There are days (and we love them) when price isn’t a barrier and that prospect gladly signs on the dotted line and off we go. But, we’ve all had the experience of being in front of a prospect who is excited to work with our agency until the conversation circled around to dollars and cents. The minute we went from helping them slay their dragons to how much it was going to cost — something happens to the energy in the room. Those kinds of conversations are what have driven a small number of agencies to try to come up with a different pricing model that eliminated the connection to selling time by the hour. We have some AMI agencies that have created a subscription model. Others have created a points system where they, in essence, created their own points system. If you’ve read the book The Marketing Agency Blueprint by Paul Roetzer, you may be familiar with this idea. Paul and his team at PR 20/20 have been using their point pricing model for a few years now and through their agency education arm, offer a free download, Sample GamePlan that show you how their point pricing model works. Here are couple different articles on the idea of point pricing, if you’re interested in learning more. PR 20/20 article on eliminating hours from agency pricing Articulate’s explanation This was originally published in the AMI newsletter. To subscribe, click here.
In our owner peer group meetings, one of the things we always do is share a recommended app, tool or book. It’s a really easy way to discover some new ideas and tools for getting better without lots of trial and error. One must-read book has surfaced to the top over and over again and it’s become an instant classic among my agency owners. I hear them referencing the author’s terminology and more important — I hear them changing their communication patterns for the better. Radical Candor by Kim Scott is a framework that shows us how to be both a better boss and a better colleague. The book is packed with eye-opening truths and practical suggestions that will make you feel like she’s been spying on your office. You’re going to recognize yourself in many of her stories and examples and best of all — you’ll see the way to significantly improving how you work with others, give feedback and get the best from your team, your business partners, clients and yourself. Couple reading this book with starting the one on one employee meetings I keep harping about (because they are that important!) and you can have a great 2020! This was originally published in the weekly AMI newsletter. To subscribe, click here.
What’s that old adage — nothing kills a business like growth? I’ve seen agencies get way too close to the edge more than once. Managing growth is no easy task and scaling your business requires something that many agency owners struggle with — getting out of the way. Entrepreneur Magazine asked me to offer some tips for successfully scaling your business. I’d love to hear any additional ideas or life lessons you’ve learned around this topic. As business gets better — more and more of you will be faced with this potentially treacherous opportunity. Another challenge that comes with a stronger business is dealing with the financial implications including operating your agency for maximum profit, using the right structure, operating systems, and staffing to make it all possible. We will be covering all of these topics and more in our Running Your Agency for Growth, Profit (and a little sanity) workshop this March. This workshop is built for principals only and it can be especially valuable for agency principals that came up through the agency ranks and would benefit from additional knowledge about how to build and operate a profitable agency. I hope you can join us. This was originally published in the weekly AMI newsletter. To subscribe, click here.
I live in the Midwest and as a result, I am fascinated by farmers. They can do everything right and in the blink of an eye — a hail storm, too much rain or on the flip side, a drought can wipe out all of their efforts. It seems like the riskiest and most frustrating business model in the world. But I can’t deny that our world of agency life has some similarities. Agency owners and leaders work their tails off to chase down new clients, to keep the clients they have, to attract and grow the right team members. But then we make mistakes that either erode or completely eliminate all of the effort and the potential profits from those efforts. I identified some of these money mistakes in an article for Hubspot Mistakes that Will Bankrupt Your Agency. Check it out and put a plan in place to eliminate those mistakes from your agency’s SOP before you pay too great a price. If you know that your agency could use a tune-up (right structure, operating systems, staffing, actually making a double-digit profit, etc.) why not spend two days with us talking about these topics? Our workshop, Running Your Agency for Growth, Profit (and a little sanity) is designed for agency owners and we will pepper you with best practices, practical tips, and hacks that will help you make more and keep more of what you make. This was originally published in the weekly AMI newsletter. To subscribe, click here.
I have had several phone conversations lately with agency owners who have sales pipelines that have dried up. They’re frustrated and scared about business development. I get it. We’ve all been there. But when I asked them about their new business activity, they all admitted that they’d taken their foot off the pedal. Sure — they all had great reasons why they didn’t do the follow-up or initiate the new tactic. You know what I’m going to say because you’ve said it to yourself. There will always be another reason/excuse. There’s always a fire to put out or something to be done internally. You have to carve out the time to work your new business plan and protect it like it’s your favorite kid’s birthday. It’s too easy to slide backward and once you lose the momentum, it’s back to the starting gate. Like exercise, it’s a lot easier if you work the muscle on a regular basis. By the way, this is never going to happen by accident or wishing. If you don’t calendar it out, your day is never going to suddenly free up. This was originally published in the weekly AMI newsletter. To subscribe, click here.
It’s a rare agency that does not incur any travel for either themselves or their clients. Because travel norms are very different for everyone, it’s important that the agency have a written travel policy that clearly spells out the processes, boundaries and expectations that come along side that employee’s travel on behalf of the company. In our work with 250+ agencies a year and our annual salary and benefits survey that is answered by almost 1,000 agency leaders – we were able to pull together what seems to be the “norm” for most US based agencies. Each agency owner will want to review and modify these policies to fit their own culture, budget, expectations and unique circumstances. In some cases, I’ve just listed what seems to be the common policy and in other cases, I’ve given you some commentary like 30% of agencies do this or that. My goal is not to give you an off the shelf set of policies but rather a framework from which you can build your own travel policy for your agency. AGENCY TRAVEL POLICIES (modify for your own shop) Allowable Expenses Most agencies will pay or reimburse the employee for all reasonable business expenses incurred while traveling on behalf of the agency. Agencies will typically not pay for upgrades i(n rental car classes, hotel rooms, flight classes) without prior approval. The exception to this is international travel. Most agencies will pay for business class plane tickets for travel of 6+ hours. If an employee chooses to live in a different country, the agency does not pay for their travel back to the agency’s home country for meetings (internal or client-facing). Meals and client entertainment are typically on a daily [...]
Hey there — folks have been asking me what tools I use to create our weekly videos, so I thought I would spell it out for you. Here’s the equipment I use. My criteria for anything I am using is that it has to be durable, reasonable small, and lightweight because every week, I am throwing it all into my suitcase and taking it on the road (except for my phone!) And I did not want to spend an arm and a leg. I'm sure you could go higher quality, but this works for me. Camera: My iPhone X Microphone: Shure MV88 iOS digital stereo condenser microphone (plugs into my phone) $149 App for the filming: Shureplus MOTIV video (get in app store) Tripod: Fotopro Phone Travel Tripod $23 (I needed two -- one for the camera & one for light) Lights: Rotolight NEO on-camera LED light $149 15 foot extension cord: Amazon recommended $7 I use an app on my iPhone (Shureplus MOTIV Video -- tied to the microphone) to record the video. For a long time, I was relying on natural light but some of the videos were just too dark so I decided to invest in a light (hence the 2nd tripod and extension cord) box which is about 4 inches square and about an inch and a half thick, so easy to pack. I don't use any sort of teleprompter. Honestly, I don't script these out. I have an idea of the main point I want to make and I just shoot from the hip. Usually, I shoot it a couple times before I'm happy with the flow of the message, but I am rarely shooting for more than 10 minutes. [...]
In an AMI network meeting last week, the big topic was employee recruitment and retention. If your agency isn’t struggling with this issue, consider yourself one of the lucky few. Agencies (and it seems all businesses) are fighting tooth and nail to find and keep productive, committed employees. Many of you are looking for so long that you end up compromising just to get someone in place. And we all know how well that usually works. Overall, agency owners are incredibly generous with benefits and flexibility. But there’s a new benefit that I want to make sure you’ve got on your radar screen because it may be worth considering as a recruiting tool. One of the things we talk about in our Managing Millennials workshop is that all employees (but particularly millennials) love to have “brag-worthy” benefits and this one is definitely brag-worthy. The benefit is student loan repayment. You can read more about it in this Forbes article and see some examples of how it is being positioned and packaged. Employee recruiting and retention will be a major discussion at our owner’s workshop (Best Management Practices of Agency Owners) this coming March in Chicago. Registration is open if you’d like to hear how other agency owners are reducing their workweek, actually getting to their family events and putting more profit on the bottom line.
I know there are agency consultants who will tell you that timesheets aren’t necessary. Unfortunately, they’re wrong. I totally get it. No one likes doing them. But they are an important management tool for you as you run your agency. It has nothing to do with how you bill clients or if you’re still billing by the hour (which I hope most of you are not doing) or project versus retainer billing. It’s about resource management. Your agency may be profitable and everything seems to be running smoothly but the truth is — you don’t know. You don’t know if a few superstars are carrying the weight of a handful of slackers. You don’t know if someone is putting 50% more billable time on jobs than the estimate calls for. You don’t know if you’re over-servicing clients or if one of your employees is struggling with some aspect of their job. You are in the dark. Timesheets illuminate what’s really going on in your business. Marketing Agency Insider asked me to write an article about timesheets, how to get your squad to do them and how important they are to the success of your agency. I don’t want hate mail but I would love to hear your thoughts. Be gentle — remember, I am just the messenger! If you’d like a healthier, heartier bottom line — timesheets are not optional.
Before the recession (we when utter that phrase, I suspect we look like old men in overalls, smoking a corncob pipe and rocking on our porches but...) there were many agency owners who swore that they would never work with outside contractors. They believed that the quality and integrity of their work relied on having all of the work done by employees that toiled under their roof. Today -- I know very few agencies who still cling to that belief. Most agencies today have a stable of contractors that help them augment their offerings and skill sets. (Not to mention remote employees, etc.) The truth is, and our research shows this, that when an agency of 10 or 20 or 50 employees calls themselves a "full-service, integrated agency" their prospects do not believe them. The prospects know how complicated and specialized marketing has become and they know that it's pretty challenging to have every discipline under our roof and to deliver against all of those needs at the highest levels. The great news is -- there are plenty of freelancers, strategic partners, and solopreneurs that we can hire to help us serve clients better. The rub is when we walk the thin line of are they really an employee or are they a contractor. Should they legally be getting a W2 or a 1099 (in the US) from you at the end of the year? Independent contractors are generally outside the coverage of various laws that apply to the employer-employee relationship. Which means that it's easy to get into trouble if you do this wrong. This is especially important when it comes to issues like pensions and retirement accounts, workers compensation, and wage and hour [...]