If you were being honest with yourself - does your to-do list match your pay grade?
As an agency owner, it can be hard to say no.
With so many different parts of your business competing for your attention, your calendar can quickly become overloaded with entry-level, yet essential tasks you know you can quickly handle yourself. But over time, these tedious tasks take you away from what you SHOULD be doing, and stress and resentment start building up.
If your creative agency isn’t growing as quickly as you’d like, it may be a sign you need to refocus your valuable attention on growth, not administrative tasks.
But how do you decide which tasks to offload, when everything seems like a top priority?
Luckily, Dan Martel has solved this problem for you. In his latest book, Buy Back Your Time, he teaches you how to radicalize your workweek with the one simple formula no agency owner should go without.
The Buyback Formula
Dan Martel’s buyback formula is a stress-free calculation that takes the burden out of deciding which tasks to delegate. No stressing or second-guessing yourself, because the numbers will show you the way.
The buyback formula will calculate the hourly wage that you should be using as the benchmark to evaluate if a task at hand is worth your time, or if it should be delegated to someone else.
To calculate the buyback rate for your agency, follow these steps:
- Add up EVERY expense within your business for the year, from payroll to ad spend, to health insurance costs.
- Divide your expense total by 2,000 (your total number of working hours for the year). The result is your hourly rate.
- Divide the hourly rate by 4, giving you the benchmark “wage” you should be using to evaluate your current workload.
Now review your list of tasks. If it would be CHEAPER to hire someone at a market rate to complete a task than your benchmark wage, it's time to get it off your plate.
Freeing Up Your Time for Growth and Success
Know you need to offload some tasks but are not sure where to start? Here are some common tasks most agency owners delegate first:
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Social media management (DM’s, networking, etc)
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Email management (sorting, starring, and sending basic replies)
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Administrative tasks (like invoicing or note-taking)
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Accounting/bookkeeping
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Sales outreach
When you have your list of tasks ready to delegate, it’s time to find the perfect candidate! Here are some top places to look:
- Referrals from colleagues, friends, or family members.
- Freelance marketplaces like Upwork and Fiverr.
- Job boards like Indeed, Monster, and LinkedIn.
- Virtual assistant agencies or services.
- College or university job boards for part-time or intern positions.
Remember, the goal is to find affordable help that meets your standards.
When you use the buyback calculation, you no longer have to wonder if you’re overpaying for labor. This benchmark metric can help you make informed decisions and find the right balance between cost and quality when outsourcing tasks for your agency.
Instant growth: How one agency owner scaled revenue by offloading their inbox
Spending time on tasks below your benchmark wage could cost you more than you realize.
Consider this:
An agency owner decides to delegate email and calendar management to a virtual assistant. Now, instead of spending 10 hours per week replying to emails and juggling their schedule, they invest their time in sales and business development. In just one month, they were able to book 15 extra sales calls, which eventually added $50K in revenue to the business.
Remember, delegation is not just infusing more free time into your schedule, it's about strategically investing that time into activities that will help you achieve your business goals.
When you're so accustomed to being the lead, it's natural to struggle with delegating. That's why having an equation like the buyback calculation is essential - it takes the potential bias out of the decision and shows you the most effective solution.
When you start delegating, you buy back your time and find the freedom that you deserve.
