Top 5 Ideas to Increase Agency Revenue

It has been said that the best way to increase revenue is to “work smarter, not harder”  

Have you ever heard of the 80/20 principle? In 1906, an Italian economist named Vilfredo Pareto created a mathematical formula which is referred to as the Pareto principle. This principle states that roughly 80% of the effects of actions come from 20% of the causes. A few examples would be:

• 80% of your revenue comes from 20% of your customers
• 80% of your sales come from 20% of your salespeople
• 80% of your staffing issues come from 20% of your staff

This principle can be applied to pretty much anything in life, both personally and professionally. When it comes to business, once you identify where 80% of your revenue is generated, you can focus your efforts on those services to increase revenue by 20%.

Here are 5 ideas to increase revenue using the 80/20 principle:

Identify the top 20% of your clients that are producing 80% of your revenue

Once you identify these clients, analyze the services you’re providing that are producing the most ROI. Whatever that is, focus your agency’s efforts on promoting that service, if applicable, to 80% of your clients.

Improve your Agency’s focus

Identify the niche of your agency. If you have been successful in securing retail clients, focus your team on that industry. Obviously, you want to respect current clients and stay away from their direct competition. By focusing 80% of your efforts on an industry you’re already good at, you can increase revenue by 20%.

Delegate to your team

The 80/20 rule applies to members of your team by suggesting that 20% produce 80% of the results. Identify the strengths of each employee and delegate tasks accordingly.

Problematic Clients

80% of your problems come from 20% of your clients. It’s okay to fire a client (nicely), especially one who may be taking up 80% of your resources and only producing 20% of your revenue. Learn to identify these clients so you don’t sell to them in the future.

Agency Fees 

When was the last time you evaluated the fees you charge against the services you provide your clients? Often, the compensation set up at the beginning of a partnership may not match the services you are providing 6 months in. The scope of work changes, which warrants an increase in your fee/rate. Provide your client with an evaluation showing value in your work when requesting to increase fees. Your time is valuable!

At the end of the day, the agency/client relationship is built on trust and respect. It is so important to demonstrate a level of integrity in your professional relationships. When you do so, increasing revenue, receiving referrals, and maintaining clients will happen organically. I have read many books that have helped me further develop my skillset. Here are just a few sales and marketing books I recommend:

I’m a HUGE fan of Tony Robbins. I attended one of his events years ago that changed my life in more ways than one. This book is a must-read. Available on Amazon