Want to build a multi-million dollar digital agency?
Here is a 2-step framework I've mastered from working with 350+ agencies and helping clients generate over $100,00,000+ in revenue.
🧵 : The 8f House Model
Agency owners DO NOT know how to scale
They are great at marketing and sales but suck at operations
In order to scale, you MUST scale yourself out of the operation
When you do this, you will:
1: Increase your revenue
2: Work with freedom of will
3: Get incredible results for yourself (and your clients)
Your first step must be to focus on:
HIGH LEVERAGE ACTIVITIES
Hihg leverage activities are the things that, when you invest an hour of your time, you can get 5, 10, 20, 30 thousand dollars in return, and
It compounds: it continues to come back
So, if we’re going to get you out of the operation, you must first understand how to scale an operation
Here is where my ‘8F agency house model’ comes into play
Building an agency is like building a house;
If you have a strong foundation you can scale as large as 9 figures
When it comes to scaling an agency operation
There’s two things that you need to start the operation:
1: The Operating System (OS)
2: Org Chart, KPIs, and Goals
1/ The OS - Your Software (PM, SOPs, Workflows, Templates)
The OS is where you house all software needs:
CRM, LMS, Project management, Org Chart, Client management system
For me, my OS is housed in airtable
I cannot stress this enough
Your progress as an agency owner depends on how efficiently you run your project management and fulfillment
If you want to run a killer operation, you’ll need to have the following three items
• Have clear workflows
• Templatized project management
• Clear and actionable SOPs
The first step of building an epic OS is to build your operational workflows
A Workflow is a defined set of steps that take your client journey from prospecting to growing client accounts (over several months)
Here is an example of a great workflow
miro.com/app/board/uXjVOY6LFWE=/?invite_link_id=679853382968
Benefit: If you build an operational workflow from start to finish, you’ll have a list of the processes you need to templatize in your project management system
Benefit of building templates: These help you standardize and systematize everything inside of your operation
This in turn will help you build SOPs and training (referring to house analogy)
Simply put
Workflows → Templates → SOPs and training
Your main goal here is to adopt a templatized approach for your PM while onboarding or retaining clients
Doing this gets half of the work done for you and your team
You just copy and paste the template and the team member just has to execute a list of repeatable actions
Here is a video showing how templates play into your project management
loom.com/share/c2a197732a4c4e7cacb6cd9babd67d14?from_recorder=1&focus_title=1
If youre struggling with your OS, feel free to reach out to my partners at Talos (I refer all my agencies to them and
calendly.com/david-at-talos/free-systems-audit-8f
2: The Org Chart, KPIs, and Goals
The next most important thing is having an org chart with clear KPIs and goals
Goals refer to outputs
example: client media buying accounts have a ROAS of =>5x
KPIs refer to inputs
Example: optimize campaigns the first week of each month
Once inputs are established, you can log these into a checklist and run daily/weekly audits on your teams execution
Great operators audit and ensure their team executes their daily action to grow
Doing this helps you enagle the following ⬇️
• Setting a target and benchmarking performance against it
• Ensuring efficiency of tasks overall
• Helping to track progress of goals over time
• Gauging the output of work being done
In short, these elements can be used to gauge performance and ensure accountability
When you have clear KPIs and goals, this will enable you to build best in class:
• Customer success
• Fulfillment
• Onboarding
• Training
When you have all of these things, it will enable you to audit the agency and have great:
• Management
• HR systems
• Data tracking
That is how you build a million dollar agency from the operational side
And SCALE it!
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