Joshua NelsonSeven Figure Agency · Mentor / Coach at Seven Figure Agency

How My Agency Broke Through Its Revenue Ceiling | Seven Figure Agency

Name: How My Agency Broke Through Its Revenue Ceiling | Seven Figure Agency
Uploaded: 2024-06-11T19:22:02+00:00
Duration: 43 s
Channel: Joshua Nelson
Description: In this segment, Joshua Nelson explains how his agency was stuck at roughly $150,000‑$160,000 in monthly recurring revenue (about $2 million ARR) despite…

11 Jun 2024 · 1 min

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In this segment, Joshua Nelson explains how his agency was stuck at roughly $150,000‑$160,000 in monthly recurring revenue (about $2 million ARR) despite stable churn and steady new client acquisition. The agency was charging $1,500 per month per client. After investing in higher‑quality services—better SEO, pay‑per‑click management, improved website builds, and stronger social proof—they raised the price to $2,200‑$2,250 per month. Because the churn rate and number of churned clients remained roughly the same, the higher average revenue per client increased monthly revenue, allowing the agency to grow beyond its previous ceiling.

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In our world, we also got stuck around $150,000, $160,000 a month recurring, kind of at that $2 million mark. Our churn wasn't too bad. Our average new client was kind of in pace. It was working well, but we still weren't growing. We said, okay, we're charging $1,500 per month. We're losing clients and they're falling off at about $1,500 per month. We've added a lot of new value, right? We've got better SEO people, we've got better pay-per-click people, we're building better websites, we're getting better results, we've got more social proof. Let's raise that price. And we bumped it up to $2,200 per month. And so now because we're selling new clients at $2,250, we're losing the old ones at $1,500, despite the fact that our number of churned clients is about the same, we're actually ahead every single month because of that metric, because our average value per client has increased.