Get the scoop on how to transform your social media agency into a seven-figure powerhouse.
For many agency owners, creating a seven-figure business is the ultimate goal. But how do you turn this dream into reality, especially if you’re just getting started in the agency world?
With a clear strategy, a talented team, and a little number crunching, you can build a seven-figure social media agency.
Not just any agency can generate a seven-figure revenue stream. To build a successful agency, you need a little something that makes your business stand out from the competition. In other words, you need a unique selling proposition (USP).
What makes your agency special?
Your USP could center on:
Rather than working with any and all clients, become known as the agency for a specific niche.
Focus on an industry that you already know well or a sector with tons of growth potential.
For example, niches like e-commerce, pet supplies, and sustainable goods may offer some promising opportunities.
Instead of offering the same services as your competitors, focus on an area that other agencies lack.
For example, your agency might specialize in lead generation or social listening rather than comprehensive social media management.
Why pour energy into seeking clients across the country or around the globe when you can stay local?
By becoming the go-to agency for your city or region, you can build a dedicated local client base.
There’s more than one way to design a social media strategy or develop a lead generation pipeline. By pioneering a new approach or using advanced technology, you can set your agency apart from those that rely on generic tactics or tools.
After clarifying your agency’s USP, it’s time to build your brand.
First, get clear on your mission and services. Then do customer research and define your target audience to a T.
Next, create a content marketing and social media strategy that lets you connect with potential clients.
Setting an hourly rate might seem like the easiest way to work with clients. But when you’re aiming for a seven-figure revenue stream, this pricing approach can be a hard sell.
To reach that goal, you may have to set a rate so high that it scares away clients or work an unrealistic number of hours.
Instead, productize your agency’s services.
By selling services as packages, you can easily communicate their value and benefits rather than focusing on time and labor.
Many successful agencies offer one or both of these options:
After laying the groundwork for your agency, you’re ready to grow your client roster.
Although cold outreach can help you get clients, it requires a lot of individual attention.
To generate leads at scale, follow this formula:
When you first get started, signing new clients should be your top priority.
Once you’ve begun to build a client roster, however, focus on retention. After all, seeking out new clients can cost four times more than retaining your current clients.
That means keeping your clients for months or years can help you reach your revenue goals more quickly and consistently.
To decrease your agency’s churn and encourage clients to stay on, use the following tips.
This simple strategy has two big benefits. Telling clients what to expect from your work gives them a realistic idea of how many leads they’ll receive or how many followers they’ll gain.
It also allows you to set goals and avoid major surprises when the time comes for month- or quarter-end reporting.
Social media return on investment (ROI) is notoriously tough to communicate. You can make the process easier by providing reports that clarify the value of your work.
Every week, month, or quarter, share reports with key metrics like brand mentions, awareness score, or audience size to reflect what you’ve accomplished.
A little communication can go a long way toward making clients happy.
Aim to respond to all client communications within a set period of time, such as 12 or 24 hours. When you reply, be as transparent as possible about how, when, and what you’re doing so clients can maintain some sense of control over the process.
Rather than assuming client satisfaction, ask them directly.
Send periodic surveys that prompt clients to rate your service or state whether they would recommend your agency. Use their feedback to reward your team or improve your service.
In addition to retaining existing clients, you can leverage connections to drive more revenue. In fact, for 90% of agencies, client referrals serve as their main source of new business.
When you ask clients for their input, prompt them to recommend your agency to others in their network. To show clients that you value their endorsement, offer an incentive.
For example, provide a referral fee that clients can apply as a credit on their next invoice.
The more clients you add to your roster, the more data you can collect. In addition to incorporating this information into client reports, you can use it to improve your agency.
First, analyze social media data and apply findings on a larger scale.
If you serve dozens of clients in one industry or local area, your results from one client may apply to others, too. For example, the lead gen strategy you tested out on a new client may work just as well for existing clients in the same niche.
Next, use the data you collect to demonstrate your agency’s value. Did your team achieve amazing results for an important client? Did your agency develop an innovative strategy that you can easily replicate?
Incorporate the data and your analysis into case studies. Then share them with new prospects to help them understand the value your agency can deliver.
If your team spends a lot of time on individual outreach or one-off client services, you’ll have trouble gaining traction.
To generate a seven-figure revenue stream, it’s essential to systematize your processes and scale your agency. Identify areas like internal systems or client processes where you can streamline and scale:
As your agency grows, there’s a good chance you’ll need to expand your team.
Think carefully about how to address any talent gaps so you can hire the right people at the right time. For example, you may need to hire social media experts to handle client needs first. After that, adding to your sales team or bringing on specialists may take priority.
To help your team level up, look for ways to enhance their skills. For example, Agorapulse’s Social Media Manager School can improve your team’s social media skills, and Google’s Digital Garage can help you learn a wide range of online marketing skills.
When your steady stream of new leads stops flowing or your clients stop increasing their spend, you’ll need a new tactic to keep growing. Consider adding related services or diversifying your offerings to generate more revenue:
With a systemized approach, you can grow a one-person freelance business into a thriving agency. Use these tips to build a seven-figure social media agency, whether you’re starting from zero or you’re ready to take your small business to the next level.