Every week, Drew records another video on a topic that has come up in his conversations with agency owners. You can view them chronologically (most recent on top) by different categories, or you can search for specific key words.
This Week’s Video
Are you living your values out loud?
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. Full Transcripts »
Can your employees actually buy your agency?
In our initial M&A conversation with many owners, they’ve mad a false assumption that they have to find an outside buyer because their employees couldn’t possibly afford to buy their agency. Beware of assumptions! Watch »
How are agencies making money doing video?
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. Watch »
Should agencies only have full-time employees?
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. Watch »
Payroll ratios what’s too low
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. Watch »
Cultivating relationships beyond your AE
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. Watch »
Does your environment tell your story?
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. Watch »
Can agency employees think like an owner?
Many agency owners want their employees to think like an owner. And what we mean by that of course, is we want them to care as much about the business as we do and we want them to make decisions that are in the best interest of the agency rather than themselves or even their department. In some cases, we're talking about a leadership team. But the reality is it's pretty hard to think like an owner when you've never been an owner and when you don't have the weight things like can I make payroll this month? Watch »
What’s the biggest mistake agency owners make?
There are many challenges that come with some pretty big consequences when you own an agency. But the greatest consequence is when the agency owner does not build wealth outside the agency while they still own it. Watch »
Grow what you have
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. Watch »