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Episode
15
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Season 2

The Profit Problem: Why 67% of Agencies Are Struggling (And How to Fix It)

Profitability is the foundation of a sustainable, thriving agency - but so many agency owners struggle to maintain healthy profit margins. In this episode, we're diving deep into the biggest profitability mistakes agencies make, why revenue alone isn’t a measure of success, and the strategies you need to build a financially sustainable business.

Episode Description

What if scaling your agency didn’t mean working more, but working smarter?

Profitability is the foundation of a sustainable, thriving agency - but so many agency owners struggle to maintain healthy profit margins. In this episode, we're diving deep into the biggest profitability mistakes agencies make, why revenue alone isn’t a measure of success, and the strategies you need to build a financially sustainable business.

Melissa and Meredith break down the common pitfalls agency owners face, why pricing and scoping are crucial to profitability, and how optimizing your operations can make your business more efficient, scalable, and stress-free.

What to Expect From This Episode..

The Four Biggest Profitability Pitfalls:

  • Caving to lower prices to win business
  • Underestimating project scope and failing to price accordingly
  • Internal inefficiencies that drain time and resources
  • A lack of niche and client diversification

Key Takeaways:

  • Why revenue isn’t the real metric you should focus on
  • How to scope for reality (not best-case scenarios)
  • The power of standardizing processes for efficiency and profitability
  • How to confidently say “no” to low-value work
  • Why niching down leads to higher profit margins and more aligned clients

Real Talk Moments

We get candid about:

  • The fear of raising prices and how to push past it
  • The emotional weight of making big financial decisions
  • Why agencies struggle with scope creep (and how to stop it)
  • How to create pricing that protects your margins

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Interested in the Q1 Biz Dev Challenge with Melissa? A month-long program designed to help you fill your pipeline with quality opportunities. Limited to 20 participants, get support, creative assignments, and access to a private Slack community. DM Melissa on LinkedIn or Instagram for more information.

Interested in the 1:1 Strategic Brainstorming Session with Meredith? This session is a focused 50-minute consultation for entrepreneurs seeking targeted guidance and business insights. Dive deep into your most critical challenges, uncover opportunities, and develop actionable strategies. Book your strategy session here.

Connect With Us:

About Your Hosts:

Melissa Lohrer is the Founder of Waverly Ave Consulting, a Growth Consultancy for indie agencies. She partners with agency owners to create seven-figure growth through strategic repositioning, modern revenue models, and relationship-based sales. Connect with her on LinkedIn and Instagram.

Meredith Fennessy Witts is the Founder of Le Chéile, the go-to finance and strategy consultancy for creative agencies scaling beyond seven figures. She helps creative founders clarify their cash flow, restructure niche offers and pricing, and ensure they’re running a profitable business...in a mindful way. Connect with her on LinkedIn and Instagram.

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