How Parakeeto Helps Agencies Improve Profitability, With Kristen Kelly

Points of Interest2:14 – 3:18 – Founding Insight: Parakeeto was created to help agencies easily answer crucial financial questions by replacing guesswork with structured systems.3:23 – 4:39 – How Agencies Make Profit: Strong delivery margin is key. Parakeeto targets a 50%+ delivery margin and 20–30% net profit as benchmarks.5:45 – 6:58 – Why Profitability is Hard to Measure: Profitability requires collecting and aligning fragmented data across leadership, ops, and finance functions.6:59 – 8:33 – Framework Misalignment: Agencies struggle with inconsistent definitions and relationships between key metrics like utilization and capacity.9:10 – 10:10 – Messy & Incomplete Data: Most agencies collect data in tools but struggle with consistency, structure, and hygiene—making optimization difficult.10:41 – 12:14 – Need for Operational Bookkeeping: Like accounting, operational data needs regular cleanup, maintenance, and review to support decisions.13:05 – 14:27 – Improved Visibility = Better Focus: Parakeeto’s framework simplifies agency metrics and identifies gaps to improve ROI tracking and alignment.16:02 – 17:30 – Modeling & Benchmarking: Agencies get clarity by comparing their performance against industry standards and their own financial goals.18:15 – 20:49 – Pricing Tools that Drive Profit: Parakeeto’s estimator helps standardize pricing, reduce guesswork, and align prices with profitability targets.25:02 – 27:15 – Forecasting Made Simple: “Top-down forecasting” lets agencies simulate staffing and revenue scenarios with minimal setup—great for scaling.29:39 – 31:58 – Actionable Reports Drive Change: With consistent reporting cadences, teams align around data to reduce scope creep and focus on what matters.Additional ResourcesCalculatorsAgency Profitability Target CalculatorAgency Fee Calculator: How Much Should You Charge?Agency Rate Calculator: Determine Your Hourly RateHow to Calculate Your Billable Employee Cost-Per-Hour (ACPH)Blog PostMeasuring and Improving your Agency’s Profitability – The 2023 Guide3 Key Profitability Drivers Agencies Need to Prioritize8 Vital Agency Metrics & KPIs to Improve ProfitabilityMaximizing Project Profit Margin: A Guide to Increasing ReturnsLove the PodcastLeave us a review here. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.