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Listen "286: How to Run a Profitable WordPress LMS Agency with Marcel Petitpas from Parakeeto"
Episode Synopsis
Marcel Petitpas from Parakeeto joins Chris Badgett on this episode of the LMScast podcast to discuss what course creators and agency owners can learn from utilizing historical data to make decisions and lead to more accurate estimations on projects, and what work is required to build a course or design a site for a client.
Marcel points out how many online business owners forget about the cost of earning their revenue when they calculate their revenue projections in a service-based business. This is often the reason many agency owners struggle with cashflow when they grow their team. With fixed project rates and scope creep, the cost of earning revenue can be much higher than many freelancers and agencies anticipate.
If you’re not performing a clearly defined process for clients, it is often wise to bill by the hour. That allows you to do complex development that you couldn’t scope out as easily and to come up with a price that allows you to have a consistently good profit margin.
A key takeaway Marcel shares in this episode is that you really need to understand your business model. If you offer any kind of service, you don’t have fixed costs, so you need to account for the fact that you need to earn your revenue.
Understanding your capacity as an agency is a huge challenge, and using a tool like Parakeeto that shows you calculated estimates on how a project is likely to perform is a great way to manage projects you take on and what resources you use to complete those projects.
At Parakeeto.com/Toolkit you can download the free template Marcel uses for calculating estimation metrics for his clients. He also has a great podcast at Parakeeto.com/Blog that covers how you can increase your profits as an agency owner and many other marketing tactics.
Marcel points out how many online business owners forget about the cost of earning their revenue when they calculate their revenue projections in a service-based business. This is often the reason many agency owners struggle with cashflow when they grow their team. With fixed project rates and scope creep, the cost of earning revenue can be much higher than many freelancers and agencies anticipate.
If you’re not performing a clearly defined process for clients, it is often wise to bill by the hour. That allows you to do complex development that you couldn’t scope out as easily and to come up with a price that allows you to have a consistently good profit margin.
A key takeaway Marcel shares in this episode is that you really need to understand your business model. If you offer any kind of service, you don’t have fixed costs, so you need to account for the fact that you need to earn your revenue.
Understanding your capacity as an agency is a huge challenge, and using a tool like Parakeeto that shows you calculated estimates on how a project is likely to perform is a great way to manage projects you take on and what resources you use to complete those projects.
At Parakeeto.com/Toolkit you can download the free template Marcel uses for calculating estimation metrics for his clients. He also has a great podcast at Parakeeto.com/Blog that covers how you can increase your profits as an agency owner and many other marketing tactics.
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