Chip and Gini tackle an issue at the heart of the success of all PR and marketing agencies: profit margins.
During this episode, the pair examine:
- Tracking profit at the project level
- Monitoring overall agency profitability
- Getting the profit percentage by using the right data
- Finding ways to improve profitability
The Spin Sucks Community contributed greatly to this discussion and their feedback is at the heart of this episode. In particular, Greg Brooks of West Third Group shared a number of key points that Chip and Gini explore in-depth.
Gini and her team talk to a lot of agency owners. “One of the questions we ask is: what was your profit last year? And I would venture to guess 90% can’t answer that question,” she says.
Meanwhile, Chip warns against assuming that big invoices are always a good idea. “A mistake that I see a lot of agencies make is that they assume because it’s a big project, that means lots of profit for the bottom line. But quite often, it’s just the opposite.”