The only 3 financial metrics that matter with Jon Morris
Corey Quinn
Founder, Deep Specialization™
Are you spending enough on marketing to impact growth? Jon Morris shares the only 3 agency metrics that matter: growth, profit percentage, and cash relative to overhead.
Are you spending enough on marketing to impact growth? How much IS enough for a digital agency?
(🎙️ listen now)
Today, I welcome Jon Morris, Multipreneur, Founder, and CEO of EngineBI, on the podcast. He shows us how to bridge the financial gap between marketing, sales, and consistent agency revenue.
He also shares the only three agency metrics that matter: year-over-year growth, increased profit as a percentage of revenue, and growth of your cash relative to monthly overhead.
We also discuss:
Why vertical marketing strategy is a must for attracting business.
How sometimes referrals might not be the right size fit and what to do about it.
How to approach hiring sales based on what kind of skills you need in the team.
What percentage of revenue you need to spend on marketing and sales.
Financial basics agencies need to understand and track.
Actionable key takeaways for agency founders:
Partner with friendly companies that complement your business to drive referrals.
Grow your minimums to make more revenue without having to take on lots of new clients.
Think of what you can offer of value to your prospects rather than asking for a meeting.
If you’re looking to get acquired, think of how you can show your revenue multiple potential.
Build a system of tracking key revenue and financial metrics to maintain a healthy business.
🎧 Listen to the episode now:
Sharing is caring! If you enjoyed this episode, please consider sharing it with a few friends who might find it useful. Thanks!
Best,
CQ
P.S. Please rate and review us on Apple Podcasts, and be sure to hit the subscribe button!
Frequently Asked Questions
What are the three agency metrics Jon Morris says actually matter?
Year-over-year growth, increased profit as a percentage of revenue, and growth of cash relative to monthly overhead, a focused set discussed as more meaningful than tracking a large number of less critical metrics.
Why does Jon Morris say referrals aren't always the right size fit?
Because a referral, while well-intentioned, doesn't automatically mean the prospect is genuinely a good match in scope or budget, a nuance discussed as something agencies need to evaluate rather than accepting every referral by default.
How should agencies think about growing minimums instead of just adding new clients?
By raising the minimum engagement size, agencies can increase revenue without necessarily needing to take on a larger volume of new clients, a more efficient growth lever discussed directly in the episode.
What approach does Jon Morris recommend instead of directly asking prospects for a meeting?
Leading with something of genuine value to offer, rather than immediately asking for time, a subtler approach designed to build interest before making a direct ask.
Why does Jon Morris emphasize tracking financial metrics for agencies considering an eventual acquisition?
Because demonstrating clear revenue multiple potential requires having the right financial tracking systems in place well before a sale conversation begins, preparation that shapes how attractive the agency appears to potential acquirers.
About Corey Quinn
Founder, Deep Specialization™
Corey helps founder-led agencies scale through Deep Specialization™ and programmatic M&A. Former CMO of Scorpion ($20M to $200M). Author of "Anyone, Not Everyone."
