How To Get 50%+ Agency Margins At Scale

Agencies are one of the few businesses that can pull of 50%+ margins at scale (over $1M/yr revenue)...

....as long as you know how to structure your expenses. Here's how we do it to pull 80%+:

**Note: I am not a financial advisor, this is not legal/financial advice, don't @ me

The four categories for agency cashflow are:

Cost Of Delivery - your costs to fulfill a project (including employees & contractors)
OpEx - your day to day overhead (office, softwares, etc)
Acquisition - your costs to acquire new clients
Profit - what's left over

Your goal should be for the first 3 to equal or less than 50% of your overall monthly revenue, and here's the breakdown:

And as you can see, this does not include taxes -- because I am not a CPA and will not give tax advice (the IRS scares the shit out of me)

Just don't blow all your profit on things you don't need for when tax time comes around.

Hope this helps,

--Alex

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