Do Your Agency Clients Value the Results You’re Achieving?

By Jason Swenk on January 4, 2021

Do you struggle to get agency clients to understand your value? Wish you could be paid what you’re worth? Have you ever considered a value-based or performance pricing model? The simple fact is, some clients need to see performance results in order to appreciate value. So if you want your agency to get paid what it’s worth, you need to present your agency as an authority.

In today’s episode, we’ll cover:

  • Do you have to niche down to grow your agency?
  • Why it’s important for your agency to build authority.
  • Are you leveraging results to gain trust?

Today I sat down with Todd Juneau, co-founder of Vuja De, a digital media agency. Todd got started in the agency world during the dot-com era and has subsequently seen a lot of change in the industry. But at the same time, he says, a lot of things have stayed the same. He’s here to talk about what this means to agencies today, benefits of performance pricing models and why his agency is so focused on results.

Do You Have to Niche Down to Grow Your Agency?

If you have listened to my podcast more than once, you’ve probably heard a recurring theme — niche, niche, niche. It’s no secret, it’s my belief you have to specialize to grow your agency. But does that really mean you can’t be a full-service agency?

In our discussion, Todd says, the main thing he has seen over the past 10 years is specialization. The funnel is becoming narrower and narrower. Clients want an agency that is the best at what they do and to put it simply, it’s hard to be a jack of all things and be great in any one area. Start with one thing and become the best in your field. Then, as you grow, you can build different practice areas, bring in new people, and move towards being a full-service agency, if that’s what you want.

Why It’s Important for Your Agency to Build Authority

Today, Todd says many agencies have transitioned to a more specialized, highly skilled model of service. But one of the biggest challenges agencies face now is things haven’t evolved as much when it comes to how clients view agencies.

In the 60s, traditional media agencies could get away with 15% commissions because there was less work to do. But now, campaigns require more technology, more specialization, and more human capital. The 15% model just isn’t feasible to be profitable and find success.

So how do you get your clients to see the value in your work? It’s actually pretty straightforward —build your authority. Start a podcast, create videos, or just go out and speak. When people see you as a trusted advisor instead of just another “me too” agency, they’re more likely to pay you what you are worth.

Are You Leveraging Results to Gain Trust?

Todd’s built his agency on results. In fact, his agency is so confident in their results they even have a performance-based pricing model. He says clients don’t spend money because they want to, they do it to acquire customers and sell their product. When a client can look at the P&L and see, “Wow, we actually did sell more product,” they typically have no problem paying you more. The key is to get your clients to stop looking at the vanity metrics and focus on how you are actually helping them achieve more. The good news is, agencies are beginning to shift in this arena and communicate the value of human capital and expertise.

At the end of the day, clients will get what they pay for. It’s not your job to undervalue your services to attract new clients. When you narrow your focus, build your authority, and produce results, you’ll have no problem getting clients to see how much your services are worth. This is why a performance pricing model is important.

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Do You Need Advice Beyond Performance Pricing Models?

We have discussed performance pricing and ensuring client value your results that you create for them but where do you need to focus on to make improvements? You will without a doubt come across other challenges — this is where I can step in.

I have advice for agency obstacles such as recognising common agency mistakes, how to keep great agency employees in your team as well as fostering the connections made with clients. If it’s challenging growing your business, I have agency growth hacks, the best ways to improve management of your business as well as why building a remote team can be beneficial in the long run.

Learn more about my career as well as tips, tricks, and insights by checking out my blogs that cover a wide variety of topics.

You can learn more from my experience from my Ask Swenk series and my videos on my Youtube channel. Check out advice and learn even more from other successful agency experts featured on Smart Agency podcast twice every week.

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