Why Scaling a PPC Agency is so Hard

In this blog I want to talk about why scaling a pay-per-click agency is so difficult. The first reason that I can think of is that people that are starting out or have quite maybe a semi-mature-type agency of a few years, they’ve been taught to focus on the wrong business, so they are focusing on what I call local businesses which are the likes of dentists, real estate agents, gyms, surgeons, that kind of thing. The problem with these type of businesses is they can only handle a few leads per day, so it’s very hard to scale. You need more clients, rather than delivering more leads to those individual businesses which means that you need 20 or 30 of those businesses to be making serious money.

“The people that are outsourcing the PPC campaigns for you put up some wrong ad copy and the client finds out, then you start getting into trouble”


Whereas if you focused on businesses where they can handle more leads, you need fewer leads to scale. The next problem I see people encounter when they’re trying to scale their agency and when they start getting a few clients is that they need more hands on deck. They need to hire more people to help with the campaigns, help build the landing pages, help write the creatives, help design the images within the Facebook ads, etcetera.

“I would much prefer to have people in-house invest in that person straight out of university or an apprentice or something like that, have someone in-house that you can teach and train”


The next logical step people take is to outsource that work to contractors that they find on the likes of oDesk or Upwork and that can work to an extent but you end up taking your finger off the pulse and what happens is that they start making mistakes. The people that are outsourcing the PPC campaigns for you put up some wrong ad copy and the client finds out, then you start getting into trouble. It becomes a nightmare and I would much prefer to have people in-house invest in that person straight out of university or an apprentice or something like that, have someone in-house that you can teach and train. The next mistake that agency owners make is not charging enough and that’s a function of going to the businesses that haven’t got deep enough pockets. Clients that are local tend to only have smaller marketing budgets because they’re a local business. You can only charge them $500-$1,000 per month, they just don’t have any more money than that to spend which makes it very hard to charge them more.

“What we do as an agency is we paid on results”


If you’re not charging enough, then you won’t make enough money for your business and if you’re taking on more staff and outsourcing work, it becomes a problem which just gets bigger. It’s a broken model. The next issue I would like to discuss is retainers. You should be paid on results and performance rather than being paid on a set monthly fee which doesn’t reward you for doing a great job. What we do as an agency is we paid on results. We’re paid on a lead and it works much better because the more leads we generate, the more we get paid. I would like to explain to you how we do this as an agency and how we’ve moved from an agency that used to work with local businesses, that weren’t getting paid enough each week and were getting monthly retainers to a business which has grown exponentially once we switched our model. Watch our FREE case study where I’ll explain exactly what we do and I’ll see you there.  
Bored of the bookwork and want to see some real, tangible results in your agency? For a LIMITED time, Dan Wardrope is giving out his How To Build A 7-Figure Pay Per Lead Agency case study… FREE. Boost your results and watch your profits multiply… all with 7 clients or less! The time has come: Transform Your Agency Today!  

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