The Agency Profit Podcast

Taking Action on Profitability Improvements, With Mandi Ellefson


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Points of Interest
  • 0:00 – 1:18 – The Real Growth Blocker: Mandi kicks off by addressing how many agency owners avoid growth-driving actions not due to lack of knowledge, but due to fear and discomfort. Commitment to transformation must outweigh resistance.
  • 2:22 – 3:53 – Mandi’s Mission at Hands-Off CEO: Mandi shares her focus on helping service-based agencies scale sustainably and profitably by building systems that allow businesses to grow without the owner being in the weeds.
  • 4:00 – 5:15 – Understanding Delivery Margin: Marcel introduces delivery margin as a core profitability metric—the portion of revenue left after delivering services, which can fund growth, overhead, and profit.
  • 5:23 – 7:23 – Charging More for the Same Work: They discuss the first profitability lever: increasing your average billable rate. Mandi explains why agencies should price for outcomes, not deliverables, and how a value-focused approach earns higher fees.
  • 7:29 – 9:09 – Pricing Confidence is a Mindset Shift: Many owners struggle to raise prices because they lack confidence. Mandi emphasizes becoming the type of person who can confidently sell high-value offers before they’re “ready.”
  • 10:03 – 12:26 – Real Case: From $30K to $120K Projects: Mandi shares a client success story where reframing services as long-term transformational engagements led to a 600% price increase and more stable profitability.
  • 13:25 – 15:27 – Efficiency vs. People-Pleasing: The second lever—efficiency—is often blocked by the urge to keep clients happy. Mandi explains how this mindset causes scope creep and prevents outcomes-driven work.
  • 16:00 – 17:59 – Leadership Over Likeability: Mandi makes the case that effective client leadership, not compliance, drives results. You must be more committed to their transformation than to being liked.
  • 18:48 – 20:22 – Right-Sizing the Team (The Hard Way): As utilization drops, hard decisions arise. Mandi discusses the emotional difficulty of letting go of team members—even those who’ve been with you a long time—but insists it’s necessary for long-term vision.
  • 23:17 – 25:39 – Create Revenue Before Cutting: Instead of jumping to layoffs, Mandi encourages tapping past and current clients to unlock fast revenue with strategic conversations and new vision-based offers.
  • 30:05 – 32:59 – Rebalancing Workloads and Internal Focus: When utilization rises, teams often feel overworked. Mandi and Marcel recommend reprioritizing or pausing internal projects to ensure capacity goes toward revenue-generating work.
  • 34:07 – 36:46 – Reducing Average Cost per Hour: The final lever involves delegation. Mandi outlines a “$5 to $5,000/hour” time audit to move low-value tasks off senior team members and improve margin through better team leverage.
Show Notes
  • Download the Scalability Checklist
  • The Hands-Off CEO Book
  • Mandi’s Podcast
  • Mandi’s LinkedIn
  • Buy back your Time
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