In just a moment…
I’m gonna share a true story.
It’s how I closed one of the biggest deals of my career… in just 2 minutes and 33 seconds.
Before I do… I want to reveal a formula.
One of my first mentors shared this with me, and it’s what he called:
“The universal formula to business”.
Every business creates X value for its customers and captures Y% of X as a result.
X & Y are independent variables.
Think about it.
You charge your customers a price for what you offer.
Whether you do it deliberately or not… that price is a percentage of the value you are offering them.
Not only that… but it’s a percentage the customer deems fair… otherwise they won’t pay the price.
This might seem super basic to you…
But when I first learned about this… it totally changed the way I approached growing my marketing agency.
I realised that the best business model for me and my clients was to charge a percentage of the value I was providing to the client.
If I was helping my client generate leads that would bring $1,000,000 to their business…
Then I would charge a percentage of that $1M, that was fair to us both.
This is how I was able to generate over $1,000,000 in revenue with just 5 clients and no team.
Now… back to the story:
I’d been growing my marketing agency for a while at this point…
I had a team.
We were cranking along.
Things were going well.
I had a client that we were charging $20,000 per month to generate leads for their business… and graciously, they referred another prospect to us.
This person was no minnow.
It was one of the wealthiest property developers in Queensland at the time.
We jumped on a call… and 2 minutes, 33 seconds later, we had agreed to work together.
The prospect told me what they were after.
The leads & sales they wanted to generate.
I determined the % of value that was adequate to charge for… and told him:
To generate those sales every month, that will be $24,000 per month.
The phone call cut out… and I distinctly remember seeing the time.
I called him back, we finalised the deal, and started working together.
In total, the call lasted 2 minutes and 33 seconds.
They stayed with my agency BusinessNET for 3 years…
We generated $864,000 from this 2 and a half minute phone call as a result.
So here’s my point:
If you run an agency, you need to charge an adequate percentage of the value you provide.
It may sound straight forward, but the truth is… it’s detailed.
What percentage do you charge?
How do you get paid?
What type of clients are the best for your business?
The list goes on.
You can read about all this and more in my book, which you can purchase from this website.
© 2021 Marketing Agency Millionaire
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