SCOPE OF WORK | 3 TIPS TO AVOID SCOPE CREEP & INCREASE DIGITAL AGENCY PROFIT



Are you being hurt by scope of work for your projects and clients? Tired of scope creep costing your agency time and money? In this video I’m giving you 3 tips to avoid scope creep so you can increase your digital agency profit.

So many agencies put all their time and resources be generating leads and closing new business. But what they struggle with is delivery and maintaining a health profit margin. And that’s because they’re unable to hold their clients to a scope of work.

So, what is “scope creep”? Well… Scope creep is the continuous or uncontrolled growth in a project’s scope, at any point after the project begins. This can occur when the scope of a project is not properly defined, documented, or controlled.

I don’t want you to make this same mistake that I made in my agency and so many other agency owners make all the time. Here are 3 tips to help you avoid scope creep:

#1 — Define the scope of work on Day #1. Your scope of work should be clearly detailed in the proposal. A lot of agencies look at their proposal as a way to win the deal. But really, you should already have a verbal commitment before you present a proposal. This is where you clearly state expectations, timeline and deliverables.

#2 — Manage all changes with approvals and sign-offs. Literally have our clients sign-off on design and copy. That way if they want to change it down the road you have documentation of their initial approval and can explain why you must charge them for the change.

#3 — Tell the clients when they’re requesting something out of scope. Make sure there’s awareness, even when the out of scope request is a small one. Do this by creating a zero dollar change order and make them sign it as acknowledgement. That way when there’s a big out of scope request, you have trained them on your process and they won’t be surprised that there’s a charge.

Let’s face reality, scope creep is going to happen. But if you do these 3 things, you should be able to to avoid most of it because you’re prepared. You need your team to communicate with the client and be proactive about you scope creep.

Is your agency falling victim to scope creep? Tell me about your digital agency struggles by commenting below.

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JASON SWENK IS AN AGENCY ADVISOR THAT GUIDES MARKETING AGENCIES THROUGH A PROVEN FRAMEWORK FOR GROWING THEIR AGENCY FASTER & EASIER.

Fresh out of college Jason was off to work for Arthur Anderson, one of the big 5 consulting firms. He quickly realized that he could never work for anyone other than himself. He decided to change direction, launch a digital agency that quickly grew to a multi-million dollar operation working with brands such as AT&T, Hitachi and Lotus Cars. After 12 years of steady growth, the agency caught the attention of bigger agencies and Jason sold it in 2012.

Now, Jason leads  a unique media company & consultancy helping marketing agencies grow & scale their agencies faster by applying the framework that he used to grow, scale and eventually sell his agency. Jason has helped over 10,000 agencies in 23 countries meet or exceed their business goals.
Jason currently hosts two shows that are available for download…

The Smart Agency Master Class Podcast, dedicated to providing tactics and strategies to agency owners and decision makers that cut through the BS, focus on exactly what works and what doesn’t; and

SwenkToday a daily VLOG that documents the entrepreneur journey of building another multimillion dollar business, where he share the latest strategies, and answers the most burning questions entrepreneurs have. 

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Vanessa

Community Volunteer, Hiker, Gemologist, Veteran Startup Operator, 2012 Survivor. I look funny naked.

2 CommentsLeave a comment

  • Faizan Vahevaria

    I sign here to approve that I watched this video and it is going to be helpful for me.

  • Awesome like always Jason, How you manage with a costumers that will never be happy and satisfied? no matter what you do and the results.

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