Скачать или смотреть TOP 11 KPIs TO SCALE AND EVENTUALLY SELL YOUR DIGITAL MARKETING AGENCY

What are the most important KPI's you need to track in order to scale and eventually sell your digital marketing agency? If I had to go back and build my agency all over again, these are the key performance indicators I would prioritize.

1. EBITA -- Earnings Before Interest, Tax, and Ammorizitation - Basically this is your net profit. How profitable and streamlined is your agency? Topline revenue doesn't mean anything unless you're profitable.

2. Monthly Recurring Revenue -- This is predictability. Your investors will want to understand how much revenue they count on and MRR help them project that figure.

3. Average Contract Term - How long do clients stay with you? Month to month contracts aren't as secure as term contracts. A buyer will want to see MRR along with long term contracts in order to predict revenue.

4. Churn Rate Percentage - This is the rate at which clients are leaving you, and you want to keep this rate low. Ideally, aim for under 10%.

5. Average Expansion Revenue - How many clients are you bringing and at what levels are you able to upsell them.

6. Net Promoter Score - How many of your clients are happy with your services? How many clients are actively promoting you to others? How many are neutral and how many are unhappy.

7. Large Client Rule -- Is any particular one client contributing more than 20% of the agency's revenue? If so, you need to treat the business as if you could lose them tomorrow. Because the loss of one large client that is more than 20% of revenue can sink your business.

8. Employee Churn Rate -- Similar to clients, how long are your employees sticking around? Do you have the right leadership team? Do you have the right people in the right seats?

9. Average Pipeline -- Is the pipeline constant, or are there ebbs and flows of activity? This gives an indication of what's to come and helps predict the health of the business down the road.

10. Scope Creep -- Are you overdelivering or not charging enough for the output of deliverables? Scope creep is a telltale sign of holes in your processes.

11. Cash Flow -- How much cash is in the bank and how long will it last? What are payment terms with clients and vendors? Cash flow is the bloodline of the business and you need to have a healthy cash flow in order to maintain a healthy business.

These are the 11 top KPIs you need to measure and know in order to scale your digital marketing agency. These are the indicators a potential investor will look at when determining your agency's value.

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Thanks for watching. I hope you keep up with the daily videos I post on my channel. Make sure you subscribe and share your learnings with others. Your comments are why I do this, so please take a second and say hello. 

JASON SWENK IS AN AGENCY ADVISOR THAT GUIDES MARKETING AGENCIES THROUGH A PROVEN FRAMEWORK FOR GROWING THEIR AGENCY FASTER & EASIER.

Fresh out of college Jason was off to work for Arthur Anderson, one of the big 5 consulting firms. He quickly realized that he could never work for anyone other than himself. He decided to change direction, launch a digital agency that quickly grew to a multi-million dollar operation working with brands such as AT&T, Hitachi and Lotus Cars. After 12 years of steady growth, the agency caught the attention of bigger agencies and Jason sold it in 2012.
Now, Jason leads http://JasonSwenk.com, a unique media company & consultancy helping marketing agencies grow & scale their agencies faster by applying the framework that he used to grow, scale, and eventually sell his agency. Jason has helped over 10,000 agencies in 23 countries meet or exceed their business goals.

Jason currently hosts two shows that are available for download…

The Smart Agency Master Class Podcast, dedicated to providing tactics and strategies to agency owners and decision-makers that cut through the BS, focus on exactly what works and what doesn’t; and

SwenkToday video series that documents the entrepreneur journey of building another multimillion-dollar business, where he shares the latest strategies and answers the most burning questions entrepreneurs have. 

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