Digital marketing agencies are selling for record breaking amounts…can you believe that?
With their relative low risk, high margins, and recent surge in demand…it’s true…business buyers are gobbling them up.
As a matter of fact, according to Barney Financial, the number of digital marketing agency acquisitions has skyrocketed nearly 122% in recent years.
But there’s a catch…
- Not all agencies are participating in this payday equally.
- Agencies with revenues over $8M have reported selling for a record breaking 8–12 times their earnings,
- Yet those that fall below that line see their acquisition price fall off a cliff, reduced to a multiple of just 1.5 – 4x.
- But, it’s not only the revenue that matters…
- Sophisticated strategic buyers look much deeper.
- The highest indicator of value appears to be an agency’s transferability.
- In simple terms…for business buyers to write you that big check your agency has to have the systems and process to run without you.
- Now, I know you may be thinking…
- “That’s cool Ryan but I’m not interested in selling my agency.”
- Well, that’s is the best part…
It doesn’t matter if you want to:
- Scale to 7 or 8-figures without sacrificing your soul
- Position yourself for a big pay day
- Create passive income in retirement or,
- Pass it along to your loved ones someday
All those outcomes result from the same framework…
An “Exit-Able” Agency
- More on that in a minute but, first, tell me if this sounds familiar…
- At first, things were simple and easy. You had a few clients you liked, who paid you well, and the work was fun and rewarding.
- But then you decided you want to scale, so you hired some people (full-time or outsourcers) to manage the clients you have so you could have the time to get new clients.
- But the people you hired weren’t as good as you, so clients started to complain which causes you to dive back in to save the day.
- Now you’re working MORE than ever but for LESS money, because you’re having to simultaneously prospect for new clients while attempting to serve the ones you have, and you’re doing it all at LOWER MARGINS because you’re still paying the people who failed to do the job in the first place.
- You’re no longer an agency owner…you’re a professional plate spinner.
- Eventually, something gives…a plate falls.
- A big client cancels or a new client you thought would close chooses someone else because you “just weren’t responsive enough.”
Now your revenue is down, your overhead is up, and you’re frustrated and burned out so you toy with the idea of just blowing it all up and starting over again…back to a few clients you like, who pay you well, and where you get to do the work you find fun and rewarding.






