Humans are hardwired to belong, and the desire to be a part of something bigger than ourselves is in our blood. Whether we connect over shared values, a favorite sports team, a hobby, or even just from living near one another, we can find community and belonging all around us. […]
Our agencies are bound by a set of values or beliefs. But I don't think we often think about how we make sure that we are really transparent about how we're living those beliefs. I'm wondering how you visibly live out those values, to show to your team and your clients that those values are something that are really meaningful to you and that you've made a commitment. By the way -- that's regardless of the inconvenience or the cost to honor that and to be true to that.
I recently got asked this question: Is there a way to properly manage a client's organic social media and still make a profit? So much goes into creating video content. Are most agencies getting away from truly beneficial organic reels? It's so high touch. So yes, there's a way, but it's usually a collaboration with the client and agencies who are making money doing organic social videos or doing a couple of things. Let's look at what they're doing.
I recently got asked this question: Do you think the agency team structure should include only full-time staff and talent or expand into contract and part-time? The reality is there are very, very few agencies that only operate today with full-time talent. Most of you have a blend of go-to 1099s or contractors that you use on a regular basis. Some of you have actual ongoing contracts with those folks who've locked them in for a certain number of hours. In some cases. They may even come into the office if you're in the office to do some of their work or to attend meetings. And I think one thing that's really trending and I think it makes a lot of sense is part-time employees.
In the realm of business payroll management, it's crucial to maintain a payroll ratio of around 55%. However, we often come across marketing agencies with a payroll ratio as low as 45% or 50%, sounding an alarm for potential operational issues. This situation indicates a risk of either underpaying key personnel, putting the agency at risk of losing valuable staff, or operating with inadequate staffing levels. In the competitive landscape, especially in the US or North America, sustaining an adjusted gross income (AGI) allocation of less than 55% to your team poses significant challenges. While managing expenses is a valid concern, striving to keep payroll below 55% may inadvertently strain your team. It could signify a shortage of personnel or, more concerning, an underpayment issue. Despite improvements in the job market for employers, the reality remains that highly skilled employees are in demand and susceptible to recruitment efforts from headhunters, other agencies, and even clients. To foster a thriving marketing agency, maintaining an appropriate payroll ratio is not just about managing costs but also about ensuring the well-being and satisfaction of your team, which is crucial in retaining top talent amid the constant recruitment pressures.
As agencies, we don't do a good job of talking to our entire team about the importance of really recognizing that it's part of their job to create a relationship with the client, whether that's by email, whether that's by phone, or whether that's in meetings. We have to make our clients feel like they are surrounded by a team. And for anyone and everyone on the team, it's their goal is to take care of the client and their needs. When our clients only know and like our AE, we are setting ourselves up for risk and failure.
Does your office, or your zoom background, or however you present yourself, even your RFP proposal covers truly express who you are as an agency? Is it expected? Is your website expected? Does it look like everyone expects it to look? And if so, could you dig down one or two more layers and find something that would be surprising, that would be delightful, that would make somebody think more about who you are and how you think and how you work together, either with your own team or with the clients that you serve.
Many agencies have new business meetings, and what that usually means is that you are bringing a task force or a small subset of your team together, and you're talking about what's in the pipeline, prospects, what you're doing to attract new clients to the agency, to have an opportunity to sell to them. But very few agencies have a sales meeting focused on existing clients.
Many agency owners want to see 20% growth (or more) year over year while staying profitable. This goal isn’t entirely unrealistic, but the bigger you get, the harder it is to maintain such impressive numbers if you’re not investing resources in the right things to support that growth. […]
One of the areas where I think most agency leaders and owners can improve is the clarity of communication that we have with our team members. I'm challenging you to work on improving the clarity of your conversations. Start having smaller conversations with team members, less intense conversations, things that aren't of critical importance. Practice having candor and clear communications, so that on the day when you have to have the big conversation about something that really matters.
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