# Parakeeto - Agency Profitability Experts > Parakeeto specializes in measuring and improving your digital marketing agency's profitability. Get a full audit in as little as 2 weeks. --- ## About Parakeeto Parakeeto is the world's first profit management firm. We exist to solve one problem: agency profitability. We're not just fractional CFOs, COOs, Data Engineers and accountants. We're the perfect combination of finance and operations expertise, tailor made to help boutique firms increase profitability. We combine the best parts of fractional CFOs, COOs, accountants and data engineers into one comprehensive consulting service specifically designed to help agencies measure and improve their profit. ### Why We Exist Every one of our founders, investors and advisors have run their own firm at some point in their career. We've all seen just how broken agency data and reporting is. All the tools, accounting principles and benchmarks feel like they're stuck in the past. There are three key gaps in the industry: - **The Finance Gap**: CFOs don't go deep enough. Accounting firms and fractional CFOs won't get deep enough into operations to drive actionable change. - **The Operations Gap**: COOs lack financial visibility. Fractional COOs and Ops consultants don't have the financial acumen or visibility to connect those dots either. - **The Standards Gap**: No universal framework. There's no standard for metrics, benchmarks, and formulas. Everyone is flying blind with different numbers. ### Key Stats - 300+ agencies served globally - Founded in 2018, focused exclusively on agency profitability - #1 podcast on agency profitability (The Agency Profit Podcast) ### Who We Work With We work exclusively with boutique agencies and consulting firms. They find us after they've figured out how to get clients, but are still struggling to consistently achieve 20%+ net profits. ### Leadership Team - **Marcel Petitpas** - Chairman & Co-Founder. Widely considered the leading expert in agency profitability. Host of The Agency Profit Podcast (#1 in its category) and international speaker on agency profitability. - **Carson Pierce** - Managing Director. 20+ years in agencies of all sizes, from DDB to building and selling his own firm. Has worked with over 100 agencies since joining Parakeeto in 2021. - **Kristen Kelly** - Managing Director. 20+ years of agency experience spanning sales, delivery, ops, and finance. Recognized expert in agency profitability and frequent guest on the podcast. ### Contact Information - Mailing Address: 181 Mount Stewart, Prince Edward Island, Canada C0A 1T0 - Phone: 1-902-200-1250 - Email: holla@parakeeto.com --- ## Services ### Agency Profitability Assessment Our Profitability Assessment helps align your team, clarify key metrics, and identify where profit is leaking. Parakeeto's Profit Assessment helps you uncover hidden profit leaks, benchmark your performance, and get a clear plan to improve margins -- without overworking your team. It will help you: - Discover your firm's true profit potential - Benchmark your model and past performance against industry standards - Pinpoint the biggest sources of profit loss - Learn a simple framework and key KPIs for managing profitability - Walk away with a clear, actionable plan to grow profit **Assessment Process:** 1. Data Collection - We gather your P&L, time tracking, rate cards, and project data. If data is incomplete, we guide you on how to fill gaps. 2. KPI Calculation - We calculate and model Delivery Margin, effective billable rates, utilization, and overhead ratios. 3. Benchmarking - Your KPIs are compared against your agency's specific potential and against industry standards. 4. Opportunity Analysis - We identify where profit is lost and estimate potential recovery from changes. 5. Action Plan - We deliver specific recommendations and priorities to strengthen profitability. **Why agencies need more than financial reports:** - Revenue doesn't equal profit. Strong revenue growth often masks weak margins or overspending. - Guesswork on KPIs and benchmarks leads to lost margin. Piecemealing finance and ops metrics without a consistent framework creates confusion. - Inefficient delivery quietly drains earnings. Over-servicing, poor utilization, and misaligned roles can erode profit without being obvious in financial statements. - Rising overhead without clear ROI. Growing agencies often accumulate costs (tools, admin, overhead) faster than necessary. ### Agency Profit Management Make profitability predictable, every month. Track, forecast, and improve profitability with done-for-you consulting tailored to your agency. Want to grow your agency without guessing at margins, team capacity, or scope accuracy? Parakeeto's Profit Management plans give you everything you need to track, forecast, and improve profitability, done-for-you and tailored to your agency's model. **Benefits:** - Forecast profits and plan confidently - Know if a deal is profitable before you sell it - Align your team with clear metrics and tools - Identify what's hurting your margins and fix it - Get expert reporting, support, and coaching, every month **How it works:** 1. Clarity on the right numbers - We work with you to define and operationalize the right KPIs across finance, delivery & pricing. 2. Monthly working sessions - Regular coaching calls to review your data, answer key business questions, and align the team on the right next steps. 3. Decision support & scenario modeling - Get expert input when considering pricing changes, hiring plans, or delivery adjustments. 4. Dashboards & tooling alignment - We help your team build accurate, actionable dashboards that actually get used. 5. Data hygiene & Change Management - We take care of keeping your data clean, even if the inputs are messy or your tools and processes are changing. **What's Included:** - Forecasting system tailored to your structure - Perfect Pricing System that plugs into any billing model - Dashboards & detailed reports for ABR, utilization, margin, overhead, and more - Ongoing support from expert consultants -- not just reports - Full implementation and maintenance of your reporting setup - 3x ROI target over 12 months, from improved metrics alone --- ## Pricing Profit Assessments start at $4,000 or around ~0.25% of revenue. They typically take 3-4 weeks to complete. Profit Management plans start at $1,000/mo or ~0.5% - 2% of Agency Gross Income (AGI). They vary based on scope (coaching and reporting frequency, and whether or not accounting services are included). Profit management engagements typically last at least 6 months, but many clients choose to work with us for years. Engagements can range from as little as $7,000 to as much as $100,000+. They can last as little as 2 weeks and as long as your business exists. --- ## Frequently Asked Questions ### What the heck is a "technology-leveraged service firm"? Basically we're a consulting firm. But we've built some internal tech that helps us do things for small(er) agencies that would otherwise cost big agency money. We don't sell our software as a stand-alone product. We only sell the services it enables us to deliver. Our software doesn't conflict with the tools or software you might be using for things like tracking time, managing projects, invoicing, resource planning, finance, etc. Our technology is mostly focused on pulling together, cleaning and reporting on data from these types of tools. We actually enhance the tools you're already using by pulling them together and giving you a clear picture of what's going on across your whole operation. ### Are you an alternative to time tracking, finance or project management tools? We're not, and we don't require you to use any particular tools or software in order to work with us. While your software vendors might tell you they can solve and automate your agency reporting, you're probably here because you've learned this usually isn't the case. We help you make sure you have the right tools and software, and connect them to an agency reporting system and process that actually works for you. We don't have a vested interest in pushing clients to specific software. We make every recommendation based on how it helps you answer the specific questions your team is asking every day. ### Are you an alternative to my accounting/bookkeeping firm or fractional CFO? Probably not, although we have CPAs on our team -- we're not an accounting firm and don't plan on becoming one. There are several great firms that specialize in helping agencies. We know them well. We've partnered with many of them to serve our clients, as our clients still need a process or partner for managing their financial data and filing their taxes. Our belief is that good financial data is an important, but small piece of the puzzle when it comes to getting insight into your agency's profitability. ### Are you an alternative to project management consulting firms like ZenPilot or Ditto? Not really. There may be a little bit of overlap, but we know and love these folks as well and have collaborated to serve clients together. Their expertise is in setting up one specific tool to streamline your delivery and project management function. They're very good at it, they know ClickUp and Asana extremely well. Our expertise is in making sure the entire system for operations is intentionally designed and supporting your business model. That means looking at things like what services you sell, how you structure your delivery team and organization, how you structure contracts, pricing models, and more. ### Can I just hire you for a couple hours to give me advice? Unfortunately not. However, we're frequently speaking and running workshops and webinars -- many of which are free. You should subscribe to our newsletter and socials to find out about Q&A sessions we're involved in. ### Can I work with you if I: A) Don't track time B) Use white-label partners C) Bill on value, etc. Yes. Regardless of how you structure your pricing. Regardless of how you structure your delivery teams (or outsource work to partners). Regardless of whether or not you're currently tracking your time. Regardless of how messy or non-existent your project and financial data is. We can work with you. That's the problem we solve. Our only requirement is that a net profit margin of 25% would mean $100,000 or more for you. ### How long are your engagements and how much do they cost? Our engagements are structured to get you only the help you need without locking you into an expensive or long commitment. We can work with you for as little as $7,000 and for as much as $100,000+. Engagements can last as little as 2 weeks and can last for as long as your business exists. The best way to figure out what this will look like for you is to apply to work with us. ### What kind of data or tools do I need to have in place to work with you? The short answer is almost none. We have no specific tooling requirements and have worked with clients who weren't tracking time, projects or estimating their work. They weren't even using accounting software. That's exactly what we're here to help with -- no matter how badly you're struggling with operations tools and data. If you have specific concerns about your data and systems, let us know about it and we'll figure out if we can make an engagement work. ### Who will I be working with? You'll work directly with one of our senior consultants, you can think of them like your hybrid fractional CFO & COO. All our senior consultants have 20+ years of experience in operations and finance at both big and small agencies and consulting firms. ### What kinds of clients are a good fit to work with Parakeeto? We've worked with firms across just about every industry you can think of, ranging from a few hundred thousand to 9 figures in revenue working in every service vertical from digital marketing to environmental consulting. Our most successful clients are service-based businesses (agencies, consulting, professional services) typically between $750k and $30M in Agency Gross Income, growing and able to generate new business, willing to be completely honest and transparent about their business and data, coachable and open to feedback, and ready to take action. ### Am I buying software or consulting? You're buying hands on consulting from our team of experts. They act as a hybrid fractional CFO & COO, and are supported by a team of project managers and data analysts. While we've built some technology, it's mostly used behind the scenes to help us efficiently collect, clean, normalize, analyze and report on your data. ### Will you replace my accounting, bookkeeping or tax firm? We can, but don't need to. We do offer bookkeeping and accounting services (currently only in the USA) and can take over day to day bookkeeping, AR/AP, Payroll, Contractor payments & 1099s, cash-flow forecasting, etc. However, accounting services are NOT a requirement for working with us. ### What makes Parakeeto different from an accountant, fractional CFO, or ops consultant? Parakeeto combines the most important aspects of these roles into one comprehensive service that is tailor made for boutique firms who want to gain a complete view into their profitability and get help improving it. ### Do you work with international clients? Yes, we've had the pleasure of working with clients from almost every country in the world, including across Europe, the UK, Asia, Africa, South America, Australia, New Zealand, the UAE and more. While bookkeeping and accounting services are limited to North America, our Profit Assessments and Profit Management plans are available to anyone who speaks english and runs an agency or consulting firm. ### How much time will this take from our team? You're busy running your firm. That's why our engagements are designed to take all the heavy lifting off your plate and save you time. During a Profit Assessment, you can expect to spend 1-3hrs/week over 3-4 weeks. For ongoing Profit Management plans, the time commitment is typically 1-3hrs per week during implementation and less than 1 hour per week afterwards. ### What happens after a Profit Assessment? There's no obligation to continue working with us. You can take your Assessment Deck, Profit Model and Roadmap and run with it. You'll also have the option to continue working with us on a Profit Management plan for hands-on support, coaching and done-for you reporting from our team of profitability experts. ### What if this doesn't work for me? If we can't find you a realistic path to a 10x ROI during the Profit Assessment, you don't pay. Full disclosure: This has only happened once in 7 years. --- ## Resources ### Blog 275+ articles on agency profitability, operations, and growth. Visit: /blog/ ### Agency Profit Toolkit (Free Download) The free tools, templates & training videos to measure and improve your agency's profitability. Over 10,000 agency owners have downloaded the toolkit. What's included: - The Agency KPI Cheat Sheet - The Agency Model & Scorecard - The Project Profitability Report Template - Video tutorials and guides Download at: /toolkit/ ### Free Calculators & Tools - Cost Variance Calculator - Measure the gap between estimated and actual project costs - Agency Fee Calculator - Determine the right fee structure for your agency services - Agency Rate Calculator - Calculate the optimal hourly rate for your agency - Marketing Agency Valuation Calculator - Estimate the value of your agency - Billable Employee Cost-Per-Hour (ACPH) Calculator - Understand the true cost of your billable employees - Agency Profitability Target Calculator - Set realistic profitability targets Visit: /tools/ ### The Agency Profit Podcast The #1 podcast on agency profitability, hosted by Marcel Petitpas. 220+ episodes with agency leaders, COOs, and profitability experts. ### Parakeeto Foundations Course An online course teaching agency owners how to model, forecast, measure, and improve profitability using the Parakeeto Framework. 7 modules covering key principles, financial & ops metrics, benchmarks & targets, business modeling, pricing & scoping, tooling & reporting, and profit improvement tactics. $200/mo or $1,999/yr at /foundations-course/ --- ## Key Benchmarks (Parakeeto Data, 300+ Agencies) These are proprietary benchmarks from Parakeeto's work with 300+ agencies: - **Utilization Rate**: Healthy agencies target 60-70% billable utilization. Below 50% signals a staffing or sales problem. Above 80% signals burnout risk. - **Delivery Margin**: The gap between what you charge and what it costs to deliver. Target 50-70%. Below 40% means you're underpricing or over-servicing. - **Overhead Ratio**: Non-delivery costs as a percentage of revenue. Healthy range is 25-35%. Above 40% signals bloated overhead. - **Revenue Per Employee**: $150,000-$200,000 is healthy for most agency types. Below $120,000 signals efficiency problems. - **Net Profit Margin**: Target 20%+ for a healthy agency. The industry average is 10-15%. - **Cost Per Hour**: The fully loaded cost of a team member's hour (salary + benefits + overhead allocation). Most agencies underestimate this by 30-50%. - **Average Billable Rate**: Must exceed Cost Per Hour by at least 2x to maintain healthy margins. --- ## Glossary of Agency Profitability Terms Key terms every agency leader should know: - **Average Billable Rate** - The average rate at which billable work is charged to clients - **Average Cost Per Hour** - The average cost of an hour of employee time - **Agency Business Coach** - A coach specializing in agency business operations and growth - **Agency Gross Income (AGI)** - Total revenue minus pass-through expenses - **Blended Rate** - A combined rate that averages different billing rates across team members - **Client Concentration** - The degree to which revenue depends on a small number of clients - **Delivery Hours** - Hours spent directly on client deliverables - **Gross Capacity** - The total available working hours across the team - **Overservicing** - Delivering more work than what was scoped or contracted - **Pass-Through Expenses** - Costs billed to clients that pass through the agency without markup - **Salary Allocation** - How employee salaries are distributed across projects or departments - **Scope Creep** - The gradual expansion of project scope beyond original agreement - **Time & Materials** - A billing model where clients pay based on actual time and resources used - **Utilization Rate** - The percentage of available time spent on billable work - **Value-Based Pricing** - Pricing based on the perceived value delivered to the client rather than time spent Full definitions at: /glossary/ --- ## Case Studies ### Next Creative (Full-Service Digital Agency) +22% improvement. "I would highly recommend Parakeeto for any medium, small agency that's really trying to get a handle on better profitability." - Rich Evenhouse, President & Partner ### 1 Bold Step (Brand Strategy & Consulting) 3x ROI. "Any agency that wants to grow would be wise to make the investment to see what they're missing today." - Jennifer Jurgens, CEO & Founder ### Integrity Environmental (Environmental Services) +40% improvement. "The Parakeeto team are master communicators. From onboarding to offboarding, the process was clear and structured." - Shannon Oelkers, Founder ### Corecubed (Healthcare Marketing) $180K identified. "We discovered we were undercharging on nearly every project. The data was eye-opening." - Merrily Orsini, Founder ### Roswell NYC (eCommerce Agency) 5x ROI. "Parakeeto was the telescope that Roswell needed to start understanding our business at a much deeper level." - Nihar Kulkarni, Partner ### Gold Front (Brand & Design) 3x+ ROI. "Having real data on our delivery costs transformed how we scope and price every engagement." - Josh Lowman, Founder More case studies at: /case-studies-social-proof/ --- ## Contact - Schedule a free consultation: /apply-for-a-call/ - Email: holla@parakeeto.com - Phone: 1-902-200-1250 - Website: https://www.parakeeto.com