Often asked: How To Sell My Marketing Company?

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How do you value a marketing company?

There are a number of ways to determine the market value of your business.

  1. Tally the value of assets. Add up the value of everything the business owns, including all equipment and inventory.
  2. Base it on revenue.
  3. Use earnings multiples.
  4. Do a discounted cash-flow analysis.
  5. Go beyond financial formulas.

Can you sell a marketing agency?

Digital marketing agencies can sell from anywhere between 1.5X – 7X EBITDA, depending on a multitude of factors. There are some obvious factors that determine how much your digital agency is worth, like the size and revenue structure (project vs. retainer based).

How much does a marketing agency sell for?

Most digital marketing agencies with revenues over $8M sell for about 8–12x EBITDA. Agencies with revenues under $8M generally sell from about 1.5X-4X EBITDA. Sophisticated strategic buyers look much deeper.

What are the 5 methods of valuation?

There are five main methods used when conducting a property evaluation; the comparison, profits, residual, contractors and that of the investment. A property valuer can use one of more of these methods when calculating the market or rental value of a property.

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What are the 3 ways to value a company?

When valuing a company as a going concern, there are three main valuation methods used by industry practitioners: (1) DCF analysis, (2) comparable company analysis, and ( 3 ) precedent transactions. These are the most common methods of valuation used in investment banking.

How do I sell my digital marketing services?

Describe the massive reach of Digital Marketing

  1. Talk about your Brand. It is now the perfect time to talk about your brand.
  2. Return on Investment. This is a make-or-mar criterion.
  3. Reaching Client Expectations. Understand the ambitious goals of your clients.
  4. Visibility.
  5. Scalability.
  6. Tracking.
  7. Live Experiment.

How much money can you make owning a digital marketing agency?

Typically, these services are billed out on 12-month contracts; therefore, your profit, after expenses, could be anywhere from $1,000 to $20,000 per month. So, if you book 10 clients in a year at a low average of $4,000 a month, that’s $40,000 a month you ‘re now earning, or well over $500,000 in a year.

What are agency sales?

1: the commission or authorization of a sales agent. 2: the place of business of a sales agent.

How can I sell Internet marketing?

Below are some tips on how to sell digital marketing to small business owners and convert them from skeptics to raving fans.

  1. Stop being a ‘traditional’ salesperson.
  2. Help them; don’t sell them.
  3. Ask them everything.
  4. Sell to their aspirations, not their bank accounts.
  5. Seal the deal with value.

How do I sell my local business?

5 Things You Must Do To Sell To a Small Business Owner

  1. 1) Realize I don’t plan that far out.
  2. 2) Help me buy value over price.
  3. 3) Make the service as sexy as the sale.
  4. 4) Know that I am loyal to a fault.
  5. 5) Continue to educate and I’ll buy more.
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How do I sell my branding services?

How to Sell Your Brand

  1. Know Who You Are. Before you can sell something, you have to know it.
  2. Create a Key Message. Once you know who your brand is, figure out a way to communicate that persona to your potential clients.
  3. Find the Right Audience.
  4. Back Up Claims with Facts.
  5. Use Multiple Channels.
  6. Be Consistent.

What is agency worth?

Total agency values usually range from. 5 to 4.0 times revenues — a huge range. To assume that your agency falls exactly in the middle is simplistic and unrealistic. For example, an agent recently said that his agency should sell for 1.5 times revenues because that’s what agencies in his area were selling for.

How much do digital marketing companies sell for?

We’re here to help! With our digital marketing pricing guide, you can find out what your company should pay when working with an agency or a consultant. Spoiler — the average cost for digital marketing services in 2021 ranges from $2500 to $12,000 per month for small-to-midsized businesses (SMBs).

How do you value a digital marketing company?

Determining Your Digital Agency Valuation

  1. Profit and earnings.
  2. Time in operation.
  3. Your previous clients.
  4. Current projects value affects your agency valuation.
  5. Client concentration.
  6. Competitive advantage is important for digital marketing agency valuation.
  7. Internal work structure.
  8. Current market prices.

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