WHAT IS AN INCUBATOR AGENCY? MARKETING AGENCY PROFIT MARGINS | SwenkToday #124

What is an incubator agency? I think it's a really cool strategy, especially if you're an innovator and creator and not too worried about profit margins. I spoke to a potential client today who wanted my help with growing his agency to eventually sell it. Problem is, his profit margin is low and his goals aren't that ambitious. When I asked why, he said he's more team-focused and less concerned about profits. That's cool... but no investor is going to be interested unless you're agency is making bank and clearing a healthy profit. Since profit isn't his top priority, I suggested he transition his business to an incubator agency. What's an incubator agency, you ask? Think of it like a lab where you can experiment with different ideas, see what works and what doesn't. Consider a place like VaynerMedia.... it might now be super profitable (I don't know for sure), but I see them testing and experimenting a lot. Gary Vee seems to use VaynerMedia as a way to build or buy other entities and bolt-on to his existing processes. Really interesting concept, right? You don't have to be extremely profitable if you've got other entities bolted onto your agency. The bonus is that you don't have to make decisions based solely on money or profit when you're running your agency as an incubator or test-lab. Right? You just have to know what you stand for and what you believe in order to make decisions that are best for your agency. Leave me some comments and tell me what you think about the incubator agency concept. I love hearing your feedback and stories. =========================================== SUBSCRIBE NOW to follow my entrepreneurial journey. https://www.youtube.com/playlist?list=PLDvZHFVeqEMq58q6tMoyMK-ufpp0ysoVP =========================================== Thanks for watching. I hope you keep up with the daily videos I post on my channel. Make sure you subscribe and share your learnings with others. Your comments are why I do this, so please take a second and say hello.  JASON SWENK IS AN AGENCY ADVISOR THAT GUIDES MARKETING AGENCIES THROUGH A PROVEN FRAMEWORK FOR GROWING THEIR AGENCY FASTER & EASIER. Fresh out of college Jason was off to work for Arthur Anderson, one of the big 5 consulting firms. He quickly realized that he could never work for anyone other than himself. He decided to change direction, launch a digital agency that quickly grew to a multi-million dollar operation working with brands such as AT&T;, Hitachi and Lotus Cars. After 12 years of steady growth, the agency caught the attention of bigger agencies and Jason sold it in 2012. Now, Jason leads http://JasonSwenk.com, a unique media company & consultancy helping marketing agencies grow & scale their agencies faster by applying the framework that he used to grow, scale and eventually sell his agency. Jason has helped over 10,000 agencies in 23 countries meet or exceed their business goals. Jason currently hosts two shows that are available for download… The Smart Agency Master Class Podcast, dedicated to providing tactics and strategies to agency owners and decision makers that cut through the BS, focus on exactly what works and what doesn’t; and SwenkToday a daily VLOG that documents the entrepreneur journey of building another multimillion dollar business, where he share the latest strategies, and answers the most burning questions entrepreneurs have.  DONATE to help us continue to provide you amazing content. https://jasonswenk.com/donate/ SCHEDULE MON-THUR VLOG #SwenkToday Q&A; from my digital agency audience Ask me A Question http://jasonswenk.com/askswenk Podcast Wednesday: (Digital Agency Interviews) https://itunes.apple.com/us/podcast/smart-agency-masterclass-marketing/id870206013?mt=2&ls;=1 or http://smartagencymasterclass.com Follow me here: Website: http://jasonswenk.com  Podcast: http://smartagencymasterclass.com  Facebook: http://www.facebook.com/jasonswenk    Twitter: https://twitter.com/jswenk   Instagram: https://www.instagram.com/jswenk   Linkedin: https://www.linkedin.com/in/jasonswenk   Medium: https://medium.com/@jswenk/  Soundcloud: https://soundcloud.com/jasonswenk Music by epidemicsound.com