A well branded marketing agency with an annual profit multiple of 2.0x
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In recent years, the importance of digital marketing has become an integral part of any business. Digital marketing allows small businesses to compete in the same space as bigger players, but with a smaller advertising budget. For many small businesses, it makes sense to outsource these marketing tasks to professionals. This had led to the rise in digital agencies like North8 Agency.
North8 Agency offers a range of services including SEO, lead generation, social media marketing, media and PR relations and even Kickstarter launches. They are a well-branded business and consider notable names like The New York Times as their clients.
In the interview below, founder and owner Jacob talks about what it takes to run the business and the primary sources of revenue. He also reveals the most in-demand marketing service for small business.
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Interview with founder Jacob Handley
North8 Agency is a digital agency, can you tell us how the business came about and what prompted it?
I started marketing in 2014, and after several years of marketing for several clients, I decided to start an agency. It was something I enjoyed and already did well, I was ready to go to the next step with my marketing. An agency seemed the right thing to take on and it's been a success.
There a lot of digital agencies out there that offer similar services, what competitive edge do you have?
My team and I provide unbeatable service with an emphasis on customer support, and client relations ensuring every client or potential client that talks to us feel that there is absolutely no need to go anywhere else.
You offer a range of services including social media management, SEO, Kickstarter launches and PR releases, what area of your business is the most profitable?
I would say social media marketing and Kickstarter launches. In both cases, I have a strong execution team in place.
What is required to run a business like North8 Agency? Do you have a full-time team around you or do you rely on ad hoc work from designers or other contractors?
To run this business you have to have some level of people skills. I have one full-time person whom I've mentored for the last 5-months who knows the business inside-and-out. I also have four consistent freelancers I use for various tasks who I've used time and time again with no problems. This business is in a strong position. The existing staff base are subject matter experts.
The business makes money from selling the services listed along with some others. Do you have any other revenue streams?
Our primary revenue (90%+) comes from the services mentioned above. We also provide marketing education and consulting.
Considering your profit margin is quite high and your expenses are very low, what's the reason you are selling?
I own two software companies and I'm the CMO of two other companies. I feel like I've created a great company with awesome systems and people in place with North8 and didn't want it to go to waste. The other two companies are more passion based for me and make more sense for me to follow and pursue.
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