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What’s the purpose of your bonus program?
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What’s the purpose of your bonus program?

Agency Operations, Employees, Money Issues, Uncategorized

What’s the purpose of your bonus program?

When an agency shows a profit, one of the first inclinations of the agency owner is to pay a bonus to the staff. I applaud that instinct. But I don’t think you should do it simply because you have a little extra money. I believe you should have a bonus program that serves your agency every single day, whether you pay out any money or not. I think there are several elements of a successful bonus program: They should not be an end of the year thing. They should influence the employees to behave in ways that serve the agency year-round It needs to be simple and explained over and over (every month/quarter) It should be used to teach employees to think like agency owners (focused on the same metrics you do) It should be based on one or two metrics that accurately measure the financial health of the agency The metrics should be measured/achieved or not every month The metrics should be set in a way that your team hits the goal more often than misses (should be a stretch but a reasonable stretch...ideally they’d hit the metrics at least 7 or 8 months of the year) Bonuses should be paid quarterly (with most of the $ accumulated for an end of the year payout) to keep everyone motivated/focused The owners should hold an all agency meeting every month to report on financials/success on bonus program for the month/YTD At AMI, we have a specific bonus program that we teach in our workshops, owner peer networks etc. It’s based on two metrics. The big number in our opinion in terms of an agency’s health is AGI (Adjusted gross income — Look here for more [...]

July 15th, 2019|

You have to get the hiring right
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You have to get the hiring right

Agency Staff, Employees, Uncategorized, Workshops

You have to get the hiring right

There’s a talent shortage in the agency business. I can’t remember a time in recent years when agencies were hiring as much as they are today and having as much trouble finding the right fit employees. You’ve heard the adages about the costs of a bad hire and, if anything, they underreport the costs. But today, those costs are even greater because not only does the bad employee do incredible damage to your shop — they also leave a gaping hole that’s tough to fill. Unfortunately, in most cases, our bad hires are our own fault. We’re horrible interviewers. We talk way too much and we spend more time trying to convince the candidate that our agency is a wonderful place to work than we do discerning if this candidate will serve us, our team and our clients. We also don’t test the candidates well. iMedia asked me to expand on that idea in an article about how to get interview tests right. I’ll be curious to hear your thoughts. If our hiring practices could use some work, our onboarding could absolutely use an overhaul! Once you get a team member who is dedicated, committed to your team and clients and is hungry to keep getting better — don’t just bury them in work. Our research talking to over 950+ agency employees showed us that the #1 factor your employees consider as they decide whether or not to stay with you is if you’ve offered them educational opportunities. At AMI, we’re always looking for ways to help you build the team you already have. Our Advanced AE bootcamp gets rave reviews so if you want to enhance the skills of your AE crew — it’s [...]

July 22nd, 2019|

What Agencies Need to Know About AI-Driven Global Recruitment with Noel Andrews

Welcome to another can't-miss episode of Build a Better Agency! Drew McLellan hosts Noel Andrews, founder and CEO of Job Rack, for a deep dive into how AI recruitment is revolutionizing the hiring landscape. Andrews shares eye-opening insights about the dramatic changes agencies face when building teams in today's AI-powered world. In this episode, you'll discover how Andrews and his team are adapting their vetting processes as AI tools make traditional recruitment methods obsolete. You'll learn about the shocking reality that resumes are now largely AI-optimized, making them nearly useless for evaluation. If you've ever wondered how to identify genuine talent when candidates can use AI to generate perfect interview responses in real-time, Andrews reveals the specific questioning techniques and AI recruitment strategies that separate authentic candidates from those hiding behind technology. Andrews and Drew explore advanced tactics for evaluating AI fluency in candidates, including the critical importance of assessing judgment over technical skills. They discuss practical frameworks for writing outcome-focused job descriptions, conducting screen-sharing interviews, and probing deeper into candidates' real experiences to bypass AI-generated responses. Whether you're hiring your first international team member, expanding your leadership team, or simply trying to navigate the complexities of modern recruitment, this episode delivers actionable strategies for success. Tune in to master the art of hiring exceptional talent in an AI-driven world! A big thank you to our podcast’s presenting sponsor, White Label IQ. They’re an amazing resource for agencies who want to outsource their design, dev, or PPC work at wholesale prices. Check out their special offer (10 free hours!) for podcast listeners here. What You Will Learn in This Episode: Discover why traditional resumes are now largely useless due to AI optimization and how to [...]

June 14th, 2026|

Dealstorming Methodology: The Combination of Deal-Making and Brainstorming & How to Use it to Grow Your Business with Tim Sanders
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Dealstorming Methodology: The Combination of Deal-Making and Brainstorming & How to Use it to Grow Your Business with Tim Sanders

Agency Smarts, Evergreen, New Business

Dealstorming Methodology: The Combination of Deal-Making and Brainstorming & How to Use it to Grow Your Business with Tim Sanders

I know very few agency owners who love that the burden of sales sits squarely on their shoulders. Many of you don’t enjoy sales and would rather be back in the shop, creating or strategizing. Well, here’s some good news. You don’t and shouldn’t do it alone. My podcast guest and best-selling author (Love is the Killer App, Saving the World at Work and his new book Dealstorming) Tim Sanders believes that sales is a team sport which requires bringing together different perspectives from every corner of your agency and beyond. Tim has held the position of Chief Solutions Officer at Yahoo! and is now the CEO of Deeper Media, an online advice-content company. As a veteran sales, marketing and HR leader, he has some unconventional ideas for these unconventional times. His take on the combination of brainstorming and deal-making or “Dealstorming” will challenge your thinking about how to get sales done and may be just what you need to land that next big client. Follow Tim’s thinking as he and I explore: Tim’s start in sales working for a radio station Dealstorming methodology: how Tim took dealmaking and brainstorming and put them together The difference between collaboration and cooperation How to strategically build your dealstorm team Turning your peer group into “competimates” that you can collaborate with to make each other stronger Why you absolutely need diverse perspectives in the room (and why you should have an external voice on your dealstorm team) The secrets to making your dealstorm meeting a magic meeting with results New business through rapid problem solving The hacker, the chef, and the artist: the three personas for solving different problems How leaders lead culture Tim Sanders is a veteran [...]

May 19th, 2017|

The Top Agency Trends of 2017 (Part 1)
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The Top Agency Trends of 2017 (Part 1)

Evergreen, Industry Trends

The Top Agency Trends of 2017 (Part 1)

Every year, we’re blessed to work with 250+ agencies and that gives us a chance to develop a serious micro and macro view of the business. While every agency is unique – there are certainly some trends that impact (or are going to impact) us all. Every year, I identify the top agency trends that I expect will have the biggest influence on our business and in this podcast, I walk you through the first half (9 of 19). I’ll pick up the back half in my solocast for June. Grab your notebook and see what your agency can do to get ahead of these trends to make the most of them: Why agency owners are confident again and why new business is easier to come by right now The trend where talent inside agencies has become a scarce resource What to do about having to hire under-skilled employees The challenge of providing clients with the right data Having an answer when clients ask agencies about diversity Opportunities for agencies with old school media Why you have to be great at marketing automation And a few more! Drew McLellan is the Top Dog at Agency Management Institute. For the past 21 years, he has also owned and operated his own agency. Drew’s unique vantage point as being both an active agency owner and working with 250+ small- to mid-size agencies throughout the year, give him a unique perspective on running an agency today. AMI works with agency owners by: Leading agency owner peer groups Offering workshops for owners and their leadership teams Offering AE bootcamps Conducting individual agency owner coaching Doing on site consulting Offering online courses in agency new business and account service Because [...]

May 26th, 2017|

Getting it all done
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Getting it all done

Agency Operations, Agency Smarts, Lifelong Learning, Uncategorized

Getting it all done

I can remember early in my career I was bemoaning the fact that I couldn’t seem to get it all done. My boss started laughing. Like belly, starting to cry laughing. At me. When he finally caught his breath, he said, “Drew, it’s never all done. This isn’t a 9-5, leave when the work is complete sort of job. You need to learn how to work smart but also not let the inbox (back then it was a literal inbox) get in your head. When you can get it all done, there’s a problem.” I’ve spent my entire career, as I imagine you have, trying to define and refine my own work habits to be as effective as possible. I have a much better sense of how I work, when I am most effective at certain tasks, and how to cleanse my palette so I stay fresh throughout the day. But, there are some days, like when I’m on planes all day (pre-COVID), that work has to get done and the time is now. Much of my job requires writing and I can’t wait for quiet, a muse, or inspiration. It’s due and it’s due now. Thrive Global asked me to share how I pack my plane trips with productivity and while my specific circumstance is probably not yours — I’m hoping these tricks and tools will be helpful in your quest to make the most of your workday. Being more effective and efficient is a key component (among many) in our Advanced AE and AE bootcamps (Sept 1-2, 3-4) as well. An AE needs to get the most not only from their own day but in how they frame up the work for the [...]

August 31st, 2020|

What clients want from their advertising agency
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What clients want from their advertising agency

Account Team, Client Relationships

What clients want from their advertising agency

This article discusses client retention strategies, and explains what clients are truly looking for from their ad agency. In our AE training (both the bootcamp and the Account Service Advanced Training) we ask the participants to make a list of what they think their clients want from their advertising agency. It's a rare AE that thinks to actually ask their clients what they're looking for from their agency or agency liaison. But the answers often reveal that disconnect. When we asked CMOs, business owners and Directors of Marketing what they were looking for from their agencies, here's what they said: Industry knowledge Clients expect their advertising agencies to either come to them with a deep level of expertise in the client's business/industry or else, get up to speed in a hurry. Even more so -- they expect the agency to stay current and to make sure the client does too. It's pretty difficult to bring proactive ideas and solutions to the table if you don't know the game that's being played. Business Acumen In today's world, marketing touches every aspect of a client's business. Clients expect their agency to understand their entire business model from R&D to distribution. They need someone at the table who can recognize and solve business problems. Accountability Clients need their agency to do what they say they're going to do. That means bringing projects in on time and on budget. It means owning a problem until it gets resolved. It also means the flip side -- clients want an agency to hold them accountable too. They need to be nudged now and then to keep their eye on the ball and do their part in making the work a success. Accessibility [...]

November 5th, 2012|

The 4 Most Common Financial Mistakes that are Costing Your Agency Money
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The 4 Most Common Financial Mistakes that are Costing Your Agency Money

Agency Management, Evergreen, Money Issues

The 4 Most Common Financial Mistakes that are Costing Your Agency Money

Whether you like it or not, there are several financial mistakes being made in your agency today that are costing you money. You’re in business to make money, so every step you can take to prevent these mistakes is worth it’s weight in gold, literally. Most of these mistakes happen slowly over time and just eat away at your profits little by little. This solocast is all about these money draining mistakes and what you can do to plug any holes you may have. In this solocast I will cover: Gross Billings vs. Adjusted Gross Income How agencies lose money when pricing Why scope creep leads to little or no profit Why your agency needs to issue change orders and how to turn this into a process Why you need to use the one page business plan How to know if you need a better new business plan (hint: you probably do) Why you need a tax advisor not a tax preparer Drew McLellan is the Top Dog at Agency Management Institute. He has also owned and operated his own agency over the last 20-years. And all through the year, he straddles the fence of working in his agency and working with 250+ small- to mid-size agencies in a variety of ways. He works with agency owners in peer network groups, teaches workshops for owners and their leadership teams, teaches AE bootcamps, and does a lot of consulting. Because he works with a lot of agencies every year — he has the unique opportunity to see the patterns and the habits (both good and bad) that happen over and over again. He has also written two books and been featured in The New York [...]

July 11th, 2016|

How do you train your account executives?
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How do you train your account executives?

Account Team, Employees

How do you train your account executives?

If you were being truthful about account executive training in your agency -- you just said, baptism by fire. We hired them and on their first day...took them to a client meeting and it was off to the races. The good ones thrive and survive and the ones who can't cut it, fade away. But we're lousy at training new people. That's an ugly truth about our business. And it's not done out of disregard or cruelty. It's just the reality for small and medium sized advertising (marketing, PR, digital, interactive) agencies. There's no training program in place and we're hiring them because we need their boots on the ground. Now. In our two-day Account Executive Training Bootcamps (check our AE Bootcamp schedule here) we ask the participants to create a list of the top things a client expects of them and the top things the agency owner expects of them. Guess what -- they get it wrong. No big surprise considering we throw them into client work and usually, if they're new to the business, they begin managing project details, taking orders and creating a good relationship with the client. So they think that's at the core of their job responsibilities. Those things are certainly part of the job -- but would they be on your list of the top five things you want from your account executive? I get that you don't have a developed in-house training program and can't take the time to create one, let alone implement it. But, if you're not going to do that -- at the very least, take some of these steps. Send your new/young AE to account executive training: Whether it's our AE Bootcamp (we've been conducting this course for [...]

July 27th, 2012|

AI and the future of agency tools with Paul Roetzer

Whether we realize it or not, artificial intelligence (AI) has already impacted countless aspects of our everyday lives. And as the technology we rely on continues to adapt and change, those changes will inevitably shape the future of our businesses, our industry, and our society. As agency owners, it’s our job to stay ahead of those changes — even if the thought of an AI-driven agency is, understandably, a little intimidating. […]

May 2nd, 2022|

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