In this episode we’ll cover:

How you can prevent your agency from being viewed as a commodity.

How you can charge more & why clients will pay for it.

What you need to do to increase the lifetime value of a client.

Do consultancies have an advantage over digital agencies?

With over 30 years experience in the agency world – many of them owning and running his own agencies – my guest Jamie Turner brings us some serious black box knowledge. Spoiler alert: remember that phrase, it’ll be important later:)  Jamie has worked for agency giants in New York and Atlanta and today is the Founder and CEO of 60SecondMarketer.com and 60 Second Communications. He’s an author and international speaker specializing in social media and mobile marketing.

I read a couple recent blog posts of Jamie’s where he explained how you can save your agency from being left in the dust. I loved reading this post so much I that I knew I needed to get Jamie on my podcast so he could share his wisdom with you, too.

Jamie says he was like the typical agency owner, with a ton of ideas but a short attention span to see them through. He was always chasing the new bright, shiny object. However, once he learned to focus it enabled growth and expertise. And he says, “the more expert you are at something, the more you can charge.” Isn’t that the ultimate goal?

We can all agree that there is no shortage of agencies that do what we do. Even consulting companies are beginning to offer competitive services. So, how can your agency survive and thrive in this climate?

First and foremost you need to understand the 5 categories that agencies fall into so you can identify where you are and where you need to go in order to stay competitive while also growing and scaling your business.

Do you want to know the 5 different levels of an agency’s services?

The goal of agencies is to work up the chain of these 5 categories for more staying power and a greater client lifetime value.

1. Hands Work

Most small- and mid-sized agencies fall into this category and stay here. They win new business by pitching tactical work. They create assets like websites, logos, etc. and sell that type of work. Problem is, this work is one-off project work that typically doesn’t lead to much more. Over the course of a client relationship these opportunities tend to decrease. The client views you as an easily replaceable commodity. Clients can bring jobs in-house or find another agency that can do things “faster or cheaper”.

It’s OK to reel in new business this way but you should spend less than 6 months in the Hands Work phase. Show them you can do more that churn out work by moving into the next category.

2. Central Hub

You can start to get in the driver’s seat by being the Central Hub. Most clients have multiple agencies to meet their needs: digital, media, creative, direct, etc. When your agency acts as the Central Hub and the other agencies act as the spokes, it positions you at the center of the workflow.

Jamie’s agency puts themselves in this spot by creating and maintaining the status reports, managing the status calls, etc. In the Central Hub role you can build trust with the client, but you are really only viewed as an extension of the team. To be highly valued by clients and charge more for your services you need to be considered an advisor, not an order-taker. That is why the next category is so important.

3. Lightbulb

When you have bright ideas and can provide original campaigns and business building solutions your clients will see more value in your work. In a recent survey we conducted, we asked brands why they started working with an agency. The #1 answer was that they were looking for guidance/advice on emerging trend...