6 Costly Mistakes PR Agency Owners Make (And How to Avoid Them for Faster Growth)
Oct 22, 2024Starting and scaling a PR agency can be rewarding, but there are some common mistakes that can hold you back if you’re not careful. Over the years, I’ve seen agency owners make missteps that, while common, can seriously hinder their growth! Let’s walk through six of the biggest mistakes and how to avoid them so that you can scale your PR agency faster and with greater confidence.
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Stop Trading Dollars for Hours
One of the biggest traps new agency owners fall into is charging clients based on the number of hours they expect to work. This mindset leads you to a never-ending cycle of needing to work more hours just to earn more income. While it may seem like the simplest way to set your rates, it’s not sustainable.
What profitable agency owners know is that you should price your services based on the value you bring, not the time it takes. Let me give you an example: I once landed a client on the Ellen DeGeneres Show with only a couple hours of work. Should I charge the client just for those two hours? Absolutely not! They’re paying for the result, not the time it took. The more valuable the outcome, the higher your rates should reflect that value, regardless of the hours spent.
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Stop Discounting Your Services
Another mistake I see often is discounting services out of fear that clients won’t pay full price. You might assume that offering a lower rate makes you more attractive to clients, or that taking on some work is better than no work. But in reality, discounting your services does more harm than good!
Here’s why: when clients pay less, they’re often less invested in the work. And in my experience, those lower-paying clients tend to be the most difficult to manage. Profitable agency owners know that their pricing is a reflection of their worth and they don’t apologize for it! They understand that the right clients will see the value they bring and won’t hesitate to invest.
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Ignoring Client Red Flags
We’ve all been there—you’re excited to land a new client and eager to start. But sometimes, you overlook clear red flags in the process because you don’t want to lose the opportunity. Maybe the client has a track record of burning through agencies, or they’re constantly late with payments, but you take them on anyway, thinking this time will be different.
Ignoring these warning signs can cost you time, money, and energy. Trust your gut! Successful agency owners are selective about who they work with and know that turning down a bad-fit client can often lead to finding the right ones. It’s always better to preserve your resources for clients who are aligned with your values and working style.
- Failing to Niche Down
Trying to appeal to everyone will dilute your brand. Many agency owners are afraid to niche down because they think it will limit their opportunities. But in fact, the opposite is true. When you become an expert in a specific area or industry, you position yourself as the go-to person for clients in that space.
Whether it’s focusing on a particular industry, service, or target market, niching down allows you to develop deep expertise, stand out from the competition, and attract clients who are willing to pay a premium for your specialized knowledge!
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Underestimating the Power of Processes
As your agency grows, one of the biggest challenges is keeping things running smoothly. Without clear processes in place, you’ll spend more time putting out fires than focusing on growth (yikes). This can lead to missed deadlines, frustrated clients, and a team that’s constantly overwhelmed.
The key to scaling successfully is to create repeatable systems for how your agency operates. From client onboarding to media outreach, document each step so that tasks can be easily delegated. Not only will this save you time, but it will also ensure consistent results for your clients and help you scale faster.
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Not Setting Boundaries With Clients
Finally, one of the biggest mistakes I’ve seen is not setting clear boundaries with clients from the start! You might feel the need to be available 24/7, but this can quickly lead to burnout and resentment, and no one wants that! When you don’t set expectations around your availability, clients will assume you’re always on call, and it becomes nearly impossible to maintain a work-life balance.
Successful agency owners are clear about when they’re available and what their clients can expect. This creates respect on both sides and ensures that you can continue delivering high-quality results without sacrificing your personal life!
Growing your PR agency doesn’t have to be a constant uphill battle. By avoiding these six common mistakes, you’ll be setting yourself up for sustainable growth and success!
Are you currently making any of these mistakes? It’s never too late to course-correct and start scaling with confidence!