Eric Deeran argues that the one-off project model most creative agencies use is broken. High revenue doesn't matter if you're constantly hunting new clients to cover payroll. He proposes switching to high-ticket retainers instead: predictable monthly income, less work per dollar, better profit margins.
If you're making a lot of money in your business, revenue wise, but your profit is not where you want it to be. It's simply because you have a broken model. The traditional video and creative agency model is broken. You do a bunch of one off shoots, you rely on word of mouth and referrals, and you hope and pray that clients come back every single month. But the truth is they don't. They come back maybe once or twice per year, leaving you holding the bag for payroll overhead expenses. All of which eats into your profit margin. And unfortunately, it's not your fault. You were just taught a broken model. The new model is getting high ticket clients on retainer. These are people where you do less work, you have more margin, and you have consistent income coming in every single month. So you know what you need to cover for overhead. This means you take more profit home, which at the end of the day is the entire reason of being in business in the first place. So if you want to learn how this works, I put together a short video on the next page. Check it out, we'll see you there.
