The Silent Profit Killer Most Agencies Ignore

Hey there, welcome back to Agency Finance Letters.

I'll never understand why most agencies are fine wasting thousands a month on basic things like unused software, courses with no ROI, or even channels that don't convert.

So easy to just take 30 min a month to cut out all that waste. Should hurt.

The Simple Math That Changes Everything

Think about this:

• New $10K client = weeks of pitching, onboarding, delivery

• Cutting unnecessary $10K expense = immediate profit, zero additional work

Saving $1 is so much easier than making $1. The best operators know where to look first.

The Common Waste Points

Most agencies have significant waste hiding in plain sight:

Software Sprawl Unused seats, duplicate tools, forgotten subscriptions. We regularly find $2-3K monthly in unnecessary software costs when we dig into agency expenses.

Inefficient Ad Spend Campaigns running on autopilot, unmonitored platform tests, neglected optimizations. One quick audit often reveals 20-30% of ad spend generating zero measurable return.

Service Bloat Tools and subscriptions for services you no longer offer, capabilities you've outgrown, or experiments you abandoned. These zombie costs keep draining profit month after month.

Team Inefficiency Meetings without clear purposes, processes that create busywork, approvals that bottleneck progress. These don't show up as line items but cost just as much.

The 30-Minute Money Finder

The agencies that maintain the healthiest margins all follow a simple practice: regular expense audits that ask:

• Does this expense directly generate revenue?

• Is there measurable ROI from this investment?

• Could we achieve the same result at lower cost?

• Would we buy this again today?

This isn't about being cheap. It's about being intentional with every dollar flowing through your business.

Remember: Growth isn't just about making more. It's about keeping more of what you make.

Till next week, Joey