Chapter 2. Antifragile SMMA models

Question 1

Order of starting an agency

Answer 1

1. Niche
2. Business Model
3. Offer

Question 2

What is considered the most valuable thing for a business?

Answer 2

Cash

Question 3

What is the value of awareness in the 7 stages of value for an SMMA client?

Answer 3

No value

Question 4

What is the value of traffic in the 7 stages of value for an SMMA client?

Answer 4

1. Awareness (no value, why web design, branding agencies struggle)
2. Traffic (weak, why seo agencies struggle to get clients)
3. Lead (valuable, but only if the business has a method to book them into appointments)
4. Appointments
5. Show (super valuable, qualified prospect, ripe for conversion)
6. Close (extremely valuable, money transacted, money in)
7. Repeat purchases (The most valuable thing. when a customer buys again, kicking up the LTV and boosting profits)

Question 5

What are the 8 popular SMMA models?

Answer 5

• Retainer
• Pay-Per-Lead
• Pay-Per-Appointment
• Pay-Per-Show
• % Revenue share
• % of ads spend
• Setup Fee + result
• Free Trial

Question 6

What is the major drawback of the Free Trial model? (why not use it)

Answer 6

Clients have no commitment

Question 7

What should you NEVER do when starting an agency?

Answer 7

Work without getting some form of financial commitment first.

Question 8

How do you justify the setup fee. (we do it as well)

Answer 8

You have skin in the game

Question 9

Explain Upfront Payment & Discrepancy Guarantee Model

Answer 9

Best for beginners, pay-per-lead upfront model.

Charge for leads (e.g., 50 leads at $50 = $2500), refund undelivered leads.

Ensures predictability, risk-free for clients, and strong motivation for delivery.

Ideal for 30-90 day agreements.

Question 10

Explain Trojan Horse Retainer

Answer 10

Starts with a small upfront setup fee + pay-per-result model.

Builds trust, then transitions into a retainer after 1-3 months.

Setup fee covers costs; automatic billing ensures smooth transition.

Great for hesitant clients, but requires strong performance.

Question 11

Explain Market-Pays Model

Answer 11

Advanced model where customers buy a low-ticket offer.

Businesses receive lead info, agency gets paid for the offer.

Works in niches with strong lead magnets (gyms, dentists, etc.).

Blends e-commerce with lead generation, but only viable in certain industries.