How to Increase Revenue of Your Marketing Agency: 9 Easy Strategies in 2024
As the owner of a marketing agency, you are probably too familiar with the constant struggle to find new, effective ways to increase marketing agency revenue.
You can experiment with many different strategies, from setting defined goals to expanding into new marketing channels, but how can you be sure that they will work?
As frequently as possible, trial and error is your best bet. Today, we’re looking into 9 proven ways to boost your agency’s income, attract new clients, and retain the existing ones. But first, let’s quickly recap why exploring new opportunities to increase agency revenue may not be easy.
Key Challenges in Boosting Digital Marketing Agency Revenue
Increasing the revenue of digital marketing agencies is a complex process with unique challenges.
The digital marketing agencies’ market size makes it difficult to stand out and attract clients. You can focus on developing niche expertise and showing your unique case studies, highlighting your specialized skills and successful outcomes. Besides, you should spend energy to maintain and nurture your existing relationships while attracting new clients.
These endeavors require both time and money; be careful about your budget, as you’ll also need a stipend for investing in new technologies. You can look for cost-effective solutions but without the latest tools, you can fall behind your competitors.
Despite these challenges, the 9 strategies presented in this article provide viable routes to navigate the landscape and achieve revenue growth for your agency and clients.
1. Set Defined Goals for Your Agency’s Performance
One critical step to increasing your revenue is setting clear, quantifiable goals. This way, you can envision a roadmap for your efforts and set a benchmark for evaluating success.
In this 10-minute YouTube video, the founder of a medium-scale agency, MiniCorp, Brian Kenny, sincerely tells their story of setting goals and increasing their revenue instead of just breaking even.
For example, you might aim to increase your client base by 15% or boost the average value of client contracts by 20% over the next year. To get started, define your digital marketing agency revenue targets, break them down into achievable objectives, and communicate these goals across your team. Remember, goals should be SMART – Specific, Measurable, Achievable, Relevant, and Time-bound.
Track the progress towards the goals you’ve set at regular intervals. Some of the relevant agency KPIs worthy of keeping an eye on at this stage could include the percentage increase in client acquisitions, growth in revenue, or improvement in conversion rates for client campaigns.
2. Focus on Lead Generation
91% of marketers state that lead generation is their number one priority. And it should be your main focus for revenue growth, as it directly contributes to the number of new client signups you receive.
There are many lead generation strategies out there that you could try yourself or enable as one of the strategies for your clients. For example, you can generate leads by offering a lead magnet, such as a free eBook on digital marketing trends. Another strategy is hosting webinars on topics relevant to your services and your target audience’s interests.
To run an effective lead generation campaign, you need to use reliable marketing automation software that will keep track of your signups, ensure smooth communication with prospects, and convert possible leads into future clients via regular nurturing. With a tool like GetResponse MAX, you can set up automation workflows that will allow you to pay minimum attention to the lead generation process, access a hosting platform for all your webinars, and send follow-up communications via SMS, web pushes, and email. This way, you can build an entire campaign, analyze its performance, and optimize it if needed – all from a single tool!
3. Join Partner Programs
Joining partner programs can open new revenue streams. These programs often offer referral commissions, so you will gain access to the exact software you and your clients may require and earn a fair commission while doing so!
For example, you want to leverage marketing automation, email marketing, and cross-channel communications. Instead of opting out for several different tools, you can access AI-powered content creation, website builder, enhanced email deliverability approach, and custom pricing with the GetResponse MAX partner program. Then, all you have to do is persuade your existing customers to use it, and just like that, you’ve unlocked a new revenue stream for your agency.
Here’s how:
- Referral Commissions: The GetResponse MAX Partner Program offers the highest commission in the SaaS market with up to 50% commission customer lifetime. This presents an excellent opportunity for agency owners to earn additional income.
- Comprehensive Marketing Solution: GetResponse MAX offers an all-in-one solution for email marketing, landing pages, marketing automation, webinars, and more.
- White Label Options: GetResponse MAX provides white-label options, allowing top digital marketing agencies to customize the platform with their branding.
- Dedicated Support: GetResponse MAX offers dedicated support for their partners, ensuring you get the help you need. This level of support can help your agency deliver better services to your clients.
- Integration: The GetResponse platform integrates with numerous other tools and platforms, making it a flexible solution that can easily fit into your clients’ existing workflows.
- Client Management: GetResponse MAX also includes features for managing and monitoring client accounts, making it easier for agencies to keep track of their client’s campaigns and performance.
4. Invest in Paid Advertising
Paid advertising is one of the most effective ways to increase your agency’s visibility. The global digital ad spend is expected to reach $526 billion by the end of 2024, demonstrating that it has high priority among marketers.
Paid advertising is one of the most costly yet effective techniques for increasing your agency’s revenue. PPC advertising drives 50% more conversions than organic link visitors.
Use platforms like Google Ads for search engine marketing or Facebook and LinkedIn Ads for social media advertising to your advantage. For example, a well-optimized Google Ad campaign can propel your agency to the top of search results for relevant queries. At the same time, a targeted LinkedIn Ad can position your services in front of decision-makers in businesses that need digital marketing support.
Mix and match different paid ads across various platforms to maximize your reach and ensure people have heard about your agency’s achievements.
5. Analyze Data on Customer Purchases and Product Preferences
Analyzing client data can help you tailor your services to meet their needs better, leading to higher customer satisfaction and increased sales.
This might involve using Google Analytics to understand which services attract the most traffic to your website or analyzing client feedback to discern which aspects of your services are most valued. Or you can check tools like Hotjar for the heatmaps of the most in-demand touchpoints your website has to offer to potential clients.
Plenty of helpful analytical solutions can help you make data-driven decisions when it comes to improving your clients’ business effectiveness.
6. Develop Targeted Promotions
With insights from customer data, you can design targeted promotions to engage specific customer segments.
For instance, if data shows that your e-commerce clients respond well to SEO services, offer them a discount on an SEO package. Or, if your small business clients frequently request social media services, create a bundled package of these services at a special rate.
Here, it’s important to remember tailored personalization. Gathering zero- and first-party data and relying on enhanced analytics will be of high importance at this stage.
7. Use Multiple Marketing Strategies and Channels
Diversifying your marketing strategies ensures a wider reach. More importantly, it creates an impression that you are present exactly where a specific segment of your audience expects you to be.
Use content marketing by publishing insightful blogs on your website, attracting organic traffic, and positioning your agency as a thought leader. You could also leverage email marketing, sending subscribers newsletters with valuable content and promotional offers. Don’t forget social media platforms like LinkedIn and Twitter for sharing updates and engaging with your audience. Add a couple of YouTube videos to the mix, and voile – you have a demand-generation marketing campaign that spans at least 4 channels.
8. Increase Client Retention
Retaining existing clients can often be more cost-effective than acquiring new ones.
To do this, ensure excellent customer service, regular communication, and consistently high-quality work. For example, you might offer a loyalty discount to long-term clients or provide regular check-ins to understand their evolving needs and ensure their satisfaction with your services.
9. Upsell and Cross-sell to Existing Clients
Upselling (offering higher-end services) and cross-selling (proposing complementary services) can boost your revenue and remain almost seamless for the client. That’s why it’s such an effective strategy that nearly all industries turn to when needed.
For instance, if a client purchases SEO services, you could upsell by suggesting a comprehensive SEO+SEM package. Or, you could cross-sell by offering social media marketing services to complement their SEO strategy.
The Importance of Revenue Tracking in Marketing Agencies
Understanding the flow of money within a marketing agency is crucial for sustained growth and financial health. So, when you implement revenue tracking systems, you can easily detect which services generate the most income and identify the areas needing improvement.
Here’s why revenue tracking matters a lot:
- Insight into Profitability: Tracking helps agencies understand which campaigns or services have the best profit margins with a focus on overhead costs, outsourcing, and many more.
- Better Financial Decisions: With accurate financial data, you can make informed decisions about your budget.
- Client Reporting: Demonstrating clear ROI to clients is easier with detailed revenue tracking, which can help in retaining and attracting new business.
To ensure that you have the most effective ways of tracking revenue, here are some tools that you must check:
- CRM Systems like Salesforce or HubSpot
- Financial management software such as QuickBooks or Xero
- Custom dashboards integrating Google Analytics and financial data
And speaking of revenue tracking, let’s “track” agency revenues in a more macro-sized way.
In the US, digital marketing agency average revenues vary with size, typically ranging from $250,000 to $300,000 per person annually. And the overall market size for digital advertising agencies in the U.S. is approximately $29.5 billion.
In the UK, digital marketing agencies generate a combined annual revenue of about £13.6 billion, which reflects consistent growth and a strong digital advertising presence.
Huge market to take a piece, right?
How Do Marketing Agencies Make Money?
From traditional methods to innovative approaches, there are numerous ways to ensure steady income streams. Let’s look at the top 4 categories:
Client Retainers
Agencies often secure a monthly retainer fee for ongoing services. This way, you can provide a stable and predictable revenue source. In addition, this model benefits both the agency and the client by allowing for long-term marketing agency business planning and budgeting.
Project-Based Work
For specific campaigns or short-term needs, agencies charge per project. This method is suitable for clients who are not ready to commit to a monthly retainer.
Performance-Based Fees
Some agencies earn based on the results they achieve, such as a percentage of the sales generated from marketing efforts. This aligns the agency’s goals with the client’s success.
Selling Proprietary Tools or Software
Agencies with in-house tools or platforms may license these products to other businesses, creating an additional marketing agency revenue stream.
For a further evaluation of how agencies make money, here’s an 11 min-long YouTube video for you:
How Do Diversified Agency Revenue Streams Benefit Agencies?
Expanding the ways an agency earns money is vital for resilience and growth.
Let’s learn how diversification can safeguard an agency’s future:
Offering a Wide Range of Services
From digital marketing to PR and beyond, offering diverse services can help capture a broader client base and reduce dependence on any single digital marketing agency revenue source.
Geographic Expansion
By operating in multiple markets or even internationally, agencies can tap into new revenue opportunities and mitigate risks associated with local economic downturns.
Investing in Technology
Developing or investing in new technologies, such as AI-driven analytics or automated marketing platforms, can open up new marketing agency revenue channels and provide a competitive edge.
Top Digital Marketing Agencies by Revenue
Highlighting some of the giants in the industry, here are the top digital marketing agencies by reported approximate annual marketing agency revenues.
These agencies exemplify great success in scaling their operations and diversifying their revenue streams to achieve impressive financial results.
- Accenture Interactive: $12.5 billion
- WPP: $17 billion
- Omnicom Group: $14.3 billion
- Canesta: $10 billion
- Deloitte Digital: $10 billion
- Dentsu Group Inc: $9.5 billion
- Hakuhodo DY Holdings: $7.3 billion
- IBM iX: $6.8 billion
- Stagwell Inc: $2.6 billion
- Method: $1 billion
- 1000heads: $1 billion
Final Thoughts
Increasing your digital marketing agency’s revenue in 2024 requires a mix of strategies.
You can start by setting clear, measurable goals and focusing on lead generation to attract new clients. Also, partner programs can open new revenue streams, while investing in paid advertising can boost your agency’s visibility!
You can analyze customer data to tailor your services and develop targeted promotions. By diversifying your marketing strategies across multiple channels, you’ll reach a broader audience. Retaining existing clients through excellent service and regular communication can often be more cost-effective than acquiring new ones.
Upselling and cross-selling to current clients are powerful ways to increase revenue. Also, when you leverage diverse revenue streams—from client retainers and project-based work to performance-based fees and selling proprietary tools— you can safeguard your agency’s financial health and drive growth.
In short, stay adaptable and continuously innovate to navigate challenges and seize new opportunities.
