Light that spark fire nation JLD here and welcome to entrepreneurs on fire brought to you by the HubSpot podcast network with great shows like salesmen.

Today we're pulling a timeless eo fire classic episode from the archives and we'll be breaking down how to scale your agency to six figures a month to drop these value bombs.

I've got cat howl into eo fire studios cat is the founder of fb performance based media by agency eight loop social agency academy and the co founder of adult spray theory of her.

And today, foundation we're talking about how to tap into people who have walked the path that you want to walk.

We'll talk about how the best thing that you can do for prospecting in your business is to set up pipelines based off of your strength and so much more when we get back from thinking our sponsors.

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Listen to business made simple wherever you get your podcasts.

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And I think that's a great profession to go into.

And I think we're going to have to have you on a different podcast to talk about that specifically cap but that is definitely something I did not know and well what can you say we can all learn something everywhere I guess and fire nation as I mentioned in the introduction we're talking about how to scale your agency to six figure months having six figures in revenue every single month.

We're going to be talking about a lot of awesome things like prospecting methods how to automate lead generation so much more but I want to start off with this cap because so many people have issues pricing pricing products pricing services you name it if it's pricing it's difficult for most people so talk about pricing models that actually allows you to land trophy clients for many freelancers and agency owners it kind of feels like you're pulling pricing out of thin air.

Or you're mimicking what you're seeing your peers doing which can work to some extent but in many ways you're taking a big risk there and you're opening yourself up to go way over scope with clients and ultimately that's going to lead to burnout so really the key for pricing is to really understand internally what it takes to resource that service offer.

And so that all really starts down to understanding what service that you're going to be really competent as as an agency and creating a robust process around that you should have that already if you don't have a process around the core service offer that you have whether that scaling ecommerce ads or building websites or whatever that might be you need to do that as a first step foundationally for your agency.

And once you have that as a process you can really see what kind of talents you're going to need is it a copywriter that you need in there a media buyer do need a strategist and understanding that will then allow you to put together a production team and once you have that you can price the services properly so normally what we would do is create what we call a service document which is a fancy word for a menu of prices and you know that's what I'm going to do is I'm going to do that and I'm going to do that and I'm going to do that and I'm going to do that.

And it basically has each line has three columns and you list down the service so for example it's email sequence launch email sequence and then in the next row you'll list out all the deliverables included in that so six part email you get one revision it's integrated with your CRM we will split test it will create a workflow for example that part of the document is what you put in service.

But you put inside of your contract by the way to protect yourself in case the client ever goes over scope then it's clearly listed in your terms of service well it says here you had one revision or this was included and this is therefore out of scope.

And then once you understand that then you can price and normally that works through by the hour internally so you calculate how many hours is required and what does that talent cost you for agencies that's always usually going to be cost of goods sold will be the human labor.

And then you can price it you can add your margins on there normally a lot of agencies will try to so we sit at around two ninety seven an hour internally as an agency that's something we would never share with clients but normally agencies will try to add anywhere between five to thirty percent profit margin to what they're doing.

Fire Nation do you have a service documents that's a menu of services that you offer with price points is going to help protect you as cat said if you ever need to refer back to that and I love that idea of pricing by the hour internally and then you add your margins on top

financials all about knowing your numbers you have to know your numbers and then you can add the margins that make sense for you that is so critical in every way shape and form and something that I'm really hoping you're going to take away from our conversation today so cap changing topics a little bit because this is something you've been able to do really well and that is actually prospects actually gets clients that you want that can pay your price points in your margins and make you a successful agent.

What are some of the most effective prospecting methods that you've developed over the years when I was freelancing I really struggled with the normal prospecting methods and I to be fair I didn't really know the full spectrum of what was available to me because back then this was like five six years ago there

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