The Agency Network Effect

how and why to outsource your client work to other

agencies.

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SpencerPOWELL

Fantasy Football Name: Royal Flush

@spowell24

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Agenda

1. Why Outsource?2. What Are Your Goals?3. Agency Lifecycle4. Selecting a Partner Agency5. Executing a Partnership

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1WHY OUTSOURCE?leverage outsourcing and grow

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stack revenue.

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Year 1 Year 2 Year 3 Year 4

Jan $500 $6,500 $12,500 $18,500

Feb $1,000 $7,000 $13,000 $19,000

Mar $1,500 $7,500 $13,500 $19,500

Apr $2,000 $8,000 $14,000 $20,000

May $2,500 $8,500 $14,500 $20,500

Jun $3,000 $9,000 $15,000 $21,000

… … … … …

Dec $6,000 $12,000 $18,000 $24,000

Annualized

$72,000 $144,000 $216,000 $288,000

Sell 1 Retainer per Month

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LEVERAGE“It is much easier to put existing resources to better use, than to develop resources where they do not exist.” ― George Soros.

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minimize risk.

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Ladder Effect (without outsourcing)

Profit Zones

New Hires

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Ladder Effect (with outsourcing)

Profit Zone

New Hires

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2GOALSyou gotta know where you’re going

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Goals

• Scale a 1 person business• Grow a small team• Grow a large team

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scale as one.

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grow a small team.

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grow a large team.

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3THE AGENCY LIFECYCLEwhere is your agency today?

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Infant Toddler Child Teen Adult Senior

1 2-3 4-6 7-10 11-15 16+ Team Size

? ? ? ? ? ? Revenue

? ? ? ? ? ? Amount to Outsource

THE AGENCY LIFECYCLE

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Infant Stage• 1 Person• $150K in revenue• Outsourcing 75-100%

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Toddler Stage

• 2-3 people• $300K - $450K in revenue• Outsourcing 30-75%

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Child Stage

• 4-6 People• $600K - $900K in revenue• Outsourcing 20-30%

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Teen Stage

• 7-10 people• $1M - $1.5M in revenue• Outsourcing 10-20%

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Adult Stage

• 11-15 People• $1.7M - $2.2M in revenue• Outsourcing 5-10%

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Senior Stage

• 16+ people• $2.4M + in revenue• Outsourcing 0-5%

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Infant Toddler Child Teen Adult Senior

1 2-3 4-6 7-10 11-15 16+ Team Size

$150K $300K - $450K

$600K - $900K

$1M - $1.5M

$1.7M - $2.2M

$2.4M+ Revenue (avg. $150K/head)

75-100% 30-75% 20-30% 10-20% 5-10% 0-5% Amount to Outsource (workload)

THE AGENCY LIFECYCLE

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Selecting a Partner Agency

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Partner Agency Checklist

info.tmrdirect.com/checklist

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How to Execute a Partnership

ConclusionWhy Outsource?1. Stack Revenue2. Gain Leverage3. Minimize Risk4. Achieve Your Goals