♻️ Little-known power strategy to eliminate churn

Churn is #1 killer of businesses.

And after testing a ton of approaches…

I’ve discovered a powerful way to completely remove churn from your business.

It’s not as well-known as strategies like improving service, or using long term contracts.

(Both great options for boosting your clients’ LTV, btw!)

But if you run an agency that generates leads, demand, revenue, or sales for your clients…

You can make WAY more with this one strategy:

Build a HoldCo

Holding companies have become very popular over the last few years.

A HoldCo is an organization that has a vested interest (or stake) in multiple companies.

Here’s a quick story to show why this matters for you:

A client of mine runs a media buying agency and the work they do is ELITE.

This client works with fewer businesses for a larger retainer per month (5 figures per client) and has a specific niche.

Recently, they churned 2 clients, which cost them over 200k in revenue per year!

The HoldCo model for this client, and for a business like yours, is a great solution:

When you find a business that you:

1. Enjoy working with

2. Believe in (long term)

3. Can grow and add massive value

It would be financially fruitful to pitch them to become a formal partner.

How Does This Work?

When we do this at 8FA, we mention that we can create better results and deploy more resources to grow our clients business faster.

We then move into an informal, then formal, conversation for us to become a minority partner in a business.

There are a few ways you can do this:

The Hormozi Model

Hormizi’s original investment model was to take revenue share and equity of a company in return for deploying their resources.

This may mean you lock in a retainer forever, give you the title of ‘partner’ in this business, and you deploy more resources over time in return for never worrying about churn.

In this instance, you may make a pitch to earn 5%-25% of the company’s equity, based on the growth goals you attain.

Raising Capital

For businesses who aren’t interested in the Hormozi model…

You can pitch to acquire a minority stake of the company.

In your contract, put in that your agency will remain on retainer for the remainder of the company’s existence.

For this approach, you will either need bank financing or private financing (think Private Equity firms).

You can invest to acquire 5%-25% of the company, and in return you will:

1. Lock in your agency as the vendor for the rest of time

2. Begin pulling monthly or quarterly dividends from the profits

3. Be even more incentivized to grow the business now that you’re an owner

This is a simplified version of this model.

But just being aware that you can work with companies in this way can fundamentally change how you think about your business…

While reducing churn, and opening up even more avenues for profitability.

Can This Work for You?

Agency owners know the frustration and financial impact of client churn all too well.

You pour all your energy and time into delivering exceptional results…

And still end up dealing with clients who leave, cutting your big chunks of your topline.

That's where the power of the holding company model comes in.

By becoming a minority partner in your clients' businesses, you can:

• Lock in long-term retainers that provide consistent, predictable revenue

• Align your interests with your clients' success, creating a true win-win partnership

• Deploy more resources to accelerate your clients' growth, leading to increased profits for both parties

• Earn equity and dividends, giving you a stake in the long-term value you help create

At 8 Figure Agency, we've helped 800+ clients successfully tackle churn issues…

While helping some of them through the transition to a holding company model…

With remarkable results.

No more constantly scrambling to replace lost clients or worrying about how churn will impact your bottom line.

Instead, getting to focus on what you do best:

Delivering exceptional results and driving growth for your partner companies.

If you're curious to see if your business could be a fit for the holding company model…

👉 Schedule a call with our team today. 👈

We'll work with you one-on-one to:

• Assess your current situation

• Identify potential partnership opportunities

• Develop a customized plan for transitioning to the holding company model

• Find ways to maximize your agency’s revenue potential

Don't let churn hold you back from the success and stability you can attain!