Does your Agency have the foundations to scale to $1M+?

[Black_Dragon43]

This method helped multiple agency owners scale to $1M+ or multiple 6 figures and recently I heard about two consultants who stole it and were using it with their own students. Unfortunately for them, they didn't understand it properly.

I created the NPOT Methodology™ for scaling an agency about two years ago.

Here's how to use it properly:

1. WHO do you want to help?

It's true, you could probably help many different businesses. But it's hard to stand out and build credibility when you have 10 clients, across 10 different industries.

Much easier when you have a NICHE and build niche-specific case studies & solutions. Then you can just resell the same working solutions, and one successful client can lead to another. You save time both on service fulfilment, and client acquisition AND you increase the success rate of your clients.

Also, think about it, if you're a dentist, who would you rather choose if you knew nothing else about them?

• The general marketing agency
OR
• The marketing agency for dentists

Case closed. Pick a niche.

2. WHAT is their dream outcome?

The 2 consultants went straight to identifying problems for the niche. But problems are a consequence of their dream outcome.

Problem: Need a new vacuum cleaner
Dream outcome: Clean floors

It may be possible to obtain the TRANSFORMATION with a cleaning service, not a new vacuum cleaner.

Can you see how thinking about problems before you get clarity on the dream outcome is a waste of time?

As an agency owner, your job is to identify the best way to deliver the transformation that your niche desires.

That's what you get paid the big money for.

But most agency owners are still stuck at the level of selling a service: Google Ads, Meta Ads, YouTube ads, SEO, Web Design, etc.

When you just sell a service, you're out there in an OCEAN of other agencies selling that same service.

Switch to selling a transformation - and add whatever services are required to deliver that in the most efficient way possible.

3. WHY can't they achieve their dream outcome?

Think about what MOST prevents your niche from achieving their dream outcome.

• Is it a bad offer?
• Is it lack of authority?
• Is It a “Me Too” Positioning?
• Is it their sales process?
• Is it poor communication skills?
• Is it their strategy?

It will usually be different from what they think it is. That's why they need YOU.

They may think they need someone to run Google Ads for them. Or someone to get them leads.

But if their offer sucks, they'll get 0 sales.
If they lack authority, no one will trust them to buy.
If their sales process is ineffective, they won't be able to turn inquiries into customers.
And so on...

After all, if they knew how to achieve their dream outcome, they wouldn't be hiring your agency. Or if they would be hiring your agency, they would be paying pennies, because you'd be just a "helping hand", not a strategic advisor.

So your job isn't so much to SOLVE their problem, as it is to help them IDENTIFY the correct problem to solve.

You've got to help them figure out what the real PROBLEM they need to solve is!

4. HOW will you get them past the problem to achieve the transformation?

You need to give them a way that is unique and different from what they've tried before to sidestep the problem and achieve the transformation they desire.

This is your OFFER - remember, unique & different!

You're now selling the transformation.

So it's not just Google Ads.

It's this kind of ads, going to this kind of landing page, going to this kind of call, which the client uses this script to convert, and then obtain testimonials like so, etc.

That's the offer - and a good strategy is to give it a name, build a proprietary system around it. Then sell that system, your intellectual property.

If you can't deliver a result for them, you're wasting your time, and you're wasting theirs.

And guess what, 90%+ of small agencies today are wasting people's times. I've seen it with my own eyes. Most of their clients don't get results. It's why when I ask them they're like "Uhh clients usually stay for 6 months"... of course they do, because you suck!

When I ran my agency I had clients that I worked with for 5 years+... because I was their go-to source of information, a strategic advisor... that's what you should aim to become.

And it starts with creating an offer that is unique & different... built around your own intellectual property. A system that is the best way for your niche to obtain the transformation you deliver.

Summary - The NPOT Methodology™

Niche - WHO do you want to help?
Problem - WHY can't they achieve their dream outcome?
Offer - HOW do you get them past the problem to the transformation?
Transformation - WHAT is their dream outcome?

Your unique combination is your NPOT Model...

Your NPOT Model determines the scaling potential of your agency. It's like a car's engine...

The 2-liter 4-cylinder 147 horsepower engine of a Hyundai Veloster only goes so fast, regardless of how much you slam down on that accelerator.

Compare this to the 8-liter W16 987 horsepower engine of a Bugatti Veyron and it's clear who wins the race!

The same thing is true for your agency. If your NPOT Model sucks, then you won't be able to scale or it will take you a very long time. And it has nothing to do with your sales or marketing skills.

It's not because of cold email, cold calling, or whatever other method you use that it's not working.

It's all about not having the right foundations.

 

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[piano]

I really like this post and am confused why it's gotten almost no attention.
Maybe it was just posted at the wrong time and thus buried (we'll see if that's the case), so: bump

 

[Black_Dragon43]

I really like this post and am confused why it's gotten almost no attention.
Maybe it was just posted at the wrong time and thus buried (we'll see if that's the case), so: bump

There aren’t that many agency owners on Fastlane. I mean there are a few, but not a lot.

That + people tend to prefer entertaining or story-based content over pure value in terms of engagement.

 

[BizyDad]

I'll bump it one more time. I was on the forum all day yesterday, and I didn't catch this until just now...

 

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[Cyns]

This is your OFFER - remember, unique & different!

You're now selling the transformation.

So it's not just Google Ads.

Very insightful and eye-opening post.

This business model makes a lot more sense, but how would someone go about this and start this business model when they only have knowledge and expertise in one or two services?

 

[Paul David]

Great post, personally I've moved away from "agency" into Saas.

No matter how much of a good job you do in regards to running ads, bringing in leads, qualifying them, even booking them the client always want more.

Then if you're bringing these in via Facebook and Facebook decides to change something so the ads go down you're screwed.

I personally don't like the constant churn with clients, up and down constantly. Much prefer low ticket saas where my clients stay because its just like a utility bill. Granted I'm not making as much money but it beats getting up in the morning and dealing with £1000 a month clients moaning because they didn't get a lead for 3 hours or the client didn't turn up for their appointment.

 

[Black_Dragon43]

This business model makes a lot more sense, but how would someone go about this and start this business model when they only have knowledge and expertise in one or two services?

Start with the 1 or 2 services you have experience in, and add other ones which complement them over time if needed.

I personally don't like the constant churn with clients, up and down constantly. Much prefer low ticket saas where my clients stay because its just like a utility bill. Granted I'm not making as much money but it beats getting up in the morning and dealing with £1000 a month clients moaning because they didn't get a lead for 3 hours or the client didn't turn up for their appointment.

That is true, the problem with SaaS though is that (1) it takes much longer to set up (you need to learn coding and then actually build it, OR pay a programmer $5-10K — maybe more — to build it for you) and (2) prices are much smaller, so you need a LOT of customers to scale. For some SaaS you also need to adapt/change the code over time as other environments you rely on for it to work change. The relatively lower prices makes all of this a challenge.

With an agency model you will always have some customers who are unhappy. Treat them professionally, and do your job well, if they’re unhappy they’re free to leave. There will always be some churn. Recently for example we have a customer, we started 215 conversations for him with quality prospects over 2 months, he closed 1 and more than made up the money he paid us thus far, and he wants to leave because he didn’t close more lol. It’s good to set expectations as well — if someone expects to get X result and then gets X/2 let’s say, they’ll be disappointed even though X/2 may be very good objectively speaking. In our case we guaranteed him 200 conversations in 3 months, we got them in 2 for him. He’s still not satisfied because he expected to close more clients, and he didn’t. Such is life, I don’t lose sleep over this. Nobody is forced to remain if they don’t like it. My team and I we do our best to treat everyone fairly and do a great job for them. If they’re still not happy with that, we can’t do more. Shake hands and wish them good luck.

 

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[Cyns]

Great post, personally I've moved away from "agency" into Saas.

No matter how much of a good job you do in regards to running ads, bringing in leads, qualifying them, even booking them the client always want more.

Then if you're bringing these in via Facebook and Facebook decides to change something so the ads go down you're screwed.

I personally don't like the constant churn with clients, up and down constantly. Much prefer low ticket saas where my clients stay because its just like a utility bill. Granted I'm not making as much money but it beats getting up in the morning and dealing with £1000 a month clients moaning because they didn't get a lead for 3 hours or the client didn't turn up for their appointment.

I see a lot of people moving from marketing agency to saas agency, I completely see where it is coming from.

At that point were you outsourcing your work or were you doing everything yourself? Marketing definitely is a challenging field, especially as an agency owner. I hope your saas agency is doing great!

 

[MJ DeMarco]

Upgraded to NOTABLE, the concepts and principles here can be applied to any entrepreneurial endeavor, not just agencies.

 

[Paul David]

I see a lot of people moving from marketing agency to saas agency, I completely see where it is coming from.

At that point were you outsourcing your work or were you doing everything yourself? Marketing definitely is a challenging field, especially as an agency owner. I hope your saas agency is doing great!

I was doing it all myself.

 

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[Black_Dragon43]

I was doing it all myself.

It’s virtually impossible to scale an agency without building a team — I guess for you the SaaS has the added advantage of eliminating the need for fulfilment, so you can just focus on product + marketing.

Did you code it yourself or outsource?

 

[Paul David]

It’s virtually impossible to scale an agency without building a team — I guess for you the SaaS has the added advantage of eliminating the need for fulfilment, so you can just focus on product + marketing.

Did you code it yourself or outsource?

Yes i get that, I'm just not comfortable in the agency space. I don't like the constant demands of the clients.

Here's an example, I recently had a laser hair removal client. We agreed on a price of £70 per booked appointment. 20 paid up front.

I run the ads, followed up the leads and booked appointments, if any didn't show I replaced them. First month she was happy, I spend around £400 on ads and follow up and made £1000. Second month just gone, now shes moaning that the clients this time didn't want high end areas, they wanted smaller areas and the campaign hasn't really been profitable. We haven't done anything different.

Now shes asking can we take deposits on her behalf, try and get people in for higher treatments etc. Does she want me to F*cking do the laser procedure for her aswell!

Saas clients I set them up once and don't speak to them again most of the time. It's a smaller amount (less than £100) but its reliable income and more passive. Plus it doesn't rely on ads or facebook/google moving the goalposts.

It's basically a mixture of various white label software together so no coding or developer costs. Downside is it's their platform not mine.

 

[Annie Tharani]

Good read!! Excellent basic framework to start with but depending on how well versed is the client things may look different no matter how hard you try. They don't want to solve their problems or take advice. They want a magic from marketing efforts that too in just weeks unfortunate but true.

 

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[Black_Dragon43]

Good read!! Excellent basic framework to start with but depending on how well versed is the client things may look different no matter how hard you try. They don't want to solve their problems or take advice. They want a magic from marketing efforts that too in just weeks unfortunate but true.

One of the ways I look at this: the clients you choose to go after as an agency are much more important than other aspects.

Most new agencies choose to go after struggling businesses, because, they have the most problems and need the most help.

More often than not, this is a mistake. Because a struggling business has so much wrong with it, that nothing you do is likely to have a significant impact.

A much better strategy is to go after companies that are doing GREAT. They don’t have problems, they are more sophisticated, but they are hungry for more. Sell to the well-fed who are still hungry, not to the starving.

 

[Annie Tharani]

Spot on! You are right, I am a new agency owner and this is my issue with clients I am picking to build my foundation or portfolio. I am consciously now making an effort to select my client better. However if any strategies on how to sell to better clients as they usually go after agency with more experience unless you get them via your network and relationships.

 

[Black_Dragon43]

However if any strategies on how to sell to better clients

Well, the most important thing here is really building your authority and credibility. You do that by posting content that addresses the problems of your bigger clients, not of the struggling clients.

Say I own a web design agency. I can publish content like “How to add alt tags to your images”. Who cares about that content? Struggling clients.

Or I can publish content like “How a new website helped XYZ Landscaper expand to [New City]”. Assuming bigger clients are thinking about expansion to a different geography, this would be content that resonates with them, not with newbies or struggling landscapers who can’t even make one location work.

By doing this consistently you will build your authority, and you’ll start attracting the bigger clients and have them open to work with you, because they see that you understand their problems and what they’re struggling with.

Does this make sense @Annie Tharani ?

 

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[Warloff]

One of the ways I look at this: the clients you choose to go after as an agency are much more important than other aspects.

Most new agencies choose to go after struggling businesses, because, they have the most problems and need the most help.

More often than not, this is a mistake.

This advice is A+.

Six months ago I started my own ad agency (traditional media for a highly regulated industry) and my initial thought was to go after smaller struggling firms and build my way up to better clients, but my SCORE advisor (who led a Major NYC ad agency) told me not do that. He told me just go for big clients that could afford to pay my full worth. When I expressed skepticism that a large company would pick little old me over a big agency, he pointed out that many companies hate the big agencies and love the personal attention of smaller firms, especially when the smaller agency has folks with hefty experience.

My first client picked me over the largest agency in my space (one of the largest in America with over a billion in revenue). They've since told me they picked me over the larger firm because 1) The big agency had a client roster that included their competitors 2) They said my proposal was much more personalized and detailed 3) The big agency had moved at the speed of molasses in January and they wanted someone hungry for their business.

Just as I announced my agency, I had a colleague follow suit and start her own agency too. Rather than being picky with clients, she's worked with anyone who would pay her. She initially made more income than me (it took me six months to get my first paycheck), but I should surpass her in revenue for the year next month (based off the ad placements for her clients) and I've done considerably less work while she's been churning out work like it's going out of style. I was surprised last week someone unprompted told me my agency is clearly for "blue chip" clients while hers is for "red flag" clients. It hasn't been long and I'm in disbelief that we're already getting corporate reputations.

Anyway, it's still early days. Things could go wrong. But my projections have me easily doubling my salary with just my first client.

 

[Annie Tharani]

This is thoughprovoking and trust me I am seriously thinking about how to choose my clients better. Thanks for sharing

 

[Vox]

Switch to selling a transformation - and add whatever services are required to deliver that in the most efficient way possible.

I don't even have an agency yet, but this seems to be a fundamental thinking shift that would make action easier. What this means to me is, that as a creative problem solver, I can often offer a potential solution to a potential client without having the foggiest idea on the technical execution.

I've been stuck in 1st gear learning and "pretending to be in business", thinking that I don't know enough. I've read enough posts on here already to know this is pretty common. By "selling a transformation" (i.e; beginning with the end in mind) one can put all of that aside and take action. Get the sale, then figure it out.

Thanks,
/steve

 

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[pixelvendor]

Holy shit, thanks a lot for this post, you can't imagine the clarity it has brought me!

Do you have any tips on resources for a noob getting into digital marketing? I'm currently in the process of taking Sean Marshall's course and been learning a lot. I can't help but wonder if it's a common thing to use GHL and other Saas software among marketing agencies. I feel like software like this is more and more commoditising digital marketing solutions as a whole, slowly making it a race to the bottom. I could be completely wrong though and maybe it just goes to show that the whole process/transformation is what matters, not which tools you use. Would love to hear your take.

Cheers!

 

[Black_Dragon43]

Do you have any tips on resources for a noob getting into digital marketing?

Sure — Agency Growth Resources - TANDA Digital . Everything you need you can find there.

Sean Marshall's course

I did buy that course because I wanted access to Sean’s community of agency owners, but he had closed the community. So asked for an instant refund.

Having said that, in the 30 minutes or so I had access I looked through it. Solid when it comes to team building and setting up processes to manage the agency, but extremely weak when it comes to customer acquisition, especially early on. His advice ends up being something like “uh, go to networking meetups, ask your friends, and referrals” lol.

 

[pixelvendor]

Sure — Agency Growth Resources - TANDA Digital . Everything you need you can find there.


I did buy that course because I wanted access to Sean’s community of agency owners, but he had closed the community. So asked for an instant refund.

Having said that, in the 30 minutes or so I had access I looked through it. Solid when it comes to team building and setting up processes to manage the agency, but extremely weak when it comes to customer acquisition, especially early on. His advice ends up being something like “uh, go to networking meetups, ask your friends, and referrals” lol.

Thanks I'll check it out!

So it's common practice to use software like Gohighlevel for all digital marketers nowadays? I'm surprised the industry doesn't get commoditised if software can really do as much as Sean says it can do in his course. Glad to be wrong i guess!

 

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[Black_Dragon43]

So it's common practice to use software like Gohighlevel for all digital marketers nowadays?

No. I don’t use and have never used GoHighLevel for example. It’s only useful for certain kinds of agencies, usually those who work with local service businesses.

I’ve got a custom-built solution for myself that integrates several tools and does everything GHL does, only a lot more customized.

Regardless, get clients first, then get tools. GHL or not, it’s not going to make that big of a difference. From the agencies I work with some use GHL others don’t. I’d say 30% use it, 70% don’t.

 

[Wael]

As a newcomer to the field of web design and recently trained in coding, I find myself at an important juncture: finding my first client. I am wondering whether it would be wiser to open an agency now or to start by acquiring my first clients before formalizing a business structure. I aspire to work with "big clients."

Thank you for your valuable help.

 

[Black_Dragon43]

As a newcomer to the field of web design and recently trained in coding, I find myself at an important juncture: finding my first client. I am wondering whether it would be wiser to open an agency now or to start by acquiring my first clients before formalizing a business structure. I aspire to work with "big clients."

Thank you for your valuable help.

Don’t open an agency since you’re not an agency. Play to your strengths as a freelancer first. Probably getting subcontracting type of work from agencies is ideal at first — you’ll also learn how agencies work and what type of work they expect.

I always recommend Upwork for getting started as a new freelancer. There’s a lot of clients there already looking to buy what you sell. Outside of Upwork you first have to convince your service is a good idea for them AND then convince them you’re the person to do it. Double the work.

 

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[Wael]

N'ouvrez pas d'agence puisque vous n'êtes pas une agence. Exploitez d’abord vos atouts en tant que freelance. L'idéal est probablement d'obtenir un travail de sous-traitance auprès d'agences au début. Vous apprendrez également comment fonctionner les agences et quel type de travail elles attendent.

Je recommande toujours Upwork pour démarrer en tant que nouveau freelance. Il y a déjà beaucoup de clients qui cherchent à acheter ce que vous vendez. En dehors d'Upwork, vous devez d'abord convaincre que votre service est une bonne idée pour eux ET ensuite les convaincre que vous êtes la personne pour le faire. Doublez le travail.

ne serait-ce il pas mieux de travailler avec de gros clients des le départ qui me paieront à la hauteur de la valeur que je leur apporte ? Sans passer par les plateformes telle que Upwork ou les clients qu'on trouve ce ne sont pas les meilleurs avec qui travailler.

 

[Black_Dragon43]

ne serait-ce il pas mieux de travailler avec de gros clients des le départ qui me paieront à la hauteur de la valeur que je leur apporte ? Sans passer par les plateformes telle que Upwork ou les clients qu'on trouve ce ne sont pas les meilleurs avec qui travailler.

Si tu peux, bien sur que c’est meilleur de travailler avec de gros clients.

Il y a des tres bon clients sur Upwork aussi, mais il prend du temps pour les trouver. Par example, Microsoft embauche des fournisseurs de Upwork aussi — mais ils n’ont jamais te choisit si t’est sans reputation.

 

[NervesOfSteel]

Summary - The NPOT Methodology™

Niche - WHO do you want to help?
Problem - WHY can't they achieve their dream outcome?
Offer - HOW do you get them past the problem to the transformation?
Transformation - WHAT is their dream outcome?

Your unique combination is your NPOT Model...

Your NPOT Model determines the scaling potential of your agency. It's like a car's engine...

The 2-liter 4-cylinder 147 horsepower engine of a Hyundai Veloster only goes so fast, regardless of how much you slam down on that accelerator.

Compare this to the 8-liter W16 987 horsepower engine of a Bugatti Veyron and it's clear who wins the race!

The same thing is true for your agency. If your NPOT Model sucks, then you won't be able to scale or it will take you a very long time. And it has nothing to do with your sales or marketing skills.

It's not because of cold email, cold calling, or whatever other method you use that it's not working.

It's all about not having the right foundations.

Please convince me on production costs + import duty + marketing costs + platform costs + sales tax + returns + damages during transit + fraud during transit + fraud at customer's end + my time costs = 1 million + sales for a niche market ...

where Niche = 2 types of limited market!

1. desperate people willing to spend their lifetime savings to buy a sh*t course!
2. High-ticket clients who know more than the government does!

Who do you target?

 

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[NervesOfSteel]

As a newcomer to the field of web design and recently trained in coding, I find myself at an important juncture: finding my first client. I am wondering whether it would be wiser to open an agency now or to start by acquiring my first clients before formalizing a business structure. I aspire to work with "big clients."

Thank you for your valuable help.

ChatGPT says "Hello!" LOL

 

[Black_Dragon43]

Please convince me on production costs + import duty + marketing costs + platform costs + sales tax + returns + damages during transit + fraud during transit + fraud at customer's end + my time costs = 1 million + sales for a niche market ...

Huh? There are no import duties, returns, damages during transit, or fraud in digital service businesses.

Margins are usually high, usually 50%+ gross margins, sometimes as high as 70-80%.