$13M Agency Growth Framework w/ Jason Swenk
Jason Swenk grew his first agency to over 100 team members, sold it after 12 years, and later started a new agency that grew to over $20 million in revenue. He shares his framework for agency growth.
Getting Clarity
The first component of the framework is getting clarity on where you're going and who you want to become. Understanding your core values and positioning yourself as a trusted advisor are foundational steps.
Key Metrics for Agency Valuation
Swenk evaluates agencies by looking at critical metrics:
- EBITDA — net income with interest, taxes, depreciation, and amortization added back
- Monthly Recurring Revenue (MRR)
- Average Contract Value
- Average Expansion Revenue
- Churn Rate
Valuation Multiples
If you're under a million in EBITDA, your multiple is typically one to three X. For example, a $200,000 EBITDA agency might be worth $200,000 to $600,000.
Building for Scale
The framework emphasizes building systems, developing leadership, and creating predictable revenue streams. These elements combined position an agency for significant growth and eventual exit if desired.