Eric Deeran (host) explains the importance of "scaling math" for video and creative agency owners: calculating how many leads, booked calls, and clients are needed to reach revenue targets (example: $100K/month). He walks through concrete scenarios using assumed booking rates, close rates, client price points ($5k and $10k/month), and shows how leads → calls → clients map to monthly recurring revenue; he also estimates ad spend needed given cost-per-lead assumptions. The talk emphasizes tracking churn, show rates, and pricing while using ads to scale lead volume.
Chapters
So over the past seven years, we've helped over 700 video and creative agency owners generate tens of millions of dollars in sales. And the one thing that I see people not doing correctly is the scaling math. And so essentially what that means is like, a lot of people don't actually know how many leads, calls, and sales they need to get to whatever number they want. They're just kind of hoping and praying. And I think that's a big mistake a lot of people make because you have to understand, how does this break down and how does this actually, you know, how many leads do I need, how many calls do I need, how many sales do I need? At what price point do I need them? What is the MRR that I need? You know, what if I have client churn? And so that's a big thing that I think a lot of people don't take into consideration, and that's ultimately why they can't scale. So in today's video, I want to break down a little bit more about the scaling math, what you need to be looking for, and how you can actually put the math together so you can get to whatever goal or outcome you want to get to inside of your agency. So let's go ahead and dive in. What I have in front of me is AI Eric, which is basically my digital mind that's been trained on over 12 million data points of everything. I know all, all my coaching calls, all my sales calls, all my, my client calls, all of our pricing breakdowns, all of our offer sheets, literally everything. And you know, before you guys get excited, this is only for people who join the full program, so only our full coaching clients get this. This is not available for public use ever. It never will be. But I wanted to break this down just to show you kind of a little bit about the scaling map and what that looks like. And so in this scenario, I asked Digital Eric basically if I wanted to hit 100k a month, break down the scaling math of me for me on how many leads, how many calls, how many clients I need. And so basically broke it down. So let's say 20% of the leads booked a call, and then 30% of the leads became actual clients. This is what you're. This is what you're going to be looking at. So if five, let's say you have $5,000 a month clients, you're going to need 20 active clients to be at 100k a month. Now, the sales is going to depend on Churn and how many clients you have. But if you're starting from zero, this is what it would look like. So for calls, you would need 67 calls to land 20 clients. Now, if you look at your pipeline, how many calls are you booking right now? Probably not 67amonth or 67 in general. Right. A year. For leads, let's say that you need, you know, of the leads, 20% of the leads turn into actual calls. That's 335 leads turn into 67 calls. And so you're going to need 335 leads to hit 67 calls. And the fun thing about this is, like, you could get 335 leads in one month and get 67 calls in one month and hit 100k a month in one month. It just comes down to the math. You just need to get 67 calls in one month. Now, let's say your close rate's 40%. Then at 40% close rate, at 25% booking rate, 50 calls equals 20 clients. Let's say that. Not, you know, 67 of the calls, 50 of them show up. That's 200 leads to 50 calls. And then if you increase the price points, like we look at 10k a month per client, you need 10 clients. Or at a 30% close rate and 20% booking rate, you need 34 calls and 170 leads to do that. Now, it's pretty simple when you break it down that way. And I think a lot of people overcomplicate it to the point where they're like, oh, I just, you know, I don't know how to make more money or I don't know how to grow my agency, or I don't know how to get past whatever plateau I'm at right now. And ultimately, it just comes down to you just have to do the math and figure out, you know, how many calls do I need at what price point? And then how do I get those? The easiest way to get more clients and get more. Get more calls, Right? So let's break this down. 335, 67 calls, 20 clients. The easiest way to get more calls is to run ads. And so let's say in this scenario, you need 335 leads. Let's say you're targeting medical companies, right? Then we would run an ad right here, very simple, to some sort of lead form, excuse my horrible handwriting. And then that would turn into 335 leads, which would then filter down to 67 calls. Leads right here, and then would filter down to 20 clients. There we go. Perfect. 20 clients. Don't overcomplicate. IT guys like don't make it more than it needs to be. It just comes down to math and then it's just making sure. Okay, great. If it's 335 leads, let's go in and ask it. How much would I need to spend on ads to get 335 leads that are medical companies? Let's see. Okay, cool. So just broke it down. So at $25 cost per lead, that's 335 leads, that's $8,375. Now keep in mind, this is to make 100k a month recurring. That means every single month you're making 100k a month. So 100k a month recurring and so $8,375 one time to make a hundred k recurring. And then, you know, it depends on how long you keep that client, which is how much you're going to get paid for them. Right. And what their actual LTV is going to look like. Now at $35 cost per lead, it's going to be 335 leads, that's 11,080 cost per lead. $26,100 is going to be 33,000. So even at 33,500, you're still at a 3 to 1 ROAS on month one. And then the next a hundred K becomes profit the month after that, the next a hundred K becomes profit the month after that and so on and so forth obviously. And so you guys just have to do the math. What do I need to be getting as far as calls, how much volume, what do I need to close them at? What's my show rate? And like we help you with the tracking when you work with us. But like the biggest thing is you need to understand what that looks like so you can actually map that out. So one of the biggest mistakes I see, hopefully this is helpful for you. And if you have more questions, drop them down below in the comments. And if you like videos like this, let me know. Cool, see you on the next one.
