How to Raise Your Agency Prices to $10K+/Month

Jordan Ross (0:00)

Welcome to How to Build an 8 Figure ABC.

My name is Jordan Ross, and I'm your host. And over the course of this journey, we're going to be interviewing 8 Figure Agency owners and going through the systems that I've seen work and we've implemented into our clients' businesses that have helped our clients add a half a billion dollars in annual recurring revenue over the last handful of years. I myself have already hit the 8 figures in annual recurring revenue, and when I got there, I wasn't happy. I was stressed, I was dissatisfied, and I didn't like the people I was working with. So I clicked the restart button and went from 12 million in annual portfolio revenue back down to the mid 7 figure level to a climb back again. And on this journey, I'm going to be documenting my process on how I'm getting bath date figures and bringing you expert industry leaders who will tell you everything they did to get there as well. Thanks for tuning in and enjoy the episode. This guy has built and sold a $5 million a year agency, and he has a simple system that will 4X your profit margin. He's helped over 500 agencies learn how to implement this inside of their business. And today, I'm bringing on Alex Hartsuff, the founder of Enterprise Clients, who is going to tell you about doubling your pricing so you could sell more, earn more, and just run a better agency. So Alex, hey dude, what's up?

Alex Hartsuff (1:18)

Jordan, what's up, man? Happy to be here. It's quite an intro.

I appreciate the kind words, man. Yeah, it's good to be here. Happy to chat.

Jordan Ross (1:26)

You know, in another life, I'd be a hype man. But today, I just say words on podcasts and help people with their apps. So for everyone that doesn't know you, what's the quick overview of Alex and Enterprise Clients before we talk about how they are going to be able to double price?

Alex Hartsuff (1:42)

The short answer is we help agencies charge more, right? That's what we do as Enterprise Clients. You hit the nail on the head with.

So I sold in 2023 Not long after that, we started our program that we have now, which is Enterprise Clients, right? So we help agencies charge more, primarily through offer, positioning, lead generation, sales mechanisms, right? We were primarily acquired because of our acquisition strategy. So that's what we help agencies install day in and day out.

Jordan Ross (2:08)

I appreciate you coming on. And let's kind of like frame this. What's the, why are agency owners underpriced? And what is the kind of philosophy for just charging more? Like, what's the average agency doing when you meet them?

Alex Hartsuff (2:24)

Well, yeah, I mean, most agencies, like when they start, they just pick a random price, typically because they see other people charging that. Maybe they joined some sort of program that told them, hey, charge 2K, 3K a month, whatever else. And they typically just stay at those prices. What I find is they stay at those prices because they don't think people will pay them if they raise those prices. They're too worried about not being able to close deals, losing the current clients that they have, but they're just not willing to make that jump, typically because they're just scared to. That's usually why most agencies won't.

Those that do, you know, you find agencies that charge 10, 15, 20 grand a month for relatively the same services. Some are able to make that jump, and some are just not willing to. So it's usually just, people hate the word mindset, but that's definitely half of it.

Jordan Ross (3:12)

Now, when you help your clients increase price, what is maybe the average price points or benchmarks that they go from the average of two to three to like, where do you take them? What are the averages of that experience?

Alex Hartsuff (3:28)

Most people start somewhere in two to four.

You know, I'm a big believer in value-based pricing. And so how much you charge has a lot to do with the size of the client that you work with and the services and the value of the services or the ROI of the services that you get to. Simply put, for some people, they're super happy going from charging 2K a month to charging 5K a month. Some clients, we have the charge as much as 15, 20, 30, even $50,000 a month, right? And so it really ranges. It depends on what you're selling. There's lots of different ways to price, too. We have some that do flat retainers. We have some that do a base plus some sort of revenue share or profit share, whatever else. We have some that sell three, six, 12-month projects and collect all the cash up front. So there's lots of ways to skin the cat, but I would say that the most people are probably making the jump from two to four to like eight to ten is typically where we find it.