How to Create a Recurring Revenue Machine for Your Digital Agency
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Kevin Daisey works hard to stay on top of changing trends in digital marketing. He is the founder & CMO of Array Digital, a digital marketing agency specializing in search engine optimization, social media, and digital advertising; and also Rival Digital, a digital agency niched in the HVAC market. Today he joins us to chat about how to create a recurring revenue machine. And also how establishing tight processes will not make you lose clients if they’re the right clients, and how his agency benefitted from eliminating the least profitable services. 3 Golden Nuggets Becoming a recurring revenue machine. After his accountant asked what he was predicting for next month's revenue and he had no answer, Kevin realized they needed to get serious about the business. So, he and his partner decided to implement 12-month payment plans and started converting clients to that plan. Clients pay for 12 months, even if the project was done in four months, and they can forecast on collecting that revenue. Figure out which services are bringing in more clients. Investigating all the services that they offered and identifying which ones were recurring and which ones were not, helped our guest make some changes in his agency. A lot of agencies try to do too much and think that to double in size, they need to do double the amount of services. And that's actually very incorrect. In the end, they figured out which services they could eliminate and which ones they should go all in. That helped them grow their recurring revenue in just eight months. Have a tight process. Establish a very solid outreach and communication process to establish clear payment options for your clients. If checks are just not convenient for your business, you can establish other options, like ACH, and offer a discount to encourage customers to use that method. You can also establish penalties for delayed payments. If you clearly communicate the benefits and downsides of each payment method, there are no excuses. Kevin and his team trusted their vision and were happy to see that customers started to comply with this new process. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Secrets to Becoming a Recurring Machine Jason: [00:00:00] What's up everybody? Jason Swenk here and on today's episode I have an amazing guest from our mastermind who runs a really amazing agency. And we're going to talk about creating a recurring machine, but before we get into it, I want you to do me a favor, take a screenshot of listening to the podcast. And upload it to Instagram and tag us, because we want to reach out to you and give you a shout-out. So make sure you go do that now and let's get into the episode. Hey, Kevin. Welcome to the show. Kevin: [00:00:36] Hey, Jason. Thanks for having me. Jason: [00:00:38] Yeah, man. I'm excited to have you on. So tell us who you are and what do you do? Kevin: [00:00:42] So my name's Kevin Daisey and I run two agencies, one called Array Digital and, Array Digital is a full-service digital marketing agency that primarily focuses on working with law firms. Also, I have another agency that we started in September of 2020, which is niched in the HVAC market. So HVAC contractors, companies around the country, uh, with websites, SEO, social media, and on, on advertising. Jason: [00:01:12] Awesome. I love it. Well, let's go ahead and get into it. How can people listening, how can they create a recurring machine? Kevin: [00:01:21] Well, let me, uh, I guess start with kinda what led to where we are and obviously where we are is a far cry from where we want to go. But, uh, in order to get there, we had to have recurring revenue. And so back about a few years, my business partner, Eric J. Olson, who’s actually a member of the mastermind as well. Me and him formed Array Digital together, after both running our own agencies for quite a f
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