3 Numbers You Must Track to Scale Your Video Agency

What's going on, guys? In today's video, we're going to be talking about the three main metrics that you need to know and you need to be tracking in your video business so you can actually scale with paid ads, with paid advertisements. So if you don't know me, my name is Eric Diren, I run master filmmaker. And one of the main things we help video agency owners and video business owners with is implementing a paid ad system so they can get clients on demand, on autopilot whenever they want. But in order to do that, they have to know their numbers and we help give them tracking. And in this video, I'm going to be showing you the three main numbers that you need to be focusing on in your video business to be able to scale with paid advertisements, with paid ads in general. And so I'm going to be going through that. I'm going to show you one of our clients tracking sheets to see what you show you, what his numbers look like, what that looks like. I'm not going to tell you who it is, obviously I'm going to blur the name. But it's going to give you a really good understanding of what these numbers are, how you can start tracking them and how you can start using this to engineer your way math wise to six, seven or even eight figures over time. So let's go ahead and dive in. Let's take a look at the iPad. Here are the three different numbers. Number one is cost per call. So when we're spending money on ads, we're running ads and we're running those and we want to know what is our cost per call. And so typically an average cost per call is going to be anywhere between $100 to. If you're targeting a really, really high end market, it could be up to $350 per call. Now this is important because we need to know how many calls do we, how many calls are we getting and what is the cost per call so we can understand exactly what those metrics are and what that looks like. Now the next number we need to know is show percentage. And this means, okay, if we book, let's say 100 calls, how many of those calls are actually going to show up? And we should be shooting for anywhere between 60, 80% show rate. Now this means that if we book a hundred calls, we're getting 60 to 70% or 60 to 80% rather of those people to then show up for the call. And we want to make sure that we have that high because if we're booking these Calls, we're paying for these calls. We want to make sure that they show up and we have a high show rate. And then last but not least, we want to be looking at close rate. What is, you know, if I take, let's say, 10 calls, how many of those am I closing? What is my actual close rate? What does that look like? And an average close rate you should be shooting for is anywhere between 20 to 30%. Now, remember, you don't need a lot of calls to make money here because you're typically selling something that's anywhere between 10,000 to our clients go all the way up to $100,000 per video package. Now, we don't need a lot of clients to hit that. So we want to know these numbers. Let's say that if our cost per call is. Let's say it's $100 right here. Let's just use some math. It's $100 call. We get 10 calls, which means we spent $1,000 in ads. And then of those 10 calls, we close 30%. That would mean we close three new clients. And if each client. Let's just say it's super low, each new client is 10k, then right there, that's $30,000 added to our video business. Now. Now, when you can understand this math, you can literally turn a turn of all. Turn a valve. Excuse me, and turn a lever and get calls on your calendar, turn those calls into clients, and turn those clients into revenue. So I just spent here, in this hypothetical example, I spent $1,000 to make $30,000. And that's why these main metrics, these main numbers are so key. We have to know what these are. Because if I know my cost per call, I know what my show percentage is, and I know out of those people who shows up and who turns into an actual client, then I can pull a lever and turn that into money for my business. Now, let's go ahead and dive in and show you one of our clients actual tracking sheets here. Let me zoom out here and show you what this actually looks like on a realistic level. Right? So with this client, I'm gonna pull up the other metrics. You can't see, on my side, he took. He had 14. I'm gonna pull up the numbers. 14 calls, but booked. 10 of those calls showed. Of those 10 calls that showed, he closed four of them. Right here, four calls. And each call, all of that money as far as revenue turned into 67K right here. So $67,000. Now you can see he got three deposits and his close rate here was 40%. And then as far as his show rate, his show rate was 71.43%, which is great. That is within our KPIs of what we're looking for. That the closing percentage closing on offers was 40%, which is above. Which is in between that 20 to 40% closing percentage that we talked about. That's perfect. That's within, within margin here. Now, the only thing and only place I see for this client to improve, and I'm just gonna kind of do this with you live, is his average revenue per deal. So his average contract was about $16,750 per contract, which is great. But the place I see some room for improvement on is on this average revenue per deal. So here's he's selling a $16,750 contract, but he's only collecting about $2,041.25 per contract. So to me, when I see this, his average cash collected, which is another kind of ancillary number, is a little bit low. I'd like to see this closer to 40. I can't draw today. Hold on. There we go. 40 to 50% average cash. Now, this is important because we want to. We can use. We can use different tactics like we talked about in my last YouTube video around, like, hey, do you need a payment plan? Do you need that to be broken up? Right? And we can start to use things like that to kind of like play around with this number and try to get this number a little bit higher. I mean, right off the bat, not bad. Like, it's looking really good. As far as his show rate, he's taken 10 calls. He's gotten four clients out of that, he's generated $67,000 in contract value for his business and closed about. And this is only. This is actually March, so it's just. I believe it's the 9th as the time, at the time of this recording. So. So he's only a couple days into March at this point. So he still has a lot more March to try to get this number up. But he's collected about $8,000 in cash so far. So just some room for improvement as far as the cash trying to get people, not everyone, to do a payment plan. Have some people do pay in fulls. That will kind of like push our average cash collected up a little bit. I mean, that's just some room for improvement I see there. But outside of that, this client is doing really, really well. His ads are performing well, the calls are going well. The, the ones he's getting on are good. If I see anybody who's closing at above 40%, I typically say, and this was actually last, last month, this client was closing at about 65%, I believe, if I don't remember incorrectly. And I told him to up his prices and he did, and his closing rate, closing rate went down. So if you're, if your closing rate is above 40%, typically what I see is I'm like, that usually means that you're priced too high. So we want to try. Or too low rather. And we want to go higher in the price and get that close rate down. Because you don't be closing every single person because it's going to put strain and bottlenecks on fulfillment because you're going to have so many clients, but you're not charging as much as you, you really should be for those clients. So just some numbers I wanted to run through with you guys. Hopefully these kinds of videos are helpful. If they are, let me know down below. But this is a breakdown from one of our clients and their tracking sheet. And this is something that we go through with our clients. If you want more info on that, if you want more info on that, you can click the link below, schedule demo with our team, and we can see if we can actually help you get to that next level. Outside of that, hope you guys keep crushing, Keep watching the videos, keep improving your video business, and we'll see you in the next one.