Selling Client Education and Credentialling, with Darian Kovacs

00:00 – 00:32: Introduction and background of the guest, Mandi Ellefson.00:32 – 03:42: Discussing the challenges faced by service-based businesses, especially agencies, in scaling beyond $1 million.03:42 – 07:38: Importance of creating an “irresistible offer” to enhance scalability and overcome common obstacles.07:38 – 12:12: Exploring the concept of crafting a compelling value proposition and aligning it with client needs.12:12 – 16:35: The significance of pricing strategy, client positioning, and delivering exceptional value to boost scalability.16:35 – 17:21: The role of mindset in scaling a business and embracing the concept of “thinking bigger.”18:56 – 19:15: Reflecting on the pivotal moment that transformed Parakeeto and the impact of reimagining the ultimate solution.19:15 – 19:38: Overnight transformation in deal size and business growth by focusing on solving bigger problems with more value.19:38 – 20:19: Zooming out to identify substantial problems, creating more value, and building a substantive process for better solutions.20:19 – 22:02: Recognizing the importance of transitioning from services to software and standardizing processes for scalability.22:02 – 22:49: Sharing experiences of intentionally under-engineering processes and the necessity of maturity in business decisions.22:49 – 23:23: Discussing the process of scaling a service firm and the service product positioning matrix.23:23 – 23:51: Emphasizing the impact of an irresistible offer on increasing prices and achieving a 300% or more price point increase.23:51 – 24:39: Introducing the client success map as a sales tool and developing the service management blueprint for scalable outcomes.24:39 – 26:50: Leveraging traffic light systems for internal evaluation, improving product quality, and enhancing client outcomes.26:50 – 29:22: Progressing through the five exits for scaling: project/account management, operations management, client strategy, sales, and executive leadership.29:22 – 30:39: Insights into the role of operations management in freeing up the CEO for growth and connecting operations with finance.30:44 – 31:50: The order of exits and the significance of separating client strategy from account and project management.31:50 – 32:51: The sequence of exits: sales as exit four and executive leadership as exit five, with a focus on building a scalable sales team.Show Notes/LinksMandi’s Scalability ChecklistLink to the book on AmazonLink to Mandi’s Agency “Hands Off CEO”Link to Mandi’s Linkedin Profile

Robert Patin is the founder of Creative Agency Success, a consulting firm dedicated to helping creative agencies scale. Robert is known for being a deeply inquisitive and analytical leader with a distinct ability to devise solutions that elevate companies and lifestyles.He is a two-time international best-selling author and is passionate about sharing his next-level strategies so that creative agency leaders will find fulfillment and growth.Find his books here:The Agency BlueprintThe Practical AgencyPoints of Interest00:01:06 – 00:01:26Meet Robert PatinMarcel highlights Robert’s background and accomplishments, emphasizing his expertise and experience in operations, finance, and consulting for creative agencies.00:03:38 – 00:03:43Introduction to Client Lifetime ValueMarcel initiates the discussion on Client Lifetime Value (CLV) and its importance, setting the stage for the main topic.00:04:01 – 00:05:17Importance of Increasing CLVMarcel and Robert discuss the significance of increasing CLV, especially in the context of expensive client acquisition, and outline key levers to maximize its impact on agency profitability.00:06:01 – 00:06:22The Churn CeilingRobert introduces the concept of the “churn ceiling,” highlighting the critical role of client retention in agency growth.00:08:18 – 00:08:54Strategic Client RelationshipsMarcel and Robert delve into the importance of building strategic relationships with clients, emphasizing the value of being a trusted advisor.00:10:04 – 00:10:32Undermining Factors in Client RetentionThe discussion uncovers factors that undermine an agency’s ability to retain clients and improve CLV, focusing on delivering value and adapting to client needs.00:12:45 – 00:13:00Expanding Revenue without Operational DragMarcel and Robert explore strategies to expand client revenue without adding operational complexities, emphasizing understanding client needs and navigating opportunities wisely.00:14:21 – 00:16:23Quality vs. Quantity of RevenueThe conversation deepens into the tension between client lifetime revenue and gross profit, highlighting the importance of careful balance and considering long-term impact.00:17:53 – 00:18:18Creating Value through AdaptationMarcel and Robert emphasize the value of adapting agency operations to facilitate problem-solving for clients, creating goodwill and trust.00:18:55 – 00:19:15Value vs. Short-Term GainsThe discussion reveals the pitfalls of contrived efforts to inflate CLV without providing genuine value, emphasizing the importance of solving customer problems.00:22:59 – 00:23:40Balancing Revenue and ProfitThe podcast concludes with insights into balancing revenue and profit, stressing the importance of reconciling price, scope, and cash flow for long-term agency success.

QUICK LINKS:• The Agency Profitability Toolkit - Get the templates, formulas, and frameworks we've used with our consulting clients to help them double their profitability in under 60 days, absolutely free• For more information on our Agency Profitability Systems and Consulting, check out parakeeto.com• Love the podcast? Leave us a review on the platform of your choice at this link• Want to see/read more about this episode? Then do make your way to parakeeto.com/blogGUEST LINKS:GoWP Quickly Hire GoWP FaceBookABOUT: Emily is the Chief Operating Officer for GoWP, a company helping agencies grow through their dedicated staffing and via white-label WordPress service development.

QUICK LINKS:• The Agency Profitability Toolkit - Get the templates, formulas, and frameworks we've used with our consulting clients to help them double their profitability in under 60 days, absolutely free• For more information on our Agency Profitability Systems and Consulting, check out parakeeto.com• Love the podcast? Leave us a review on the platform of your choice at this link• Want to see/read more about this episode? Then do make your way to parakeeto.com/blogGUEST LINKS:Chris's InstaChris's YouTubeLinkedInDealmaker ConciergeDealmaker Wealth SocietyABOUT: Chris Moore is an entrepreneur, investor, full-stack digital marketer, best-selling author, and business growth specialist. He has a strong background in business development, customer experience design, and business growth strategy. 

QUICK LINKS:• The Agency Profitability Toolkit - Get the templates, formulas, and frameworks we've used with our consulting clients to help them double their profitability in under 60 days, absolutely free• For more information on our Agency Profitability Systems and Consulting, check out parakeeto.com• Love the podcast? Leave us a review on the platform of your choice at this link• Want to see/read more about this episode? Then do make your way to parakeeto.com/blogGUEST LINKS:Jason's author pageAgency MasteryJason's Blog Jason's PodcastLinkedInYouTubeABOUT: Jason is one of the prominent thought leaders and coaches for digital agencies in the space. He's literally written the book for growing an agency from nothing to two eight-figure agencies.

Check out the full blog post for this solocast here!  ** FREE DOWNLOAD** The Agency Profitability Toolkithttps://parakeeto.com/toolkitGet the templates, formulas and frameworks we've used with our consulting clients to help them double their profitability in under 60 days, absolutely free.For more information on our Agency Profitability Systems and Consulting, check out https://parakeeto.comLove the podcast? Leave us a review on the platform of your choice!https://lovethepodcast.com/AgencyProfit

QUICK LINKS:• The Agency Profitability Toolkit - Get the templates, formulas, and frameworks we've used with our consulting clients to help them double their profitability in under 60 days, absolutely free• For more information on our Agency Profitability Systems and Consulting, check out parakeeto.com• Love the podcast? Leave us a review on the platform of your choice at this link• Want to see/read more about this episode? Then do make your way to parakeeto.com/blogGUEST LINKS:Alife’s LinkedInAlfie’s FacebookCactusInstagramTwitterABOUT: Chartered accountant and Managing Partner at Cactus, Alife helps small to medium-sized agencies to achieve profitable growth organically through Mergers and acquisitions. He also trains agency staff to be more commercially aware.

QUICK LINKS:• The Agency Profitability Toolkit - Get the templates, formulas, and frameworks we've used with our consulting clients to help them double their profitability in under 60 days, absolutely free• For more information on our Agency Profitability Systems and Consulting, check out parakeeto.com• Love the podcast? Leave us a review on the platform of your choice at this link• Want to see/read more about this episode? Then do make your way to parakeeto.com/blogGUEST LINKS:Ryan's LinkedInUpsourced LinkedinYoutubeTwitterInstagramUpsourced AccountingAgency Lifecycle blogABOUT: Ryan is an experienced operations and finance leader for creative agencies and venture-funded startups. As a partner at Upsourced, he helps scaling agencies build better plans, see the future, and drive profits.

QUICK LINKS:• The Agency Profitability Toolkit - Get the templates, formulas, and frameworks we've used with our consulting clients to help them double their profitability in under 60 days, absolutely free• For more information on our Agency Profitability Systems and Consulting, check out parakeeto.com• Love the podcast? Leave us a review on the platform of your choice at this link• Want to see/read more about this episode? Then do make your way to parakeeto.com/blogGUEST LINKS:Corey's LinkedInCorey's WebsiteVertical Go-To-Market podcastABOUT: Corey helps agencies break the cycle of flat sales by becoming a vertical market specialist. Host of the Vertical Go-To-Market podcast, Corey is also the author of Focus Vertical (Q3, 2023) and the former CMO at Scorpion (which he scaled from $20-$150M in 6 years).

QUICK LINKS:• The Agency Profitability Toolkit - Get the templates, formulas, and frameworks we've used with our consulting clients to help them double their profitability in under 60 days, absolutely free• For more information on our Agency Profitability Systems and Consulting, check out parakeeto.com• Love the podcast? Leave us a review on the platform of your choice at this link• Want to see/read more about this episode? Then do make your way to parakeeto.com/blogGUEST LINKS:Ilia's TwitterIlia's LinkedInThe Toggl BlogToggl's Anti-Surveillance StatementAgency Profit Margins blogABOUT: Toggle might be well known for their time tracking software, but they also offer project management/resource and capacity management tools (Toggl Plan) plus hiring software (Toggl Hire) used by over 70,000 teams across the world.