As a marketing agency serving mid or small-sized businesses, you know how much these business owners rely on you to guide them on where to invest their money and ultimately maximize the return on their campaigns.
That seems like a lot of pressure!
But, we’re here to tell you a sure-shot way to help your clients earn good profits as the government itself gives tax credits to small businesses.
Of course, this isn’t some alien concept. In fact, governments across the world help out businesses or individuals by rewarding them with tax credits.
These tax credits cut down the actual taxes that business owners have to pay.
The reward in question is a $5000 tax credit on their taxes by the government when they decide to work with you.
Sounds exciting, right?
But, just hang in there, and we’ll answer all your questions and offer you all the reasons to opt for this incentive.
Table of Contents
Who Is This Program For?
This program can benefit all those who run a marketing agency serving local businesses.
According to the IRS Code Section 44, all those small businesses that comply with the ADA and have total revenues of $1,000,000 or less in the previous tax year are eligible for receiving a maximum credit of $5,000.
If you work with clients who fulfill these requirements, then each of these clients can get a $5,000 credit.
What Type Of Businesses?
Marketing agencies that serve local businesses qualify for this program.
Such small companies usually fulfill the following two requirements to be eligible for this tax credit:
- If the business earns US$1 million or less in revenue per year in receipts for the last tax year
- If the business had less than thirty full-time employees in the last tax year
Such clients can qualify for a tax credit for website improvements, marketing campaigns, etc.
This serves as a huge advantage for businesses as they get a 50% credit for expenditures over $250, not exceeding a total of $10,250 (or $5,000).
How Does The Incentive Work?
Are you impressed yet? Let us show you what exactly happens in this campaign and how you can get your clients to qualify for it.
It’s as simple as it sounds. As a marketing agency, this is a huge incentive that you can propose to your clients to encourage them to work with you.
Say your client owes $20,000 as small business taxes to the government. With a $5,000 tax credit claim, they can subtract this amount from the original tax bill and get the new tax bill that amounts to $15,000.
Isn’t it amazing?
Business owners struggle to pay taxes, and here the government is literally paying them a portion of it every year when potential clients decide to collaborate with you.
With this $5,000 cashback into the business owner’s pocket who works with you, clients will be lining up outside your office to get this benefit, expanding your agency’s business as well.
What Does The Government Get Out Of This?
We get it. The incentive seems like a too-good-to-be-true move by the government to help small businesses, causing doubts. What do they have to get out of this? Fact is, the incentive is equally beneficial for the government as well!
When small businesses start and expand with the government’s help, in return, they help sustain the tax base with business taxes and the employee wages.
A possible workforce expansion and the resulting economic growth encourage states, counties, and the federal government to assist these small businesses in various ways. Funding opportunities include research opportunities, grants, beneficial legislation, etc.
We have contacted tax planners and attorneys who deal with bills and the legal aspect of any grant regularly to confirm the validity of this claim.
And guess what? This tax credit program is totally legit, earning a 100% approval rate from them!
How Do Agency Owners Benefit From This?
Now you might wonder that this incentive only benefits the clients who work with you and the government.
Of course, being a marketing agency, you want some benefit from this other than an increase in clients willing to work with you when you educate them about this grant.
And voila! There’s more to the story. You’ll be at the receiving end too in this program because the more you help a company save, the more you’re actually helping them earn and, as a result creating more revenue for yourself too.
As a general rule of thumb, a 5% net profit margin is low, a 10% margin is average, and a 20% margin is high.
Now let’s assume that the clients you work with have an average net profit margin of 10-20% on their business. When you help them save $5,000 on taxes through the government grant, it becomes equal to giving them $25,000 to $50,000 in revenue.
With the reduction in tax and consequent increase in the revenue, you get to put $5,000 into your clients’ pockets directly. However, all of this is only possible as the government subsidizes your collaboration with the clients to get tax reductions when they work with you.
Of course, this means that you get to have a share of that since your clients get more benefits by working with you utilizing your SEO service. Not only this, your clients’ success stories will help you bring more clients and establish your digital marketing agency as a successful one.
More clients will bring more revenue for you!
How Much Does This Program Cost?
The $5,000 grant by the government is no doubt beneficial for all those who decide to go for it. However, you have to invest something to get the benefit in return.
If your clients decide to take up this service, it will cost them a one-time amount of less than $500. It might sound a lot, but it is nothing compared to the $5,000 amount they can earn each year.
The question is, would anyone be willing to pay $500 to get $5,000 in return from the government itself? If you ask us, it seems like a no-brainer, and we would do it every single time!
Just test it out with your clients once, and you’ll believe in the benefits of this incentive yourself.
Is This Program Sure Shot?
It is human nature to think that every policy or program that claims to help a small business owner has some ulterior motive, and you might be wary of the success rate of this program.
This program has been studied by tax planners and advocates, who assess such programs and their legitimacy as we have already established. So, we’ll say that this program will at least give you your investment back in the first thirty days or so.
The worst-case scenario is that you will get your investment of $500 back, which means you have literally nothing to lose!
On the flip side, however, the best-case scenario will help you and your clients make thousands of dollars every year with the tax credit saving your client’s money and helping you increase their business’s revenue.
Want To Learn More?
You’ll definitely have a lot more questions about this program before you agree to it. Here are a few tips that you can follow to prepare one hell of a pitch.
Firstly, create a script that you can use to convince your clients and include any possible refutation points for any objections that they could come up with. Show them all the evidence of how this could be a great move for their business and as their marketing agent, explain the best and worst-case scenarios so that they know what they are getting themselves into.
You have to prepare your clients. Your clients are the ones who need to qualify for this grant, and you need to educate them about the whole process, giving them details about the rebate and how they should approach it. Furthermore, prepare a PDF or script for them, which they can use for the tax reduction.
If you are still confused, we’d be happy to answer your questions directly and give you more pointers on approaching your clients and the program representatives to help you get this benefit for sure!
Key Takeaway
Good opportunities are rare to find, especially in the business world where it is a struggle to start, let alone expand a business. As a marketing agency, your clients rely on you to show them the right direction and educate them on the various ways that they could grow, especially when they are in a difficult position.
The government incentive that offers $5,000 tax credits every year to small businesses working with marketing agencies that cater to local businesses is an opportunity that you should not pass on. If your clients qualify for this incentive, it could reduce their payable taxes by $5,000, increasing their overall revenue.
This sure-shot tax credit program is definitely the investment you and your clients need to grow the business and increase ROI. And, remember, we are the agency of agencies. Our white label SEO service allows other agencies to sell their services under their own brand, while we provide the back-office support. Contact us for more detail!
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