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How We Helped an Online Store Development Agency Scale Profits

Introduction to the Case Study

• The video discusses how a development agency increased its monthly profit from €2,000 to €20,000 in the first month of collaboration.

• Key elements shared include the offer created, ad launches, and metrics achieved during this process.

Initial Success Metrics

• The client, Adrián, achieved three sales within the first week with only a €20 daily advertising budget. This resulted in over €7,000 in collected revenue plus VAT.

• The goal for that month was set at €25,000; they nearly reached €20,000 in their first month working together.

Understanding the Client's Previous Situation

• Adrián’s agency offered various online store development services but struggled with pricing competition on freelance platforms. They accepted all types of projects which complicated their operations.

• This lack of focus led to operational challenges and difficulty in scaling their business effectively.

Creating a Compelling Offer

• A critical step was developing a strong initial offer that could attract clients more effectively than competitors' offerings. This "Trojan Horse" strategy aimed to simplify service delivery and enhance trust with potential clients.

• The new offer needed to be delivered within 7–14 days and priced above €3,000 while ensuring a margin greater than 70%. It also had to stand out from existing market options.

Building Trust Through Strategic Offers

• The "Trojan Horse" offer was designed as an entry point for cold traffic clients—those who were not previously familiar with the agency's work—by minimizing purchase friction and establishing trust quickly.

• Once trust was established through this initial offering (ideally within 74 days), it would pave the way for selling higher-ticket items or recurring services without resistance from clients who had already experienced positive results.

Transitioning Clients Towards Higher Value Services

• The ultimate aim is to transition clients from low-cost offers into more lucrative recurring services where significant profits can be realized for both parties involved. This approach is crucial for scaling beyond initial success levels seen by Adrián’s agency.

Migration Strategy for Online Stores

Understanding the Market Demand

• The team observed that migrating online stores from platforms like WooCommerce and PrestaShop to Shopify was the simplest task, leading them to focus on this service.

• There is a growing market for Shopify migrations as more businesses seek to transition, indicating a strong demand for these services.

• The offer was designed around a "Trojan horse" strategy, making it attractive by ensuring low operational costs due to the systematic nature of the migration process.

Crafting an Attractive Offer

• The specific offer included guaranteed migration from one platform to Shopify within seven days, appealing directly to customer needs for speed and reliability.

• Unlike subjective services (like ad creation), migration is objective and can be delivered consistently without client revisions, enhancing trust and perceived value.

Targeting Qualified Leads

• The service filters clients who are financially capable since only those with sufficient resources will seek professional migration assistance rather than DIY solutions.

• This approach attracts high-revenue stores, ensuring that leads generated through this offer are likely to convert into paying customers.

Validating the Offer's Effectiveness

• After launching quickly, they validated their hypothesis that this offer would perform well with cold traffic, confirming its effectiveness in attracting new clients.

• Following validation, they developed an upsell structure aimed at converting initial customers into recurring revenue streams through additional services post-migration.

Structuring Customer Journey and Advertising

• A detailed communication plan was created to guide customers from the first offer through subsequent upsells while maximizing lifetime value.

• They successfully marketed this service using ads with minimal investment—only €20 per day—demonstrating that effective advertising does not require large budgets.

Sales Strategy and Operational Systems

Initial Sales Success

• The first week saw three sales exceeding €7,000 due to a strong offer and effective advertising system.

• Emphasis on the necessity of a good offer and an efficient ad system as foundational elements for success.

Developing New Offers

• Introduction of new "Trojan horse" offers aimed at upselling customers without involving them in operational tasks.

• A brainstorming session was conducted to generate multiple angles for advertisements.

Advertisement Testing Process

• Generated three to five different angles for ads, creating one advertisement per angle.

• Four angles were tested; successful ones had their budgets increased by over 50%, with a daily budget increase of about 10-15%.

Scaling Offers Effectively

• This approach led to scaling an offer to €20,000 in the first month from an initial profit of €2,000.

• Simplification is key; only five essential components are needed: a solid offer, effective upsell strategy, cost-effective advertising, operational systems, and hiring processes.

Importance of Systematization

• A well-designed offer allows team members to step back from operations while maintaining service quality.

• The Trojan horse offers are designed for low delivery costs and ease of delegation due to their systematic nature.

Hiring and Team Structure

• Focus on creating systems before hiring new team members ensures that they can operate independently from day-to-day tasks.

• The process involves defining structures that allow new hires to deliver services effectively without being bogged down by operations.

Final Thoughts on Business Growth

• With these five systems in place—offer creation, client acquisition, upselling strategies, operational systems, and hiring—agencies can scale beyond €100,000 monthly with high margins.

• Understanding the underlying logic behind these systems is crucial; mere imitation won't yield sustainable results.

Call to Action

• An invitation is extended for agencies seeking assistance in implementing these strategies through consultations with experts.