Avoiding The Revenue Trap: Putting Profit First, with Robert Berkeley | Ep #682

Are you fed up with the revenue roller coaster? Ready to get off and build an agency business model focused on sustainable profits? Maybe you’ve heard the saying "revenue is vanity and profit is sanity.” Our featured guest today experienced significant sustainable growth after breaking free from the “revenue trap.” By shifting the focus from revenue to the bottom line, he saw a remarkable shift, leading to financial stability and long-term sustainability. Listen or read to discover how this agency owner navigated through adversity, turned his business around, and expanded his team to more than 700 members.

Robert Berkeley is the co-founder of EKCS, a creative agency specializing in turning ideas into multiple assets. His team works with brands, agencies, and media companies as an extended team that helps them overcome creative production challenges, gain efficiencies, and improve ROI. Robert shares insights on partnership dynamics, dealing with negative people, and the importance of course correction when a business is heading in the wrong direction.

In this episode, we’ll discuss:

• The key to partnership longevity.

• Escaping the revenue trap.

• Balancing client acquisition and retention for manageable agency growth.

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Sponsors and Resources

Copper: This episode of Smart Agency Masterclass is sponsored by Copper, a CRM solution built specifically for agencies that use Google Workspace. Its CRM integration works seamlessly with Gmail, Google Calendar, and Drive, so you never have to switch tabs to add leads, track email conversations, find files, or manage tasks in your marketing or sales process. Head over to Copper.com/agencies and get a free trial just for Jason’s listeners!

The Key of Partnership Longevity: Respect, Trust, and Value Alignment

Despite their different styles and personalities, Robert and his partner work very well together thanks to a shared set of values and mutual respect. For Robert, their differences mean they can be great in the sum of their parts, which has been proved time and time again over twenty years together.

Business partnerships really are like marriages and their success often hinges on respect and trust between the individuals involved. Without respect, there’s no trust, and without trust there’s no way to make it work. In their case, Robert and his partner have a fundamental desire to maintain that respect, which keeps them from overstepping boundaries and helps make decisions that align with their shared values.

In their partnership, all major decisions are taken together and they would never make a key hire or approve any major move without the other’s knowledge. This allows them to communicate honestly and have each other’s back if those decisions don’t go as planned. When there is respect in a partnership, there is a willingness to listen, compromise, and work together towards common goals.

Navigating Declines in the Industry and Pivoting to Profitability

With two decades of experience in the industry, Robert and his partner have weathered their fair share of setbacks and missteps. One of the biggest examples of this happened around their third year in business. They hadn’t quite broken through and did not have authority in the industry. Desperate for business, they eagerly pursued any opportunity that came their way.

Their initial foray into Google Ads led to a promising prospect in the form of a newspaper, which seemed like a solid bet at the time. Being good at what they did, they succeeded where others failed. However, the newspaper industry's rapid decline soon rendered their services obsolete, forcing them to reevaluate this niche.