Track your "effective interest rate"
Posted: Mon Jan 20, 2025 8:36 am
For agency owners, the first thing to realize is that bolivia b2b leads as an owner, your time is your most valuable and expensive resource. We often use our time to balance things out (e.g. code ourselves if we can't afford to hire someone). Next, record and calculate your time rate and incorporate it into your financial statements. This shows whether your business is truly financially successful. If you don’t, you may be unknowingly paying yourself a pittance, like $8 an hour.
Then, track your “effectiveness”—the amount you pay yourself divided by every minute you put into your business. If this ratio is increasing every year, then you're moving in the right direction. Your "effectiveness" is a core metric for measuring continuous improvement and value to your business.
customer acquisition
For digital agencies, client acquisition needs may be relatively small compared to other businesses. You don’t need to make thousands of sales a day like a theme park. Instead, you may only need to acquire three or four new customers per month.
If you understand your conversion rate from leads to customers, these numbers will become more manageable. For example, if you know your conversion rate, you might only need 9 conversations or 15-20 introductions per month to hit your customer acquisition goals. This equates to 1 conversation or introduction per day. When you break it down like this, the numbers are manageable for agents.
Then, track your “effectiveness”—the amount you pay yourself divided by every minute you put into your business. If this ratio is increasing every year, then you're moving in the right direction. Your "effectiveness" is a core metric for measuring continuous improvement and value to your business.
customer acquisition
For digital agencies, client acquisition needs may be relatively small compared to other businesses. You don’t need to make thousands of sales a day like a theme park. Instead, you may only need to acquire three or four new customers per month.
If you understand your conversion rate from leads to customers, these numbers will become more manageable. For example, if you know your conversion rate, you might only need 9 conversations or 15-20 introductions per month to hit your customer acquisition goals. This equates to 1 conversation or introduction per day. When you break it down like this, the numbers are manageable for agents.