9 Steps to Picking a Niche for Your Digital Agency

As a digital agency owner, you probably tell your clients all the time that they need to refine and focus in on their service or product offerings. But have you applied the same logic to your own digital agency? Finding a niche for your digital agency allows you to connect with your prospects and deliver a unique selling proposition that speaks directly to them. To make this connection with a prospect on the first impression though you must have clear and targeted messaging. If you’re trying to tell ten different stories and appeal to ten different audiences, then you’ll lose them all. This is why you’ve never seen an Asian-Italian-Greek-Burger-Smoothie fusion restaurant. Sounds silly when you think of it like that. So why then are you and your digital agency trying to help so many people, in so many different industries, by providing so many different services? Instead of focusing in on on being really good at one thing and developing a killer value proposition along the way, you’re spreading yourself too thin. Find a niche for your digital agency now. Every day you waste, the competition is getting more focused, more precise, and more skilled at the niche you could be in. However, it’s important to pick the right niche, one that provides enough opportunity for new business without being oversaturated. You need to be able to carve out a unique section for your agency and there needs to be a demand for it. Follow the nine steps below to find your digital agency’s perfect niche and start growing your agency today. 1. Find a niche that is digitally friendly Is the industry digitally friendly? A lot of industries have done as little as [...]

By |September 18th, 2018|

Agency Owner/leader questions from the mail bag

From our question bag (okay -- from my inbox but you get the reference!).  I've cleaned it up a little to protect the privacy of the agency asking the question. Q: I am trying to understand what makes up the COGS number in order to calculate our AGI. We are a public relations agency. From listening to your webinar on Financial Matters, my takeaway is the one of the items to include in COGS is the cost of freelance contractors. I'm assuming there are other costs like annual subscriptions to services which are used in doing our work for clients should also be included. A: Anything you use or pay to create in service of clients (freelancers, online tools, reference books, printing, photographers, postage, shipping, media placement, mileage to client meetings, influencer fees, etc.) are all COGS.  They are COGS whether you bill the client for them or not.   A way to test this is ask yourself this question.  If we didn't have client XYZ, would we still incur this cost.  If the answer is no -- then it is a COG. The things that should not be included in COGS are agency expenses (w2 people, benefits for those people, auto allowances, lawyer and accountant fees, rent, supplies, professional development, travel (unless it is client related) Q: We also want to look at account level profitability. To calculate the cost per employee, I am including salary/wages, insurance and 401(k) benefits, cost of PTO/company holidays. My research into what percentage to use for overhead markup resulted in a wide range of figures - 80% on the high end; 50% on the low end. Do you have a recommended overhead percentage? A: Well, as you know, this [...]

By |September 4th, 2018|

The Secret Way to Grow Your Agency Fast

I don’t run an agency, but I do work with agencies to develop a sales process custom-suited for generating repeatable new business opportunities. In the next 5 minutes you spend reading this post, I’m going to share the exact method you could start experimenting with to double the productivity of your agency’s outbound business development. In short, I’m going to share the secret way to grow your agency fast. Really Fast. Fair warning – I am going to talk about the two tools I’ve founded (SellHack and Replify) throughout this article. There are certainly other tools out there that do the same type of work and I’ve mentioned a few throughout the piece. Even if you choose to do all of this manually, it will still work. It’s just a matter of how much time versus money do you want to spend. How to Grow Your Agency Really Fast Step 1 in the process of how to grow your agency really fast relies very much on the word “experiment.” This is a word carefully chosen to describe the mindset your business development team must embrace when hunting for new clients. Some of you are reading this thinking, “Yeah, but most of my business comes from referrals.” Okay, great. Keep asking for referrals. But if you’re serious about how to grow your agency really fast, forget referrals and do what I suggest. Consider a New Channel for Developing Leads Moving away from relying solely on referrals is smart business. So I’m suggesting you consider a new channel for developing leads: An outbound channel. More specifically, I’m talking about automating your prospect list-building, sending cold emails and follow-ups. You can do this manually or you can use [...]

By |September 4th, 2018|

How Agencies Can Execute on Strategic Selling

“I hate selling.” I hear that so often from agency owners and agency leaders. I especially hear it from junior agency staffers. I think the key to solving this problem is moving away from “I hate selling” and moving toward “I love helping others succeed.” My years of agency experience have taught me that the most successful agencies have a specific mindset. They have embraced the art of being the very best at understanding their clients and have a deep desire to make their lives easier and better. The agency business is a relationship business; it’s about putting the needs of your client front and center. Your success is based on their success. Their good days are your good days; and conversely, their bad days are your bad days. So, if agency success is about building great relationships, I would pose to you that for agencies, executing on strategic selling is very much like dating. If that’s the case, then imagine thinking of the prospect the same way you think about a prospective date - that person you’ve wanted to date for oh, so long. As you get ready to make the ask… what’s first? The answer: the first thing is understanding the prospect. Strategic Selling Requires Understanding the Prospect First and foremost, remember that you must think about this from their viewpoint – the viewpoint of the prospect. What’s on her mind and how has the landscape changed since the last time she looked for agency services? Budget and headcount pressures are enormous in most companies today There are heightened expectations that marketing supports sales – it’s no longer enough to simply produce great creative Sales and revenue are typically the top marketing success [...]

By |August 28th, 2018|

Be Wary of the New Business Development Director With the Legendary Prospecting Network

There is a great dilemma many agency owners face time and time again: Do you hire an internal new business development person for your agency with solid sales experience (and a price tag to match), or an inexperienced individual that’s cheaper, but seems driven/teachable? The former example is certainly a potentially sound investment, although not always feasible, and the latter doesn’t traditionally have a great success rate unless an agency is willing to put real work behind their training and possesses the requisite patience to see the process through. That’s probably why the average new business director at an agency lasts about eighteen months. In my first example, you have likely experienced this in some form or another. That person with experience in one vertical and an abundant network of prospects within that vertical; or the other kind, that person with the fabled “ultimate agency new business Rolodex.” And sometimes, you run across someone with both deep experience in a vertical and an abundant network. These kinds of hires occur often and I don’t blame agencies for it. They can work but, in far too many instances, that new business director with the legendary prospecting network hire ends up flaming out. In fact, I recently spoke with an agency principal on this very topic, and she gave me permission to share her less than desirable experience with you. So, here goes. The Legendary Prospecting Network When my agency owner friend initially hired this new business development guru with the “legendary prospecting network,” the big draw was, of course, that huge network. There were assurances, apparently all in good faith, that success would result from that network. It sounded promising, but unfortunately, it was not in [...]

By |August 21st, 2018|

The Specialist Agency: An Argument For and Against

Earlier this year I had the honor of serving as the morning keynote speaker for PRGN’s semi-annual member summit in Toronto. My topic was on the five indicators of new business success that I consistently see in the agencies I work with (and, likewise, the corresponding indicators of agencies that stay stuck in a feast-or-famine cycle). One of the indicators is a specialist mindset, as opposed to an “all things to all people” approach. This elicited a comment from one of the agency owners in the audience. They tried this specialist agency strategy at his agency and it didn’t work. It had the opposite effect; they couldn’t find enough new business opportunities to sustain the firm. What did I have to say to that? (Gulp) Before I tell you how I responded, let me explain that I’m not a specialist agency hardliner. In fact, this time last year, I wrote about this. To be sure, I see enormous benefits to specializing when it comes to new business. Pitching for new business is a big investment. The more specialized your pitch, the more efficient your investment. That’s because: Generalists seek out clients; specialists are more likely to be sought Generalists differentiate based on price; specialists can afford to charge a premium Generalists will always be tempted to reinvent themselves to suit the nature of the prospect; specialists find it easier to home in on a consistent message that’s effective for the right audience But I also don’t see it as a stark choice. In my piece, I referred to the proverb about the shoemaker’s children who wear no shoes. This is a favorite to describe agencies that can’t seem to take their own advice when it [...]

By |August 7th, 2018|

How to Scale Your Agency — Overcome the Wizard Complex

At UGURUS, a business school for digital agencies, my team and I spend thousands of hours a year consulting and coaching owners in groups or one on one. Our aim is simple: To help you achieve freedom in your business and life. One of the ways we do that is by helping digital agency owners work ON their business, not just IN them. “When you recognize that the purpose of your life is not to serve your business, but that the primary purpose of your business is to serve your life, you can then go to work on your business, rather than in it, with a full understanding of why it is absolutely necessary for you to do so.” -Michael E. Gerber, E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It For agency owners, achieving freedom usually means: Working fewer hours (less than sixty is a start) Making more money (getting paid a healthy salary) Sitting in fewer seats (helping you do better work) There’s a commonly-accepted fallacy out there that most entrepreneurs are working towards an early retirement and days filled with sitting on the beach drinking fruity cocktails. However, most entrepreneurs I meet love the work they do, and have no intention of retiring early. The standard definition of the term “exit” in entrepreneur-speak is to sell your business, but most agency owners I meet aren’t anywhere near this point. They haven’t built a company that is worth anything beyond themselves. They’re involved in every aspect of the business from generating leads, converting those leads into clients, and delivering the work. They’ve built themselves a job. A stressful. Demanding. Underpaying. J-O-B. For these owners, “exit” means being able [...]

By |June 26th, 2018|

The 5 Most Common Legal Mistakes in Agency New Business – and How to Fix Them

The agency new business process is, for most agencies, exciting and stressful at the same time. While your team is focused on the thrill of a potential “win,” and what that could mean for the agency’s fortunes, it’s probably equally under stress about meeting deadlines, putting forth your best efforts for the prospect, and keeping other clients happy too. Jody Sutter of Sutter Company and I recently addressed the challenges of new business and negotiations in a web clinic for agencies organized by Filament: “Don’t Leave Money on the Table – Negotiating Client Contracts From a Position of Strength.” While you’re navigating this process at warp speed, it’s easy to make an oversight or misstep that could cause bad legal consequences or financial loss for the agency. Don’t let this happen – be aware of the most common legal mistakes agencies make during their new business efforts, and how to fix (or avoid) them. 5 Legal Mistakes In Agency New Business and How to Fix Them Mistake #1: You don’t protect the Agency’s intellectual property during a pitch or discovery session, or in your proposal. Fix It: Sometimes it’s a valid business decision to allow the Client to own IP in pitch materials, spec creative or proposals – either because the Agency negotiated payment for it, or because it’s a required “ticket” to participate in the opportunity. But make it an intentional decision. Unless you’ve agreed with a prospective Client that it will own the Agency’s pre-engagement IP, use a Nondisclosure Agreement that protects the Agency’s ownership position. Absent that, at a minimum include IP ownership clauses in your proposal and pitch assets, and use copyright ownership notices on these materials and any spec creative [...]

By |June 12th, 2018|

How to Position Your Agency for Success

Every day across the globe, agencies are working hard to differentiate their clients and help drive their clients’ growth. These agencies use the art and science of positioning to help their clients stand out from competition in an important and authentic manner. Sadly, most of the agencies doing this fine work have not worked the same positioning magic for themselves, in spite of the fact that they compete with dozens—if not hundreds—of other agencies on a daily basis. There is an abundance of talented and effective agencies who have failed to differentiate themselves. As a result, they are missing out on the significant (and very profitable) growth opportunities triggered by a compelling brand position. So, how to position your agency for success? Let’s talk about it. The Challenges of Agency Growth As you no doubt know, there are numerous challenges when it comes to growing an agency today. These challenges include: • More competition • Greater complexity • Difficulty expressing the uniqueness of your agency • A more educated and informed buyer who does his/her agency research without your knowledge Most agencies face these challenges. There is, however, an opportunity to address these challenges by positioning your agency in a truly unique, compelling and differentiated fashion. In this paper we will share the learning we have regarding how to create such a differentiated position for any agency by leveraging best practices that we have learned from our 28 years of agency related consulting. The Great Agencies of Old Most agencies today face the challenge of how to effectively position their firm and how to present their agency in a compelling, client-centric manner. It was not always like this! The great agencies of old stood for [...]

By |June 5th, 2018|

How Agencies Can Benefit from Tax Planning

Is tax season really over? While the filing deadline for individual and corporate taxes has come and gone (unless of course, you’ve extended), from a strategic standpoint, tax season may be over, but the need for tax planning is really an omnipresent one. There’s always a sense of relief once taxes are filed. It’s an annual chore that, dare I say, nobody loves to do. But everyone I know loves when it’s done. They like getting it checked off their list so much that very few clients want to talk or think about taxes or tax planning for the rest of the year. That is, until tax time comes around again. But that is, in my opinion, a mistaken. In fact, paying attention to your tax situation outside of tax season is worth more than you might think. A few people I know even made it their hobby to figure out ways to pay less in taxes. I’m not suggesting you must go that far. But you should have a good understanding of why the traditional “tax season” doesn’t mean anything to you and your agency business and how agencies can benefit from tax planning. The Misnomer of “Tax Season” Other than getting your own taxes filed at the beginning of each year, “tax season” is a misnomer for anyone outside of the tax preparation industry— where the term got coined in the first place. Tax season is really tax FILING season. Which is an important distinction, so you know where your focus should go. Yes, it’s important to get your tax return filed on time. But keep in mind that filing is the end of a year-long cycle where you should be seeing results [...]

By |May 15th, 2018|