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Best podcasts about swenk

Latest podcast episodes about swenk

How to Scale an Agency
How Jason Swenk Built a $30m Agency

How to Scale an Agency

Play Episode Listen Later May 19, 2023 19:31


In this episode of How to Scale an Agency, Lucas is joined by Jason Swenk, who emphasizes the importance of building and maintaining strong client relationships. Swenk shares insights on anticipating client needs, delivering on promises, and offering a foot in the door offer to potential clients. By building trust and retaining clients, agencies can achieve long-term success. Swenk also advises against lowering prices to win deals and stresses the importance of setting clear expectations from the beginning.In This Episode, You'll Learn:00:00:00 Losing A Deal Based On Price00:03:34 Meeting Customer Needs Through Anticipation And Service00:06:02 Focus On Providing The Promised Product/service00:07:28 Is It Okay To Lower The Price To Build Momentum On A Sales Strategy?00:09:40 The Pitfalls Of Lowering Prices To Win Deals00:13:00 The Pitfalls Of Overcomplicating Sales And Pricing Strategies00:15:05 Pricing And Perception In BusinessLinks And Resources:WebsiteJason Swenk on LinkedInLucas James LinkedInYouTubeTwizThanks so much for joining us this week. Want to subscribe to How to Scale an Agency? Have some feedback you'd like to share? Connect with us on iTunes and leave us a review!

Southern Songs and Stories
Making Festival Goers Sing and His Banjo Ring: Brian Swenk

Southern Songs and Stories

Play Episode Listen Later Oct 4, 2022 30:00


For a place as remote as Ashe County, NC, you could be forgiven for overlooking it as a wellspring for musical talent. But music seems to flow naturally out of the Appalachian mountains in and around towns like Sparta, NC, where artists like Brian Swenk grew up. Our recent episode on banjo player Tray Wellington gives another example of how the region punches above its weight with its long track record of producing great roots music artists: Frank Blevins and his Tarheel Rattlers, the Carolina Night Hawks, Clarence “Tom” Ashley, and Ola Belle Reed all hail from Ashe County as well. Even though many artists mentioned above moved away, they never forgot their homeplace. Recently I witnessed both Tray Wellington and Brian Swenk returning to the mountains to make music and give back to the cultural traditions that gave them their start, when both were a key part of the inaugural Boonerang Music & Arts Festival in nearby Boone, NC in June 2022. There, Brian came back to the town where he attended Appalachian State University as a key part of the team that produced the festival, which went swimmingly. Town Mountain and Acoustic Syndicate, both featured on previous episodes of this series, were headliners, and along with many other artists and bands with connections to the region, they helped make the weekend a winner with fans and critics alike. Brian's work was all behind the scenes there, but he is no stranger to the stage, with years of experience playing banjo in the band Big Daddy Love. Brian Swenk Here, Brian talks about the music business, his rock and roll roots and how they find their way into Big Daddy Love's music, we pick up on a conversation started in our episode on Tray Wellington with the influence of rap and hip hop in roots music, and more, including Brian's story about how a painting of his band playing live sold for six figures. Plus, we sample several songs by Big Daddy Love, which describes itself as an “Appalachian Rock” band. Songs heard in this episode:“Smoke Under The Water” by Big Daddy Love, from This Time Around“Down From the Mountain” by Big Daddy Love, from Let It Grow, excerpt“Air Bellows Gap” by Big Daddy Love, from Let It GrowThank you for listening to this episode, and we would be even more grateful were you to share this with someone. It is super easy to follow us on your podcast platform of choice, and then it will only take a minute to give it a good rating, and on platforms with the option, a review. Great ratings and reviews will make Southern Songs and Stories and the artists it profiles more likely to be found by more people just like you.Southern Songs and Stories is a part of the podcast lineup of Osiris Media, with all of the Osiris shows available here. You can also hear new episodes of this podcast on Bluegrass Planet Radio here. Thanks to Corrie Askew for producing the radio adaptations of this series on public radio WNCW, and to Joshua Meng, who wrote and performed our theme songs. This is Southern Songs and Stories: the music of the South and the artists who make it. - Joe Kendrick

Do It In Nature
SAM CALHOUN & BRIAN SWENK: Two Hearts Behind One Of The Best Music Festivals, FloydFest

Do It In Nature

Play Episode Listen Later May 26, 2022 51:23


There are music festivals. And then there is FloydFest. FloydFest is pure magic. It'd be inadequate to describe it any other way. If you know, you know. Located in the beautiful mountains of Floyd, VA, their mission is to be the best music festival experience of our time. And they accomplish this year after year by selling a limited quantity of tickets to the highest-quality event experience, bar none, celebrating music, art and life in an intimate, visually stunning environment. There are few places in this world that combine music - both rising and well-known artists, art, comedy, vendors, acceptance, and genuine love like FloydFest. Lucky us to get to have Sam and Brian on the mic for this episode. 

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
2 Common Mistakes to Avoid While Growing Your Agency

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Mar 2, 2022 28:23


Have you made these common mistakes that hold back your agency? Our guest, Sandy Smith is the President of Smith Publicity, has grown her agency for over 25 years and she shares lessons learned from 2 common mistakes she made over the years. Sandy's agency is focused on book marketing and author promotion services publicity. At first, a one-person shop they have grown to more than 30 employees with offices in Los Angeles, New York, and Canada. Sandy and her Senior VP, Marissa Eigenbrood, are on the show sharing how their expansion process led them to open an office in London that ultimately brought more problems than business. They also share why you should act fast when an employee just doesn't fit with the company and why you need to find someone you trust so you can transition from owner to agency CEO. 3 Golden Nuggets Identifying the source of customer service problems. Although the agency is US-based, it used to have a London office. Susan later identified this as the source of 95% of their customer service problems. London was an important market for the agency and held 10% of its business. However, it took too much work to get their UK clients to understand how the business worked in the US and get them to a place where they saw the value in the agency's work. In the end, these clients just weren't the right fit for the agency, and closing the London office was an important step to move forward. Waiting too long to do what's best for the team. Hanging on for a little too long after seeing someone just isn't working out in their role is a common problem for small business owners who try to avoid these decisions. Sometimes the person is not a good culture fit for the agency; you never want someone to mess culture up, even if they're great at what they do. For Sandy and Marissa, it was actually the opposite, someone was a great culture fit but who kept making the same mistakes in his job. After spending time and resources in retraining, they had to accept it wasn't working out and make the necessary change.. Transitioning from Agency Owner to CEO. With the help of Marissa, Sandy is in the process of doing something we know can be a difficult process -- transitioning to the role of CEO. We know by now that this transition is more of a marathon than a sprint. For Sandy, it has been about finding the right person to take over the tasks she no longer wants to handle and focus on the ones that she enjoys. “It's having trust and sharing, opening up our books, opening up our real thoughts,” Sandy says. “And it's not an overnight process. It's many years of trusting and slow steps of giving control and giving insights and allowing, and this is the hardest part, for difference of opinion.” Sponsors and Resources Agency Dad: Today's episode is sponsored by Agency Dad. Agency Dad is an accounting solution focused on helping marketing agencies make better decisions based on their financials. Check out agencydad.money/freeaudit to get a phone call with Nate to assess your agency's financial needs and how he can help you. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Avoid These Common Mistakes in your Agency Building Trust to Help You Transition from Agency Owner to Agency CEO Jason: [00:00:00] Hey, all! How's it going? Marissa: [00:00:04] Hi, Jason, how are you? Jason: [00:00:07] Doing good. So I haven't done two people on the podcast in a long time. So we're on these little boxes. I apologize for these little boxes, but for the people listening and watching, tell us who you guys are and what do you guys do? Marissa: [00:00:23] Oh, well, thank you. I am Marissa Eigenbrood. I'm the senior vice-president at Smith Publicity. We are a book publicity and marketing agency celebrating 25 years in business this year in 2022. We focus on working with, with authors and experts and publishers on building awareness around their launches and beyond. That's a quick summary there. Sandy, pass the baton. Sandy: [00:00:47] Yeah, I'm Sandy Smith, Sandy Poirier Smith, but no one can pronounce that, but Sandy Smith. And I'm the president here and co-owner of Smith Publicity. And we started off as like a one-person shop and now we have 31 of us, 32, Marissa? And we've grown pretty much every year. We've learned a lot. We've made a lot of mistakes and we've done some really great things. So we're excited, Jason, to talk with you and, um, pick our brains and see if we can help some of the people here. Jason: [00:01:19] Awesome. So, well, let's, let's jump into it. What's the biggest mistake you guys made? Marissa: [00:01:28] Love that. Wow. Sandy: [00:01:29] One I would say is, as we were growing, we expanded our offices. We are based in the US but we had a Toronto office, a Los Angeles office, a New York city office, and a London office. And this is back in the day where… while we have always been hybrid, believe it or not even 20 years ago we were hybrid, having that kind of a brick and mortar office kind of made sense. And people expected that. And our London office gave us this great, like worldwide, you know, kind of brand appeal, which was fantastic. However, our London-based our English-based caused, because they probably were maybe 10% of our total clients, but they caused 95% of our customer service problems. And the reason for that is the education that took to get them to understand what we do in the US market was just so much work. And one example of that is an author said “I want to be on Oprah.” Well, okay, that's great, and can't she just schedule me in that type of thing. They just didn't understand that the vastness. Even geography, there was one author who said I want to pop a new office for a meeting. I will be in a meeting in… I'm going to a wedding in San Francisco, can I drive over to see you in New Jersey this afternoon? It just… like some people just didn't have the scope of the US market. So even though it looked good and they did, you know, 10% of business, we decided not to continue having a London-based office just because those clients were not the right fit for us. We spent so much time trying to educate and get them to a place where they saw value in what we do. Jason: [00:03:28] That's awesome. Yeah, I know I'm figuring out the perfect clients for you is, uh, I always tell everybody it's kind of like a Vegas buffet. Like you gotta kind of try everything and then you're like, oh, that thing made me sick. I'm not going to eat that anymore. So… Sandy: [00:03:44] Yeah, Marissa, another mistake that you want to talk about, unless you have another idea is, um, our evolution of the longer projects rather than the shorter but more quick projects that were evolving to. Marissa: [00:04:00] Yeah. I mean, I think this is, this has definitely been an evolution. And also, um, again, it was not necessarily a giant mistake cause it worked really well for us for a long time, but kind of having that moment of realization and I did I had to really connect to that as well, is they're having times over the years where we've tried to incorporate other types of services that haven't been the real meat and potatoes, the publicity that we, that we focus on and we're, we're, we're really great at. We for a few years added in social media services and, you know, we, we dabbled in other areas too. And I think it's really kind of realizing when it's time to say goodbye. And sometimes you hold onto those, those things for a little too long and we were doing that with shorter-term campaigns. I think, uh, we had previously six-week-long campaigns, or maybe even four-week campaigns… We actually had three-week campaigns, which in today's world of publicity sounds absolutely insane to do just three weeks of work with someone and have it be impactful. But, you know, it's been part of the changing landscape of the media that we've had to react to as well. The time things are taking, the delays. The publishing industry is phase two, so there's so many factors that have influenced those decisions, but, um, really giving our, our publicists, our authors, the time that they need and, and really kind of building that awareness of, of how much time is really needed to be impactful is something that has evolved. And we've really learned and grown from over the last few years in particular and so at this time, you know, we've, we've eliminated everything that's six weeks and less, pretty much. And you know, two months is not far behind it, I think too. Sandy: [00:05:41] And that's hard too because we made money from that. It was a great place but it just wasn't in the clients are our best interest to continue with that based on the changes we saw. So that was interesting. The other one, um, and I don't want to just harp on mistakes. I think it's all small businesses is when someone is not working out in their role. I think sometimes we hang on a little longer than we would because our emotions get involved. We like these people. We want it to work. And I'm thinking of someone, Marissa, who was in our business development coordinator and years, and years and years ago. This person was fantastic individual. And we just kept changing the job description and kept changing his focus. And it wasn't working and we probably should have, in hindsight, let them go a lot sooner. It just wasn't the right fit. But as a small business, we get probably a little more connected to our team and that's probably a mistake. And fortunately, we don't have to do this very often. We have hopefully better hiring and onboarding and vetting before we get to that stage. But that's something that we struggled with as a small business. I don't think it's unusual, but I know that that since reading, cause we read a lot of books here, you're supposed to hire slow and fire quickly in small businesses. Jason: [00:07:03] Was it that this person was not a cultural fit? Marissa: [00:07:07] I think it was actually the opposite. It really was the, I mean, he really got along so well with everyone, you know, really was a nice fit with so many, but the skills were hard to really build in the direction that we needed them to go. Um, Sandy, would you agree with that? Sandy: [00:07:25] I do. And again, because we read a lot of business books, I know that 80% of people are let go because of soft skills, the culture, and 20% it can do the job, but they just don't fit in. But I think in this case, it was the, exactly what Marissa said, culturally, he showed up, was great, people liked him… He was all in, just kept making the same mistakes over and over and over again. And we probably gave him too much grace and too much training, like retraining and retraining before we just said square peg round hole. Marissa: [00:07:59] Yeah. I mean, we've, we face it the other way around too. I mean, just fairly recently, we had someone and I learned from another great industry partner recently that, uh, she started at Shake Shack. They have this phrase where they say there's no, skunking, there's no skunking of the culture. So even if you're amazing at your job and you, you're just one of the best in terms of the skills, if you are skunking up the culture and you're creating negativity there. You know, you're not a right fit and they're looking at an exit plan and that was, you know, we've had to have those conversations recently. And I think that, you know, that's just as hard to deal with, as, in terms of letting someone go or figure out an exit plan as it is for someone who does, you know, who has that connection from the emotional side, from that cultural side, because you're like, wow, this person's great at their job. They're great at the tasks. It's just that on the other side it's… Sandy: [00:08:54] Person. Yeah, it's just not a team player. Jason: [00:08:58] I have a question because you guys have achieved something a lot of people listening are wanting where the owners can kind of start transitioning a little bit out, right? Like have a life again and find someone to, you know, run operations and really just kind of take the baton and run. So going back 13 years and knowing what you know now, how can people listening do that? Because I find that's a big struggle. They, they, they don't want to relinquish control. Was that tough for you guys? Sandy: [00:09:35] No. Oh, it's really hard and it's hard for it for two reasons. One is the company is our baby. It's our livelihood. That's, what's going to be funding our kids college and our retirement and all that. So that's, that's important to us. It's also too, and I've learned this from many of our authors. People will sell a company or they turn over control to the next generation. Three years later, they're bored and then they write a book because they want to connect back to what made them feel good and what kind of got them out of bed every day. So while, and I'm just being very transparent. I am not necessarily looking to step out of the business fully. What I'd like to do, Jason, is pick and choose more of the things that get me excited rather than the things that I don't want to do anymore. My husband on the other end, as we speak he's outside with our chickens. Jason: [00:10:27] He is he's chasing chickens? Should that be the title? Can you send me a picture of him chasing the chicken? And that'll be the thumbnail. Sandy: [00:10:39] If you flip through my phone, for everybody at home, is the picture of him, which of course, like it's not coming up because the, our Google call is on here, but here he is sitting on his tractor this way, yes, sitting on a tractor in the backyard. But he's excited. He's a few years older than me, but not that older, but he's excited to really dive into other passions outside of the work. And I am still like, oh, I want to do this, but I'd never had time sometimes to really dive into some of these other opportunities for us. I think the hardest thing is to, to trust in someone. Um, and what made it easier is Marissa because she is, not to get her head big, but she is…. Jason: [00:11:23] Be closer to the screen. Marissa: [00:11:25] Right, here I come. Sandy: [00:11:44] And she's tall. She's super tall too. What are you, 6'3, Marissa? Marissa: [00:11:33] 6'3, yes. Sandy: [00:11:34] 6'3 and she wears heals. So she's got a beautiful confidence. But… Marissa: [00:11:39] I just intimidate people into letting me run their company. That's all it is. Sandy: [00:11:44] Exactly. It's having trust and sharing, like opening up our books, opening up our, um, our, our real thoughts. And it's not an overnight process. It's many years and trusting and slow steps of, of giving control and giving insights and allowing, and this is the hardest part, is allowing for difference of opinion. Mistakes allowing for those mistakes and saying, I'm going to, I'm going to let, not just Marissa, but our team, they have a different view than I do… weekly updates, but I'm trusting the team and say, okay, you feel strongly about this. Let's go. And that's worked for us. And, and we might talk about this in the future, but we're getting to that stage of size, where we need a lot more expertise than we have from running the day-to-day business than we have now. We don't need a human resource person sitting in an office or a cubicle all day. But we need human resource expertise, the same thing for IT, the same thing for all the other functionalities, a CFO. And having someone like Marissa it's just so great because I don't feel like I'm in a vacuum doing it alone. And that's something that for people who are looking to do this in the future is to find that internal person or someone new who, whoever to accompany, someone that you trust. But I'm just as excited to grow the business and a sounding board for the headaches and the challenges. So it's actually freeing because we're not alone. Jason: [00:13:22] As an agency owner it's hard to know when you have to make those big decisions. And I remember needing advice for thinking like hiring or firing or re-investing and when can I take distributions without hurting the agency? You know, we're excellent marketers, but when it comes to agency finances like bookkeeping, forecasting, or really organizing our financial data, most of us are really kind of a little lost. And that's why my friend Nate created Agency Dad specifically to solve these exact problems. At Agency Dad, they help agency owners handle the financial part of their agency so they can focus on what they're really good at. Nate has spent years learning the ins and outs of agency business. He understands everything from how to structure your books, to improving the billing process and really managing your financial efficiencies. Agency Dad will show you how to use your financial data to make the key decisions from making your agency more successful and most importantly more profitable. If you want to know how your agency finances stack up to the rest of the industry agency, Agency Dad can tell you how to do that. A lot of my listeners have already gotten their free audit from Agency Dad. And if you haven't yet, go to agencydad.money/freeaudit and get your free financial metrics audit. Also, just for smart agency listeners, find out how to get your first month of bookkeeping or dashboarding and consulting for free. It's time to clean up your agency finances and listen to dad. Go to agencydad.money/freeaudit. Yeah, you know, I, I always tell our mastermind. You know, once you figure out as an owner or leader where the ship is going, then you can bring the right people on and delegate the outcomes rather than delegate the tasks because many people will do them very differently. And the reason why I've always liked to get a number of different, really smart people together is because you see things differently. And I like how you probably did it in stages of, you know, this was not a quick fix. Whenever I tell anybody when you want to get to a point where you have the option to sell or the option to pick and choose to do what you want the agency, that's really when your agency scales, because now you've transitioned from owner to more of a, a leader because the owner does everything. Like, you can't chase chickens as an owner. Uh, well, I mean, I guess you, you chase different kinds of chickens, the pay you collect the checks. Marissa: [00:15:59] I was just going to add in too, I think the fact that even as a small, smaller company and a smaller agency here, you know, having the 30 some people, but even in the years prior, if we were closer to 20, there's always been layers and having that in place with  Dan as CEO, Sandy, as president. We've had other vice presidents as well in there. So there's, there is we're leadership-heavy, but in, in the right way, is that it feels like it's not an agency where you have the CEO and you just have somebody who's replacing that person. And there's no kind of other people around to support that. So I think, you know, for me and I listen, I've again, 13 years, I've been here. It's my entire career. I started at Smith a year after college and it's intimidating at times to even think about running a business when I didn't work really anywhere else before, and this is all I've known. And so it's just, it's so great to know that as I learn more things or take on new responsibilities and, and grow over time that I have others around me who are, who have a lot of them who have been through it just as long or longer than I have, but who are just there to support. And just especially when Sandy's role in having Sandy as a partner, so many things that we do together all the time, it's just doesn't feel as daunting of a thing that potentially take on whatever that looks like in the future when Dan wants to fully, fully go off the pasture and, and, uh, and seeing what's next from there. But it's, it's knowing that you have these true, like partners that you're doing this with, you're not making the decisions solely on your own, and you've got these different opinions and ideas to loop into it. And I mean, that's always been something that we've, we've really just kind of stood by at Smith is that everybody has a voice at the table. So we're always looking at, it's not just the leadership team, but new people who are joining. And what ideas do you have? How can we grow? What, what, what are you bringing in from wherever you worked before? Some of our best ideas and, and most profitable growth opportunities have come from the ideas that have come from those who are newer to the team too. So it's just knowing you're not alone through all of it, makes it a little less daunting. Jason: [00:18:10] Yeah. And I think, you know, I go back to, you know, Sandy, what you said too about now that I don't have to do everything, but I still want to be a part of it, and like how you were saying like a lot of owners that sell or whatever. I was like that. When I sold my agency, for like two weeks I was like, yes, I can go chase my chickens or whatever, right? Um, I can't get this out of my head. This needs to be in the thumbnail. How you can chase chickens and grow your agency. But I was depressed after I sold because I didn't feel like I had that significance. And then I also went through a depression in my agency when I was running it when I actually transitioned from the owner to the CEO, the person really leading the ship. Because I didn't have to do all the other little stuff. I only had to do like five different roles, which were like, you know, setting the vision for the agency, coaching and mentoring leadership team, blah, blah, blah, right? And I always tell my mastermind members and the people that I work with and all the people listening on. I'm like, look, when you get to this point where you can pick and choose the things you want to do, you'll go through a depression. And then you have to realize, you go your role switched and like, you need to hand over the reigns and trust the people that you put in place. And then once you do that, then it's very freeing. But in the very beginning, when you go into a meeting and you're like, hey, can I help? And they're like, no, Jason, I got this. And then you go to the next meeting. They do the same thing and you're like, I'm a piece of shit Sandy: [00:19:47] No, we don't. And that's the goal, but it's when you've been needed and you'd feel at the end of the day, like, wow, I helped, I did this. I need that taken away. That's a big shift for sure. Jason: [00:19:57] Oh yeah. What's the biggest, most important thing you've learned in the business to date that you both have learned? And I'll let you go first, Marissa. Marissa: [00:20:09] Wow. I mean, I really think it's and I'll shout out to, uh, Diane Eichenberg, that's my mom because growing up, she'd always told me to be true to myself. And I almost got a tattoo on myself at one point and did not do that. And she was very happy that I didn't do that, but it sounds so basic and cliche and, but I really, it, over my years, I learned that. I actually, I went through kind of a big personal transition about like seven years ago, six or seven years ago now. And it was this moment where I personally had this like kind of moment where I'm like, I've got to just be true to myself. That was the time that I found that I could really come forward and encourage more transparency and just honesty and open communication about things and sharing my ideas more fluidly. I think that was just such a big, big jump. And then it's, I feel like so much of the company has even changed, not just because of me that way, but I'm saying this as a whole, we've all just moved into this culture of transparency and we definitely had earlier years where there was a lot of walking on eggshells or trying to like kind of scoot around having to have tough conversations sometimes because of people's feelings. I just feel like we are in such a great place now of all of this, knowing that if we're honest with each other, we have those open conversations. We state how we're really feeling about something. It's really making our work easier. It's making everything more productive and more efficient in a lot of ways too. And that's just been kind of, like I said, it sounds so cliche in some ways, but it really has been such a big moment for, or it's a big transition for me and then understanding the company moving that way as well. Sandy: [00:21:50] I agree with you everything Marissa is saying, and I'll take a different turn here and kind of a client service perspective. Something is to just pay attention to the details of what's working and try to replicate that. And what I mean by that is many years ago, when I was working closely with Dan and he was working his 18 hour days, seven days a week, as new agencies owners kind of do, is to really pay attention to the nuggets of what's working and to try to replicate that. And when you read something that Dan wrote about an author, you just want to read this book. It's like, damn, this is really good. It could have been the worst book or not the worst book, but a book that would be not appealing to me in the slightest, but he could write in a way that it's like, wow, I want to see that. Well, how do you capture that spirit and duplicate, replicate that on all our projects? And the same thing for even onboard or communication. And when I first really got into working with Dan, what was exciting for me was finding his brilliance and what he was doing, and then making it happen more consistently across all our clients. You know, for example, we have an author questionnaire that people have to fill out before they start working with us. We have, that wasn't standard when we first started and now we do what we've expanded it. And now our publicist and our team get the right information at the beginning and we don't stop. And the same thing with our communication delivery, where we used to have monthly reports, and then we started having cumulative reports and then we started having standard calls and more sophisticated reporting. Just figuring out what makes one client happy, what makes one publicist efficient, taking that nugget and then replicating that, where it makes sense. I think that is something that we do well. We never rest on our laurels that we, that we're as good as we can be. We want to keep learning and listening to our clients, listening to our publicist, because we want to be ahead of the service that we provide rather than trying to catch up with the trends. And I think that's one way is really listening and then picking out those golden service deliverables and trying to make it standard across where it makes sense. Jason: [00:24:14] I like it. Yeah. You know, I, I think too many of us forget about the things that are working and we are constantly focused on new stuff rather than just going back to the basics. You know, I always joke with people when I was playing tennis in college, like if I was doing bad, my coach would yell out, go back to the basics. You're thinking too hard. Marissa: [00:24:36] Yeah. I mean, we've definitely had, in our industry, there's always something new popping up. Whether it's, you know, Substack and Clubhouse and TikTok and new media. I remember when podcasts first showed up. I mean, that wasn't that long ago when they were really something that was worth paying attention to and adding in for our work. And we're like, oh, what are these podcasts has gotten their basements, you know, doing their podcasts and is this going to be a thing? And, and it was something that we really had to, you know, we have to always kind of pay attention to what are those things that are starting to bubble under the surface and get some attention and how maybe impactful… but not kind of throwing everything resources, time, energy into, oh my God, how do we figure out how to have Clubhouse as part of our campaigns and make sure it's a staple in there and, and, you know, it's okay, well, we can dabble in it a little bit. That's always kind of been, our approach was not running full force into whatever the next trend is, but really settling back into it. We'll say, hey well, traditional media is, is dying in a lot of ways. Certainly certain areas of it are not doing as well as they should when I started 13 years ago here, but there's a lot of other spaces that have, that have been booming with blogging and podcasts and video casts and whatever else it is. So that's always has been something that we, we really tried to not let the trends dictate our, our decisions and our, the direction of our campaigns too much over, over time. Jason: [00:26:01] Love it. And wrapping up, if there was a billboard, what would you guys put on the billboard? And it doesn't have to be work-related whatever it was, what would be on your guys' billboard? Marissa: [00:26:14] Oh, I love that. Well, it's funny. I feel like, I feel like Dan would say we do good things for authors if Dan was on this with us, because that's always been the tagline for so long of Smith. It sounds so basic, but we always say we do good things for authors since there's so many bits around that, but, um, I'll have to go back to my previous one and say, you know, be, be true to yourself, which Diane will get some credit there again. Sandy: [00:26:39] I'll agree with Marissa. You know, one thing we say on our clients service, I think the answer to almost every question we get is it depends. And it's kind of a standard joke because for what we do, there's no one right answer. Whether it's a timeline, the length of service, how much you should be doing. So from a company perspective, I would say it depends because it really depends on you. So that's something from, from the service. But I do want, Jason to, um, chasing chickens and running an agency. I think we might have to do something with that. Jason: [00:27:15] Oh, yeah, you definitely should. Awesome. Well, um, what's the agency website people go and check you guys out. Marissa: [00:27:24] It is smithpublicity.com. Tried to keep it pretty easy. Jason: [00:27:28] Awesome. Well, I think everybody appreciates the easiness because a lot of times people make it very complex and misspell everything because they couldn't figure out the right domain. So we all appreciate the easy names, but, uh, thanks so much everybody for coming on. Uh, it was a lot of fun. I wish you guys tremendous success. And if you guys want to be around other amazing agency owners on a consistent basis where we can help you be able to figure out if you want to chase chickens or not, and really focus on the things that you wanted to be doing, I'd love to invite all of you to go check out the Digital Agency Elite. This is our exclusive mastermind for agency owners and agency leaders that really want to get better and be surrounded by amazing people. So you guys can grow your digital agencies faster. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How to Increase Your Agency's Revenue By Niching Down and Saying No

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Feb 27, 2022 16:28


Are you afraid to niche for your digital agency because you think it means saying no? Are you scared niching down will pigeonhole your agency and limit its potential? Think again! There are so many benefits when you choose to focus your agency services on a specific market. Joe Giovannoli worked for a full-service agency right out of college and decided to replicate that model when it came to building his own business. Like many agency owners, he was hesitant to focus on a specific market. But once his agency, 9Sail decided to niche down to just SEO for law firms and construction, they started to grow quickly. Joe is on the show sharing about niching down twice, life after learning to say no, and the most exciting deal his agency has landed. 3 Golden Nuggets Niching down twice. There is a lot of fear associated with niching down and making the switch to only go after a specific market or provide a specific service. Joe did this twice, once to change their service offering from a full-service agency to an SEO & SEM agency. Then again to focus on two specific industries with law and construction. Both times it was a scary step and he found himself relieved at the results. “We started getting more referrals. We've started getting more qualified leads, and we actually started to establish a name for ourselves in those spaces,” he says. Clients that take you with them. When asked about the most exciting deals they've gotten as an agency, Joe thinks back to the times they get referred by past clients. This is a testament to their work as an agency. Some of former clients have worked at several different companies over the years and each time they get to a new company they call 9Sail to work with them again. “That's the really exciting stuff,” he assures “the deals that we get referred in from a past client, or we get referred in from somebody that's happy.” Life after learning to say no. What is life after learning to say no to being the agency that does everything and choosing a niche where you can be an authority? “The word relaxed comes to mind,” Joe told Jason. For starters, the team feels comfortable learning the space and knowing they're going to use this knowledge time and time. Rather than always needing to learn the nuisances of different industries. Also, niching gives them an opportunity to build their pipeline where they chose the clients that are the right fit for the agency. This results in a more predictable means for growth. Sponsors and Resources E2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design and development agency that has provided white label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Saying No to Trying to Be Everything to Clients & Finding Success After Niching Down Twice {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] Hey, Joe, welcome to the show. I'm excited to have you on. Joe: [00:00:05] Yeah. Thanks. Excited to be here. Jason: [00:00:07] Tell us who you are and what do you do? Joe: [00:00:11] Uh, yeah, so, uh, my name's Joe Giovannoli. I am the founder and CEO of 9Sail. We are a search marketing company for law firms and construction companies. So we work on both the SEO organic side, as well as the paid search side of a marketing strategy that a law firm or construction company might have. Our goal is basically lead generation for those, those companies. Jason: [00:00:35] Awesome. And, uh, tell me a little bit about you and how you got started in the agency. Joe: [00:00:40] Yeah. So I actually, uh, had started a company while I was in college. Uh, that was a social media marketing agency. And then coming out of college, I decided to work for a full-service marketing firm, you know, really just to get more experience. I did sales and, you know, moved from there to another agency and realize that, you know, I love this agency world. I love the pace of it. I loved working with different clients and speaking with different business owners and, and marketing leaders. And I decided to start my own thing. So kind of fell into the industries that we are, that we're in now, you know, law firms and construction companies were just two really interesting spaces for us to be in. And we identified some opportunity in the market so we went for it. Jason: [00:01:24] Awesome. Joe: [00:01:25] Yeah. We didn't set out to be just an SEO and SEM company. We were a full-service agency cause that's what I, only thing I knew and frankly, I didn't know that I could break off services at the time when I started the company. So we've been an SEO and SEM company for the last five years. Jason: [00:01:43] What made you kind of drill down? Like what was the turning point or what was the aha moment? Joe: [00:01:50] Yeah, there was a lot to that. I mean, really being a full-service agency, unless you have, you know, teams of people specializing in each thing, it's very difficult to be an expert. So we had one of those situations and I always refer to the book by John Warrillow 'Built to Sell'. We had one of those moments where, you know, we had what we call fires all over the place. We had, you know, projects that were behind because a client was behind or, you know, somebody wasn't happy with the design or they had approved a design and then somebody, you know, told them, oh, you should try this. And then they want to changes. And, uh, meanwhile, some of our SEO clients are just reaching out on a weekly basis saying, hey, we just closed this great deal or, hey, we, you know, we settled the case that made us, you know, $50,000, you know, this is great, thanks so much. And we realized, you know, what? Light bulb. We need to specialize because we're really good at this and we can only get better with, with time and with practice and with process. So we said, you know what, let's cut the bait and really focus on what we know. Jason: [00:02:47] Yeah, you know, it takes a while to get there. You know, I was talking to, um, a mastermind member this week and when they joined, they were around the 500,000 mark and now they're around the 2 million mark. And I told them when you're going through this process, things will change. And a lot of times as things change, you have to make things simpler. And I was talking to a member and telling them how they had needed to drill down and say no to more things and really start eliminating some of the stuff that's not profitable or some of the stuff that's not streamlined that they do really well. And, um, I'm excited to see where they, they can go cause when agency owners figure that out, that's when they have substantial growth and then they run into all new issues. Joe: [00:03:38] Yeah. Honestly, that's like the launchpad, right? Is, you know, as soon as we recognize that and listen, we turn down more work than we take on a regular basis. And I have a couple of SEO agency partners that I have just grown to like and build relationships with. I say to a prospect, hey, it's not for me, but here's two names that I recommend that you reach out to. I can make personal intros for you if you'd like, but we know what our wheelhouse is. And the second that we start to stray from it we're not doing our people any favors internally because they can't see themselves as experts anymore because they're working on 20 different industries. And you know, we're not doing our clients any favors because we're in a way trying to reinvent the wheel over and over again, learning things that maybe another agency could do better than, than we can. Jason: [00:04:24] Yeah. What's the biggest deal or the most exciting deal that you guys have won? Joe: [00:04:31] That's an interesting question. So for us, we get just as excited over the small boutique law firms that we work with as we do when we get a big law firm. So one of our clients who was a very, I would say older law it was much older law firm in New Jersey, they just rebranded because one of the partners became a named partner. And so we are helping them through the transition of changing the name online from one to another. And, uh, you know, that has been super exciting. We've been fortunate to work with the chief culture officer there. She's now the chief culture officer. She's been at a couple of different law firms and, uh, we've had the opportunity to work with her pretty much everywhere she's went for the last five years. And, uh, that was really exciting. The deals that we get referred in from a past client, or we get referred in from somebody that's happy. That's the exciting stuff that we, we love working on. Jason: [00:05:37] Are you looking for a reliable partner to increase your agency's bandwidth so you can take on more projects? You know, our partner at E2M wants to help you grow your revenue, your profit margins without increasing your overhead costs. Now, they're a white label, web design and development agency that's been providing white label services for the past 10 years to agencies all over the world. Their team is over 120 experienced, skilled digital experts that's highly motivated to help you get more done in less time. Now they can help you in all kinds of digital areas, including web design, development, e-commerce, SEO, copywriting, content marketing, and a lot more. If you're not sure whether E2M is the right fit for your agency, I want you to check out their flexible and transparent pricing model. Go to  e2msolutions.com/smartagency. For a limited time, they're offering my smart agency listeners 10% off for the first three months of service. That's e2msolutions.com/smartagency. Yeah. You know, that just tells you, you do good work when, uh, you know, I used to, we would work with some of the biggest brands and then we would get, I remember this one time we got in bed with Aflac and we were real excited. We were like, we can do all kinds of really cool things with this duck. And the CMO got fired. And I was like, no! Like we were so close, but then that CMO got hired at another big firm or a big company and then they brought us in. It's always exciting when you get referrals or they take you along on the journey. I'm curious, what's been one of the biggest challenges that you guys overcame in the past couple years, that really made a difference for you guys? Joe: [00:07:30] Yeah, you know. You kind of touched on it earlier and it goes back to saying no. I had a real challenge ahead of me when I realized that we did have to say no to things, because for me revenue and dollars where ways to grow the company and kind of grow the talent on the team and, and add to the team. And so I really struggled for a long time to say no. And we had somebody come to us that knew of us and had been referred to us and essentially said, hey guys, we're willing to offer you pretty much three times what any of one client would typically pay us to kind of take over our search presence and know online presence. And it was so not a fit for anything that we had ever done and some back and forth conversation happened and we said, no. And that was a big thing for me because I am a helper. I like to help people. I like to be the guy to not say no. And I learned, and I realized that I could say no, but I could offer them a solution, right? And, and I think that, that for me was the way that, that we got over that. But I think that that's been the biggest thing that we've overcome. We have challenges today that we still face that we're still working through. And those will probably be the answer to that question in the future when we can solve them. But, you know, I think all in all our biggest thing was saying no. And I think we do that really well now. Jason: [00:08:56] Yeah. One of our mastermind members, Chris, when he learned to say no and he did something very similar to you. He had a bunch of strategic partners that were in the same space and he really scaled his digital agency by going to those partners and saying, hey, here's a perfect lead for you. Because he had such a high criteria for his clients, and they were still really good leads, but they would pass them to other people that do the exact same thing. And then they would replicate back and forth and really what became one relationship became a many relationships. It was when they started doing that, their digital agency scaled really quick and they really grew their agency fast. So what's life like now that you've learned to say no? Like what does your daily routine look like? Joe: [00:09:51] So we have our team kind of siloed out, you know, they work on, you know, I have, uh, somebody that's, their entire workload is law firms. I have actually two people that are in that way. I have one person that's just specifically focused on the contractors and construction companies. So it's been a lot calmer and what I've found too and, and we've been seeing a lot of success with this is that, you know, our clients don't compete with one another. That's another thing is we don't take clients on that directly compete in the same market. So we will get a, a backlink opportunity and we'll be able to leverage that relationship for a couple of different clients over the course of time, because a different, you know, it may be a good place for a blog article, like a guest blog or something of that nature. So for us, I think the word relaxed would come to mind because I think that the team can feel comfortable, you know, learning a space and, and knowing that they're going to use this time and time again, rather than kind of playing ping pong between different industries. But, you know, for myself personally, it's been great because growth is kind of predictable, right? Is if I say, you know, hey, I really want to add two new clients a month and you know, I want to grow at that scale for the next year and we want to make sure that we're getting the right size clients. For me to say no to a bunch of things isn't a big deal because I know that I'm building a pipeline and I'm referring things out to people, but I'm getting the people that I want, right? And in a way, now we're interviewing prospects to see if they're a fit for us, rather than, you know, scraping to grab everything and every dollar that comes our way. Jason: [00:11:23] I love it. Well, this has all been amazing. Is there anything I didn't ask you that you think would benefit the audience? Joe: [00:11:29] No, not really. Other than I would say, you know, again, we talked a lot about, you know, our niche and our niche and, or however you want to say it. And, uh, I think that it really is something that people fear. I've talked to so many entrepreneurs that they fear that switch, right? That change of like, oh, well, we're going to only go after this or we're only going to provide this specific service. And we did that twice. We did that with the service, changing our service offering, and then we did it again by picking a specific set of clients. And both times it was the most nerve-wracking yet rewarding thing in literally six months. Like it went from being like a, oh my God, I can't believe we did this to and like, are we doing the right thing? To wow. We opened the flood gates. We told people, this is what we specialize in. We started getting more referrals. We've started getting more qualified leads, and we actually started to establish a name for ourselves in those spaces. And we are no longer trying to be everything to everybody. We're just trying to be everything to somebody, right? And we are trying to be that go-to person for search marketing in these two spaces. Especially in the legal space, in and around the New Jersey, New York market people know our name, they, we are part of that conference, Jason: [00:12:40] Yeah. I love that when I see digital agencies really do that, then they can say, well, it really steamrolls a whole, whole thing in order to scale the agency, because now you can be selective of who you take on, you can raise your prices to whatever you want, based on the value and their expectations. You know, we were talking about this in the mastermind. I was asking people like, well, when do you guys raise your pricing? And some people are like, well, once a year, but we only do that for new people coming in and we were talking about strategy. We were like, look, you should all set up tiers and saying, the next five clients are at this price. The next five clients is this price. And then once we get to this level, then we're going to go back to all our existing ones and raise it. And just little small changes like that can grow profitability because everyone focuses on top-line revenue and that's, I think bullshit. I think it's all-around profitability because when we come in and we buy an agency, we're looking at profitability. I don't care if you're a 10 million, $20 million agency. If you don't have any profit, you're not worth anything. Joe: [00:13:47] Right. Yeah. Well, it's funny you say that. So we operate a little differently than that model, but I think in the same vein. So we have set three, five, and 10-year targets as to what our average client is going to be worth. And again, to your point, we look at both top-line revenue, but a profit, right? So we have it worked out where we know if they're at a top-line revenue at this all of our expenses are completely baked out. We know what our profit's going to be. So we've set those targets and essentially we know now that very similar to how, cause we also run traction, very similar to how you set quarterly rocks. We set quarterly expectations as to what our clients need to be paying at that point in order to make sure that the average of all of the clients that we have equals out to that number. So, you know, we're really excited for that. And it is something that the entire team kind of grabs onto because they also know that the higher the dollar figure that the client is paying, the less clients that they're managing and the more detailed they can get with their clients, right? So, and we try to explain this to our small law firms all the time is that, you know, you're taking the right step by doing the work that we're doing and working with us. But the reality is if you were paying four times this, right? You're going to have somebody that pretty much read a 50% of their time is going to be dedicated to just your stuff and think about all of the things that they could accomplish for your brand if they were solely focused on you. Jason: [00:15:09] I love it. Joe: [00:15:09] It's selling that vision. Jason: [00:15:11] Yeah. Tell us what's the website people go and check you guys out. Joe: [00:15:15] Yeah. So, uh, our company is 9sail.com. So it's the number nine, sail, like a sailboat, S A I L. Check us out. We're in the process of redoing that site again, you know, we're going to be expanding some of our SEO services to granularize some of the things that we do really well. Digital PR is a, is on the horizon for us, something that we're going to be breaking down because it is pretty much the same thing as the backlinking that we do just, you know, on a, on a larger scale. So we are super, super excited about it, but yeah, check us out at 9sail.com. Jason: [00:15:46] Awesome. Well, thanks so much for coming on the show. You rocked it. Everyone go check out their website, reach out to them if you need it. And if you guys want to be around amazing agency owners on a consistent basis where you can scale your digital agency faster and see what's working and really have 60 plus trusted advisors to really help you out. I'd love to invite you all to go to digitalagencyelite.com. And go check it out, and if it's right, we'll have a conversation and let you know. So go to digitalagencyelite.com and until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Why Your Agency Needs to Embrace Automation and Artificial Intelligence

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Feb 23, 2022 26:16


Do you struggle to embrace automation in your agency's operations? Jordan Bell was already an ads expert that taught the ins and outs of creating successful ads when he started his agency Agency Bell, where he applied his knowledge to offer direct response ad mastery with AI-powered automation and retainer-level audience insights for law firms. In his interview with Jason, he talks about why it was difficult to embrace automation which ultimately became a game-changer for his agency. He also chats about the importance of really understanding what you're doing and not fully relying on technology as the ultimate solution, and why it takes a solid structure, more than just new technology, to get your agency through difficult times. 3 Golden Nuggets Embracing automation. Jordan was the guy when it came to ads. He could calculate the exact bid that we would need at a common conversion rate in like a specific keyword or targeting group. It was all manual. This is why it was very hard for him to embrace automation. In the end, it wasn't about getting into machine automation, but actually turning it into a competitive advantage for them, which became a massive milestone for his agency. Can you find your way through a problem? We all need to get back to the basics at some point to remember what's important. As Jordan puts it, you should learn to fly a plane before turning on automated navigation. “There's so much technology available to us that it often becomes the solution in people's minds,” he says. They forget that, in order to be reliable, efficient and successful you should be able to understand what you're doing in the context of what we're trying to achieve or the larger vision and goals. At the end of the day, regardless of what task management program you use, can you write down what outcomes you need to be able to achieve when you know, you've got like 20 or 30 tasks due that week? A solid structure to get you through. These have been difficult times where many have had to learn to adapt to new circumstances. There are solid frameworks that protect any kind of business and Jordan has learned that it's not about getting to the new tech. It's more about the management side of running a business, being in charge of the outcomes, having a vision for the future of the business, designing the lifestyle. These years taught him to really consider what work he should be doing versus not doing in the business as an agency owner. Sponsors and Resources Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Using Automation as a Competitive Advantage & Really Understand the Context of What You're Trying to Achieve {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] Hey, Jordan, welcome to the show. Jordan: [00:00:04] Hey, thank you. Jason: [00:00:05] You know, the funny thing is, is whenever we record these shows, it's like we have chatted before, which we've been chatting for like 10 minutes, but I guess we have to do that for you listeners out here, making it believe this is the first time we're chatting. But, um, tell us who you are and what do you do? Jordan: [00:00:20] Yeah. So my name is Jordan Bell. I run a digital ad agency called Agency Bell. I've been doing it for about five years, but my experience in advertising and agency-type services is about over a decade or so. I'm a builder type of agency owner. I kind of classify them as like, kind of like the builders and engineers, the service people, the sales focus ones. I'm a true builder and a service type of person. So I built the agency really from a service perspective as a guy who was cutting his teeth in Google ads on large accounts for a long time. And getting really involved in the technology side of it and really enjoying the customized integrations. And so, you know, I ran an agency or I helped run an agency as a junior partner for a little while after my last corporate role, seven years ago or something and, um, after that I was teaching digital marketing courses, advertising courses at coding academies and stuff, and a couple of colleges and a while also consulting and taking on like really not really like, um, you know, corporate, not a lot of corporate projects. I had a couple like Fortune 500 ones, but, um, a lot of like, uh, hit the hammer, strike the from hammer to anvil, get the outcome type of in the trenches types of roles. I always enjoyed that. And, um, the consulting gigs came from teaching adults in CMOs. Good to go digital, stuff like that. And then eventually the consultancy, it just kind of became more and more until it became time to start an agency again. I'm an individual agency owner, right? My wife and I work on it together, but I'm a primary principal on it and we haven't had done it before. We'd like, you know, partners or multiple people, which is, uh, its own a wild ride of challenges and volatility in the past. But today, after working on a lot of different industries, we're currently focused primarily on large-scale law firm projects. So, um, think like, you know, multimillion-dollar annual budgets for plaintiff driven. So you've got your mass like product liability, lemon law, um, motor vehicle accidents, those kinds of things. We work with a lot of investors, so we're usually like one of the three or four people at partner like, uh, companies at the table. You've got the large-scale investment companies that are investing in plaintiff operations for law firms. And then the law firms who are the subject matter experts and sometimes they're have their own large scale budgets. And through that, it's sort of given us a nice corner where we can really build out larger-scale programs that are really fully integrated into their CRMs. So the way I like to think about it is that there's a lot of lead generators out there, and we like to train the ad systems to optimize towards people who are more likely to take the desired final action, which with your thinking about e-commerce it's like optimizing to the conversion pixel, right? But in the lead generation world, you're optimizing to a person who is more likely to sign a contract retainer, or like, if it was like a car dealership, it'd be like a person who's likely to buy the car at the end. So that created a big, a massive burden of technology because you have to protect data pipelines because if you don't have perfect data flowing between a firmer, a company, that's actually, um, doing things inside their CRM, it can destroy the campaigns quickly. So it created a data requirement for ad data and CRM data, and automation where power's out to your users and a bunch of other fun technology because people contact our clients through chat and form and phone, and there's different levels of engagement in the pipeline. So it really encompasses all of like, what I know from my background is an MBA, business modeling with them and their own operations as companies, as clients. And so it goes far beyond like the advertising stuff and it lets us stay up to date on the new tech that's, that's out and really weaponizing that. So it's a massively difficult thing to do, and it takes a while to onboard people in our team, but it's a lot of fun and I enjoy it. I'm where I want to be. So… Jason: [00:04:08] That's awesome. Tell us about what's a big milestone that you've achieved since starting the agency that you're really proud of with running your digital agency? Jordan: [00:04:21] Yeah, it used to be like I was for a while the guy that somebody knew that was really good at ads and it didn't involve automated bidding inside like Google ads, Bing, Facebook. It involved a lot of manual work. I used to like calculate the exact bid that we would need at a common conversion rate in like a specific keyword or a targeting group, and like be able to pinpoint and say, okay, I needed a negative 20% bid modifier. It was all manual. I mean, it was good. We'd calculate it. But I was teaching people to really go in there and move all the levers and switching over to automation and machine learning was, I was extremely stubborn about like, not wanting to like take my hands off the levers. It'd be like, I don't want the computer to fly the plane. I want to fly it myself. You've got to feel it differently, right? And that journey, I'm a risk-taker in some ways, but risk-averse and others and trusting automation systems to think big picture strategically like a person who's looking at many different factors, not just the ad system, which itself is a rocket ship, but looking at many different factors before making a decision inside an ad program, when you're dealing with multi-million dollar budgets. That is one extremely hard to teach in collectively with, um, as we bring on team people internally, and we have a small team for that because of this. But also it's like what logic rules inside ad systems are going to account for that. They don't make the technology that is designed specifically to solve the kinds of problems that we're trying to solve that would make it like we could not set it and forget it, but there's so much ad tech out there that is like, oh, you won't have to do as much. It'll tell you exactly what to do. And yet no program was able to give us those exact winning solutions or even close. And so learning, not whether to go into machine learning and automation, but actually how to make it our competitive advantage the way we used it was a massive milestone for us. The reason, the way that we had to do that was we had to think about how to make sure that all the data that we wanted from disparate sources were not available from these static reports that would take hours to put together. I used to hand-piece together all these like reports, but they had to be available in seconds, completely dynamic, so I could, we could change date ranges and filters and stuff. Google systems didn't even have, like, not all the views that are possible are actually available. And their own tools aren't even flexible enough for it. So we had to be able to recreate things like dynamic reports that are based in sheets that pull data from APIs. We had to create audit systems and the audit systems are like, cause we use this thing called offline conversions where, where a CRM action happens and then a person has a unique click in the URL. And then we follow that, we connect it to the person and it, and it kind of, um, in updates, Google. That person, they get, I call it a superhero Cape when one of 20 leads gets a superhero cape, and that's the person you want more of. And then you have to immediately send that to Google. But that data pipeline is extremely fragile because there's so many things that can break that connection. And so learning how to audit that in workflow, we're dealing with thousands of leads per week, it could become doing it manually is, is an impossible job. I was up to like three or four in the morning, every night, just trying to manually like hand stitch these things together, and then eventually learning how to build operational workflows like that was a massive challenge. But when we finally like wrapped our heads around it and got through like these 40 step, like Zap(ier) automations, that was a huge milestone. In the biggest account that we have we finally just did a workflow where we had to treat it like an e-commerce setup and where like multiple conversions could come from one lead, like multiple cases. And that was extremely difficult because if, if not to go too into the weeds, but if you mess that up, you can't undo the damage to the account. And so building that entire thing to protect that meant that as soon as we committed to the machine learning aspect of our agency, it put a huge burden of things that we had to accomplish in order just to be successful. When you raise the bar that high, you have to be able to get over it, or you have to go back and lower the bar. And so that was really big for us. Jason: [00:08:28] Yeah. So, I mean, that's amazing how you're, you're trusting machine learning and AI in order to do things that used to do manually. So what's life like now that you've turned over that stuff, like, what are you able to focus on now? Jordan: [00:08:45] Building the system better. We couldn't focus on things before. Like we couldn't take like this satellite image view in seconds of anything in the campaign we want to see you. So if I want to look at the income, like income or age range inside a particular ad group or geographic location and instantly get statistically significant data on a specific, customized low conversion action, like assigned retainer up to the minute basically that they're doing it. We didn't have that ability before. To be able to say in 10 seconds we can get to that information and get a stat that's relevant. It changed the way that we could optimize campaigns with the level of granularity that we could get to so that rather than 10 different decisions that could be made, we can isolate down to the two or three where at least two of them are highly likely to work. We're creating the science in the advertising world, where there were so much more of the, there is a, there's a data science obviously to advertising that a lot of people don't realize until they really get into it and look at the data. But our decisions are far more likely to deliver the expected outcome. And when we're dealing with return on investment for like large scale investors that becomes a competitive advantage for us because we become the company and they don't want to work with anybody else. So our retention is incredible at that point. We're talking about years not months when with our retention. Jason: [00:10:12] Are you looking for a content creation solution for your agency and/or clients? Verblio can help you with everything from blog posts, eBooks, to video scripts, and a lot more. Verblio is a crowdsource solution to content creation with the pool of more than 3000 highly-vetted writers who produce custom SEO-rich content. In fact, my team has been using Verblio and we love the ease of their process. With Verblio, we set the criteria for the style and the tone, and then they match you with the writers that have the expertise in your subject matter. Verblio is a platform specifically designed for agency, and that's why for a limited time, they're offering my listeners 50% off the first month of content. Just go to verblio.com/smartagency to learn more. That's Verblio, V E R B L I O.com/smartagency. Now, how did you guys go about finding the right solution? You know, because there's lots of tools out there that say they do machine learning and AI. And there's always a fuzzy thing between each and then people were like, well, if you do this, then why can't the customer or the client go directly there and just bypass the agency? So talk a little bit about that. Jordan: [00:11:34] Yeah, great question. When I used to teach one of the first lessons that we did in the marketing course was about how I would call it like the ninja digital marketer will have a set of skills. Like they'll be a creative thinker, they'll be kind of like a data and analytical thinker, and then they'll be a strategist as well. And all the kind of technology and the programs that we're using and the way that we bring them together, which is always cool, people are often surprised that I don't make a decision on technology and workflows until far later in the game than most others will. And the reason is because we're trying to pick a decision that's not, that we're not going to have to iterate on and change a bunch of stuff the next day or the next week. We're trying to make a decision that accounts for all the factors or as many of them as we can reasonably do while allowing for variability afterwards and allowing us to have the flexibility. So when we do things like pulling data from like the tracking URL, we pull everything because we don't know that we're whether we're going to need it yet. And oftentimes that's how we're able to like sort of save the day on scenarios because we pulled it, not knowing when we'd need it, but having it anyway. And so one of the reasons why it's difficult for companies to execute on this is because in order for them to do this properly, they, well properly in the sense of like what we're trying to achieve here, they have to be able to tap into a series of strategic decisions that come from first off knowledge of the market and what you can do to understanding how machine learning is working in how the system is looking at signals and having outcomes from that. We have to be able to predict based on experience and like vast amounts of data. The difference between asking a single qualifying question that's slightly different in its wording and what the user experience of the person is going to be like who's just did a search, which there's search psychology in there. And then following that process through what kind of data does it produce and how did the ad systems learn from it as the law firm or any other is changing things in their CRM? There's a long pattern of factors before you can make really effective decisions. And it's, unfortunately, it creates kind of a tight rope because digital can be pretty unforgiving in a lot of ways, but it's what makes the work interesting because you can no longer just look at ad data and say, oh yeah, just make this next move. You know, it doesn't work that way. It's a, it's a worthy challenge. But I also like to make it accessible though, you know, we get on a call, like, do you want to teach the firms how to think about this stuff because there'll be a better partner. They'll appreciate the fact that we're confident that nothing that we're doing yet or how we packaged it as proprietary. It's just really difficult to do and it's really great for big outcomes and sustainable. So like we have $200 click keywords in some accounts and that usually produces high click fraud rate, and we have one of the lowest click fraud rates I've ever seen on that on our most expensive account, because we've trained Google to avoid lawyer and marketer clicks that destroys budgets. So you, it's very hard without all the pieces together you actually can't really do it very easily on your own. And that's why it's fun, but it's also, there's also, it's pretty high stakes at that point. Jason: [00:14:34] I remember back in the day when I was first advertising on Overture, so this was before Google and yeah, there's a bunch of click fraud because I know people, you just see the competitor and you'd go back and forth and be like, ooh, I charged this guy a dollar. Jordan: [00:14:51] Yeah, we have click fraud software but it doesn't really, it eats like it's a whack-a-mole game, right? And the bigger, the ratio of people you don't want clicking to the ones you do it can really mess up campaigns. It's hard. We won't even start some kinds of campaigns without a runway budget and without like certain factors in their tech and their operations being okay because that's our story. If there are things that we can't reasonably control and they're not the right fit, then that becomes our story at that point. And most of the business was built off like our and my reputation because we drive to success, you know, we aim for that outcome. And that was a level of commitment that it's very exhausting at times, but you know how it is. And you don't always know if it's a click, it's like, how does one person who types in the same keyword, how do you know the difference? You know, what's happening. You just don't know where it is. Jason: [00:15:39] Let's switch focus a little bit, because a little while ago, we were talking about some things that you were doing that's really helping you guys out and kind of going back to the basics. Talk a little bit about that, cause I know your agency is doing really well. You guys are growing and scaling the agency fast, but why would you go back to the basics? Because a lot of people were like, oh, you're advanced. And we're talking about very advanced stuff right now that machine learning all that. So why go back to the base? Jordan: [00:16:09] Yeah. I've heard some good things from people that better explain it than I do. So I'm going to borrow one from a person who said this to me recently, is that show me, you can do long division before you get a calculator, right? Or I've always described it as like, show me, you can fly the plane before you get your like computer navigation, like on, you know, within like a 747 or a fighter jet. Like what are the stories that are, that are amazing about crash landings with planes? Is that the pilot was able to land the plane in a river, right? And what computer is going to do that at that point? Is, is a team's ability it can fail fast when the plug is bolt, can you get a candle in the dark and find your way through a problem, or like have a get out of the woods with the stars, right? And I've found that that is so important, especially in like comprehension of the material, because it's so much technology that's available to us that it often becomes the solution in people's minds. And they forget that in order to be the most successful, the most efficient, the most reliable and achieve results when we set the bar high is we have to be able to understand what we're doing in the context of what we're trying to achieve or our larger vision and goals. You know, to talk about it as if you don't need the technology, but you can operate faster with it and you can be more efficient with it and get to better places, because then you're talking about, then you're living it. It's authentic. You know, I'm not a great salesperson on the phone. I'm really not, I don't say all the right things, but I close the deals because for me it's authentic. I believe in it. I understand how it works and that interestingly in the success and challenges of the, of the agency that we've had in, in my own. When we won it was because we understood it without technology and process and in any kind of, and you know, frameworks have been awesome, but like we've been looking at a lot of things like whether like agile adaptive would help us, you know, like EOS, OKRs all those kinds of things are, are, are really coming to the forefront now. At the end of the day, can you, regardless of what task management program that you have, can you throw things off the desk and then write down what outcomes you need to be able to achieve when you know, you've got like 20 or 30 tasks due that week? Can you say, this is why they're important, what they're going to achieve, its current place within the scope of the work, because then no matter what you have, you can prioritize, you can do what matters and that every time we get away from that we struggle. So I make the technology decisions and the operational policies and the workflows, all that kind of stuff is one of the last things that we do to get it right. But we have to have that comprehension in the beginning and the ability to operate in the dark with a candle in a piece of paper. Jason: [00:18:46] Yeah. That's awesome. Yeah. I always tell everybody every quarter you should look at going back to the basics. You know, I always use the story when, when I was playing college tennis and I was losing to a guy I should not have been losing to. And my tennis coach go back to the basics, Swenk! Go back to the basics dummy! And as soon as I stopped overthinking about my backswing or my follow through, I was like, all right, I'm gonna just look at the ball and hit it. And it started working. Jordan: [00:19:16] Yeah, that's great. I mean, I'm a, I'm a musician so this is kind of like someone playing, doing their scales or doing the rudiments on a, on a drum or something like that, right? Like there's a reason those are important because it's got, those have to be second nature to build things on top of it. And it's why, you know, whether it's in an ad campaign, right? We, we're looking at all like the data and the tech and like all the suggestions that has, but we're lost. Why are we lost? At the end of the day what do we have to do? We have to say, what is the business problem we're solving? Who are we reaching? Well, how would we describe them? Demographically, behaviorally, like when something is stopping in their newsfeed. Like, what would we say to them that would make them go, yeah, oh, I'm going to stop doing this thing that I really want to do to, to look at an ad that I didn't ask for. What's in it for me? Why do I care? Like, and there's going into user experiences on at that point. User experience, design and copywriting, and really good targeting theory is timeless. It really is. It's the same skills we use to decide whether what we should write on a direct mail piece and where we should send it and what kind of things to put on billboards. That skill is so still important. The best copywriting books are ancient, and yet we apply them differently today just based on the technology. And I'm a big believer in the, in the traditional foundations there. If someone can, she can talk me through that strategy. I can teach him how to use it. That's no problem. But teaching the basics and teaching the foundations, that's the challenge. Jason: [00:20:40] Yeah. Many years ago, when, when I started helping agency owners and I was developing the playbook, I really thought about that of like, what are the foundational systems that you need that will stand the test of time that are the basics that you go back and forth. Like we were talking, pre-show like, you know, how do we make sure we have that clarity? And then we get the positioning and then the offering, and then we can start prospecting and doing sales. Like there's systematic things that you need to do that will always stand the test of time and you just got to think about what is that for your business and constantly going, are we making it simple? Are we on the right plan? And then, you know, adjust rather than just see the shiny red object and where the cat trying to swat it down. Jordan this all been amazing. Is there anything I didn't ask you that you think would benefit the audience? Jordan: [00:21:35] The one thing I've been thinking a lot about is how like the systems, right? So like the agency playbook kind of systems, right? Like one of the things that has really kind of helped and, and maybe kind of almost like saved us from like the peaks and valley, like the, the days of where it's like, can we, is this gonna work tomorrow? Did we set our sights too high, right? You know, I got married last year, we had a child, I started law school, like I was back to the 16 hour day. Like it was hard, like life was coming and also were, we were both work from home parents. So that whole psychological challenge that happens, like there's research about how people are getting like really beaten up their mental health is hard, is tough right now. And one of the things that really has stood out to me is that it wasn't about getting to the new tech. And it wasn't even about something that would like, it would just be for agencies for anyone that's kind of like manager, running a business, you know, major responsibilities like that, who is in charge of outcomes. It was really focusing on the vision, the designing the lifestyle, like what work I should be doing versus not doing, and then backing up from those outcomes, which I, I used to talk about all the time, but I wasn't taking those daily steps. I worked with a CEO coach and I found that some of those just involved setting the vision for myself as an agency owner. Now, it's now as we're kind of running the agency together as, uh, you know, with a child at home is that we, we have to look at our life and our daily schedules and our vision and how that contributes and how we work together as a team. And so everyone's got their own version of this in the pandemic era where then maybe they're in an office or not, maybe, you know, but everything is a little bit more difficult these days and it's changing constantly. And the thing you just talked about with the going back to basics, there are solid frameworks that protect any kind of business. And it doesn't mean that you have to use, like, I've always finally, it doesn't mean you have to use one specific method. It doesn't, no one method solves everything. It's the application of it. And I could not see it more clearly now how there were things that we did not have in place in every department like that. Uh, you know, just the planning element, the vision and mission, the OKR style, like KPIs, like the qualitative and quantitative outcome, and making sure that we are locking onto that. I mean, we've had times where people, we had people working two jobs and we didn't know about it until like two full-time jobs, because that's what happened in advertising in the pandemic air, right? And engineering and stuff like that. And so we had, like, we learned a lot of hard lessons that way, but if we started with those things and then build operational structures in which the outcome was still those things and we held accountability systems in place to that, that's the only thing that we feel now stands the test of time. Because everything else is just which workflow we're using, which project management system it's, I'm, I'm agnostic to those things. They're all, they all kind of work the same way. But I've only really become safe and scalable from those basics and those frameworks and the things that we found worked for us. And then we, we made those, our bottom line. Like those are non-negotiables. And from there, honestly, like I feel like even still, I'm getting back to waves of peace, again, knowing that there's a big uphill battle to achieve the goals, but it's not scary anymore. That's really the biggest thing that I, that I think even just from going into the new year that, that we found. Jason: [00:24:57] That's awesome. Well, it's been great to have you on the show. It's been also great to get to know you over the past years of being in the mastermind and watching your guys grow. And watching you constantly take one tackle and then get up and then tackle the next one because running an agency's tough and you're always going to get beat down, but it's about like moving forward and moving forward in the right way and be able to just kind of sidetrack some of the things coming at ya. What's the agency website, people go and check you guys out? Jordan: [00:25:32] Sure, agencybell.com Jason: [00:25:34] Really hard. Very easy. If you guys can't remember that you guys got issues, but uh, check out Jordan's, uh, agency website and, uh, thanks so much Jordan for coming on the show. And if you guys enjoyed this episode, make sure you subscribe comment and if you want to be around other amazing agency owners like Jordan, where you can ask us any questions that you're struggling with. And we might be able to see the things a little bit differently so you guys can grow and scale your digital agency faster, go to digitalagencyelite.com and apply. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How the Right Strategic Relationship Sets Up a Smooth Agency Acquisition

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Feb 20, 2022 24:10


Do you want to sell your agency in the future? What strategic relationships can help you grow and possibly sell your agency? Roy Chong was working in the music industry for many years before deciding to make a drastic change and start over in digital marketing. Now with Noodle Wave Media he helps companies in the healthcare space thrive by developing meaningful strategies and tactics that move their marketing efforts towards success. In this interview with Jason, Roy discusses the most important decisions he made for his business, how he always envisioned a strategic partnership for the future of his agency, and why you should always take your passion wherever you go. 3 Golden Nuggets The most important decisions for his business. Roy never really saw a reason to rent an office space he could not afford at the time, so very early on he invested in having a remote working model with a team that could work from anywhere in the country. It shaped the way his agency works and its culture because he acknowledges that not everyone likes or can work remotely. Finding those types of people that shared this vision really helped build their culture. The second biggest decision was niching down to focus on the healthcare vertical, where the agency really found its footing and scaled to the point where he could sell the agency. Making the decision to sell. Roy always envisioned a strategic partnership for his agency. He knew it was in his future but just needed to figure out how it would work and what would be the right time to pursue it. Jason helped him by pointing out some things he needed to work on, which provided some time to add another layer of value for clients. He also had time to consider what he didn't want to lose with the deal, and the type of relationship he expected from this partnership. All of this ultimately led him back to Jason and to the partnership that would enable him to still be in charge of day-to-day operations. Taking your passion wherever you go. If you ever have to start again from scratch remember to take your passion with you. Passion is commonly depicted as what we do, “that isn't necessarily true,” Roy says, “It's who you are.” At one point in his career, he made the transition from the music industry to digital marketing. There is seemingly no correlation between both, but Roy argues what made the difference and helped him succeed in a new industry was taking a passion for helping people with him. Sponsors and Resources E2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design and development agency that has provided white label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Finding a Strategic Relationship That Fits Your Agency Growth Goals {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] Hey, Roy, welcome to the show. Roy: [00:00:04] Hey! Thanks, Jason. Thanks for having me. Jason: [00:00:06] I'm excited to have you on the show. So, uh, for the ones that have not heard of you yet, tell us who you are and what do you do? Roy: [00:00:13] Yeah, so I'm the CEO and founder of Noodle Wave Media. We're a full-stack digital marketing agency focused on the healthcare vertical. I've been doing that for 11 years. Prior to that, I was in the music industry as a music producer, and I've got kind of that entrepreneurial spirit so I flipped a couple of the businesses along the way. Father of two amazing boys and a passionate creative and marketer. Jason: [00:00:44] And how did you get started and how long ago did you start your agency? Roy: [00:00:49] Yeah, so I started it probably in 2000, around 2010. I had just kind of rotated out of the music industry and I'd spent 10 years there writing music for artists and I got signed to a production deal in New York and I was running the artists for my idols, and then I did a stint in Korea. And then I decided, you know what, I'm kind of done with this it's time to start something new. And I realized at that time I'd been in the content game for 10 years. I thought, boy, combine that with using ability to create content and find a thread that resonates with people and tie that to helping small businesses, cause I had a marketing education and experience already, that could be something. And so I started that 10 years ago with that exact premise of leveraging content to help brand build brand equity for clients. But at that time, like, and you'll know this, Jason, like that wasn't a thing, really. Large brands we're doing that, leveraging YouTube and all kinds of other platforms, but the small business owner didn't really have access cause they just didn't know how to do it. So I started it at that time with that premise in mind. And I just remember people thought, yeah, but like who's going to search for a content marketing agency like that just seems offbeat and really way off the normal path, because you know, their traditional brick and mortar agency was the way to go. I don't know, but I think it's going to be something. And of course, we all know that content marketing became the thing and we've been on a steady increase in incline from there, leveraging that idea that kind of the small to medium-sized business owner doesn't realize that the biggest piece of equity that they have is the knowledge in between their ears and the experience that they have. So we just provided them the platform and support to do that. And here we are 2021 and... 22 geez 22. I lost the year. I think we all lost a couple of years there. Jason: [00:02:43] We all did lose a couple of years. What was the biggest deal that happened to your agency or what's the most exciting thing to you and why when you were growing your agency? Roy: [00:02:56] I definitely would have to say that I built the agency on the remote working model or distributed model, however you want to call it. And I did it really out of just trying to solve problems. You know, I couldn't afford office space. Like I just didn't have the cashflow, but then also at the same time, I was like, does it really even make sense for me to have an office? Because it's just going to eat into my margins. This is just the way that I thought at that time that well why can't I just hire a bunch of people who live wherever, but are super talented and have them work on these projects with me. It ended up of course, being very prescient and not until COVID hit that everybody else got it. But of course, leading up to that, that trend was already there, right? So COVID obviously the big pull ahead, but I would be championing this whole remote working lifestyle and people just didn't get it. Like it was another thing that people thought I was crazy. Like, well, you need an office, right? Cause you need to have clients come and see you. I was like, I don't think so. I don't think I need that. And for us, that ended up probably being the single most important decision that we made as an agency, just to keep that. And my vision was always, can I scale this? Could it be like from one man band man show to like 10 staff, then how about 20? How about 30 then? How about a hundred? How about 300? Keep going from there. And that's just kind of, what's continued to happen today. And of course, when COVID hit people are like, oh, okay. I get it. That makes total sense. And now at a global scale where we're doing this thing. Jason: [00:04:22] I love the remote thing because you know, you can recruit way out far, you know, all over the world rather than just driving distance. And then also too your team works a hell of a lot harder because they're not in a commute. I remember when I had an agency in Atlanta, I had some people that were in a car for two hours a day that could have been doing other things, having fun, relaxing, working on the business, maybe. Roy: [00:04:50] Yeah, totally. Yeah. And that was the real value proposition. And actually, I don't know if a lot of people realize this though, maybe now they do, but at that time have... being in a remote working model, only certain people would thrive under that environment. Like you and I would probably both know like people that just, they need to be around people. They need to be in an office. And that works for certain people and that doesn't work for other people. So, um, it ended up becoming a pretty cool automatic filter for developing a culture of people who worked the same way, who thought the same way who had the same kind of time management skills and critical thinking skills. So just again, like when I say that that was the single most important decision, not only from an operational standpoint but like from a culture standpoint, from a productivity standpoint, like you mentioned, it had a lot of trickle-down effects, you know, making that choice. Jason: [00:05:41] Other than, you know, doing the remote, working and figuring that out. What's the most important thing that you learned running your agency the past years? Roy: [00:05:50] Uh, for sure. The other thing would be probably niching down in this specific vertical that's super key. I always knew that at some point that I would want to either exit the business or develop a strategic partnership. I knew we didn't have the, necessarily the resources or the kind of client base to be a bigger agency. And our, my strategy was always to be part of a bigger agency. So I just thought about like, what would make us attractive to an agency that already has, and does everything? And for us that would just be to let's find a specialty, let's niche down. And it kind of just organically happened. Like I didn't set out to build a company that like provided marketing services to the oral health care space. It's not something that you like set out to do necessarily. It was just through relationships. And as I kind of saw that continuing to grow in our reputation as, okay, we've got to double down on this vertical. So by niching down two things happened. One, yes, we prepared ourselves for an eventual exit where we gained domain expertise in this one vertical. But it also, from an implementation standpoint, when we ran campaigns, it was just so much easier. Like there was no learning curve. Over the years, we developed expertise in orthodontic, dental care, pediatric dentistry. All these different verticals. So we knew that our target audience. We knew what the client did. We knew what the value propositions were in general at all we had to kind of do was hunt for the nuance of that specific client in that specific geographic area. We compress the discovery process time to really short period of time because we know the industry, right? So that was the other kind of key thing for us. Jason: [00:07:32] Awesome. And eventually, you sold the agency. So why did you decide to sell? And kind of walk us through that process as well. Roy: [00:07:41] Well, it's funny because my own personal journey was thinking about, you know, when is it time to kick in the strategic partnership that I always envisioned would need to happen? What time does that look like and when does that need to happen? And as I was going through that journey of searching, I found you through that journey, which was so funny. And, uh, you know, kudos to you and your funnels and your content and having stuff out there that allowed other agency owners to discover that. And I learned a lot just from reading some of your content about what I needed to do to prepare but also engaged you in a conversation at that time. You were gracious enough to entertain just a quick chat and let me know that there's some things that maybe I need to work on. And so, I think for me personally it was just knowing that it was time for me to add another layer of value to the clients. But also being real with myself in terms of what I wanted out of my lifestyle. There's kind of a, like, I could easily say I could grow this business and then exit, you know, in the next five years if I wanted to, but what's the cost, right? Like what am I giving up in terms of my lifestyle in order to do that? I think when we get into leadership conferences or we talk with other entrepreneurs, we talk about the KPIs and the metrics and the sales figures and all that stuff. But oftentimes we don't talk necessarily about what's the livestock cost. What is the other side of that coin? And I think for me, it just wasn't worth it to do it alone. And that was the point when I said, okay, it's time to find a strategic partnership. And that's what sent me on that journey. And it's funny because it didn't happen for two years, right? Like I started it and I thought about it and I marinated on it. I think at the time you were like, Hey, there's some things you work on. And then two years later, I was like, hey, I worked on these things. What do you think? And then the conversation continued from there. Jason: [00:09:31] Are you looking for a reliable partner to increase your agency's bandwidth so you can take on more projects? You know, our partner at E2M wants to help you grow your revenue, your profit margins without increasing your overhead costs. Now, they're a white label, web design and development agency that's been providing white label services for the past 10 years to agencies all over the world. Their team is over 120 experienced, skilled digital experts that's highly motivated to help you get more done in less time. Now they can help you in all kinds of digital areas, including web design development, e-commerce, SEO, copywriting, content marketing, and a lot more. If you're not sure whether E2M is the right fit for your agency, I want you to check out their flexible and transparent pricing model. Go to  e2msolutions.com/smartagency. For a limited time, they're offering my smart agency listeners 10% off for the first three months of service. That's e2msolutions.com/smartagency. Jason: Yeah, I always, I tell agencies the ones that have visions for possibly selling because too, like if you get to a certain point and you may not want to sell. It's not right for everyone. And sometimes Thomas and everybody at Republix gets mad at me cause I'll talk people out of it sometimes. But like you shouldn't sell, you got everything you want. And then sometimes the other people were like, no, I want to take chips off the table. I want to sell, I want to do other things. I want to have a life after selling the agency. And I'm like, okay, cool. And I'm glad that you came back because I always tell people, start relationships with the people now that you think could buy you later on. And right? Like we talked two years prior and then we were able to, you know, strike up a deal, and I'm so excited that we were able to do that. And too many people think about, well, I'll sell when things are bad. I'm like, no, no, no. You're not going to get what you want. You're not going to be happy afterward. Cause it has to work for both parties. Sell when things are really good. Roy: [00:11:42] Yeah, totally. Yeah. And it was interesting, I liked what you said about relationships because I did explore, you know, going the broker route and people had approached me over the years with that, uh, let me just entertain some of these conversations, but there wasn't that like relationship aspect, it was very transactional in a sense. And at that point, I was like, wait a second. I got to reach back to Jason. Cause we had a conversation about this before. Like I actually kinda forgot because I, you know, there's all these other opportunities coming down the pipeline and then it just so happened that it was the relationship-based connection that ended up working out, right? Jason: [00:12:16] Yeah. I mean, that's what I tell everybody is like your net worth is what your network is. You know, and the people that you know, and you hang out that you trust and they trust you. I mean, that's why we've been doing the mastermind for so long. It's about getting the right people around so you can create those relationships over time. What surprised you going through the acquisition? Was there anything that surprised you? Roy: [00:12:43] Oh, for sure. Yeah. It was a lot more challenging than I thought it was going to be, right? Like, I know you had prepared me with a couple of kind of points about this is going to be a lot of cows. And of course, Thomas and the team at Republix, they've been through it a million times and so they knew what was going to happen. Like they're preparing me, like it's going to get busy, but it's very challenging to switch the hat between all of these corporate finance and other aspects of your business that perhaps, I mean, some industry leaders and agency owners might know that stuff really well, some don't and they leave it to their bookkeeping and accounting team. I think it's wise to have a breadth of knowledge across all of those disciplines, right? But to the extent of like doing the deal, managing lawyers, managing accountants, and then in a very active way, more so than you would normally running your business. And then on top of that, running your business, right? It became pretty challenging. So it was, I knew that it was going to be weighty, I mean, it's such a deeply personal decision that you make. So there's that, that's the other component like there's this emotional attachment to going through this process and then you're like doubting yourself or like is this the right time? Should I be doing this and that? And then there's negotiating aspects. This is all these emotions that are happening, right? Jason: [00:14:05] It's my baby. How can I sell my baby? Roy: [00:14:09] It's my baby, how can I…? And then you have people saying you shouldn't sell this and other people be like, oh, you should totally do it, that's amazing, right? So I think what I wasn't prepared for was the emotional rollercoaster that I was going to go through with that. But in the end, what happened was, you know, luckily that it was a, I could see it through like this, this, this storm and on the other side of this storm is the breakthrough and the completion, and then it kind of winds down. So I think for any agency owner, that's thinking about selling, there is that storm you're going to, it's going to get tougher. It's going to get busy. You're going to go through the storm and then you will eventually come out that other side. Even if you don't sell the business, you learn a ton of about your business along the way. Jason: [00:14:48] Why tell people…? Cause there's lots of people that reach out and be like, oh, we want to buy you. And then they right they're, they're scumbags. But I say like for legit people, you should go through the process because like you said, Roy, you're going to learn a ton. And then you're going to really know, because I went through it a couple times before we actually sold in order to learn more about like, what do they need? So then when we finally did go through it for real, we had everything like, here it is, here it is. Boom, boom, boom. There is still that emotional roller coaster. I think I flipped a coin to decide if I was going to do it or not. Like, literally it was like 50, 50. It all worked out really well. What was the turning point for you? Because you know, you're going ups and down. Yes, no, yes, no, yes, no. What was the turning point for you when you were like, all right, I'll do it? And how close was it to the close? Was it like the night before? Roy: [00:15:44] Yeah. Like if you talk to Thomas, he'll say, yeah, this is one of the, the more messy negotiations that we had gone through because there was just so much back and forth and, you know, I was really fighting to have peace with the deal. So I was fighting for things that I wasn't necessarily happy with upfront, but, you know, I prayed through it. I'm a man of faith and that was one thing that Thomas and I really connected on was, you know, that spiritual component, but praying through it a lot was really important for me. But I think at the same time, the turning point was some of the things that were happening in the periphery of my life at that time. And in the periphery, like the business metrics made sense, everything lined up. I love the guys at Republix. I was really connecting with them. All of those things lined up and I have kind of like a laundry list of things that I think any person that's selling their business should check off in doing any deal. But the real pivot for me was things that were happening around me. Like, my son, more of it, but a good friend and his brother passed suddenly, you know, like that was huge. Like, again, I'll go back to the things like cost, and this is just my own experience around, like, what was the cost? What is the cost? Cause everything has a cost. There's a, there's an upside, but there's a cost to getting that. And so for me, it was really like those periphery things that had me say, okay, you know what? I think life is pointing me in this direction to do this because I want to free up myself to be more present as a father, more present as a husband, kickstart some things that I, uh, ventures that I've wanted to do just haven't had time to do. So all those like soft lifestyle components really had an impact. I think it's just important to consider that iike for me anyways, it was one of the biggest transactions I'd ever have to do from a business perspective. It's not just about the money, you know? It's what are you gaining from this? And if it's equitable on both sides, then it makes sense. It should make sense, right? Because if you just think about the money part of it, you might make a decision that you regret later, right? You have to really be happy with the deal at the end of the day. And I think for people that are chasing the money, they might be unhappy because they'll sacrifice like working with a buyer who you don't really like, but they gave you the best offer. And that's not always the best decision to make when you're doing the deal. You got to really like the people you're going to work with because you're going to continue, hopefully, to work with them. So it's just those kinds of factors that kept it in my decision-making process. Jason: [00:18:07] What's life like now? Roy: [00:18:09] You know what? Nothing's really changed other than I just feel more at peace with everything. You can relate to this, like being in leadership, being an owner of a business and in leadership position is a pretty isolating lonely place because, I mean, even your spouse may not be able to understand truly what you're going through unless they were, uh, agency leader or owner before. And so I think for me, I needed that sense of community and I needed a team of people to bounce these agency's specific leadership, specific ideas off of, and being a part of our Republix has provided that. I still run the business on a day-to-day. That was really key, I think, for our communication to clients and the staff that I still be at the helm, and that's still part of the plan. So at least from a day-to-day, it hasn't really changed, but the weightiness of full ownership has lifted. And that's actually freed me up to be more open and be more inspired. And you think even bigger than before, you know, like we're now joint, doing joint pitches with other agencies to bigger clients that we didn't have access to before, on one hand. And even clients that we did have access to do have access to, we can pitch better ideas. So that's, for me, such a huge accomplishment, not only in building a business from nothing to where it is today, where, like you say, most businesses think about selling when they're on the downspout and then they go bankrupt, right? Like 80% of businesses fail. So we're in that small margin of businesses that have been successful. So that's a huge accomplishment for me. And I'm kind of walking around with a little extra pep in my step, having achieved that and now scaling the team and growing the business in a way that I feel really confident that we can set it up for the next 10 years of growth. Jason: [00:20:03] Yeah. And when you have that pressure off, you're not really worrying about money anymore. You can make decisions based on just what you feel rather than, oh, I need to take this deal. And what people don't realize is when you actually start making that switch… If you did that in the very beginning, you would have grown five times as fast, and everybody always thinks they're were like, you guys have money. So it's easy for you guys to say that, but you know, looking back, if I could tell myself again on that, I'd be like, dude, start with that from day one. And you know, in the very beginning it might be a little tougher, but later on, it'd be that much. Roy: [00:20:45] Yeah. You know, like, I, I, at least for us, like we have pre, we have pretty good margins for the last 10 years. Like w like, as a corporation, we'd never had real money issues, like we didn't have debt. We operated in, you know, with a 45, 50% margin. So decision making around money for the business was never an issue. I think for me personally as well, it wasn't necessarily the money that makes me, cause you know, when you get a liquidity event like that, you have all kinds of other problems after that, right? Like, so… Jason: [00:21:14] Lots of cousins coming out of the woodworks. Roy: [00:21:16] Yeah, right? Yeah. Yeah. Ray Ray from way back in the day who you haven't talked to in 20 years or, you know, like, or just managing it at all, it poses other situations. But I think it's, you know, there's something unique about calling yourself, the singular owner, where every decision comes down to you. And again, nothing's changed. I'm still making every decision. Like Republic's is really great that way in the sense that they really want you to work autonomously, but at the same time have be part of this bigger vision. So I'm still managing the business, but there's just this underlying weight of that's been lifted because you feel like you have support, right? There's other people who have been through this a million times that know what you're going through, as opposed to like, boy, I feel like I'm really just kind of going through this on my own and no one really understands. And so that part of it was really huge for me. Jason: [00:22:09] Awesome. Last question, if you had a billboard and you could put anything on it, what would it be? What would it say? Roy: [00:22:18] Oh, that's great. That's great. I love that question. Uh, it would be this: Take your passions with you. Jason: [00:22:25] I like that. Roy: [00:22:26] What I mean by that is a lot of people get caught up in thinking, I gotta find my passion, I gotta find my passion. And passion often gets related to what do you do? Which isn't necessarily what your passion is. It's who you are. And that thing can be taken with you to whatever it is you're doing in the moment. Whether that's, you're a problem solver, whether that's your, you want to make a human connection, whether you want to give to people, whether you want to build people up, whether you want to, it doesn't matter what it is. Just know that you can take it with you wherever you go. I took what I do in the music industry to digital marketing to help orthodontists and dentists, you know, like it's just, there's nothing correlated other than what my passion is to solve problems. And that was my billboard. That's what it would it be. Jason: [00:23:18] I love it. I love it. What's the website people go and check out the agency outside of Republix? Roy: [00:23:24] Sure. Yeah. It's noodlewavemedia.com. Noodle like as a bowl of noodles, wave, wave media.com. I would say that. Jason: [00:23:32] Awesome, man. Well, Roy, thanks so much for coming on the show. And if you guys enjoyed this episode, make sure you subscribe, make sure you comment. And, uh, if you want to be around other amazing agency owners where we can see the things that you might not be able to see, because just like Roy was saying, like it's very isolating making your own decisions and maybe you wanted some help with that. I'd love to invite all of you to go check out digitalagencyelite.com. This is our exclusive mastermind for very experienced agency owners. Go there now, and until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Do You Have a Foot in the Door Strategy to Scale Your Agency Faster?

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Feb 16, 2022 14:15


Quinn Zeda had been running an agency for six years when she decided to start from scratch and focus on conversion rate optimization with Conversion Crimes. She and her team help clients identify mistakes in their website's design, messaging, and navigation that is stealing revenue from under their nose. Quinn is really big on user-testing and customer research. In her interview with Jason, she explained the roadmap strategy she implemented to get the type of projects she could execute the way she wanted to, how this strategy helped her slowly educate customers on why they needed much more than just a website, and how she learned to appreciate the importance of systems and operations. 3 Golden Nuggets The roadmap strategy. When she first started her agency, Quinn was charging $1,000 for a website. One of her frustrations was with those $1,000 - $2,000 projects was that she could never execute them in the way that she wanted to. To be able to deliver the results that she knew she could, without scaring clients off with a $180K budget, she started with a 10K retainer presented as a roadmap of things she could accomplish for the company. After a couple of months, clients were seeing some really incredible results and excited to go on to phase two. More than a website. Creating her roadmap strategy was a great way for clients to understand that they were not paying $250,000 for a website. It may be what they thought they needed, but going step by step and getting them to approve a foot in the door project Quinn was able to educate her clients to see that they needed much more. They would gather information on who their most profitable customer was and who was draining their teams of resources and, with those insights, create a plan of action for the branding, the marketing, and the strategy. The importance of SOPs. Once you start bringing in more customers you need to make sure operations run smoothly, especially with the new hires you will probably need. Quinn acknowledges she didn't really see the importance of systems, processes, and SOPs and the value they brought to the business when she first started her agency. It was only after her team started documenting some of these processes, even if it was in a very basic way at the beginning, and gradually became more detailed that she saw it was really a game-changer that saved them a lot of time. Sponsors and Resources Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Raising Prices With a Roadmap Strategy and Why SOPs Are a Game-changer {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] Hey, Quinn. Welcome to the show. Quinn: [00:00:04] Hey, thanks for having me, Jason. Jason: [00:00:06] Yeah. Excited to have you on. So tell us who you are and, uh, tell us a little bit about the agency that you started. Quinn: [00:00:12] Yeah, so my name is Quinn Zeda. I started freelancing right out of college, which then turned into too much work than I could handle. I started hiring more freelancers, which then kind of morphed into an agency where I started then kind of hiring my first full-time employees that were like really dedicated to me. And after running the agency for a few years, maybe five or six years on, then I shut it down and now I run a startup, um, Conversion Crimes, which is like a user testing SaaS. And yeah, when I ran the agency, we were doing user experience, conversion rate optimization really focused on helping basically businesses around the one to 5 million mark scale. You know, people kind of get a business to a certain point. They reach a glass ceiling and they kind of duct-taped everything together. They found product-market fit. They started making their money and they're like, yeah, but now like what we built doesn't represent who we are anymore. So we come in and kind of restructure that. So… Jason: [00:01:15] Very cool. And what was the biggest accomplishment that you had at the agency before you closed it down and why? Quinn: [00:01:25] Yeah, the biggest accomplishment, I think, was kind of really getting with the value-based pricing that we went on. So when I first started, I was charging like a thousand dollars for a website and I ended at a quarter of a million for a website. So originally, like when I started that, it was like, this client is like a thousand. The next one was 2,000. The next one was 4,000. Then at 8,000, I just kept doubling it every time I would send a proposal out. Granted, the deliverables definitely changed from each one of those jumps and kind of gave me more resources to get more clarity on the kind of projects that we wanted to do. And then I went from like 20K to like 180K and jumped. So I'm super proud of being able to pull that off and then also getting an alignment with what I actually wanted from the business and the work that I really wanted to do. So one of my like biggest frustrations and like these like thousand or $2,000 projects was that I could never really execute them in the way that I wanted to. Like, I would see all these things I wanted to do, but of course their budget is 2K. So I'm not going to do like months of work for like 2K and really getting that in alignment with what I wanted to actually deliver and add value and to have pulled that off. So it was like super, super stoked about that. Jason: [00:02:57] What was the changing point or what made you change from, I think you were saying it was like 20,000 to 180. So that was a big jump. So, what happened? Quinn: [00:03:08] Yeah. So the first one kind of ended up a little bit kind of in my lap, right? So I didn't really kind of go out and pitch that I'm going to sell that for 180 or what have you. It started out as a retainer where we, I like had this roadmap of things I wanted to accomplish for this business, and I couldn't really sell them on that yet. One, I hadn't proven myself yet. I couldn't really articulate the value. And it was also like out of their price range, right? So what I did was it was like, okay, I'm going to do this first project for these like couple of months for this much retainer each month. I think it was like $10K or something like that, and then I'm going to get a result that's going to pay for the next phase. And this is the next phase that we're going to do of this project. And in that, I was able to get some really incredible results for the clients. So then they were like, okay, let's do the next phase. And then when I got that one, I was like, okay, let's do the next phase. And then it ended up being my end goal, right? So yeah, it was a really cool kind of process. Then after that I kind of figured out like, okay, if I did it this way, how can I repeat that was like kind of giving them the end result? So that's when I kind of implemented this roadmapping strategy. Where instead of selling them on like this $200K project or whatever, sold them on a 10K roadmap of which I would just outline the project that I was going to do. Here's the thing, and this is the price. So that's kind of how that transitioned. Jason: [00:04:49] Are you looking for a content creation solution for your agency or clients? Verblio can help you with everything from blog posts, eBooks to video scripts, and a lot more. Verblio is a crowdsource solution to content creation with a pool of more than 3000 highly-vetted writers who produce custom SEO-rich content. In fact, my team has been using Verblio and we love the ease of their process. With Verblio, we set the criteria for the style and the tone, and then they match you with the writers that have the expertise in your subject matter. Verblio is a platform specifically designed for agency, and that's why for a limited time they're offering my listeners 50% off the first month of content, just go to verblio.com/smartagency to learn more. That's Verblio V E R B L I O.com/smartagency. Jason: Yeah, I like it. You know, it follows a methodology that I teach a lot of agencies have going sell them a foot in the door, which is basically a strategy, right? Of like, here's everything that we're going to do, and then figure out how long it takes in order for them to start seeing some results. And then it can transition to a monster, you know, engagement, you know, after. And a lot of people just don't figure that out. You know, when I went from the $20,000 websites to the $80,000 websites and beyond it wasn't as graceful as that. It was more about this asshole, literally, I didn't want to say no to this asshole. And I literally was like $80,000, thinking he would just go away. And he said, yes. And then I realized psychologically... Yeah. I was like, shit. Psychologically, I realized I was like, well, other people, this idiot would say it let's find some really good people that we can do really good work with, but I like your story better.   Quinn: [00:06:49] Yeah. And it's, I kind of had like the same thing as well. It's like, oh, I saw one person one time. Like, there's gotta be another person out there that would do this because we had a very unique kind of product that we were doing that was different than other agencies. We did a complete transformation because we were really experts in a lot of those different things. We were able to cohesively pull it together where I think a lot of agencies can't and I also sold them on, like, you're getting our full attention. We only get, we're only doing one major project at a time. So you're getting our team's focus because the kind of work that went into that was like, really this deep work and you can't manage like five clients at the same time. At least I couldn't. Jason: [00:07:33] Yeah, exactly. So what were some of the details that go into it? Cause some people are like holy cow, $250,000 for a website. It's not just a website, right? Like it's strategy, it's research, like talk a little bit about everything that goes into it. Quinn: [00:07:47] Yeah. So, um, I'm really big on customer research and stuff like that. So a lot of these businesses, they just kind of found product market fit through whatever reason, but then they didn't know who their most profitable customer was. They didn't know like who was like draining their teams of resources and stuff. So we would actually go in, we would interview their team. We would interview all their different customer segments. We would go through their analytics, we would do user testing and we would kind of come up with a… we'd spend, like the projects were in general were like eight months long. And so we'd spend like the first three months just going through all of that, getting all the data, making these like reports on them kind of putting all this stuff together and then kind of looking at all of it and being like, okay, this is your most profitable customer, but we're not even speaking to them on the website or we'd find out that people were coming in to the website, but then they were losing them on their backend operations. So they would get a lead in, but then it would take a week to get like their first like class scheduled or something like that, right? And so it was like, okay. And we would also go into operations and help them. Um, cause that's part of, like you say, website conversion rate optimization, right? But it's also, you have to be able to deliver on the back end. So sometimes we help them kind of restructure a little with their team. And then we would take all these insights and we create a plan of action and we would make outlines for sales copy, what kind of things are needed, and then kind of turn it into a final product. So that's like the branding, the marketing, the strategy, kind of really a whole business overhaul. But how I got that lead in was a website. They're like, oh, we need a website. And it's like, well, no, you more than the website. You need to understand where you're taking the business if you want to grow your business. That's like the underlying goal here, right? It's not just about a pretty website with a cool logo. Jason: [00:09:50] Yeah. You know, we always use the website as the end because people would be like, oh, I need a website. Well, why do you need a website? Oh, my competitor just redesigned theirs. Well, no. And yeah, if, if that's all you need go to a particular, you know, template ID site and you can get. Uh, website, you know, just pick a theme and you can do that versus if you really want results, then we can look at it a different way. And I, I liked your process and analysis of everything that you went through. Cause I bet when you're explaining that to the prospect, they're like, oh yeah. And it separates you from everyone else. Did you find that? Quinn: [00:10:33] Yeah. Yeah. And that's a big reason why we started with the roadmap because if I was going to like tell them those things or try to sell them on those things, they didn't believe me really at first, but if I can sell them on a roadmap for the website, and like kind of put those things in there and didn't tell them about it and they're like, oh yeah, that makes total sense. We can't just increase the leads on our website because we're losing them here. So it would make no sense to invest there and not invest here. And nobody else really would point that out to them. So I had to kind of like weasel it in. If that makes sense. Jason: [00:11:06] Yeah, no, exactly. Well, you know, what you're doing is you're educating them. You know, they came to you for a particular, something that they thought they wanted and you educated them. And then like, well, this is the process and it just, there was literally no, probably other choice that they had, you know, after you explained that. So that's, that's amazing. Is there anything else? I mean, this has all been amazing and I always like to keep these short, like I was telling you just so people can really hear it and go, oh man, I need to make this simple if I'm just designing websites or if I'm just doing SEO or pay-per-click or whatever your particular services, is there anything I didn't ask you that you think if you were listening this show back when you were, you know, getting going that you would want to know? Quinn: [00:11:53] I think in the beginning, I didn't really understand the importance of systems and processes and SOPs and stuff like that and how valuable they were to the business. So as like an agency owner, there are tons of processes that happen and even though what we were doing this like huge project that was very custom-tailored to the client, there is still a repeatable creative process in that. And so every time we had someone do something, I had them like document it and start to make these SOPs. And they started out like really primitive, like, here's the 10 steps I'm going to do. I'm going to analyze analytics. Then I'm going to like put that data in a spreadsheet and then I'm going to like something super simple like that. But the next time it's like, oh, I'm adding screenshots. I'm adding the step-by-step about what that means to add the data to the Excel sheet or what have you. And this has like saved me so much time when I'm, I never really created and SOP in my life, but my team has created though. And it's like, when someone else comes in or something, it's like, now I'm just like, oh, here's the SOP. Boom. And I didn't really understand the importance of creating those in the in the beginning, but they've been game-changing for my business overall. Jason: [00:13:17] I love it. I love it. What's the website, what's the SAS website people can go and check you guys out? Quinn: [00:13:23] Yeah. So my SAS website is conversioncrimes.com. If you want to check out the old agency site it's zedalabs.com Z E D. Aand uh, let's see, like Twitter it's just my name Quinn Zeda. I think I'm like the only one. So that's pretty easy. Jason: [00:13:38] That is easy. Awesome. Well, thanks so much for coming on the show and, uh, I wish you the best of luck. And for everyone that listened, if you want to be around other agency owners that can share the things that are working for them and be able to, hopefully, be able to see the things you might not be able to see. I'd love to invite all of you to go to the digitalagencyelite.com. Apply and if we think you're right for the mastermind and we can help you out, we'll have a conversation. So go do that now and until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
8 Steps to Create Funny Sales Videos For Your Agency

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Feb 13, 2022 39:41


Are you thinking of adding funny videos to your sales strategy? This eight-step framework may be just what you need to create successful sales videos. Joseph Wilkins has been creating sales videos since the half-hour infomercials that appear on TV. When his clients stopped getting the results they used to, he knew it was time to change spaces and switched to making videos for social media with his agency FunnySalesVideos.com. In his interview with Jason, he explains his eight-step framework to making successful sales videos, the process to make a solid video script, why you want professional comedians and actors involved in the process, and why you should never prioritize the comedy over the sale. 3 Golden Nuggets Eight steps to making funny sales videos. Joseph has been producing funny videos that sell for many years and has developed a list of eight steps that have worked for him and that will surely serve as a very good framework for anyone that wants to create these types of videos. These steps take you from really understanding who your audience is before even starting to think about ideas for the videos, getting in the habit of writing down at least 50 bad ideas before thinking about the ones that could actually work, the process of making a script that works and adding the comedy punch, hiring the rights talent, and more. And that's just 50% of the process. You're not trying to make the funniest videos. When it comes to videos like these, and as Daniel Harmon when he spoke with Jason about video ads, remember that you're not trying to create a video that is just funny. You're looking to create a video that creates sales. The comedy has to support the sale. If it doesn't, if it distracts from your main objective, then you should cut it out. “Some of the funniest jokes never end up in the video,” Joseph confirms. This is why the creative director will always have to push to get a video that is different and new for the brand, while also being laser-focused on the sales aspect. On agency owners appearing in these videos. “Don't do it!” Joseph puts a lot of emphasis on this point. This kind of video is a top of funnel first impression video. You want to give it a good chance of grabbing the audience's attention and keeping it and getting them to click into your funnel. It's not completely out of the question for the company CEO to appear on a video at a later point in time, but always keep in mind they should not be the comic relief. Comedy takes true skill and Joseph prefers to leave it to the pros. Sponsors and Resources E2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design and development agency that has provided white label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Leave The Comedy To The Pros & Follow These 8 Steps Funny Sales Videos {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, agency owners? Jason Swenk here and I have another amazing episode and guest where we're going to talk about how to create funny sales videos that don't seem salesy that really get people's attention and convert. So let's go ahead and jump into the show. Hey, Joseph. Welcome to the show. Joseph: [00:00:24] Thanks, Jason, it's good to be here. Jason: [00:00:25] Yeah. I'm excited to have you on, so tell us who you are and tell us a little bit about your agency. Joseph: [00:00:30] Sure. So I own FunnySalesVideos.com, which is kind of a recent breaker or rebrand to my original agency, which was Procreative. For 20 years we've produced videos that sell, and I'll give you a quick background. We started primarily in television. So back in the day, our very first project, we were focusing on infomercials. So, you know, those huge 30 minute long infomercials that people would find in the middle of the night flipping through their channels. Our very first project did over $200 million in sales and that kind of got us hooked and for the next 15 years that was our main focus, was television. But as you and I well know the way that people watch television, if they even do anymore, has dramatically changed in the past decade or two. And so about five years ago after producing, you know, tons and tons and tons of TV commercials, infomercials and web videos and we'd work for, you know, some of the biggest brands on the planet, Google, LinkedIn, Chevrolet, McDonald's, um, we're a very small boutique agency, but we like to pretend to be clients that we're not so that we can compete with the best of them. But anyway, after about 15 years, our clients basically said we're not getting the results that we used to, you know, we're spending the same amount of money running the creative we're spending sometimes even more for the media buying because it wasn't getting any cheaper, but the results just weren't there because the eyeballs weren't there anymore. And so our clients started saying, what can we do to get back to the results that we used to get? You know, the return on broadcast ad spend that we used to, to see. And about the same time is when the Harmon Brothers, uh, launched their mentorship program. For many years we had kind of watched them and they're actually just down the road from us here in Utah. And, uh, you know, I watched everything that they had been doing with the Squatty Potty, with, uh, Poo-Pourri, Purple Mattress, Chatbooks, Fiber Fix. And, uh, right when they launched their mentorship program, it was kind of a perfect time for us to pivot and really decide is this the new vehicle, that's going to get us the returns that we used to get? And I'll just give you a couple of quick case studies and then we can talk about something else. But before we launched Funny Sales Videos, you know, when clients would call us and say, hey, we saw this really funny video. We want to do a viral video. We would say, sorry, we don´t do that. Whenever people asked for that elusive thing that they think is just push a button and you'll get a viral video. But we don't do funny because frankly, the worst thing that you can do is try to be funny and end up looking silly if you don't have the right people in the bus, as far as the scripting, as far as the acting, as far as the editing, you know, comedic timing, and we can talk about all of those in a minute. But we don't want to do something unless we can do it fully a hundred percent. And that's kind of the missing piece that the Harmon Brothers helped test to figure out with their courses. And I, you know, I, I'm not an affiliate, but I always plug harmonbrothersuniversity.com to anyone that's looking to up their marketing skills, whether it's funny or not. And so our very first video, when we launched finally sales videos with this new information that we had got, got over 7 million views, and more importantly, over a half a million dollars in subscriptions to a SAS service that was a very, very niche audience. And so we knew were on to something. Fast forward to today, our biggest campaign is, I think, I got a chat with the client, I think we've hit a hundred million views and just millions of millions of dollars in revenue. So we kind of feel like we've come full circle back to our original days of just killing it on television, that there it's a whole new playbook to work online and also to use humor to essentially trick people into watching a video. Jason: [00:04:51] Yeah, that's awesome. Yeah. I've had the Harmon Brothers on the show and, and had a lot of fun chatting with them. And I even worked with people in the past that have been on those Squatty Potties and that kind of stuff… not in the videos. In producing the videos not, not using the Squatty Potty. I don't think anybody would admit that. I remember one of my buddies was like, well, before I get behind any video, I need to try it. And then he was like it works! So it was funny. Let's go ahead and jump into it. Let's talk about kind of the eight steps that you found that really works for your framework. What's the first one for someone creating a really good sales video? Joseph: [00:05:37] Yeah. So we, uh, this is the ebook that anyone can download from our website funnysalesvideos.com. We basically just put it together because a lot of the time we'll have clients that want to do a video and we only take on kind of two or three clients at a time. So the very first step is, you know, it's marketing 101, it's understanding who your audience is, what their pain points are, creating as detailed customer avatar as possible. And again, your audience is more savvy than most, but a lot of people I tell them you never write a letter and then walk to the mailbox and decide before you put it in the mailbox who to address it to, but that's what a lot of people do when they sit down and they write these scripts, they just think about the product and they think about why did I start this company? Or why did I invent this product? And unless you really do the homework to figure out who is your customer and what they already saying about your product? We get too caught up in drinking our own Kool-Aid and, and an exercise that the Harmon Brothers taught us that everybody should do is go out and spend a good chunk of time reading through dozens and dozens and dozens of customer reviews. Find out, what are people saying about your product? What do they like? What do they not like? What could you improve upon? Or what do you need to address in your marketing that will overcome the objections? You know, whether it's price, so you have to build a value proposition that, you know, yours is more valuable in the long run, or whatever it is, but really spend the time to identify the key selling points that cold traffic… And these videos are top of funnel videos, right? So they're not that they're intended to convert cold traffic into clicks to your sales funnel. And so you've got to get them very quickly with the top-selling points. And then, if necessary, if there are objections that you've got to overcome, you know unanswered concerns never lead to a sale, so you've got to figure out what are your key selling points? What are any objections you need to overcome? And then these kinds of videos when we launched them on number one comment that we look for, and frankly that we get very often, is I loved watching that video because that person just felt like me, or it felt like a friend or it felt, I want to be friends with that person. Well that's because that person is you. We've stolen lines that you've written in your customer reviews and we've created a character that is so close to the customer avatar that it connects on a much, much deeper level. And just a final thought, you know, some businesses will say, well, what if I don't have a hundred reviews to read through? Well, go and steal from competitors. Go read what other company's clients are saying. If their products are close to yours, it's the same market. So number one is just do your homework. Don't set pen to paper until you have a really solid understanding. Jason: [00:08:41] Yeah. You know, I always tell agency owners that they have to have a real clear understanding of who their audience is and really in your marketing, it should be going after a specific audience. And I really like what you were talking about overcoming objections, because that's a really good one. Like if you think about, when you're talking to your sales team and thinking of like, here are the objections. And like literally if you called them out and you were like, here are the objections and then like on the video, you're going to get their attention. So what's number two? Joseph: [00:09:10] Exactly. Okay, so number two is kind of the fun one that is harder to quantify, but it's the brainstorming. And what I always like to tell people is before you get scared, you know, thinking about a blank sheet of paper or an empty whiteboard or an empty Word document, I tell people your goal… And so this kind of video, we're looking for two things in the brainstorming phase, we're looking for number one, who's the character, the main character that this video is about? And number two, what is the big problem that they are going to present in the video? And obviously your product or solution has to overcome and solve that problem. But you're got to get really creative and come up with crazy fun, irrelevant ideas. I tell people come up with 50 bad ideas. Don't judge them. Don't filter them, get as many people into your brain, share as possible as you're brainstorming this. But you're looking for answer the two questions 50 times. Now people will say, that's, that's crazy. And I say, yes, it is. And that's part of the, the method is that bad ideas will lead to good ideas. And if you don't put any judgment on it, it takes away the fear. And so we will literally sit down in, in my agency we'll do it virtually. We do it, we throw up a shared document and my writers will get into a document and it'll normally take us about a couple of weeks between four or five of us to just throw bad idea of the bad idea. And then once you've got your 50 bad ideas, now you put on your, your serious thinking cap and you look at okay, which of these speaks to me? Which of these has the flavor of a fun story? And that's what you're looking for. Forget selling. Right now all you're interested in is hooking people's attention and getting them to watch past the first few seconds. And so the more fun that character can be, the more bizarre that situation while still being intellectually relevant. It doesn't have to be literally relevant. I mean, there's no relevance in a magical unicorn that craps out ice cream, but it's relatable to the Squatty Potty because you can draw a parallel. And so don't, you know, sometimes our videos are very, very, the customer avatar is the hero of the video. And sometimes it's a completely fictitious character that is still relatable to that customer avatar, but you really have to do the brainstorming to be able to arrive at what are the best ideas? And then as an agency owner, what I do is I present my best five ideas to the client. So as an agency that's, that's what I would recommend. Don't give them the 50 bad ideas because they'll think you're a terrible agency. Give them the five best ideas and sometimes the worst ideas on the paper to begin with will spark somebody else to say, well, that's bad, but actually what if we flipped that and come up, you know, you can get great ideas by going off on tangents. So step two is brainstorming as many ideas as possible only worrying about those two things. Who's the character? And what's the big problem? Jason: [00:12:33] I really liked that, the brainstorming. And I liked that you said present, you know, the five best ideas that you have. Now, one of the things that I learned early on is don't tell people, be like, hey, we have incredible ideas for you. These are the best ideas we've ever come up with. Because if the clients hate it, then they're going to be like, you're an idiot. And they're going to think you're a real bad agency going forward. So just always preface as, hey, we've got some from five ideas to go by. Don't get really Gung-ho for them because if they do shoot you down, that's fine. Then you can go off to the next one. Joseph: [00:13:09] Yeah. So before I go on to three, just another power tip, you know, since your audience are agency owners primarily. Uh, along the lines of what you just said, what we do is when we present those five ideas to the client, we tell them here they are, they're not in any particular order. We're not going to show you all hand of which ones we like best until we get feedback from you. And so you basically, you're trying to get the client to get ownership, right? If they pick the best idea… now, if there are five ideas and there's one that clearly you feel like is going to have the best success as an agency you're obliged to then share well, you had, that was good, but, you know, have you thought about, you know, this, this and this? So yes. Yeah. There's politics when you dealing with clients as always. So anyway, step three is scripting. This is where the rubber meets the road. You're going to actually develop your script. Now, the first thing you do is go back to step one and look at your key selling points that you identified. And most of the time, these videos are three to four minutes long for the long version. We do shorter versions, but the hero version, which incidentally, typically tests out the best when you're on a platform that allows longer versions, you can probably communicate three to five key selling points in that video, in that amount of time. Now your most mentioned reason why people buy should be, you know, hit over the head multiple times in that video. So it's a prioritized list, but you take your key selling points. You take any objections, that becomes your marketing framework for the script. Then you take your character and the problem and you bring in a creative writer to create the story arc. Now in my world, I use many many freelance creative writers and people would say, well, what if I don't have a really good writer that understands this kind of comedy? Well this step it's not funny. It's just a creative storyteller that you want to do this part of the scripting. We actually have 6, 7, 8 writers on every project that we produce. And I'll talk more about that in a minute. So you basically take the story writer, the creative writer that takes the elements and build the story. And I always used Donald Miller's story, is it StoryBrand? As a framework for how a good story should be written. So you got somebody who has a problem who meets a guide who shows them the solution, and then has the transformation that then shows how their world or their life is better because of that solution. So that's the arc that we're trying to get. And we're also trying to call them to action. Now, once you've got your story, you also need to make sure that you spend a lot of time writing your big hook. That's the first five seconds of your video. Nothing past that first five seconds matters if you don't create something that's attention-grabbing and the also works with the sound off, because 80% of people watching aren't going to have the sound on. And we going to have to create visuals and titles and literally design in subtitles so that visually you're telling all of the story without the sound on. And then, you know, the goal of that is to get people, to turn the sound on and peak their curiosity enough. So that's step three is writing the basic script. It's not funny, but it's fun, right? It's an entertaining story. And then step four, I bring in on every project, at least five professional comedy writers. Now this is the difference between what I said earlier about how I used to say, I won't do a sales video because we don't have the talent to do that in-house. And so I spent a lot of time looking for good professional comedians. Now, how do your agency owners do that if they don't have any connections? Well, there are a lot of online freelance sites like Fiverr and Upwork and other places where good comedy writers in their spare time write for other people, you know, freelances. I also watch a lot of standup comedy and I'll reach out to people. I'll send them an email or I'll go to the website and talk to their agent and you'd be surprised at how affordable some, I, I won't tell you the names, but some people that you would recognize from big sitcoms, the lead writers. They apparently don't get paid enough because they still want to do freelance work on the side. I also have guys that worked for me that work on cruise ships as comedians. Jason: [00:18:04] Are you looking for a reliable partner to increase your agency's bandwidth so you can take on more projects? You know, our partner at E2M wants to help you grow your revenue, your profit margins without increasing your overhead costs. Now they're a white label web design and development agency that's been providing white label services for the past 10 years to agencies all over the world. Their team is over 120 experienced, skilled digital experts that's highly motive to help you get more done in less time. Now they can help you in all kinds of digital areas, including web design, development, e-commerce, SEO, copywriting, content marketing, and a lot more. If you're not sure whether E2M is the right fit for your agency. I want you to check out their flexible and transparent pricing. Go to e2msolutions.com/smartagency. For a limited time, they're offering my smart agency listeners 10% off for the first three months of service. That's e2msolutions.com/smartagency. So how much would you pay someone like you were talking about? Joseph: [00:19:17] Now you're asking to me to give away all of my secrets. I would say a decent rate is like a hundred bucks an hour. And… really, oh yeah. Yeah, well, maybe not to the, some of the higher-end ones. I paid a thousand dollars to the guy that I was mentioning that they worked for a bigger show. But you got to understand, you're not looking for them to write a script. All I'm asking them to do is review a sprit that already exists. Comedians aren't good at writing. They're good at creating jokes, right? They're not good at writing stories. They're good at bits, right? Fragments. Punch up, that's the technical term. When I reach out to a comedian, I say, hey, I've got a script it's fully written, I just need someone to punch it up with some jokes, add in some witty comedy, a word here, a word there, a line here, a line there. That's all you're looking for. And normally, you know, an hour or two for comedian. And then when you do that with five different comedians and everyone's kind of in the virtual writer's room, seeing everyone else's comments, it's kind of like Saturday night live. That's how they do it. They lock everyone in a writer's room and the riff off each other. So I do that in a virtual environment. Does that make sense? Jason: [00:20:31] I really like that. And I like how they're all going off and building on each other's work rather than going, oh, we have five comedians. They all submitted it. Which one do you like? And then you're trying to make it better. I really liked that. That's my favorite part. Joseph: [00:20:46] That could be difficult sometimes because, I'll just be honest, It's kind of serendipitous how the script evolves depending on which writer put their comments in first because everyone's building off the previous one and there's no real stretcher for that, but the chaos just kind of seems to work. I don't know if that makes sense, but it's a front part of the process. Probably the most fun. Jason: [00:21:09] Yeah. I think that would be a lot of fun. So what's the next step after this? Joseph: [00:21:12] Okay. So just one more point on comedy. You're not looking to create a funny video. You're looking to create a video that creates sales. And so, because of that, some of the funniest jokes never end up in the video. The comedy has to support the sale. If it's distracting from the sale, if it goes off on a tangent that doesn't advance the sale, if it's too edgy, too offensive, obviously it's going to get flagged on Facebook or, you know, Instagram. There are certain rules that you have to follow. So, but the hard part of as a creative director, and that's what I do, I, I kind of am the one that reviews everyone's comments and decides which ones make the cut. My job is to protect the brand while still pushing it to be different than, than anything that they're done before. Cause that's why they're coming to us in the first place, but also number on my, I need to be laser-focused on the sale. So just keep that in mind. You're not just looking for the funniest jokes, you're looking for things that will advance, the story. Number one, get them to stay watching. And then number two, get them to advance, to click through to your sales funnel. Number five is production. Now you would think as a guy who has spent literally 20 years running a video production studio… I mean, if we were to go in the other room, I could show this huge studio with, you know, million dollars of crap, man, you would think that I would say the most important part production is getting the best cameras and the best lights and the right crew. Not true. The number one thing about production is casting. Finding the right actor to be your hero, to guide them through this journey. The two most important parts of your video success are the script and the actor. Everything else you can literally shoot with your iPhone and get better results than me taking a million dollars and having a bad script and a bad actor. And in today's world, the democratize video, you know, this 4k camera here. I would have died for this 20 years ago. So if there's no excuses anymore, people can produce great content. Now, how do I find the right actor? Well, you might be surprised to hear that for every actor, and I'm talking to hero actor. There are supporting actors and other extras in our videos, but there's really only one hero actor. I will look at over a hundred candidates before I select my actor. Now some agency owners may not know this, but the process of casting and getting actors to audition cost you nothing but your time. Here's how I do it. I'll go to two or three good acting agencies here in my town, depending on where you live, you'll have more or less. I will go to those agencies and I'll give them a portion of the script. You don't want to give them the whole thing. it'll overwhelm an actor. Just give them a good chunk of the script, maybe three or four paragraphs. But also before I do that, I'll look at the demo reel. I'll look at their pictures and I'll pick out of those hundred. I'll probably pick 20 of them to send the script and ask the urgency to have them do self-taped auditions. In the world of COVID, everyone has a setup right now. With the zoom recording, whether it's the foreign that laptop, just like we're doing right now. And so I'll get back about 20 videos that are prerecorded auditions from these actors. Then I'm going to select my top three to five and I'm going to invite my client to a joint zoom session. A lot of the times I'll have the actor come into my studio, or sometimes I'll just have them stay at home and do it. But what I'm doing there is I'm looking to see how directable, how coachable are they? Can they do this line faster? Can they slow it down here? Can they put the emphasis on this word? I'm looking for how do they respond to me as a director because anyone can do a really good audition with no pressure and do 20 takes and send the best one, but can they perform on the day? The other thing that I'm looking for is what do they add to the script that I haven't written? What spontaneity do they bring out while we're filming? Because during the production, your script should get better if you picked the right actor. And I love to cast actors that have experience in comedy specifically improv so that they can add things and riff off of what I've written or what my team has written. And so acting, I could spend hours just talking about that one subject, but the final thing I'll say about production is backing up to what I said earlier. Yes, everyone has an iPhone, but guess what? Every single other video on someone's Facebook feed or Instagram feed or on YouTube, every other video has been shot with their iPhone or with their, whatever smartphone. So if you want to stand out and be disruptive, you should hire the professionals. And so having both the right script, the right actor and a team of really good film production company that really knows how to shoot things, that's just going to increase your results. So that's step five, production. And again, I go into way more detail in my ebook on each of these things. Jason: [00:26:48] Awesome. I love it. And one of the things I want to ask you, because a lot of times, especially with agencies, you know, I tell them you need to position yourself as that trusted advisor, right? The Yoda, the Obi-wan, right? Rather than the Luke Skywalker. And in doing that, and if you're creating a video and then you hire an actor and they're like, oh, that was an actor that wasn't us. So what are your thoughts on an agency doing their own video and having one of them being in the video? Because you know, one of the things… Joseph: [00:27:25] No. Don't do it. Don't do it. Jason: [00:27:28] Don't do it? Joseph: [00:27:29] No, for this… I have very strong opinions on this matter, so feel free to disregard, but these are my opinions. Marketing is like a salad. You should have all kinds of different ingredients. This kind of video that I'm talking about is a top-of-funnel first impression video. You want to give your very best chance of grabbing their attention and keeping their attention and getting them to click into your funnel. Once they're in your funnel, by all means, throw at them other kinds of videos. CEO videos, customer testimonials, be in more videos for sure. But unless like the Dollar Shave Club guy, which a lot of people don't realize this, unless you are a trained comedian and have experience with acting, don't try to be funny because you'll end up looking silly. That's what I've seen. Now I've seen this, the rules broken a couple of times well, but I can't tell you in the 20 years that I've been doing this, how many times I've had a CEO that says, I think I can act, we get into the studio and they suck. Jason: [00:28:41] I get that. I get that. Joseph: [00:28:43] So it's a very specific kind of skill. Comedy is the hardest thing for me. Jason: [00:28:48] Yes. And I'm glad you preface that because I know a lot of people listening are thinking about, well, I want people to recognize me, but this is just to get their attention and then you can get them later on because you know, one of the things I always worried about, and I think they think about with putting all this together is… You know, I think about with, um, what was the T-Mobile guy? Or let's say there's like, um, Fey, uh, Progressive Insurance. Let let's say she's like, you know, she's in all their videos and then let's say they don't like her anymore. Well, everyone associates progressive to Fey. And now they have to find a new spokesman and then it just gets harder. But I'm glad you explained that. Cause I actually agree with that as well, because I've seen some really bad videos. Hell, people have tried to mock some of our videos that we've done and I'm like, that was really, really bad. Don't do that again. Joseph: [00:29:43] Yes, yes. Now there is one place that I'll, I'll make an exception. If during this video you want to bring in someone, you know, very short clip that basically says, here's the dude who invented it. And I've actually seen the Harmon Brothers do this pretty well with Lumē, their deodorant. They had some scientists expert who was somehow involved with the clinical trial and they burnt him in just as a start, like a second, you know, I'm the guy that's going to make some credibility here, but then they actually make fun of him in the video. There's a way that you can do it if you really want the CEO to be in the video, but don't make them the comic relief in the sense that they're trying to be funny. Jason: [00:30:31] Yup. Got it. What's the next step? What number are we on? Um, I've lost track of the numbers. Joseph: [00:30:36] This is number six and the two after are a pretty quick. So we'll go quick cases. For step six, you've always heard the phrase comedy is about timing and when it comes to step six, which is editing, nothing could be more truthful. The difference between an editor who understands timing, especially comedic timing, and somebody that just knows how to edit is very different. And so I'll give you an example, you know, we'll do film shoots and we'll do a line and the actor, and it's very well written and it's very well acted. But when we get into the edit, something's just not working. The line doesn't hit the way that in our brains we thought it would and a good editor can simply put a cut here and punch from a wide shot to a close-up or take out a pause or overlap two sentences, or bring somebody else in quicker or even rearrange the entire sequence. And all of a sudden it works. It's all about timing and it's also, you know, not a people back to the point I made earlier. A lot of people are surprised to hear our videos are three to four minutes long. They say people don't have the attention to watch those kinds of videos. And I say, uh, have you heard of Netflix? They still put out two hour long videos and people are watching them. People don't stop watching the videos because they're long. They stop watching cause they suck. They stop watching because they're boring. They start watching because they're irrelevant. And so, if your goal is to not make your video boring, you got to speed it up. It's got to be action packed from beginning to end. Our videos, the script feel more like five minutes when we read them. But when we filmed them and edit them so tight with taking out breaths, with speeding things up with, you know, literally over cutting people's sentences talking over each other. So that at no point in that video can you say, oh, that feels long, or that feels boring. You still gonna get most people that don't watch it through to the end. In fact, the Harmon Brothers have said that only 5% of people that watch their videos make it through to the end. But 5% of a hundred million people is a whole lot of qualified people ready to click into your sales funnel. So you've got an editor who knows how to keep it snappy and fast, people won't get bored. The other thing that we do is for most of our clients, depending on what package they go with, we deliver 32 different versions of the same video. Because what we're doing is we're giving them a whole bunch of data to test. You know, you've heard of AB split testing, well we do A through Z split testing. We're going to create three totally different opening hooks. We're going to test which one gets watched through the most. We're going to create three different calls to action. We're going to test which one gets clicked on the most. We're going to do the long version. We're going to do the short versions. We're going to do the square versions for mobile. We're going to do the wide-screen versions for YouTube and for desktop. So all of these variables so that it's not leaving things to chance. In our early days, it's kind of embarrassing to admit this, but even to this day our most successful video, then now has over 50 million views on one video. We didn't do this to, we just guessed and we were right. But guess what? We're seldom right every time. And so what we like to do now is give our clients every single opportunity to test so that it's not gambling on one version, we're doing the split testing. So a good editor knows how to create all of those different versions. So that's step six. Step seven we've already briefly touched on it, but it's the testing. And this might be the time to reveal the dirty secret that none of our videos organically went viral. That's not what it's about. This is about creating a video that where you spend a dollar on advertising, you get 2, 3, 4, or $5 in return. I explained it like a vending machine that's full of a hundred dollar bills and it costs $20 to use. How many times are you going to want to use that machine? So understand that once you've produced this video, that's only 50% of the work. You've now got to build a dynamite sales funnel, and you've got to have a dynamite media buyer who understands how to buy Facebook, YouTube, you know, hopefully in step one, we've already identified who is your customer and where are they viewing online so that, you know, where you're most likely going to end up. But having said that most of our videos they're fairly platform agnostic. We test them on YouTube. We test on Facebook. Test them on Instagram. So knowing that this is a conversion video, not a organically viral video. Now organic views will come, maybe five to 10% of all views are organic because people love to share them and comment on them. And, you know, engagement is just through the roof on these kinds of videos. So we do get kind of a cherry on the top of the cake, but the cake is paid ads. So know that and plan for it. And budget for it. Final step, I've already said it, it's don't think that this is going to be something that you going to put her or this work into a video, and then you're just going to go famous overnight. That's no business model that I could predict, control, repeat. And we've heard about people that win the lottery and go broke, kind of liken it to companies that, you know, sometimes get a whole bunch of seed money and don't really know what to do with it. In the world of video hits there are so many examples of companies that did have videos that went viral back in the old days, but where are they now? You want a repeatable controllable business that you can count on. And, you know, we have clients that have done 7, 8, 9 of these videos because every single time it's worked, it's given them that return. It's not a flash in the pan and going through the steps is the best way to ensure that it will predictably bring those returns that your company needs or your clients need. So those are my eight steps. Jason: [00:37:13] I love it. I love the eight steps and they're so simple, and I'm glad you clarified on a lot of them because I can't tell you how many times I hear agencies I was like, we need to get more attention and we need to create a viral video. Or, and they're just, I'm like, there's so many different things that go into creating a successful video. And I totally agree with you on all the steps. I mean, they're very well laid out and I'm glad you've built upon other people's framework for, from, you know, Donald's to the Harmon Brothers. Because when I look at growing our agency and growing the mastermind and seeing other agency owners, it's no one ever invents everything. It's always like, especially with your creative process, it's always just building on that. And I really do appreciate that and that's why you guys are really successful. Tell us, um, if people want to know more where can they go? Joseph: [00:38:06] Real simple, funnysalesvideos.com. Take a look at some of the examples videos there, there's some case studies there, but most importantly, that's where you can download the free ebook that will give you that. And I should just add if, if you're looking to follow these steps to do it right, we won't take on a client until they understand this is going to take at least four months. To go through all of these steps you got to take the time to do it right. Just want to make sure people understand this isn't the kind of thing that you don't want your clients calling up saying, hey, we need a video in a week. What kinds of videos can you produce? Hey, I've just heard this podcast. Maybe we'll try that. No, it's gotta be, it's got to take the time to get the results. Jason: [00:38:49] Awesome. Well, I love it. And thanks so much for coming on the show. Make sure everyone to go to their website and check them out. And if you guys want to be around other amazing agency owners, where you can build on what they've learned over their years of scaling and growing their agency faster, so you can do the same and really do it the right way and avoid some of the pain. You'll never avoid all the pain, but I'd love to invite all of you to go check out digital agency elite and, um, see a band, just check out the stories from the other mastermind members there of their growth and their success and what their life looks like now, rather than working around the clock and not enjoying what they're doing. So make sure you go to digitalagencyelite.com and until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Can You Scale Your Agency Fast Without Burning Through Talent?

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Feb 9, 2022 17:58


Are you struggling to retain employees? Do you know how to keep scaling without burning through talent? When Robert Glazer started Acceleration Partners, he always had a vision of working with an international team. Now, his agency, which is focused on managing partnership and affiliate programs for high-growth brands, has 300 employees in eight different countries. Robert joined Jason in this episode to talk about how he avoids burning through talent, how he trains his employees to ask why, and what he invested in to get beyond the referral stage. 3 Golden Nuggets Beyond the referral stage. Robert ran a referral-based agency for about 15 years. Of course, it couldn't last forever and eventually, they started focusing more on sales and marketing so he and his partner would be less overwhelmed by the sales aspect. It's a stage every agency will go through and they faced it by investing in leadership, having great marketing, and great delivery. In the end, they have exponential revenue growth from the time they started scaling the sales and marketing team and hired a fully integrated sales and marketing team. On not burning through talent. With an agency that has been in Glassdoor's best places to work, what have they focused on when building their culture? Robert says they always had a vision of working remotely with employees from different countries. They have also focused on offering a work environment where employees can grow professionally, which is one of the main reasons people leave their jobs. In the end, agency life is not for everyone, some will love its unpredictable nature and others won't, but Robert made sure to create a culture that does not reward overworking employees unnecessarily and offers flexible hours. Asking why. On the subject of them not rewarding working extra hours with little results, Robert explains they have resorted to training employees to ask why. Why does the client need this data by tomorrow? Could this be solved any other way? Do they really need everything they think they need? “Don't assume, because they're asking for something that it's the right thing or you can't explain to them the trade-off or explain the consequences,” he says. Sponsors and Resources Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Scaling Your Agency Faster Without Burning Through Talent {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, agency owners? Jason Swenk here and I have another great episode where we're going to talk about how you can scale your agency rapidly without burning through a ton of talent, because all of us have been going through and going, how do we keep employees and how do we find the right talent? And on today's episode, I have a guest that's going to talk exactly about that, that's done this. So let's go ahead and jump into the episode. Hey, Robert, welcome to the show. Robert: [00:00:32] Thanks for having me, Jason. Jason: [00:00:33] Yeah. So tell us who you are and what you do. Robert: [00:00:36] Uh, yeah, I'm Bob Glazer. I'm the founder and the chairman of the board of Acceleration Partners. Acceleration Partners is the largest global independent agency focused on managing partnership and affiliate programs for well-known and high-growth brands. Uh, we have almost 200 clients and, uh, I think, uh, getting close to 300 employees across eight countries and we manage programs across 25 different countries. Jason: [00:01:02] Very cool. And so how did you start the agency? What made you fall into this? Robert: [00:01:08] Uh, like most agency owners… No, I don't know anyone who started the agency intentionally. I just, you know, I started doing some work in the affiliate space. I found a lot of problems with it. I started helping a company fix its program. Uh, that company ended up being a huge success. It was called Tiny Prints. Sold them to Shutterfly for $300 million. People then spread out from that and start saying, hey, can we do that thing that you helped us with there? And then I couldn't do enough of those. So I hired some people, so, and sort of the rest was history from there. So we were very, for years, just all referral-based, uh, word of mouth, you know, 15 years. It's really in the last five years that we've had kind of sales and marketing a little bit before. Jason: [00:01:47] So, what were some of the stages that you went through, you know, in order, like, obviously go through the referral stage, right? And you only can get to a certain plateau. And I feel a lot of people listening to the show right now, you know, are at that level, right. They're kind of plateaued, you know, it could be at 5 million, 10 million, whatever it is, they're plateaued, but you have to do something different. What were the things that you guys did different? Robert: [00:02:10] We invested a lot in thought leadership, content marketing. We wrote a book that was the first in our industry called Performance Partnerships. So we really focused on having great… someone sent me the barbell strategy, having great marketing, having great delivery, which drove the word of mouth. Eventually, though, you know, we were like, look, we don't want to sell or need to sell. Eventually, myself and Matt who is now CEO who is the VP of client services, we're just handling sales calls all day. So even if they were inbound, right, then you had to talk to these people. And we were, you know, the people that called us, we answered the phone, but we weren't following up with them and checking in and the things that you need to do to keep, uh, a sales pipeline moving. So eventually we started to acquiesce. It was like, look, even if we don't want to be cold calling people like this is a lot of, I find, to manage. But from the time we started scaling the sales and marketing team and now with a fully integrated sales and marketing team, I mean, we will, we will sell more this year revenue than we did in our for… Our revenue growth this year will be more than our first 10 years, right? Combined. So it takes a while to get those pieces working. You can go either way. Again, it depends on the type of business you want to build. I wanted to establish our marketing before our sales, like, get the demand going, but, you know, I've seen the opposite approach work too where you get account development and people calling and doing that. We had a really good referral pipeline and we thought that that thought leadership would also help on the conversion of, you know, the people who are examining us. Jason: [00:03:39] Gotcha. So what have you seen work to allow you to scale rapidly without burning through talent? Robert: [00:03:45] Yeah, look, it's hard in this business. Paradoxically, I would say, you know, we, we started by sort of in the premise, you know, five or 10 years ago that people aren't gonna stay here forever and turning that into sort of an open conversation and, you know, having a productive alumni group. But we've, we've actually always been remote. We focused on having sort of a world-class, uh, culture. We spent a lot of time and energy on our culture have been in Glassdoor's best places to work a few years. And look, agency life is not for everyone, but what's interesting is people who come here from other agencies really say to us, this is really different. Some people are a lot of people, realize agency is not right for them. Maybe that's not the work that they want. So we've done a lot to really screen the type of person who likes that fast growth, high pace. You are serving clients. If you don't like client service, probably not a great role, but they like the kind of unpredictability and working on something new and different. I think that the biggest thing that keeps your talent around is investing in your talent and helping them grow and develop. That's one of the reasons we are a growth firm and that growth has allowed for, you know, I think we've had 87 seven promotions last year or something like that, you know, across our team. So for people to see that, oh, that person started associate and manager and now they are a director or VP. And that, that path is available to them. I think these days people leave for two reasons. They don't, they don't like their manager, maybe three reasons, they don't like what they're doing or they just don't, they're not growing or don't see a path for them. I don't think anyone here is blocked. I mean, that's one of the nice things. If you go up 30% a year for a while, as we have, there's just new roles available every year. No, no one is blocked on their development path. Jason: [00:05:31] So when someone joins from another agency, what do they say it's different? Robert: [00:05:35] I think that… look, there's an interesting expectation gap. I actually think the last year has really shown some almost generational gaps in the workplace. We didn't see it before, you know, for better, for worse. I think some gen Z or people coming out now, I mean, they just, they think a 35 hour or 40 workweek is, is a work. That's the workweek and the expectation isn't above that. Some people want to learn and be exposed to a lot of things and understand that they're going to have to do that. But I think the biggest difference… so, so look there's times when there's a lot of work or whatever proposal was due and clients are, but we generally want to solve these problems. We generally don't want people, they don't work weekends. They don't work nights. And so what I've heard people express is at other agencies, people just didn't care if I was working 18 hours a day and they didn't care if I was burnt out or work weekends. They're like, no one wants that here. No, one's asking me to do that. But again, I think we all have to be honest, and this is the nature of the business. Sometimes if there's a million-dollar proposal and the client wants it on a Monday morning, someone's probably going to be working on that on a Sunday night. Like I, I, to me, that's the trade-off of flexibility. The other side is you want to go watch your kid's soccer game on a Friday afternoon? Like you can do like awesome. Go do that. So I think that's the biggest difference is people feel really supported. We are not celebrating. We actually talk culturally, we celebrate work performance, marketing, and we get paid how well these programs do. So we talk culturally about, we don't reward working hard. We reward working smart. I've seen people work a hundred hours a week and not get a lot done and really exhaust themselves and those around them. So I think that's the difference. If you haven't worked in an agency before, agency life can feel different. If you have, I think there's some ones who… again, it's a badge of honor to pull it all night, or I don't think anyone's ever done that in history of our company. Jason: [00:07:27] Are you looking for a content creation solution for your agency and/or clients? Verblio can help you with everything from blog posts, eBooks to video scripts, and a lot more. Verblio is a crowdsource solution to content creation with the pool of more than 3000 highly vetted writers who produce custom SEO-rich content. In fact, my team has been using Verblio and we love the ease of their process. With Verblio, we set the criteria for the style and the tone, and then they match you with the writers that have the expertise in your subject matter. Verblio is a platform specifically designed for agency. And that's why for a limited time, they're offering my listeners 50% off the first month of content. Just go to verblio.com/smartagency to learn more. That's Verblio, V E R B L I O.com/smartagency. Well, I mean, there's lots of people out there that talk about how much they work and how much they hustle. And that's really all they do. And that's perfectly fine for them. But I know when I'm working with agencies and I know when I'm running this business or the other agency, it's like, look, I want to do it smart. I want to be able to maintain, to take off Monday and Friday, Saturday, and Sunday, and only work Tuesday, Wednesday, Thursday. That's what I want. And then you have to figure that out. Like in our mastermind, we were chatting at the end of the year, we were talking about what are the things we're going to say no to, in order to really like set the goal around time. Your goal should be around your time, not around money because you always sacrifice money. And that always makes a big difference. Cause yeah, I remember out of school I worked for Arthur Anderson and that was like a badge of honor to see how many hours, you know, oh, you got to 80 hours a week? I got a hundred hours a week. I'd be like, you're an idiot. Robert: [00:09:24] We actually train around asking, you know, why a lot. And when a client asks for panic for a ridiculous amount of things last minute, you go to them and you say, well, why do you need…? Well, my boss, I have a new boss starting tomorrow. And I wanted them to have this two years of data. And he said, hey, how about we give them X, Y, and Z? And like, I don't want to reward the person spending 10 hours on something they didn't need to do, because it didn't produce a better outcome and it exhausted them. If they could solve that problem in a half an hour by asking why, what do you need? You know, a lot of times, I think it's explaining to clients too what that means. Yes, we can chase those new to new markets, but you realize that mean the core launch mark is then aren't going to get the same support? And they'll say, well, can we do both? Can't… no, so we can either double the team or we can, I think a lot of times it actually if you're an agency that provides great services, your biggest problem is that your teams don't know how to say no well, or sort of put a lid on scope creep and they over-deliver. And by the way, what happens when you overdeliver in an agency? I go look at the PNL at the end of the month and not only is the employee upset, but we haven't made any money. So that's a lose, lose. Jason: [00:10:36] Well, yeah. And the clients are getting overwhelmed by all the stuff that you just provided them. And a lot of times they get confused, which means they're going to leave. So you just burn out your clients. Robert: [00:10:45] Don't assume, because they're asking for something it's the right thing or you can't explain to them the trade-off or explain the consequences. Again, if they say, well, let's chase this city and that city, are you okay if that deteriorates the results on the existing two cities? Well, if it's one of these things where it's 99, 1% and it's oh, when you put it that way, I know I don't want to put those campaigns at risk at all. Jason: [00:11:08] Yes. Awesome. Well, Robert, this has been great. Is there anything I didn't ask you that you think would benefit the audience? Robert: [00:11:14] Yeah, just in terms of, I think thinking about where you want your agency to go in terms of determining how you want to run it, right? I think there are a bunch of different paths, particularly, you know, there are a lot of people exiting these days, and I think there's a specific set of things that you need to do and understand your industry if you want to move towards that outcome. Jason: [00:11:33] Let's go over a couple of those. What's important in your eyes? Robert: [00:11:37] A couple of things. Cause you might hear from your friends who have SAS businesses or otherwise, but agencies are sold on EBIT. They are not sold on revenue. They're not sold on customers or clients or other things they're sold on trailing 12 month EBIT. So, first of all, you can get over the fact that you haven't started a SAS business, you know, and your friend did, and he sold it for 10 times sales. And then you need I, so I think the two things that I see really hurt the most… one is not having everything relying on the founder, right? These are the things that impact valuation. Understanding that trailing 12 months EBITDA is the primary driver and then having a proper cost accounting for your business. The amount of agencies I've seen who don't have for gross margins correctly, who aren't putting, you know, the actual people cost of doing the works in a gross margins. Like this is kind of finance 101. You can't, if the people are delivering the service, then that is, you know, you can't say you have a hundred percent gross margin and operating expenses, it doesn't, it doesn't present an accurate picture. And I would also encourage everyone out there to, you know, if you're an owner-operator, pay yourself a market salary in the business and then take the profits, so that you have a proper PNL. Because we, we've gone to look at businesses and they say their profits' a million dollars in EBITDA, and then there's three founders taking $30,000 a year. Well, those financials are not accurate. And then you're very upset, but your evaluation is not going to be there. So those are three of the things I would really encourage people to do if they're thinking about an exit down the line. Jason: [00:13:07] What do you see the multiples being in? Uh, you know, I've seen them as ranges, so let's say you're under a million in EBITDA. What's the multiple? Robert: [00:13:15] Yeah. So I built a chart on this for marketing agencies. I'm happy to share it with you. So under a million in EBITDA, I mean, right now it's hard, but it could be two to four times EBITDA with a heavy earn-out. Because again, under a million EBITDA, the owners, probably the head of marketing head of sales. I wouldn't expect them to get more than 50% of that upfront. I think two to 3 million in EBITDA these days, maybe 5, 6, 7, you know, the first inflection point, major inflection point, is 5 million in EBITDA. And I think, you know, healthy agencies have 5 million EBITDA with recurring revenue, you know, business are, are going for 10 times plus EBITDA these days. Jason: [00:13:58] Yeah, what we'll do is anything under a million in EBITDA is usually one to two X EBITDA. A million to 3 million is usually four to six. Three to about, you know, six would be a little bit more. And then if you're over the 10 figure mark in EBITDA, then it's really write your own ticket, depending on a number of different things. Robert: [00:14:20] Agencies over 10 million, 20 million are getting 20 times earnings some of them these days. But I think he made the point you made is really interesting. Again, this is why you need to focus on what your strategy is. The problem, it's hard to get one of those one to two times EBITDA deals done, because why would that founder sell when they can just have to hold on a business for two years? But they haven't created anything beyond themselves that has value. In fact, if the earnings of that $1 million EBITDA, you know, and they are the head of sales, the head of marketing, the head of whatever, that includes $400,000 of things that you'd need to pay for other people, then it's really 600,000. So that's the problem. That's why those deals don't get done. Again, if I'm the seller, do I want to give up the…? You know, you wouldn't give up one time, EBIT if it's, unless you saw it, your business is going to collapse. And even too, he said, if I just held on for two years. So if you want to get real value for your business, it needs to be a valuable business beyond yourself. And the more that you can take yourself out of functions, you know, when you start having a marketing person, when you start having a salesperson and you're not on all the sales calls, these are the things that might get you up to a two to three from one to two. Jason: [00:15:28] Yeah. My partners always get mad at me. A lot of times I talk people out and I'm like, look, you're not worth what you think you're worth, and if you are worth what you think you are, like, why do you want to sell? Like, there's lots of mastermind members that we've gotten to the level where they're the chairman and they're not in the day-to-day and they're getting millions of dollars every year. So why would they sell? Robert: [00:15:51] Let's say, it's, let's say it's a million-dollar EBITDA business and you're out of it, but it's just only a million of EBITDA, which again is not a lot of scale. And let's just say someone will pay two to three times for that. I mean, do you want to sell the golden goose or do you want to keep getting the eggs, right? That becomes a tough, tough equation. But I think if you certainly don't want to get a deal done, you go to market and you tell everyone, you know, that you want evaluation either, or you're… An agency is an agency. There could be a hot segment, but they've all, every sale has been valued generally the same for the history of, of time. And I think when you go to market and talk to people and your expectations are just nothing like the deals that are, I always say market-clearing prices. We hear a lot of rumors, right? We hear LOIs… 80% of deals I think don't close, right? So you hear a lot of headline LOI that didn't close. You don't know whether the headline number had earn-outs or not. It could have had five or six years of earn-outs. And so I, the only prices and comps you can use or what I call market-clearing prices, not the rumor that your friend said, or the LOI that your other friend said, or otherwise. Jason: [00:17:00] Yeah. Awesome. Well, Robert, what's the agency website, people can go and check out? Robert: [00:17:03] Yeah. It's probably easier to Google than it is to spell it all out. It's accelerationpartners.com. Uh, hopefully, we're doing a decent job at SEO and you put Acceleration Partners. I'm sure one of your SEO agencies listening will, uh, will give us a call and offer to fix. Jason: [00:17:18] Awesome. Well, thanks so much for coming on the show. And if you guys enjoyed this episode and you want to be around amazing agency owners that can see the things that you're not able to see and help you scale and grow and get to a point where you've really created the freedom in your agency, where you're making the profit. You don't have to make all the decisions. You don't have to have all the risks and your team is, you know, humming along. I'd love to invite all of you to go to digitalagencyelite.com. This is our exclusive mastermind for agency owners that are experienced. Go there now and until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
3 Levels of Communication to Differentiate Your Agency Brand

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Feb 6, 2022 12:52


Can you effectively communicate what your business is about? With a 30-year background in marketing, Chris West noticed businesses normally handled their visual identity very well but need help when it comes to using their language. He started his agency, Verbal Identity, and has helped clients create a distinctive and impactful tone of voice for their brand. He is a big believer in the power of language and in this interview, Chris discusses the three levels of communication he teaches his clients, why humanity wins over corporate in social media, and his new book. 3 Golden Nuggets 3 levels of communication. As a digital agency, you need to differentiate yourself from your competition. When looking at how the world's biggest brands communicate, Chris identifies three levels of communication. At the 10,000 feet level, we have a vision of the world you want to create. What do you stand for? And even more powerful, what do you stand against? At 1,000 feet, we have the personality, which is a very important piece because customers buy into the personality of a business. Finally, at ground level, it's all about the details, especially when it comes to the language. Establish the language your business will use and identify with and communicate it to your team. Humanity wins. Even when it comes to some of the world's biggest brands, like Microsoft, people would rather follow Bill Gates on social media than his company. That is because they want to follow a person, someone they can relate to. It's important to be more than a corporate blank face that only speaks in business terminology and communicates merely in announcements. Dare to get personal, to share your likes and dislikes and you will attract like-minded individuals. And, perhaps more important, identify the ones that will reject you and cannot relate to you. Writing advice. When it comes to writing, some of the best advice Chris has ever gotten is “write like they're walking away”. Be very intentional about your message and try not to rely on context and details to get your point across. Write like you don't have time to warm up your reader because you're already losing their interest. Sponsors and Resources E2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design and development agency that has provided white label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM These 3 Levels of Communication Will Help You Differentiate Your Brand From The Rest {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, agency owners? Jason Swenk and I have another amazing show for you and guest. We're gonna talk about the three levels of communication or language that you can actually check out in order to position your agency to be the choice. So let's go ahead and jump into the show. Hey, Chris. Welcome to the show. Chris: [00:00:25] Hey, Jason, how you doing? Jason: [00:00:27] Hey, tell us who you are and what do you do? Chris: [00:00:29] Certainly. I run a business called Verbal Identity and it came about because I have a 30-year background in marketing. And what I noticed was a lot of clients, business owners were really sweating their visual identity, but they were forgetting about their language. So really what we do is we help businesses use language better. Jason: [00:00:48] Awesome. Well, in pre-show we were talking about kind of the three different levels that you need to kind of really kind of position your agency. So let's kind of jump into it and talk about it. Chris: [00:00:59] Yeah, thank you very much. So I think the thing that really kills and bogs down agency growth is how are you different from every other agency? So you're a digital agency, so are a hundred other digital agencies. So how on earth can you stand out and be differentiated? And I think that when we look at how the best brands in the world and the best businesses in the world communicate, whether it's a small, you know, super fast grain startup, whether it's a big brand, like we've worked with like an Alphabet over in Silicon Valley, their communication really works on three levels. So if you're like at 10,000 feet, they're very clear and consistent always in their narrative. This is the world we believe in. So this is what we're going to stand for. And even better, this is what we're going to stand against. So if you're a digital agency owner, you can't just be a digital agency owner. You can't just believe that the world needs kind of better digital, whatever, whatever, you know, everyone's saying that, right? You got to say that we do it fast. We do it better. We understand our clients better, or we, you know, what is the truth about you, about the world that you were trying to create when you set up this agency? What was it…? How precise and personal can you be about, and when you find that, what is it you stand for and what is it you're going to start against? Cause we see people, elected president selected being very clear on what they stand against. And really you're fighting for election when clients are looking for which agency to take on. So that's like in the 10,000 feet. Now, of course, you've also got to find the personality, my belief, and, you know, working with agencies here in the UK, is that what we find is clients buy people and then they buy the agency that those people represent. So what they buy into is the personality. And what you want to do is make sure that there's a thousand feet, there's a personality which is true to you, which kind of expresses this worldview. Are you as an agency, quite confrontational? Do you think the world is stupid and everything has changed or are you as a bunch of people actually much softer, more considered, more insightful, maybe more intellectual? Whatever it is, if you can take your worldview and then represent that in your personality, then you really strongly differentiated. And of course the other thing that bogs us all down as agency owners, business owners is we're trying to do everything and we want to move faster and I've got six people writing content for me. I want all events sound the same and I want them all to sound like us. So down at the ground level, there are some ground-level details and people often overlook this, but are the words and phrases we use and the words and phrases we don't use to describe ourselves? From the consumer world we had a wonderful client, Fred Perry, Fred Perry Clothing, the CEO kept on saying we don't use the word store. When we're writing our content because we're British and stories and Americanism, we have to use shop, right? When you put that in the guidelines, he saved his frustration in these weekly content review meetings, just because these are the words and phrases we use and don't use. Also some things around grammar so a couple of other things. And then once you've got all those aligned, you're differentiated and you've got your team pointing in the right direction. Jason: [00:04:08] I love it. What are some other areas where you see people going wrong with positioning, you know, their agency? Chris: [00:04:17] I think agency owners are usually hyper-intelligent people and hyper passionate, hyper purposeful driven people. And actually they want to get all of that across in the first communication. So, you know, but I don't have time for it, Jason. I don't know how much time you've got for it. I mean, you know, I see 20 people writing to me each day, say, hey, Chris, we can do this we can do that, right? You know, I, my phone is going, WhatsApp is going three more emails have come in just as I've been thinking about what I should do about the other emails. And actually, can you say something simple, just enough to open the door? More to the point, if you dare to do this, can you say something that 99% of the vault of the world will reject? Cause we don't want the whole world. What you want is the 1% of the clients that really get you. So what is it that you're going to say that 99% will reject? That's one of the biggest tips. Be prepared to lose the people that are just going to waste your time in meetings anyway, and never love you. Focus on the ones, you know, the thing that will appeal to the 1% and then keep it simple. Keep it short. Unlike me, who tends to talk for too long. Jason: [00:05:25] Are you looking for a reliable partner to increase your agency's bandwidth so you can take on more projects? You know, our partner at E2M wants to help you grow your revenue, your profit margins without increasing your overhead costs. Now, they're a white label, web design, and development agency that's been providing white label services for the past 10 years to agencies all over the world. Their team is over 120 experienced, skilled digital experts that's highly motive to help you get more done in less time. Now they can help you in all kinds of digital areas, including web design, development, e-commerce, SEO, copywriting, content marketing, and a lot more. If you're not sure whether E2M is the right fit for your agency, I want you to check out their flexible and transparent pricing model. Go to e2msolutions.com/smartagency. For a limited time, they're offering my smart agency listeners 10% off for the first three months of service. That's e2msolutions.com/smartagency. I love that you talk about talking about what you stand against or stand with. You know, I think that's very important when you're positioning your agency, because I find too many times agency owners try to appeal to everyone and they're going to appeal to a lot less rather than saying, hey, you know… Like what we do with our agency mastermind, we're saying, hey, if you're an asshole, right? Or if you're all about yourself, do not apply. There's other places that you can go for that. And like, that's our stance. Or if you're not about sharing or, you know, helping other people out or being transparent, you know, hey, it's probably not right for you. And then that's our stance. And that's enabled us in order to really create an amazing place, you know, in the same thing at the agency, like we used to say the same thing about our clients. Like if you think, you know it all, we can't help you. Chris: [00:07:28] Yeah, definitely got to help me. And I think, can I add something to this? Cause this is exactly what I believe as well. I mean, there are places for ourselves, right? But here's the thing I, I see that works really well when people are using language: humanity wins. So, if you look at the number of followers, I think Apple has on LinkedIn is… I don't know how many million it is, but Tim, who runs Apple, has twice as many followers. If you look at how many followers Microsoft has is however many millions, right? But can you believe Bill Gates? I suddenly forgot his name, but Bill Gates has two and a half times as many followers. Why? Because humanity wins. People want humans to talk like humans to a human. Soon as we slip into the corporate stuff, people switch off. Jason: [00:08:13] Exactly. Yeah. You know, I mean, that's what I love about social media. It gives you an idea of what's every day in the life of Bill Gates or, you know, Tim Cook or whoever, you know, rather than, you know… I always hate when people just share out or communicate just business and brand stuff. I'm like… Chris: [00:08:34] Oh, and there's nothing. There's nothing. So what I'm for you for going to work this morning? Sometimes, I mean, that sincerely what happened going to work, but right… We're delighted. We've appeared at this. Yeah. Good for you. Nothing for me in that, right? But tell me how you have to fix the wheel on your car on your way there and you turned up and your pants were soggy because of the rain and you had to borrow some pants… Right, now I've got you. Rather than now, you've got me, I'm walking up onto the stage with you and man, I want you to succeed. The human stuff wins. Jason: [00:09:04] Yeah. And you know, I, my team fought me for a long time on this, you know, on social. I was like, hey, look, we live in the mountains. I want to share my life in the mountains on social. And it's been amazing where it's attracted people that have the same interest as well. And then it's so much more enjoyable that we've attracted people that believe in the same things. Chris: [00:09:29] And that's your differentiation. So 99% of the world might look at that and go, why do I want to talk to some guy that's stuck in the mountains? My life is four story, high glass fronted, lobbies and stretch love, blah, blah, blah, blah, blah, right? 1% are going to go. I found the man, right? He gets what it is. It's not all about that. So immediately you're streets ahead of the competition. And also, yeah, so you say, when you open up personally on social media, you really big, right? So don't want to phone this guy. He sounds like a corporate blank face. Or do I want to find this guy? Because he's honest, like you had, excuse me, crap day cause he missed all his night's sleep because his kids were up or whatever it was. Okay. That's like, that was me yesterday as well. So I can talk to this guy like an honest person. Jason: [00:10:16] Yeah, I love it. Well, this has all been amazing, Chris, is there anything I didn't ask you that you think would benefit the audience? Chris: [00:10:23] Ah, writers tips, maybe, you know, sometimes people say Chris, you know, you're an award-winning writer. They never say that. I always try and get them to say that, but they never say you're an award-winning writer. They say, Chris, you know, you're a writer and you're in the room. So let me ask you a question. Best writers tip ever? So I would say right like that already walking away. It was this piece of advice I heard three years ago and it's like, that's great, right? And you don't have time to warm up the reader. You don't have time to explain the context or anything else. They are already walking away. So what is it you want to say? Get it upfront and start back. So for me, it's a, it's a lovely piece of advice walk, write like they're already walking away because they are. Jason: [00:11:06] I really liked that. And I'm probably the person always walking away because my attention span is about this big, a lot, like everyone else. So, you know, get to the point really pretty quick. Tell us a little bit about the book and where people can check it out. Chris: [00:11:21] Do you mean this book? Thank you very much. Yeah. So. I've been running this business for 10 years. Love language, love what it can do. I think it's a sneaky, amazing thing, language. Uh, people said, Chris, can you put it, can you stop talking to me and just write a book so I can read the book and stop listening to you? So the book came out in September. I'm delighted to say it hit number one in its category on Amazon straight away. And really it talks about this framework that everyone can use this simple framework, 10,000 feet worldview, thousand feet personally, ground-level details, how you make sure they will reinforce each other. And then there's a little bit about how do you build ROI because we all, we all need to worry about, there's 20 things I could do right now to help my agency, is it going to be ROI for this? Is this the most important? And then it talks a little bit about quick wins and a few other writers' tips in there as well. Jason: [00:12:14] Awesome. Well, thanks so much, Chris, for coming on the show. If you guys enjoyed this episode and you would like to know the strategies that are currently working and literally have access to them every month, if that sounds of interest to you, I'd love for you guys to check out the digital agency elite. This is where we have members and guests come in once a month to really go over strategies that they're crushing it on as well as be surrounded by amazing agency owners. So go to digitalagencyelite.com. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
What Benefits Await Your Agency Beyond the Seven-Figure Mark?

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Feb 2, 2022 21:26


Are you struggling to get your agency beyond the million-mark? What benefits await beyond seven figures? Erik Olson merged companies with his current partner four years ago and they started Array Digital, an agency that, in its beginnings, focused on website development and mobile application services. They introduced digital marketing services as a smaller branch and then realized it became more popular than expected. In his conversation with Jason, Erik spoke about making the decision to niche down and why reaching the seven-figure mark made such a difference. He also talks about his book about the journey to a million dollars. 3 Golden Nuggets Why seven figures? It took Erik 11 years to break a million dollars in revenue but he really saw a difference after that point. Why seven figures? “It's a nice round number,” he says. It's not random at all, only 4% of businesses reach the million-dollar mark, so reaching that number meant, to him, that he crossed the threshold of success. Once he did it, he realized that running the business became a bit easier. He finally had extra money to invest in their own marketing, getting clients gifts, a mastermind, and things that were unaffordable in the beginning. Invest in your people. A huge component of any business is its people and Erik knew this was another area that could see significant investment once the agency started growing. “When I hired my first employee, the only benefit that I had was paid time off,” he recalls. As time went on, they were able to offer more benefits like dental, medical insurance, and even retirement matching. He's giving his staff what they need to be whole when it comes to their finances and the work itself. What he would do differently. If he had to start over from having a 300,000k business trying to get to one million, Erik says he would quickly focus on the ideal prospect. This is something that took him a long time but now he says he would 100% niche down at that point. “First and foremost, I would certainly identify very clearly who it is I'm talking to or want as a client. And then I would be pretty rapidly going towards niching.” Sponsors and Resources Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM What Are The Benefits Beyond the Seven-Figure Mark & How You Can Invest in Your Team {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, agency owners? Jason Swenk here, and I'm excited. I have another amazing episode. I have one of my mastermind members who runs a really successful agency. His partner has actually been on, so I thought I would bring him on as well. And we're going to talk about scaling to seven figures. I know a lot of you watching or listening are constantly trying to battle and you're really trying to get there. And it took me a number of different years to get there and he's going to talk about it as well. So let's go ahead. Get into it. Hey, Eric. Welcome to the show. Erik: [00:00:37] What's up, Jason? Thanks for having me. Jason: [00:00:38] Yeah. I just realized too. I've had Drew and Darren on and, and Kevin and you. Now you're the fourth person on the intro that you can see the drone, the drone flying out from experience. I see them, I see them, I could see the shining head off the edge. Erik: [00:00:57] Hey! Why'd you have to go there, man? Now that was awesome. As a matter of fact, uh, one of the pictures from the experiences my Twitter profile, picture up on the mountain, it was like the, I guess it's the first full day we hiked up Swenk mountain. Yeah, that was amazing, man. Jason: [00:01:14] It was fun, yeah, at sunset. So yeah, it was fun. And then obviously the ones we did on the ATVs, since you guys were the suckers in the back, you guys got dusted, but… Erik: [00:01:25] Yeah, I definitely should've brought goggles to that trip, that's for sure. Jason: [00:01:28] Exactly. Well, tell us who you are and what do you do? Erik: [00:01:31] Sure I'm Erik. Online I go by Erik J. Olson. I am the CEO of a digital marketing agency in Chesapeake, Virginia named Array Law. We have been in business for about four years. We, um, we've gone through a bunch of different iterations and I've run several previous companies. And so about four years ago, my business partner, Kevin Daisy, who was also on your show recently and also a mastermind member, we merged companies. And at that point, we decided that we were going to rebrand as Array Digital. And at the time we were focused on website and mobile applications, and we did this little thing called digital marketing off to the side. We had one person that we were just like, just go take care of that extra value-added service. And one day I sat down and I looked at all of our financials and I saw that we were making pretty good money. It just wasn't a lot of it, very high percentage. So high percentage, but low dollar amounts. I'm like, what don't we focus on this a little bit more? And I had been focusing on it and like, you know, my research and whatnot for the last year. It took about six months before we started to get some real recurring revenue from that. That was really nice to see recurring revenue in an area that we really enjoyed working in. Jason: [00:02:51] Yeah. I think, you know, for many years, or some people take even longer, it's you do the things that just keep coming to you rather than really go and really look at what are the things that give me a lot of energy or which are the ones that like take energy away? And like, if you can match like the ones that give you energy with the ones that make you a lot of money and profit, you're like, all right, let's do more of that. But I think we get too involved in the process in, in the business that we can't even see it. So how were you able to kind of take some time and to see that and really kind of, I look at it? Erik: [00:03:23] Yeah. So as far as like the, the pivot that we were going to make? Jason: [00:03:26] Exactly. Erik: [00:03:27] Yeah, well, honestly the work started to dry up a little bit. We had a whole bunch of very expensive software developers on staff and we were wrapping up some projects. We were going into the holidays. And we had about five prospects, several, like, yes, we're going to sign with you. And we're like, oh man, we're going to need to get more office space and all this stuff. And I wouldn't say that that actually was probably like late summer that happened. And then going into the fall, the prospects didn't close. Going into the holidays, the prospect started ghosting us. And so our projects were wrapping up. We didn't have a lot of new projects coming and we were, honestly, quite afraid for the future. So we started having some real discussions about what are we going to do here if this doesn't work out the way that we had hoped it was going to work out? And, you know, my background was software development. I did software development for 15 years, so this digital marketing stuff was new for me. And so I spent about a year just deep diving into, uh, getting this taking in everything I get my hands on, you know, online personalities, articles, blogs, you name it. I was just consuming, consuming and learning about it, and we were getting better as a team. But, um, I realized we had to make a pivot and actually we had a conversation that the riskiest thing that we could do was to do nothing. We had to pivot and take that big, big risk. But, you know, from a personal standpoint, I was walking away from the thing that I knew the most about. So, it was, it was a challenge. Jason: [00:05:00] Yeah. And I know when I'm always talking to people about niching down and really going all in on it, they're like, well, what if it doesn't work? And then I'm like, well, what if it does? Like, that's a bigger, it's like, that's the bigger thing. It's like, I've seen it 95% of the time work. There's always those exceptions for bad implementation, but when you can kind of go all in to something that the market needs, that you have passion for forget about it. So… Erik: [00:05:30] Yeah. And you know, we did not niche until, well, until we, honestly, we joined the mastermind and we kept hearing about it and we kept meeting and learning about the businesses of mastermind members. And what we noticed very clearly was that the members that had niched the most as far as industry or discipline seemed to be doing the best. And so we started to kind of go down that path. But again, it's a scary thing because you're not used to it. You're used to people just coming to you from various industries for various needs, but it also gets exhausting when every time a prospect comes to you it's like a brand new problem that you may not even know how to solve. And you have to kind of be like, yeah, we could do that. And you don't really know if you can. I'd rather do the same kind of work, frankly. As far as the work itself, over and over again, but the, uh, the creative output or process be the variable for each client. So we can still be creative. The things that we do as far as like run ads or build websites, it's the same, right? And so we get better. We get more efficient. Jason: [00:06:46] Are you looking for a content creation solution for your agency or clients? Verblio can help you with everything from blog posts, eBooks to video scripts, and a lot more. Verblio is a crowdsource solution to content creation with a pool of more than 3000 highly-vetted writers who produce custom SEO-rich content. In fact, my team has been using Verblio and we love the ease of their process. With Verblio, we set the criteria for the style and the tone, and then they match you with the writers that have the expertise in your subject matter. Verblio is a platform specifically designed for agency and that's why, for a limited time, they're offering my listeners 50% off the first month of content. Just go to verblio.com/smartagency to learn more. That's Verblio, V E R B L I O.com/smartagency. Yeah, I remember cause we did a lot of custom application development and yeah, it was, there was no set playbook. I mean, it was always, always different and it was just challenging. And at that part of the business was always the one that was kind of close to breaking even, it seemed like. It was just, we were really profitable on the creative and the digital marketing. I just wish I cut that, the development a little quicker, but back in the day when we were growing, we, that was one of the things that could actually help us to grow. But it's a little different nowadays, you know, going forward. What are some of the other things that helped you guys get over the seven-figure mark? Erik: [00:08:19] Yeah, great question. So it took me 11 years to break a million dollars in revenue. Uh, 11 years as a business owner. The first four years I was doing government contracting for the Navy. I, I live in the Norfolk, Virginia, uh, market, and there's a ton of Navy here. And so a lot of people get DOD work. I started my own little company with another, with a partner and it was just a two-man crew. And right off the bat, we were making good money but it wasn't seven-figure money, but it was, it was a good income for an individual. And it was one of those situations where you don't want to walk away from it. But I knew I had to one day and eventually I got the boot and had to golf on my own and, uh, started to, to really focus in on business and started hiring people and growing a team. You know, one of the things that really helped me a lot was when I did that, when I took that step and I, I started to take on commercial clients, I knew that I had an opportunity to get a lot of work from my network, but only if I told them what I was doing. So I literally had to tell the world on a daily basis what I was doing. And it was, there was hesitation for me to do that. And I see this in a lot of new company founders or freelancers, where it's almost like they're hedging their bets in case they fail. It was what it seems like. And that's how I was feeling like, well, if I tell everybody, if I tell my mom, my dad, my aunts, all my friends from high school, every, everybody that I know, if I tell everybody, and then it doesn't work out, I'm going to be embarrassed. But I knew that that, that was it. There was one plan for me, it was the plan that had to work. And so I had to activate that network. So that was a big, big thing for me, was telling everybody what I was doing and making sure everybody knew what I was doing. And it continues today because you know, all companies kind of pivot a little bit and tweak their offering and whatnot, or, or they niche, or, and so we, we have to continue to tell people what we're doing so that if someone knows me from years ago, or we just met, I want them to know that Erik is the guy that does X, Y, or Z. Even if they're not a prospect, they can carry the message on. So that was a big part for me. Jason: [00:10:40] Why the seven figures? Erik: [00:10:42] So yeah, you know, why million dollars a year in revenue? Why is that pertinent? Number one, it's a nice round number and it's something that our culture kind of throws around a lot, you know, millionaire's kind of a big thing. Not that if you make seven figures that your agency, if you're a millionaire, not by a long shot. You may actually be losing money in reality. So it's something that's recognizable, but also I learned a couple of years ago that only 4% of businesses reach the million-dollar mark. Jason: [00:11:12] Really. Oh, wow. Erik: [00:11:13] And to me… yeah. To me that meant that 96% of businesses either are mom and pops or they struggle to get there or do they just die trying. And so it's enough of the challenge where I knew I wanted that. But once I crossed that threshold, what I didn't realize until afterwards was that the business just got a little bit easier to run. So we finally had a little bit of extra money that we could put into things like our own marketing and getting clients gifts and a mastermind and some of these extra kind of like things that were unaffordable in the beginning. Nice to haves later. And now we could actually start investing back in the business and we can hire people, the right kinds of people. So it just got easier as a business owner once we cross that threshold. Now, the number of self is it's just a number. There's nothing magical about it, but right around that point for me in my personal experience is when things started to really change. Jason: [00:12:20] Yeah. Yeah. I agree with you on there. I remember… It took us a couple of years to get through to the million dollar mark just on the top line. And then I realized, you know, after that I was like, well, okay, that's top line. Well, how do we get it to, you know, the profit? Like, make that the profit, like literally I just got off an interview a little while ago, not sure uh, when that show will go live, but it's with Don scales. And we were talking about, he's done 40 acquisitions and he's a CEO for a huge global agency of over 500 people. We were talking about like, which are the ones that he looks for. And he, uh, I remember him telling a story about, he was talking to the Omnicom CEO. He goes, hey, I'm going to go look at this one agency. And he's like, well, where are they at? And he's like, well, they're a million in revenue. He goes a million in EBITDA? He goes, no a million in revenue. And he goes, if I were you and I was flying to them, I would fly by and wave. He goes, I wouldn't talk to anybody for that under a million and EBITDA. And I didn't realize that for many years to come as well of going… Cause we all have that, that mental hurdle we want to get to that million and then you get to a million, then you're like, you go to the next. And I totally agree with you, you know, Erik on it does get simpler because you can afford to, you're really starting to focus on building your team. Like, you know, like what we talked about in the mastermind a lot with your guys' success group is around recruiting and building leaders and that kind of stuff. And when you can invest into that, it takes, um, all the weight off your shoulders. Have you found that as well? Erik: [00:14:07] Yeah, absolutely. Yeah. And, and people, that's a huge component of any business, but certainly in, in agency life, you, you have to invest in your folks. And, you know, in the beginning, when I, when I hired my first employee, the only benefit that I had was paid time off and that was pretty cheap. So it was like, you know, two weeks of paid time off and we kept hours and all that stuff. And, but as time went on and we made a little bit more money, I was able to offer more benefits. So when we offered dental, we offered a vision, we offered a medical, of course. And then, you know, one of the most recent ones was retirement matching, which that's a big deal. I mean, that costs us a lot of money, every pay period to put money into someone else's retirement account, but we're giving our staff what they need to be whole when it comes to their finances and hopefully with the work itself as well. But all that costs money. You need tools as well, right. So it's easy to say, oh, you need to do great work. But if you don't give them the tools, if you can't afford the tools, they need to do great work, then you're asking for something that's unreasonable. So yeah. You need the money to invest in your people. Now that's probably the biggest component, right? Jason: [00:15:26] Yeah, exactly. Well, if you had to do one thing over again, you know, so it took you a couple of years in order to get to the million mark if you were starting over today and you're around 300,000. What's, what's the one thing, if you had one thing that you could do in order to get you over a million, what would it be? Erik: [00:15:47] Oh, man, great question. If I was at 300,000 and I wanted to get to a million as quickly as possible, I do think that I would very quickly focus in on the ideal prospect. It took me a long, long time to get to that point. So I don't know if that's, if I would a hundred percent niche at that point, but I would certainly know who I'm speaking to. I think niching is very, very powerful, but one of the main reasons is powerful is that even though you may be doing almost the same kind of work in one niche as the other, you can speak directly to your prospect. So before we did any niching, our messaging as a marketing agency was something along the lines of, we do great SEO, websites, fill-in the discipline. We do great digital marketing. But we can never say for who. And so the moment that we started to niche in, and when we have two agencies now, I'll go with the newer second one, which is HPAC contractors, these are people that put AC units into homes. We can say we do amazing digital marketing for HPAC owners and we can talk about the different kinds of manufacturers that they interface with and the pros and cons of each and what their customers want out of them. And so we can get very, very specific in the messaging that we provide to our ideal prospects. So back to the question, what would I do? First and foremost, I would certainly identify very clearly who it is I'm talking to or a want as a client. And then I would be pretty rapidly going towards niching. Jason: [00:17:32] I agree with that because then you can charge and raise your prices to whatever you want it to be. Like, I always tell people I want to print the t-shirt like “Raise your prices, stupid.” Literally, just because so many agencies are hardly charging anything. And if you can charge more, you make more. If you make more, you can hire the right people. But in order to do that, you have to separate yourself from everyone else out there, all the me-too digital agencies out there. So make sure if you're a digital agency and you're want to get over the million mark, look at your agency pricing, look at who you're actually going after. And I look at that as… that's how you get over it. And then once you get over it, now it's about, you know, kind of keep scaling it. I see a lot of times people get over it and then they're like, I kind of liked it when it was in the fun stage. And I kind of go back down the mountain, like at base camp, it's easier to breathe at base camp. And I'm like, but the view's not as good. Erik: [00:18:35] Yeah. Yeah. You mentioned raising prices and I've heard you say that many, many times, and it's a scary thing, right? And especially when you're a young company, because you haven't figured everything out. And so you know that there's a lot of opportunity for improvement in your offering and your customer service and you're afraid… you know, I think a lot of times people are afraid of raising the price on existing customers. So they're fearful of raising the price for new prospects. And I think those two things should be separated. You can handle how much you charge existing customers separate from how much you quote new customers. When we started to raise our prices, it was pretty shocking to everybody that people were saying yes. That happens. Jason: [00:19:23] Oh, they'll, they'll say yes really quick. And then you're like, oh man, I should have said more. But I'm glad you brought that up, it's like, you really want to start with raising your prices on the prospects coming in. And then once you get enough, if you want, you can go back to your clients because there's an opportunity cost there on agencies, right? You know, you'd be like, oh, well I'm making 20,000 more a month on this one client then some of the old ones. Well, you need to have a conversation like a Dean in the mastermind. We had a conversation and, uh, he had a bunch of legacy clients. Literally we thought he would lose about half of his clients, but the other half would say yes, because he doubled his price. Every one of them said yes. And he made it another 60,000 in monthly recurring revenue just by going to his old clients, not even including raising the pricing on the prospecting. So it's huge, huge thing that everyone can do. Eric, this has all been amazing. Is there anything I didn't ask you that you think would benefit the audience? Erik: [00:20:23] Sure. If you don't mind, I did write a book about my journey to the million-dollar mark and it's called Million Dollar Journey. And it is up on Amazon and got a little bit of a shine here, but yeah Million Dollar Journey by me, Eric J. Olson. And it's just the whole story of everything that I did. So the stuff that we talked about today, uh, but then a lot more things went into it and the merger on the pivot and whatnot. Jason: [00:20:47] Awesome. Well, thanks so much for coming on the show, Eric. And everyone go check out their book, Eric's book on scaling over the seven-figure mark. And if you guys enjoyed this episode and you guys want to be around amazing agency owners and have a good time and scale and have those people that actually understand what you're going through and that are all digital agency owners. I'd love for you guys to go check out the digital agency elite mastermind, go to digitalagencyelite.com. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Are You Just One Conversation Away from Massive Agency Success?

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Jan 26, 2022 13:10


Are you looking for opportunities to make more connections? You could be just one conversation away from your next big client success that leads to scaling faster. Tom Schwab started his agency Interview Valet in 2014 with the theory that targeted interviews on established podcasts could be used much like guest blogging. This podcast guest strategy has grown into a business that provides the fastest way for authors, speakers, coaches, consultants, and brands to maximize the benefits of podcasting. In his interview with Jason, Tom expands on how to start conversations that lead to success in your business, how to get the contacts that will lead to those conversations, and why you should look for a true connection to get people interested. 3 Golden Nuggets Conversations that lead to success. The idea behind Tom's podcast marketing service is that everything great in his life has come from a conversation. He believes that in your personal or professional life you owe your most important connections to that initial conversation, it could be a customer you really wanted to work with, a business partner, a great employee, your best friend or spouse. “It wasn't a funnel. It wasn't a, you know, social media strategy. It was conversations.” Because of this, he wants to emphasize the importance of human connection as something that can't be replaced by automation. How to get more conversations. Remember that more is not better, better is better. Tom tried to keep in mind that you can never say enough of the wrong things to the right people or the right things to the wrong people. So you should always make sure that you're talking to the right people in the first place. Are they interested? Make sure they're interested in having that conversation and then make sure it is a conversation by asking their thoughts on something, as opposed to just asking the same five questions and them just giving talking points. Look for a connection. How can you get the connections that will lead to the conversations you want to have? Try to figure out who you're going after and who's connected to them and see if they can connect you to them. You should look at putting together a targeted list and go over this with your sales team. But whatever you do, don't just treat it like a spam list. Figure out what's the connection? What's that degree of connection? And then ask. Remember that people usually want to have their friends, their friends of friends and people they want to be their friends on their podcast. So figure out how to fit in one of those groups. Sponsors and Resources Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Being One Conversation Away from Scaling Your Agency Faster {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, agency owners? Jason Swenk here and I'm excited to have another amazing guest. And we're going to talk about how you can scale your agency faster through one conversation. You're one conversation away from scaling faster. So let's go ahead and jump into the episode. Hey, Tom. Welcome to the show. Tom: [00:00:26] Hey, Jason. I am thrilled to be here. Jason: [00:00:28] Yeah, I'm excited to have you on. So tell us who you are and what do you do? For the people that have not heard of you yet. Tom: [00:00:34] I am Tom Schwab. I'm the founder of Interview Valet, a podcast interview marketing service. We help authors, coaches, speakers, brands, get their message out on targeted podcast interviews. And I'm here in Kalamazoo, Michigan, which proves if you could do it from Kalamazoo, Michigan, you could do it from anywhere. Jason: [00:00:54] Oh, that's awesome. Well, let's kind of jump into it. You talk about kind of you're one conversation away from really hitting it out of the park. So I guess elaborate a little bit more for us. Tom: [00:01:05] Yeah, as I look at it, everything great in my life has come from a conversation. And that could be that big customer that you acquire. It could be that partnership that you have. It could be that great employee. Heck, take it personally, right? Your spouse. It was probably a one conversation that connected you with them. It wasn't a funnel. It wasn't a, you know, social media strategy. It was conversations. And I think one of the things, while I'm a big proponent of automation, I think it can't replace human connection. And I think the bigger the sale, the bigger the relationship, the more trust is involved in it. We need to focus on conversation as opposed to just automation. Jason: [00:01:48] Yeah. You know, I just got off a sales mastermind call. So for our mastermind, we have our own little mastermind just for their salespeople that they can call. And one of the members was talking about, well, hey, I'm taking this course on doing videos to sell better. You know, selling through video and I told them, I said, let's step back. You shouldn't use video to sell someone off the first conversation. You should use it as, how can I get a conversation in order to just say, yeah, that sounds kind of interesting, let me chat a little bit more. So I totally agree with you about one conversation. Tom: [00:02:30] And the whole idea of people can see the sales pitch coming. And I think they want to know who they're working with. You know, HubSpot years ago did a study and they found an about the founder page was highly indicative of a buying decision. And so, you know, the bigger, the decision, the more you want to know what this person is who their heart is. Why do they believe at this way? And if you think about it, you know, from branding, you think of all the big brands today. If I say one, you know, you could probably say the person that goes along with that, and it doesn't come from a 10-second social media ad. It probably comes from you hearing a conversation with them over the years. Jason: [00:03:11] Well, how can, you know, because that's a question I get a lot from our members and other agencies I chat with is, you know, how can I get more conversations? Tom: [00:03:21] Well, I would say always remember more is not better, better is better. And then what is a conversation, right? So you want to have the conversation with the right people, a mutual friend, Shane Duffy, out there in Texas, I always remember something he told me. He's like you can never say enough of the wrong things to the right people or the right things to the wrong people. So make sure you're having the conversation with the right people from the very beginning. Are they interested in this? Just because you can yell to 3 billion people through the internet, doesn't mean they want to hear you. So first make sure that it's focused in there that they're interested in having that conversation and then make sure it is a conversation. Like here, podcast interviews, I understand what the word comes from, but to me, the best interviews are more conversations, right? It's not, you're asking the same five questions and I'm giving the same talking points. So have that back and forth. You know, if you've got a client that asks you a question, well, instead of just answering one, jump off on a video and say, hey, you know, Jason just asked me this question. I thought it was great. I had to think about it myself here is my answer. And then encourage people to say, what are your thoughts on it? You know, start that conversation. Sometimes people will say, well, that's not scalable. I don't know if it's scalable or not, but it's effective and I'd rather have effective than ineffective and scalable. Jason: [00:04:56] Oh, I totally agree. And you're really a great connector and you're connecting a lot of these great people together to have these conversations and then people kind of go, oh man, I had a great conversation here. And then they relate that to you. Is that something that you've had to work on in order to do that better and to continue to do that? You know, that's something I always struggle with. Tom: [00:05:20] Well, first of all, thank you for saying that I'm honored by that. And I think it's come with time also, because one of the things that I thought of is that the best gift you can ever give somebody is an introduction to a new idea or a new person. You remember that professor in college or the teacher in high school that really opened your mind to something, or once again, going back… Jason: [00:05:43] Still waiting, still waiting on that one. Tom: [00:05:47] How about the, the person that introduced you to your spouse, right? That's not something that you could do for yourself, but it changed your entire life. And I've always loved that of getting introduced to people and getting introduced to ideas. And I think we're blessed to be a blessing so trying to do that for other people too. And that's one of the biggest thrills I get is listening to podcasts right now and hearing a podcast host, you know, say, oh, this is my friend so and so, and that they build up a relationship there and going my company Interview Valet had a small portion in making that happen. Once again, uh, another mutual friend of ours, Morgan Wright, he pointed out to me years ago, well it was like a year ago, that remember we used to play that six degrees of separation with Kevin Bacon? Jason: [00:06:36] Yep, Kevin Bacon. Yep. Tom: [00:06:37] So Y2K. Right now it's like 2.3. So with that you're 2.3 degrees of separation from anybody in the world. So right? If you want to have a conversation with them, well, then you probably should go on LinkedIn or think who could introduce me to, to Jason Swenk? Who knows him? Right? Because you'll get a lot further with that conversation than you will just with some spam email. Jason: [00:07:08] Are you looking for a content creation solution for your agency and/or clients? Verblio can help you with everything from blog posts, eBooks to video scripts, and a lot more. Verblio is a crowdsource solution to content creation with the pool of more than 3000 highly-vetted to produce custom SEO-rich content. In fact, my team has been using Verblio and we love the ease of their process. With Verblio, we set the criteria for the style and the tone, and then they match you with the writers that have the expertise in your subject matter. Verblio is a platform specifically designed for agency, and that's why for a limited time, they're offering my listeners 50% off the first month of content, just go to verblio.com/smartagency to learn more. That's Verblio, V E R B L I O.com/smartagency. I'm glad you mentioned that because that was something we did in the agency a lot. Especially when we wanted to reach into brands and I tell people to do this in the mastermind all the time, like, come up with your top a hundred hit list and then start going who's the contact in that hit list? And then who do I know that knows them that can connect us and create that conversation that we've been looking for? Because people think that... one of the excuses today, you know, on the mastermind call was like, well, I can't send a strategic gift because no one's working in the office. They're all at home. But like we were talking about like, hey, what, if you figured out who you're going after and who's connected to them and seeing if they can connect you? Cause that's how we landed some big accounts. Tom: [00:08:53] You look at that at one side, you know, it's that account-based marketing. I would say that's even more granular than that, right? Of the relationship at an account-based. Whereas you look at that and somebody else comes and says, well, you know, I can buy this list of, you know, 5,000 companies and, uh, I can scrape this database, so can everybody else, right? And they're probably doing it also. I, I laugh. You know, I get pitched to be on my podcast about four times. Jason, I don't have a podcast, right? But everybody loves it and wants to be on it. And I wonder how many good clients are getting the same thing where it's just another email that somebody is just spamming them wherever it's an introduction from a friend. Yeah. It's almost like the mob, right? If Jason vouches for them, I'll take a meeting with them. Jason: [00:09:48] Yeah, exactly. I just think that's some low-hanging fruit, for all of you listening, that you should look at of going do we have a targeted list that we're going after? Or have this go over this with your sales team, which you should have a sales team. You should not be doing the sales, but that's another story, and that's another episode we can chat about. But then identify what's the connection? What's that degree of connection? And then ask. And I think you'd be really surprised if we come back, if you look in two weeks, do this for two weeks, I think you'd never stopped doing it again. Tom: [00:10:22] We teach the same thing in podcasting, right? People will spam list and I'll always say, you know, come up with a target list of 10 podcasts and then think about it. What are the three types of people that people want to have on their podcast? Their friends, their friends of friends and people they want to be their friends. So figure out how you can figure out to be in one of those groups. Jason: [00:10:44] Exactly. Well, this has all been amazing, Tom, is there anything I didn't ask you that you think would benefit the audience? Tom: [00:10:51] The one thing that I would encourage people, you know, we're blessed to be a blessing and a lot of times people will say, well, what I know everybody knows, right? I, I've got nothing special in a conversation to add. That's not true, right? You are an expert on something. You look at the legal definition of an expert, is somebody by their training, their experience, their life knows more than the average person. I guarantee you, you're working 16 hours a day, sometimes in your business, you know more about your business. You know more about your industry. GoldenNow, are you the one expert? No, there's not one expert, but you are an expert. And what you know could really help people. What's ordinary to you is amazing to others. So share that, you know, he's there as a podcast guest, as a podcast, host doing blogs, videos, whatever it is. I think you'll bless a lot of people, but you'll also be amazed at how it comes back and helps your agency. Jason: [00:11:53] Awesome. Well, Tom, I know you have a book that came out, so tell us where can the people listening get it? Tom: [00:11:59] Uh, yeah, so, um, we got a book called One Conversation Away. It's my second book, Podcast Guest Profits was the first one. Uh, you can get all of those. I'm not here to sell books. I sell some, but I give a lot more away. If you come back to Interview Valet, with a v.com, forward slash swenk (interviewvalet.com/swenk). We'll put everything there. I'll put my social media. Uh, if you'd like to talk about how your agency or your clients could use targeted podcasts or interviews, I'd be thrilled to talk with you about that also. Jason: [00:12:28] I thought you were going to be like I'll put my social security number there. I'm like, like don't put your social security. I just mentally that my mind went there, but awesome. We'll go check that out. Thanks so much, Tom, for coming on the show. And if you guys want to be around amazing agency owners where they're sharing, what's working and then also have a mastermind specifically for your operations, for your sales team. I want you all to go to digitalagencyelite.com, request an invite and start applying, and maybe you'll be the right member for us and, uh, we will chat soon. So go there now. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How to Increase Profitability By Charging What You're Worth

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Jan 23, 2022 15:55


Do you know the value you provide to your agency clients? Is your agency getting paid what you're worth? Do you always ask for the budget before presenting a proposal? Stephen Brown used to think that just doing good work would get clients to pay the right value, but his position at Cookerly PR, a public relations agency based in Atlanta, helped him understand a lot about charging what you're worth and how to ask the hard questions to determine if you are budgeting the right way. Today he sat down with Jason to discuss how to charge what you're worth by understanding the value your agency provides, how to get your first big clients, how being rich in process will help you keep your deliverables consistent, and much more. 3 Golden Nuggets Charging what you're worth. Stephen used to think that just doing good work will get clients to pay what he's worth, but eventually he learned that he needed to have a sense of that worth first. You should always have a pulse on your industry and an estimate of what others in your sector are charging. Also, one of the most important things he learned with experience is that you should always ask for a budget or at least a minimum amount of what the client is expecting to spend. In Jason's experience, less than half of agency owners do this. Getting the bigger clients. A lot of small agency owners want to know how they can get their first big client. It depends. Some of our guests did so through connections in the business, others target a couple until they get a big brand. Stephen believes that doing great and consistent work will lead you to the bigger brands you want to be working with. “Start small,” he advises,  “and it will start laddering up”. Start with something you can handle. People will start seeing what you did for a smaller brand and start and ask if you could you pilot that for our bigger brand. Keeping deliverables consistent. According to Stephen, his agency is very rich in processes, which is a big part of how they can keep their deliverables consistent. Things don't change depending on who is in charge of a certain department. Instead, everyone is kept accountable and communicates new developments in their weekly meetings. Also, at the end of the month they send each client an account summary that contains details about each campaign being put together so that no client will ever have to ask what is their agency doing for them.      Sponsors and Resources E2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design and development agency that has provided white label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Are You Charging What You're Worth? {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] All right. What's up, agency owners? Jason Swenk here and I have another amazing show for you and an amazing guest where we're going to talk about how do you know what to charge? And charging what you're worth and budgeting and making sure that you're extremely profitable. I have a great person on that's going to get into this so let's jump into the show. Hey, welcome to the show. Stephen: [00:00:27] Jason, it's a pleasure. Wonderful to see you. Jason: [00:00:30] Yeah. Awesome to have you on. So tell us who you are and what do you do? Stephen: [00:00:34] Absolutely. So I'm Stephen Brown and I am the President of Cookerly PR. We're based in Atlanta, so we're a one-city agency that represents national campaign. So we do a lot of national and global work, but we are strictly based in one city and have our staff of about 22 here that do crisis work and creative work, depending on which client you've got. Jason: [00:00:57] Awesome. Well, let's get into it because, you know, we were talking kind in the pre-show, you know, a lot of my mastermind members when they come in or a lot of agencies when I chat with them I find out they're not charging enough. They're really bad at budgeting and really they're not profitable. And you guys are extremely profitable, which congrats on that. So what are some things that you've learned over the years in order to do that right? Stephen: [00:01:21] Sure. Well, the naive me, the one that worked at a bunch of multinationals over the years was always like, oh, just do good work. Do good work and the money will follow. And I learned my lessons over the years and under the tutelage of Carol Cookerly at our firm, learned a lot about charging what you're worth and actually stepping back and asking all the hard questions to determine if you are budgeting the right way for a project. For instance, we do some work that is project-based fixed fee base that is very predictable. Um, it can be a media relations or social media campaign where you know you're doing it for a certain amount of time. Then we have those other things that just come out of nowhere. Yeah, the oil spill, the having to, um, help a company out of a crisis, and those are drop everything and charge crisis rates type of opportunities. And so we really have to look at the project at hand and determine with the staff that we have the people that we have, is that something that we can fit into our portfolio or is it something that we need to be charging extra, even have extra people for, um, to be able to handle it? So it's been very important for us to get our financial house in order on any type of initiative that we do. Jason: [00:02:32] How do I figure out what I'm worth and when I should actually be charging? How do you guys do it? Stephen: [00:02:37] Sure. Well, there's some sense of benchmarking. Um, you know, we have our ways of finding out what others in the industry are spending. Um, as I was telling you, at one point we, we know a young lady in our, in our own city, that's charging way too little. And I think to a certain extent, you don't want to bring down the whole vibe of your industry, the entire collective bargaining power of your industry by charging too little. Um, you definitely want to have a very good hourly rate that you could actually make a good profit margin off of. And you want to have a variety of people at different spectrum. So you may have the senior, most person, the senior council all the way down to some more junior folks that might do some of the monitoring, might do some of the research, some of the early forms of writing. So you have to make sure you've got a spectrum of that in an agency, I guess, we'd be considered a mid-sized agency. And in that you have to have all those different areas represented with a price of fixed age. Jason: [00:03:29] What are some things that you guys picked up along the years about budgeting? I remember, I've chatted with people and I remember how we did budgeting before we were got a little bit smarter. I would just look at the bank account. Stephen: [00:03:44] Absolutely. I think we've found that we don't want to be the kind of agency that's the training wheels for somebody. We're better off when someone has worked with agencies before, maybe didn't get everything they wanted to, but they got the very notion that working with an agency was going to be able to help them. It was just the wrong agency. So with us, you know, we usually say like, you know, do we have a minimum amount? Because, uh, to a certain extent you're going to work just as hard for that one that is coming in under your minimum, um, as the ones that are actually paying you what it really takes to, um, to put a team together. Um, we're usually telling our clients that, you know, hey, to, to be able to do reserve a team here that's going to work all the time on your behalf, um, it's really going to be a certain amount. And that's going to be able to get you those two to three people that are going to be consistently reachable that are going to be very knowledgeable about your business, um, and an ongoing basis. You know, whereas something else that's just sort of coming in over the transom, as they say, that is something that we've not known the person before and are just starting to sort of suss out what it might be that they want to do. They might come in and say, well, we only have this much to spend. And then sometimes during, uh, you know, low economic times, you might be willing to take something like that in. But I would say before, you're willing to do that, think twice about like, you know, is it worthy of your firm's portfolio and is willing to spend what it takes to really get the job done? Jason: [00:05:14] Are you looking for a reliable partner to increase your agency's bandwidth so you can take on more projects? You know, our partner at E2M wants to help you grow your revenue, your profit margins without increasing your overhead costs. Now they are white label, web design and development agency that's been providing white label services for the past 10 years to agencies all over the world. Their team is over 120 experienced, skilled digital experts that's highly motivated to help you get more done in less time. Now they can help you in all kinds of digital areas, including web design development, e-commerce, SEO, copywriting, content marketing, and a lot more. If you're not sure whether E2M is the right fit for your agency, I want you to check out their flexible and transparent pricing model. Go to e2msolutions.com/smartagency. For a limited time, they're offering my smart agency listeners 10% off for the first three months of service. That's e2msolutions.com/smartagency. Yeah, one of the things I always train my salespeople on, I had always say, hey, you got to ask the budget. Before the pandemic, I was in New York speaking in front of like 800 agency owners. And I asked them, I said, how many people ask for the budget, you know, in the first meeting? It was about 50% of the room. I said, how many actually get it? And about another half of that, so a quarter actually would get it. So that means 75% never actually knew the budget. And I would just be like, you got to ask the budget and then come up with a way in order to be like, what are you trying to stay around? And I always would do it like, are you trying to say around a billion dollars, a million dollars, a hundred thousand? And it just worked my way down in order to figure it out. And usually 99% of the time it would work and then I chatted with Berkshire Hathaway, I think they're still in Atlanta, but many years ago, maybe like 20 years ago, they called us up for a website and I'd never asked the budget up to that point. And I pitched them a website for like 20 grand and they laughed me out of the office cause they were expecting 300 K. So then every time after that I was like, what's your budget? Stephen: [00:07:32] Yeah, there's nothing worse than finding out that you've really undersold a project. We found that out one time where we put together what we were defining as branding versus what someone else was referring to as branding and ours was sort of a early messaging, early branding, sort of several workshops. And we were competing against two others that had extended it into a six-month-long process with more focus groups than you could ever imagine. And that prospect wanted to hear that. They wanted it to take a long time and involve a lots and lots and lots of arduous activity. So we're used to a lot of public relations clients want to move fast and we want to fast-track the research to get enough to be dangerous, in some cases. And, um, but it is interesting. You know, one of the first questions we do have to ask in a prospecting call is that, do you have a range in mind? Um, do you have a budget in mind? Most of us were applauded or got into this public relations field, because we were great communicators or brainstormers are very verbal or great writers. Um, it isn't the cause necessarily we were good at calling the question for money. So that is one of the things that Carol Cookerly has taught us all that we really have to really know how the business mechanics work for a company and in doing so you really have to know who's paying for this. And how much is it worth to preserve the wealth of your company to have a public relations firm build your brand, handle your brand well? Um, it's one thing to just say, hey, let's contact the Wall Street Journal for you. It's another one to say, hey, let's contact the Wall Street Journal with these precautions and knowing that we're contacting them for a story and it could go south, you know, we're going to actually work with you to find the seven reasons why that story could be great and help you make sure that those three reasons why that story could go south don't happen. And so we're definitely having to mitigate risk and determined that we want to take an endeavor forward based on our knowledge and based on research. So that definitely takes a lot longer than somebody else who's just like, oh yeah, I'm going to just call the person I know and try it out. So it's a whole different approach to PR for sure. Jason: [00:09:38] Kind of switching topics just a little bit outside of budgeting, but you guys have worked with a lot of big, big companies and a lot of people want to know, you know, how did you start getting the bigger company? With me, it was, we targeted one or we targeted like five. We got one and then use that to get another one. What worked for you guys in order to get some of the big brands? Stephen: [00:10:05] Sure. I think part of it is just doing consistent great work. It starts leading to the things that you really love. I've always wanted to work on campaigns, companies that were launching something and you start launching a few things that maybe aren't that renowned, aren't that big of a deal. And then all of a sudden you're finding yourself launching in the big leagues. So launching Mercedes cars, you know, launching new products for some of our clients, the Georgia Pacifics or the Novellas of the world where there's a lot bigger stakes and a lot bigger environment to do so. Where you're actually gonna be, hey, could we launch this new car in Las Vegas? Could we launch this, a new aluminum recycling program at the Kentucky Derby? And all of a sudden you're kind of taking it up a few notches. So I think you do have to start off by going a little small, making sure that you can get that right with that, you know, that local restaurant before you are doing something chain-wide for a chain that has hundreds and hundreds of locations. So I'm, I think, you know, you just start with your passion, start small and it will start laddering up. People will start seeing what you did for a smaller brand and start saying, hey, could you pilot that for our bigger brand? That works well, hey, could you do that for our whole chain? And so that's the way we've seen a lot of our areas grow and people coming back to us for more. Um, we had a really great, um, event last night where we launched our Novellas client, did an event to be the official recycling partner for state farm arena here in Atlanta, uh, with the Atlanta Hawks. And, um, you know, it was one of those things where one of our clients was like, wow, this is the first time I was in sports illustrated. He'd been an athlete growing up and he's like, I'm in there for an aluminum, you know, cup, that's going to be at arenas. But the notion that that's just a Monday night for us to be able to have a great announcement like that for, um, a great company like that is very exciting. And we have some folks off this week at an electric vehicle show to be able to just show off some fantastic new innovations. And it becomes really nice when all of a sudden you've got people in multiple cities. One's launching the global water center in Nashville while the other folks were in Los Angeles and while we're doing some events in Atlanta. So it becomes very exciting to be in multiple places, um, launching, um, major activities. Jason: [00:12:25] Last question I have for you is as you're working with these big brands and you're building the team, how do you guys make sure that your deliverables are consistent? Stephen: [00:12:37] Our company is rich in process. So I think unlike a lot of places where I've been before, where it's sort of, depending on who's in charge, it could be a lot of different ways. We have a very rigorous process here. We have what's called our scheduling update and every Monday morning we get together at 10:15 precisely. And we go through everything that's in the shop. Every activity has initials by it. So everybody is very accountable to what's being done. Then at the end of the month for all of our clients we send them something called an account summary. And that's got every item, every reporter we're contacting every store that's in the works, every campaign that's being put together in extreme detail so that no one ever has to ask, hey, what is that agency getting us? So for us, we have a very, very rigorous process, um, along the way, uh, the status calls where we're pretty rigorous about our agenda. And so that helps us be able to make sure that we're always moving our clients forward and it's working well for us. Sometimes you're in the brainstorm mode where it's blue skies and any ideas is great. But when we're in that scheduling update or we're in that account summary world, we were very linear, very, very process-oriented. Jason: [00:13:47] Very cool. Awesome. Well, this has all been great, Stephen. Is there anything I didn't ask you that you think would benefit the audience? Stephen: [00:13:54] I would just say that those of us in PR at agencies, marketing firms, we're all looking for those folks that have great writing skills. We're looking for those folks to have great media relations, social media, marketing, research, content analytics. And I would just say that, um, you want to look for people in your firm that, uh, possess a lot of different side passions as well. So as we been looking for people lately, it's been folks who have all the aforementioned skills or some of those in great abundance. But there's also folks who have just a lot of interest in life. And we've got folks here who are sports experts, movie aficionados and a voracious readers, voracious athletes. And that's just very important to be able to pull off what we do for companies, um, day in, day out. And so I think that's the greatest thing is like recruiting this next generation is going to require people who have the direct skills, but also have a lot of, um, a lot of side passions to bring to those great brainstorms and those great campaigns. Jason: [00:14:52] Awesome. What's agency website people go in the checkout the agency? Stephen: [00:14:57] Sure. So you can find Cookerly PR at cookerly.com. So it's C O O K E R L y.com. Carol Cookerly is our founder. So that's where the name came from. And, um, we're 30 something years in business and look forward to working with a lot of new folks. Jason: [00:15:12] awesome. Well, thanks so much for coming on the show and if you guys enjoyed this episode and you would not want to miss out on any other ones, make sure you guys subscribe. So you hear the amazing guests that we have. And if you want to be around amazing agency owners, I mean, literally the best of the best, where they're constantly sharing, what's working and what's not working and being able to see the things you cannot see, make sure you go to digitalagencyelite.com. This is our agency mastermind that might just be able to help you out and might be getting you to the next mountain summit that you need. So go there now. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How This Agency Got to $40 Million by Setting Clear Financial Goals

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Jan 19, 2022 24:44


Do you want to get your agency to the eight-figure mark and beyond? What are you doing to get to that level? Erik Huberman had started a few e-commerce companies and was unimpressed by the agencies he had worked with, so he decided to form a small team that could assist his clients. He quickly saw a positive response and created Hawke Media, an outsourced CMO and marketing team that customizes data-driven, performance solutions to help launch, scale, and invigorate businesses. In this interview, Erik talks about how setting financial goals helped him grow his agency to over $40 million. He also shares his marketing methodology and his book, The Hawke Method.  Plus the mistake many agencies make when they start growing, and much more. 3 Golden Nuggets On goal-setting. During the first year of his business, Erik saw things were going well and decided to set financial goals for the next couple of years. He met every one of them, so he believes there's a lot to be said about setting a goal and striving to hit it, and having incremental goals to get there. This will force you to step up when you're falling behind and keep you proactive in the market. In his case, he mainly used it as a scoreboard, as an indicator of growth. It really helped during the agency's first years and he noticed a difference when he stopped doing it around year six. Agency mistakes. According to Erik, some agencies tend to protect themselves a little too much once they get good and do it too soon. “They start throwing out long contracts, high minimums, they go upmarket, they only want to work with fortune 2000,” he says. He believes that this behavior alienates the people that got the business to that point. It is a solid way of doing business and works for many agencies, but Erik decided it wasn't for him and went on to build his business model on challenging himself to consider can you be one of the best marketing companies out there and still work with small and medium businesses too? Understanding the purchase cycle. A lot of marketers and agencies fail to understand the idea of a sales cycle or a purchase cycle. Many times agencies advertise for clients that ask for daily performance reports. “The problem with that,” he explains, “is that what we've seen in e-commerce is that for a $50 average order value will be about a three-week purchase cycle and about five weeks for a hundred dollars,” so understanding the purchase cycle will be critical for the agency-client relationship and a big part of setting realistic expectations about the work. Sponsors and Resources Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Getting to $40 million by setting financial goals & understanding the purchase cycle {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, agency owners? Jason Swenk and I got another amazing guest. And we're going to talk with Eric of Hawke Media and how they built an almost $40 million agency, or probably by now, they're already over 40 million and cresting the many, many commas, whatever in there. So, excited to get the episode. Let's jump in. Hey, Erik. Welcome to the show. Erik: [00:00:29] Thanks for having me. Jason: [00:00:30] Yeah, man. Excited to have you on. So tell us who you are and what do you do? Erik: [00:00:35] Sure. Uh, Erik Huberman, co-founder and CEO of Hawke Media. We're basically an outsource CMO and marketing team to companies. So we go into brands, identify full-time marketing and spin up different experts. All à la carte month to month. So it could be a Facebook marketer, email marketer, web designer. We've been around about eight years up to 70 full-time people. We run marketing for about 600 brands. And then we also have a venture fund and a financing arm as well, amongst many other things. Jason: [00:01:01] Awesome. And so why did you guys start an agency? What got you into it? Erik: [00:01:06] I built and sold a couple e-comm brands and through my own experience, as well as then I started advising and consulting for a lot of other brands found out that 99% of agencies out there for lack of better word are full of shit. And kept getting frustrated over and over again and went screw it I'm just going to hire my own small team to help these companies. And so built my little SWAT team and immediately saw the benefits. Like my clients started to like what we did. They started to grow and we started to need more and more people and just started to grow from there. Jason: [00:01:35] Awesome. So you guys have been doing it for eight years. You guys are almost 40 million or maybe over it. Talk about some of the progression that you guys went through. Like how long did it take to get over the million mark? Was it fairly quick? Did it take long? Like what clicked? That kind of stuff. Erik: [00:01:53] Yeah. In the first week of business, I shouldn't say first week, I think it was like… a month in, because for the first month, I wasn't sure… I was like I built this team. I started working on clients and I was like, maybe I'll build my next company and then turn this team into my own team. And so I wasn't sure what I was going to do there. And then after a month I was like, wow, this is really working. I should double down on this. And so I set a goal and I would put it on a thermometer. I was like, all right, the first four years we're going to do one, two and a half, five, 10 million. That's, that's the goals. And we came within 1% of all four of those goals. So I think there's a lot to be said about setting a goal and then really driving to hit it and having incremental goals to get there so you know how you're tracking against that goal. Because it forces you when you're falling behind to step up. If it's too easy of a goal, you actually end up, well you will hit that goal is still. Like it's, I don't think when you set a goal, you ended up blowing past it, you manage accordingly. So setting those goals really helped the first four years. And frankly, we didn't set goals for years five and six. And I saw the downside of that. I saw us not grow as fast, not do as well and not really know which direction we're going. But also, at that point we were big enough that it felt weird to just set another financial goal. It's like, yeah, but what are we really trying to do? And it took a couple of years to develop that, but now we're pretty clear. Jason: [00:03:07] And you listed out financial goals. Were there any other goals? And not talking about the incremental goals, I want to get to those in a second. But was it just revenue goals? And then, hey, what are the little ones that we need to do to get there? Erik: [00:03:19] Yeah, frankly, it was because that was the best scoreboard we had it. It wasn't any… It was intrinsic in the sense of like the goal was a goal cause it was the goal. It wasn't because then we could afford this or if you could do that. It was more of just an indicator of growth. And we assume that if we're hitting those numbers, we're also growing in the ways we need to be growing. And so we knew what the levers that we needed to pull were between bringing in new business, retaining our business, retaining our people, all sorts of specific metrics that helped us hit those goals. That became a factor of it. But it was, that was the end scoreboard. That was sort of the result that we were looking for. Jason: [00:03:50] So let's talk about the incremental goals at the stage to get to the million in the first year. And then let's talk about the incremental goals after that for the two and a half to five. I think that'd be interesting. Erik: [00:04:01] Sure. Yeah, we just knew basically, and this is a rough number, we actually got, every year, we got better and better at this in terms of like, where do we need to be this month, next month? How do we need to be tracking? But I also knew where were we six months in needed to be basically the run rate, assuming we went from zero to, you know, like the run rate for a million bucks is what? 80? Jason: [00:04:19] 82, 50. I think. Erik: [00:04:21] A month. Is that right? Yeah. Jason: [00:04:23] Don't make me do math on the podcast. Erik: [00:04:26] There we go. 82,500 a month. So anyways, we, I knew around 80 grand and so I was like, okay, so we need to be there within six months because then we need to make up for not being there the first six months. So we need to balance it out and assume that if we're going growing steadily, that'll be where we can do it. Now, in marketing Q4 is usually a little better, so we ended up going up. But, yeah, I mean, first year we did $1.01 million. Like, literally just beat it. And it was surprising, but we did it and it was all around uh, yeah, just aiming for it. So like when we, and again, I don't remember, it's been seven and a half years, but I, you know, assuming there were months where we were falling behind a little bit, that's where we ramp it up and be like we got to bring in more business, we got to retain, what are we going to do to make sure we hit these numbers? And so we would, it would light a fire under our ass to hit it because also those were ambitious goals to grow that fast. And to grow 150% next year and a hundred percent the next year and a hundred percent the next year we had to do a lot. So anytime we were off track, it just kicked us into gear that we have to hit that. Jason: [00:05:27] And I like that, you know, too many people set out a goal, but then they don't have an action plan in order to hit it or a place where they can measure it. And they just look, oh, January came, oh, we didn't hit it. Well, no shit. Like you, you were reactive to the market. You weren't proactive. You didn't try new things. You just kind of sat back. Erik: [00:05:47] Yeah. The term I hear from the best operators out there is leading indicators. What are the actual controllable leading indicators and get to that result? And in the first year we had no idea because like, I don't know how many people I have to talk to you to how many leads we get to… Like, we didn't have a funnel built. But I did know when we weren't hitting it the levers to pull. So I didn't have it down to a science yet. Now we do. Now my forecaster can give us our revenue within 1% and its forecast to the entire year accurately based on what the inputs are. And then it's just a function of manage, you know, being disciplined about the inputs is how you scale a business at this size. And even earlier, but statistics play out the bigger you get too. Jason: [00:06:23] Yeah. What are some of the, now that you guys have figured it out up till this point what are some of the leading indicators that are really important for getting over the eight-figure mark? Erik: [00:06:34] Yeah. So I would say having a really good handle on your average retention of a client is number one. How much… those clients once you have the retention. But it depends on your agency. We run an agency with that's a different type of scale. We have 600 active clients. So if you're running more of a traditional like creative agency, or if you have bigger clients, but smaller amount, the statistics get a little harder. But for us, because of the scale averages play out. And so we know our average lifetime value of a customer, we consistently try to improve that, but we know where it is and we measure against it constantly so that we can improve it, know that we're doing things that improve it. And then what's your cost to acquire a customer and what your pipeline looks like and what are your conversions on the pipeline? So from lead to qualified lead to, for us proposal, to service agreement, to verbal commitment, to assign the commitment, what is the breakage at each of those stages? And then we know based on the pipeline we have, how much business is going to come in the next month or two. And then we can also then know what does it cost us to get a lead? How much are we investing in marketing? Which ways are we going to drive those leads? So how many leads about can we assume? And then you get that waterfall when you can start to anticipate how many leads do you need, and then you manage against that. Okay. So we're going to need… whatever it is, a thousand leads this month to hit the numbers we want to hit next month. Let's go make sure we get a thousand needs. What are the ways to do that? Well, we have outbound marketing. We also have outbound sales. We have partnerships, we have every type of inbound marketing, advertising, etcetera. These are all things we can… leverages we can pull to make sure we hit the lead count we need to. And then frankly, at this stage all leads are not created equal. So we actually measure different leads at different values. Jason: [00:08:08] I love it. I love that you look at the leading indicators because then you can make the adjustment rather than wait, wait to the very end. Let's kind of switch focus, or maybe not switch focus too much, but let's talk about the Hawke Method. Tell us a little bit more about that. Erik: [00:08:23] Yeah. So it's been, you know, basically our marketing methodology that I've leveraged right now. It's been how I look at marketing for a dozen of years, but pop media has the entire time. I've spoken about this hundreds of times at different conferences and we decided to put a book together called “The Hawke Method” that we just pre-launched that's coming out in Q1 that basically kind of digest… In a really easy-to-digest way everything we think of when we're looking at a company and their marketing. So how do we look at their strategy? How do we assess what they're doing? And how do we know where to invest? Where to pull back? What channels to use? And so it goes from like the very high level, we call it “awareness, nurturing, and trust” the three pillars of marketing. And so we look at, are they covering those three pillars? Where are they not covering? And then we dive into and that awareness breaks down into advertising and PR and word of mouth and a few other things. And then even in advertising, where do you advertise? Is it Google? Is it Facebook? Is it Tik ToK, Snapchat, etcetera. And so we break down into how to look at all these different things in a way that we try to make it replicable as things change, meaning like it's a thesis and a methodology. It's not a tactic that works right now and won't work a year from now. And so, yeah, we basically put that together in a 200-page book and are putting it out there. And working on selling 20,000 copies and making it a New York Times bestseller, and we've already had several universities picked it up, like we're really making traction on getting it out there as a new way of looking at marketing. Jason: [00:09:50] What are, I mean, obviously you've seen a ton of agencies and you guys have acquired a bunch from what I've heard. What do you think a marketing front agencies do wrong for themselves? Erik: [00:10:04] Interesting. I… So this is my, a very controversial statement, but I think that they protect themselves too much when they get good. I think that the, what I see happen with agencies that I don't agree with that has worked for plenty of people, so I'm not saying that never do this, I'm just saying this is my own view. Every agency that gets good and gets a good reputation, starts to be seen well in a, you know, sort of in the ecosystem, they start protecting themselves. They start throwing out long contracts, high minimums, they go up market. They only want to work with fortune 2000. They do all these things that yes, they created, that's a solid way of doing business. I get it. But it alienates all the people that got you there. So I'm always kind of turned sideways to that. Why can't you build a business model and now thankfully we have, but this was our thesis, but why can't you build a business model of still being one of the best marketing companies out there, but still working with small and medium businesses too? I'm not saying don't work with Nike and the big guys, but you can work with small guys too. And so that's really what built it. I think that a lot of times is interesting. I watched a lot of agencies struggle to get up to the eight-figure mark, because they get a little pretentious and they in too early. There's agencies that are doing eight figures that I know that get pretentious and do just fine with it cause they can be. I'd say WPromote, you know, in the market they're constantly trying to go up market and stop working with small and medium businesses. They, you know, got, I think it was Gartner to rate them as one of the best digital agencies, like few years ago. And like, so they started getting a bunch of Fortune 500 interest and leveraged that. I don't know how it's gone for them in the past couple of years because actually those agencies hurt really bad in COVID. But I think that, you know, there's reasons to do it later, but a lot of companies jumped the gun and then they're like, oh, well, you know… One of my favorite things is like, we're staying small and boutique because we can serve our clients better. And I always go, okay, so you're telling me that I should hire you to scale my business and you don't know how to scale your own. Like, explain that one to me. Now, if it's a creative agency, different story, but I'm talking about like the growth and performance agencies that say they're staying boutique, like then you're not good because you don't know what you don't understand growing a business. Jason: [00:12:12] Are you looking for a content creation solution for your agency or clients? Verblio can help you with everything from blog posts, eBooks to video scripts, and a lot more. Verblio is a crowdsource solution to content creation with the pool of more than 3000 highly vetted writer who produce custom SEO-rich content. In fact, my team has been using Verblio and we love the ease of their process. With Verblio, we set the criteria for the style and the tone, and then they match you with the writers that have the expertise in your subject matter. Verblio is a platform specifically designed for agencies, and that's why for a limited time, they're offering my listeners 50% off the first month of content. Just go to verblio.com/smartagency to learn more. That's Verblio V E R B L I O.com/smartagency. Well, I think what happens is they hit, like, I look at it as like six stages of scaling an agency and they get to a point where their business doesn't have the right systems in place. Everything relies on them, they haven't shared the vision with their leadership team. They don't have a leadership team, right? They've gotten to this point by accident. And I think you can get over the couple of million by accident. Getting to the eight-figure mark is not by accident, but to stay there is true skill. Erik: [00:13:41] Yeah, you brought up this point earlier that I actually think relates to that. So I drove, uh, 85% of our business up until we were about a 7 million runway. And then it was the most ridiculous story, so I'm gonna skim over it. But I was hanging out in Monaco during the Grand Prix and saying the most, the richest people in the world, living their lives and went, yeah, I'm never going to be that in the way I'm operating right now. And not that that's actually my goal. It's not really a monetary goal, but it's more like I want the option. And so I immediately objected out of sales completely. It was scary as shit. Like I had a few sales guys. I was like from now on all my leads go to you. At this, I was keeping my better leads because I could close them better, but I'm like, but if I give them the sales, like they're still going to close a lot of them, right? Hopefully. Took that leap of faith. Thankfully had a good small group of guys that, uh, ended up doing really well with those leads. But we did dip. We went, that was June, July and August were down months for us and a little scary. And then we recovered and started scaling again. So, that was what got us into eight figure range, because that was the last piece. I never, on the execution side, I immediately brought on a partner that's my co-founder that did a great job of, as he put it, I'd made promises and he'd deliver on them and… Jason: [00:14:52] You deliver broken promises without him? Erik: [00:14:56] Yeah, exactly. You got to know your strengths, but, uh, he, he definitely did a great job on that side. And so we were able to scale that side from the beginning pretty well. So delivery wasn't as much of an issue. Cause I also, because I was the one driving sales, I did a lot of things that helped us sell. So I productized our offerings. I made things really easy to sell and really easy to put together and then build a team around that. So when I built a sales team, it was teed up for them in a way that was great too, which now we have one of the more higher producing sales teams in the industry period, or, you know, bringing on 80 new clients a month. So that was built because of that, but it took that leap to be like, all right, I'm done. I can't do this. And I continue to do that. And that was three and a half years in. And that became a good lesson, that over and over again, when I find myself, you know, diving into something, that's taking a lot of my time, if I can out eject, eject, whatever that is, and continue to hone in more. Like my focus more today is like a third strategic and working with our executives online, bigger initiatives to grow the business. A third growth, what expansion can we do? Whether it's M&A, whether it's launching a fund, what else can we do to build off this business? And a third promotional being on podcasts, you know, writing a book, that kind of thing. And that becomes more and more my focus. When I find things now pulling me out of that, I look for who else could have that. Jason: [00:16:08] Yeah. I always tell everybody your goal is to transform from the owner to the CEO. And like you said, it's kind of like four or five roles set the vision of the agency… Erik: [00:16:19] I went to a program two weeks ago that actually said the exact opposite. Jason: [00:16:22] Oh, really? Erik: [00:16:23] Yeah. Cause they said your goal is to transform from a CEO to an owner, meaning your business should be working for you, not you running the business. And I think the problem is what do people, you know, the CEO of your own one person company. But when you're an owner and you're just, you're, you know, you treat yourself as a chairman or an investor, the way you operate is different. And we're getting there. Like that's been, that was the goal for this year was to get our executive team in a place where I didn't have to do a lot of what they do. And we're there and we have a great executive team. We brought in COO two months ago. And so he's now stepping up and the goal was for him to run the day-to-day of Hawke Media so my focus can be on doing a better job for our clients, expanding the business. So again, strategic and growth, not managing the data that like, whereas our accounts receivable. Jason: [00:17:09] Yeah. And I remember I was chatting with one of my clients for many, many years. He started out around 300,000 now he's well over, they figure mark. And I remember telling him when you transform from the owner to the CEO, congratulations, you're going to be depressed. And I remember going through this, like I would go into a meeting and they go, Jason, I don't need you. And then I go to the next one, Jason, I don't need you. And I'm like, shit, the business doesn't need me. Like, what the hell do I need to do? And then someone's smart that run another agency was like, no, look, set the vision, communicate it often. Be the face of the organization. Coach your leadership team, you know, assist sales when you need to like add color, right? That's, that's all I'm good at if you want me to do follow up and that shit like, nope, like… Erik: [00:17:53] You were probably really good at it at one point. Jason: [00:17:55] Oh yeah, well, when you had to be, right? But then, then when you start tasting that really fancy champagne, I don't drink champagne, but I guess when some people drink fancy champagne or what is it Don Perignon or I don't know. I drink the Coca-Cola's I guess, right? I drink about a thousand of those a day. Erik: [00:18:15] There's gotta be something unhealthy about that, but I don't know. Jason: [00:18:18] Someone told me it rots your teeth eventually. I'm like, I don't care. The Coke I used to clean my race car engine, so I might as well stop drinking that. Erik: [00:18:15] Yeah, that's probably a good idea. Jason: [00:18:18] Awesome. Well, Erik, this has been great. Is there anything I didn't ask you that you think would benefit the audience? Erik: [00:18:35] Yeah, I would say the one big thing that every, or not every, but most marketers miss that is just a huge one for agencies too is the idea of a sales cycle or a purchase cycle or consideration period where… When you advertise for a client, they're looking for daily reports on the performance. Yet what we've seen in e-commerce specifically is for a $50 average order value it's about a three-week purchase cycle. For a hundred dollars it's about five weeks. For $200 it's about six weeks. And then it goes between two and three months from there. The issue there is like, if, so, if I raised your budgets today, you're not going to see the performance on it for months potentially. And so understanding that purchase cycle so that you report against it is critical in the agency-client relationship, as well as just clients understanding the market. And we see this, we get into this fight a lot where it's like our ROAS this it's like that's a seven-day fucking window. You have a $400 product. What are you talking about? So… Jason: [00:19:26] Well, it's about too knowing the right clients to bring on. Cause, you know, I always say there's no such thing as a bad agency client, there's only a bad prospect or a bad process, and you've got to kind of figure it out and be like, hey, if this is a bad prospect, let's not let them in. And like, I'm like, dude, if you're at zero ROAS, eventually you're going to be so far in the green, who cares? You're getting free advertising. Erik: [00:19:55] A hundred percent. Jason: [00:19:56] So one last question I had, I lied, I guess… I remember maybe sometime back and maybe you've changed this. Do you guys still not have any contracts or long-term contracts? Erik: [00:20:06] Yeah. We prefer month-to-month. Jason: [00:20:08] Why is that…? Obviously, it's working well for you. I've seen some people struggle with it. I've seen some people love it, so… Erik: [00:20:16] Yeah. It's not easy. I was on the other side and everyone was asking me to get married before they ever went on a date with me. Just felt screwed up. I'm not here to protect my vendors is kind of how I felt about it. And I, sorry to use a derogatory term in our space, but if I'm running a brand and I'm hiring you to do my marketing, I don't give a shit if you want a long-term contract, I'm not signing it. And we still stand true to that. When people try to give us longer contracts we just say no, and if you don't want our business, that's fine. We walked away from a few software companies who were like, we have never used your software so like if you want to give us a three month trial we'll do. Because as they said, it's not enough time to ramp up in a month. I'm like, if you want to give us a three-month trial we'll do it, but I'm not signing a three-year contract. You're out of your fucking mind. Like, that's just doesn't make sense to me and so we just stuck to that. And then right now, or like our mission statement is accessibility to great marketing. The idea is we want to be nimble, flexible, accessible, and built that way and be the best at what we do. So by being month to month it forces us to be able to be flexible and nimble. We're just used to it. Our business has to function that way. Jason: [00:21:16] Yeah. And then going back to, you know, your leading indicators and knowing your lifetime value of a client like you can calculate, like, when I look at, you know, our mastermind average member is in their 24 month. And like when you know that that's predictability, because I always tell people, you know, when we go to buy an agency, a lot of times, you know, when you acquire agency, you want to know predictability. The longer-term contracts, a lot of times you'll get a higher valuation because of the predictability is there. But if you can show a track record of having your clients stay this long, that will act the same way. Erik: [00:21:51] And I will say, cause we've dealt with all those conversations. Like if you're looking for an investor to value or a buyer, get a smart one that understands your business. Don't go with someone that's using a cookie-cutter approach to buying the business because you're not going to get a good valuation. And my wife's a senior executive private equity. We have a venture fund. I look at those numbers all the time and it's like, I've had all those stupid conversations. I had… You know where it's like either you're stupid or you think I'm stupid because this, what you're saying is not actually how it works in this world. And that's another good piece of advice I got a long time ago is have your pulse on, if your plan is to sell, which thankfully is not ours, but I get it for a lot of people. Have your pulse on the industry, know what it is to do M&A in your industry. Talk to a banker once a quarter, talk to people, keep your information so you know what the multiples are, you know, what's happening, you know, who the buyers are having a relationship with them. And if again, your goal is to sell, call the people that would buy you and ask them what they would want to buy and just build that. It becomes really easy. Jason: [00:22:45] And I love that. I'm like, yeah, if you know, like make a target list now of the people you have love to buy you and start forming a relationship with them now. Erik: [00:22:54] Yep. It makes it so much easier to get a deal done. And then, you know, you can trust them. They can trust you. Like that part is so important and yeah, I mean, there's no reason for them not to tell you exactly what they want to buy. You just make it easy for them. Jason: [00:23:05] Unless they don't know what they want to buy. And there's a ton of people out there like that. Erik: [00:23:10] Yeah, then don't sell to them cause you don't want that type of buyer. You want someone that's very confident and knows what they're doing so that you can able, depending on what your outcome is too. The only thing I'd say the caveat is if you're really looking at just straight exit debt out and it doesn't matter as much who the buyer is, but that's a hard thing to do with an agency. And you're probably going to do a lot of headaches with an uneducated buyer. Jason: [00:23:29] Well, yeah, and you're not going to get the valuation or the money that you want. If you want straight out buyers like us, we'll be like, all right, what's wrong? Like, what are you not telling us? Erik: [00:23:40] Yep. We've looked at those deals. We actually, funny enough, we just passed on one. We look at those deals, but we offer less. We're like, key, like if you're not there, you're, there's a loss in value. Jason: [00:23:51] Yeah, exactly. And that should make you feel good. Erik: [00:23:53] The fact, especially if you're a sub eight-figure agency, like you can't tell me that you're not driving the boat. Jason: [00:24:00] Yeah, exactly. What's the title of the book and where can people get it? Erik: [00:24:03] You can get it at hawkemethod.com, hawkemethod.com. Jason: [00:24:07] Awesome. Well, everyone go check that out. Erik, thanks so much for coming on the show. And if you guys want to be around amazing agency owners that have been to where you want to go and be able to see the things that you might not be able to see and just have a lot of fun and share the strategies. I want you to all, to go to digitalagencyelite.com.  This is our exclusive mastermind for experienced seven and eight-figure agencies and beyond. So make sure you go there now, go to digitalagencyelite.com and until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Can You Build a Successful Lifestyle Business To Eventually Sell?

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Jan 16, 2022 12:25


Are you growing your agency to sell it in the future or prefer the idea of building a lifestyle business? Maybe you don't have to choose. When Anna Mannerfelt created Wired Mustang, an agency specializing in brand development and equine marketing, she decided selling her business was not the ultimate goal. Instead, she created a business to support her lifestyle. In today's episode, she sat down with Jason to talk about her negative experiences with agencies and why she fired a few plus the two-fold job of agencies. She also discusses why creating a lifestyle business doesn't mean you can't one day profitably sell it. 3 Golden Nuggets Why clients fire agencies. Before starting her own business, Anna dealt with many agencies and even fired some after growing tired of a common mistake: the over-promise. Agencies assured they had the capabilities and experience to take on the task and then ultimately would not deliver. “It's like dating,” she says, “anyone can be a good salesperson, but can you actually deliver what you promise?” Make sure you're really good at something before you find yourself in a situation where you can't deliver on promises to clients. The two-fold job of agencies. In her opinion, an agency should, first of all, make their clients look good, whether by brand design or website or billboards. But most importantly, an agency should increase their clients' sales. Analytics is all good but by the end of the day, are you increasing sales? She makes sure to ask clients if her agency is getting them more business. And if not, it's time to find out what they are doing wrong. Having a lifestyle business. We usually talk about the mindset of growing an agency to then sell it and enjoy the lifestyle you want. Anna says she would be bored out of her mind without something to do and preferred to build a lifestyle business. In Jason's experience, we should all strive to design our business around us rather than having a business that controls us. There are a lot of negative ideas about having a lifestyle business but you could also sell a lifestyle business if you choose to. After all, any business is about setting up the right system and the business operating without you. Sponsors and Resources E2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design and development agency that has provided white label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Building a Successful Lifestyle Business That You Could Sell in The Future {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, everybody? Jason Swenk here and got another amazing episode for you. We're going to talk about growing and scaling your agency and really creating an agency that's a lifestyle business. I know a lot of times we talk about growing an agency building up real big and selling it, but what about if you just want to do a lifestyle business? On today's episode we're going to talk exactly about that, so let's go ahead and get into the show. Hey, Anna. Welcome to the show. Anna: [00:00:31] Thank you, Jason. It's great to be here. Jason: [00:00:34] Yeah. So I'm happy to have you here. Tell us who you are and what do you do? Anna: [00:00:38] Sure. I'm Anna Mannerfelt. I'm the co-founder of an agency called Wired Mustang and we're based out of Denver, Colorado. Jason: [00:00:46] Awesome. And, uh, tell us, how did you start the agency and why did you do it? Anna: [00:00:50] Oh, my goodness, Jason. So I've been in marketing for 30 years, started way back when in Sweden and advertising. And then when I came to Colorado a few years ago now to start over, I saw there was a need for businesses to be represented correctly online with actual professional digital marketers. And having hired and fired a lot of agencies throughout the years, I saw there was a gap for this and a need for it, and also, uh, an opportunity for us to set up a business that we feel very, very strongly about, but also more of a lifestyle business that coincides with our personal interests with horses. So, there you go. Jason: [00:01:31] That's awesome. And what were some of the things that when you were working with agencies and in your past, you said, I fired a lot of them. What did they do to get fired? Let's start it there. Anna: [00:01:43] The over-promise. They said, we can do this or we've done this a gazillion times. They over-promised and they come in and do, it's like dating, you know, you go in and you work for the agency. They, they, they're singing and they're dancing and they show their pretty graphs and analytics and all that goody stuff. But most of it was just show. It was all bullshit. I don't know if I'm allowed to curse. I'm sorry if I do. Jason: [00:02:03] No, you're allowed to. Anna: [00:02:05] Okay. Awesome. It was just smoke and mirrors and it's just like any relationship. Anyone can be a good salesperson, but can you actually deliver what you promise? So that was something that, uh, throughout the years and in the advertising agencies and also in marketing, when I was on the corporate side, it was just very frustrating because you get sold this big hoopla of we're going to do this for you. But by the end of the day, Jason, in our view, in my view and agency's job is twofold. Number one is to make you look good, whatever that is. If it's a brand design or website or billboards, whatever it is that you are a professional at. Then, more importantly is two, are you increasing your clients sales? Not just make you look good. That's something that we are super stickler at over here at Wired Mustang. We are a little bit of control enthusiasts, some will call you a control freak. I say that that's awesome. Analytics is all good, but by the end of the day, are you increasing sales? We ask our clients, are you getting more patients? Are you getting more signups with your insurance? Are you getting more of this and that? And if not, what are we doing wrong? Jason: [00:03:15] Yeah, that's kind of the thing that I've seen over the years when we're interviewing agencies for the show or for the mastermind, you know, the prerequisite is, is like, are they delivering the results? And I have so many people that go to me and they're like, hey, um, does your training show me how to do a particular service? I'm like, no, it doesn't. It shows you exactly, like… It's already assuming you know how to do something really well. You shouldn't start an agency if you're not really good at something. I see these people creating courses, going live anywhere, travel the world. Own an agenc… like, I'm like, no, I don't do that. So let's switch to the lifestyle part because I liked the lifestyle part. Because a lot of us think, let me sweat in blood guts all over the place for five, 10 years, build up an agency and sell it. And then I can have the lifestyle I want. Why did you decide right off the bat to create a lifestyle business for your agency? Anna: [00:04:15] First of all, I'll be bored out of my mind if I retired on nothing to do. That's number one, you have to have something to do. And when it's a lifestyle business, it doesn't feel like work, Jason. It's we get up in the morning at 4:30, we go to the gym cause we all have to stay in shape, right? The older you get, the more you have to work. Same goes with your business. We start at 6:30, 7 AM every day, but it doesn't feel like work because it's work, but it's just part of it. You become so close with clients that you're feel that you're part of their process of becoming successful. And when you share the same values of whatever it is that their products, goods, and services are, it's so easy to just become part of your everyday without feeling it it's a job. And working in corporate and worked for agencies and you, you don't work for anyone. We're all working for our clients, but it doesn't feel like a job. And a lifestyle business is something that when we repositioned Wired Mustang, we said, you know, this is our lifestyle. We do this so we can ride our horses so we can be part of the equine industry and build brand successfully, and also be better for even smaller brand owners out there to help them to be better with their business. Jason: [00:05:35] Are you looking for a reliable partner to increase your agency's bandwidth so you can take on more projects? You know, our partner at E2M wants to help you grow your revenue, your profit margins without increasing your overhead costs. Now, they're a white label, web design and development agency that's been providing white label services for the past 10 years to agencies all over the world. Their team is over 120 experienced, skilled digital experts that's highly motive to help you get more done in less time. Now they can help you in all kinds of digital areas, including web design development, e-commerce, SEO, copywriting, content marketing, and a lot more. If you're not sure whether he is the right fit for your agency, I want you to check out their flexible and transparent pricing model. Go to e2msolutions.com/smartagency. For a limited time, they're offering my smart agency listeners 10% off for the first three months of service. That's e2msolutions.com/smartagency. Well, yeah, I believe everyone should design their business around them rather than have their business control them. Because you know, for many years I thought the opposite. I thought, you know, I'm going to build the business to sell it and basically created this huge prison around me. And then when I did sell it, I was depressed cause I, I did want to work. You know, I didn't want to work as much, but I want to be able to pick and choose. And I think just the stigmatism when people are like, oh, I have a lifestyle… It's like, this is a lifestyle business now, but it's a big business. And it fuels a lot of different people and industries and all that different kinds of things. So, but I designed it around my lifestyle, but then it has to help out other people and just go around and around and around. Anna: [00:07:32] Right. Everyone's probably heard of operating within your sphere of genius. And then that's so easy to do that. And you are operating within your sphere of genius and so am I. So it's our team. So I mean, that's, that gets their blood, sweat and tears and some days I just kind of wish I'm like, why am I doing this? Why am I not back in corporate America and the next second I go, oh, here's why. Jason: [00:07:54] Yeah. And, and I feel you can sell a lifestyle business if you want. It's all about… Any business is about setting up the right system and the business operating without you. Because when I look at a lot of lifestyle businesses, I look at, wow, man, they have a lot of freedom to do other things because they have allowed it, and it's not all dependent on that owner or that one particular person that does everything. So it does open up the door, but I just wish people would not say lifestyle businesses are a bad thing. I think it's a really good thing. Anna: [00:08:28] Oh, no. As long as you have your brand lingo and your brand positioning, you can let someone else run with it. And I think that's why we're doing, I'm knocking on wood here, knocking on wood, whatever I'm doing. It, it works for us, uh, really, really, really well because everyone within Wired Mustang, they know our brand lingo, our tagline is increased online horsepower. Yes. We trademarked it. And I've seen other agencies out there that have genius positioning because they stand on and then it makes it so much easier to not have to be involved in everyday. And whomever is taking over, stepping in, if it's a project manager, does that, they know there's certain look and feel with Wired Mustang probably was saying with your business, you know? Jason: [00:09:11] Oh, yeah. And there's freedom in that. And one of the questions I ask a lot of people is like, like, how happy are you in your business? Like, on a scale of one to 10. And like, if all of you listening, the two people listening out there… So if you really are honest with yourself, like give yourself like 10 being the best one being the worst, uh, seven is a cop-out number. You're not allowed to do seven. Where would you rank your happiness in your business? And I think a lot of you would find that you're in a failing grade. And so what are you going to do about it? Especially with, you know, new year coming up, you know, or new year's already here depending on when they release this or when you listen to it. Yeah, you need to figure that out and make those adjustments rather than the reactive, because I find too many people being reactive out there. Anna: [00:10:00] Yeah, you'll have to be proactive. I mean, it's, it's, you can sit on the pity train or you can get off it and do something proper. No, no one's going to, and that's the benefit of being a business owner and you probably agree with this, Jason, is you have the power to do whatever you want to change it. If it's not for you, you can always go and work at… I don't know, Starbucks or Walmart or whatever you want to do, or step back to corporate, if you do that, but you have to give it a go if you're brave enough to do it, you won't regret it. Jason: [00:10:27] Yeah. There's always something else and there's always multiple paths that you guys can choose. Well, this has all been amazing, Anna. Is there anything I didn't ask you that you think would benefit the audience? Anna: [00:10:37] Oh, my goodness. That was a, that was a very pregnant pause right there. No, not at this point, but one thing I think is super important. You have to stick to the benefit for the audiences that if you believe in doing something, go for it. There's always going to be a Debbie downer saying, oh, you can't do that. Of course, you know what? If someone says, I can't do it, I'm going to prove you wrong. I'm going to do it even better. And I think that's something that when people say can I do this? Can I do that? Of course you can. It's, it's all in your head. Jason: [00:11:03] Yeah, exactly. I love it. What's a website, what's your website where people can go and check out the agency? Anna: [00:11:08] Well, it's www obviously, but wiredmustang.com and focusing predominantly on the equine-related businesses here in America. And it's a big business, uh, not just horses and tack, but everything around it. So, yeah, anyone want to feel free to go there and feel free to shoot me an email as well, if they want to. Jason: [00:11:28] Awesome. Well, thanks so much, Anna, for coming on the show. If you guys enjoyed the episode, make sure you subscribe, hit that little bell button so you don't miss out on any episodes. And if you want to be around amazing agency owners that can see the things you might not be able to see and show you the things that are working for them and others, where you can have a hypergrowth and scale faster and scale smarter and have a lot more fun, I'd love to invite all of you to go to digitalagencyelite.com and check out that page for you. That might be the thing that's looking or that you've been looking for to get you to the next level you might've reached your top of the mountain that you think of, but I can promise you there's a mountain behind you that we can help you out. So make sure you go there now and until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Is your leadership style genuine and sincere? Do you have empathy where your team is concerned? Do your clients display empathy for their end-users? When Lonn Shulkin first started working at Bam Strategy, they had just lost their biggest client and were in the process of pivoting and taking the opportunity to shift their focus to find their ideal customer. Eleven years later, Lonn is now the CEO  at Bam Strategy and is dedicated to motivating consumer behavior through strategy, media, platforms, and creative initiatives. He sat down with Jason to discuss how they went from losing their biggest client to getting to eight figures, how they started building their sales team, and how empathy has helped them increase client and employee retention. 3 Golden Nuggets Building their sales team. Losing a client that represented 70% of their business meant the agency had to find a way to pivot and use that experience with a global client to diversify. After realizing what they were great at, they got specific on who their perfect audience was and then focused on the business development side to build the sales team around that. Investing in leadership. This agency has been able to improve its employee retention by understanding that each individual employee needed the time and attention and the effort from them to understand their role in the company. They worked to create an honest relationship where an employee could go to them if they had other job offers and give them a chance to discuss why they should stay. They also started doing more social activities as a group to create bonds and created leadership programs to start building up their leadership practice. Putting in that work results in a culture fit that permeates to all employees. Teaching their clients empathy. Just like they built employee retention and loyalty by implementing empathy into their company culture, Lonn says they now try to extend that concept to clients to teach them how to care about their customers in the same way. It's been a big driver of growth and success caring about the end-user in the same way because that's what creates brand loyalty today. Sponsors and Resources Verblio: Today's episode of the Smart Agency Masterclass is sponsored by Verblio. Check out Verblio.com/smartagency and get 50% off your first month of content creation. Our team loves using Verblio because of the ease in their process and their large pool of crowd-sourced writers. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Grow Your Agency & Increase Employee Retention Through Empathy {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, agency owners? Jason Swenk here, and I have another amazing guest who has grown an eight-figure agency, very, very profitable. Done it through amazing team, amazing systems and done it with empathy. And so let's go ahead and get into the show. Hey, Lonn. Welcome to the show. Lonn: [00:00:28] How's it going? Great to be here. Thank you for having me. Jason: [00:00:31] Yeah, man. Uh, so tell us who you are and what do you do? Lonn: [00:00:34] Uh, so Lonn Shulkin. I am CEO at Bam Strategy. Been with the agency for 11 or so years, and just very passionate about growing teams and certainly what we do, which is working as an agency with pretty large customers bring brands that you would know that really focuses on digital experience. So not necessarily the UX stuff, but how we can actually engage customers and communicate with them on a one-to-one basis. Jason: [00:01:05] Awesome. Tell us kind of the progression or the different cycles that Bam has actually gone through in the past… I guess two decades. Lonn: [00:01:14] Yeah, it's quite the ride. I'm sure it's a common ride as a, as I've heard from other guests on your show. But, um, when I joined 11 or so years ago, we had that, that one really big flagship client was taken up 60 or 70% of the business and… yeah it was pretty scary times. And I think at the moment they had actually told us they were, they were a global brand and they had told us that they were going to consolidate all of their marketing in the US and we're based in Montreal in Canada. So that was a moment where I had just joined the company and we had to figure out how we were going to, um… Luckily, we had a bit of a runway from the client, so they gave us a couple of years notice there, but usually you don't get that in my experience. Um, but we had to figure out, you know, how we were going to pivot and shift and how we're going to use a lot of our experience with this big global brand to diversify. And so that was probably phase one coming in… the agency is actually 25 years old so coming in as sort of the new guy, there was a lot of work to do as far as aligning teams. And, and for me as a new leader, just sort of figuring out who are my people who share my vision and who buys into that and who can help me craft the company that we, we want it to be and grow it, because at the time growth was not always in an upwards sort of direction. So lots of up and down. And then we had that big client and so really shifted to focus on those leaders in the company. And that's when I'd say we started shifting into phase two, which is more focused on biz dev, not a ton of RFPs, I would say, although we won a few. But a really big focus on when we had opportunities going all in and choosing those right opportunities cause we started to understand a little bit of what we were great at at the time. And just putting our all into the pitches that made sense and throwing away the ones that didn't, and I think that was really key for us. And that's when we started winning a few and got a little bit of diversification. Jason: [00:03:25] I like that you got specific on who your perfect audience is. It sounds like. And then you built the sales team around that. Too many people go, oh my God, I'm gonna lose my biggest client. And my gosh, that was so nice of them to give you a huge runway. And that doesn't happen. I've seen so many agencies go in there. They give you a good runway. And I liked that you focused on the sales team because a lot of times people just say, hey, sales, go find business, but they don't give them direction. So let's talk a little bit more about the sales team that you guys created. Were these hunters? Were these farmers? Talk about the makeup of what you guys did. Lonn: [00:04:09] So we've tried everything, as a joke between my partner and I, I mean, we played with the concept of telemarketing having hundreds of calls going out. We had a junior or mid-level salesperson. We had a software sales guy at one point who was more senior and, but it was still outbound calls. And what we found time and time again is that, and it's still like this today as we've grown to be much bigger, we have our core what I'll call farmers who are really good at client relationships and growing those relationships. And as I guess, leaders of the organization, what we need to do is leverage those farmers to develop leads as well as our own networks, because the blind pitches, while we've won some, and they are, you know, if I listed our clients, they would be some of them, the longest standing most meaningful relationships we've had have not been what I call formal pitch clients. Or formal RFP that goes out to 20 agencies. So we don't have this Biz Dev person sitting here who just, all they do is call people and try and get opportunities for us. We've just not seen that deliver the kind of results we want. And we find that it, um, we still get the word of mouth leads that we would get, and we still get the blind RFPs that, that we might get, but we tend to just build on those relationships we have and get referred and find leads that way. And that's, that's, what's worked for us. Jason: [00:05:49] Do you know, there's two winners to every RFP? Lonn: [00:05:53] I'm sure. Jason: [00:05:55] There's the one that wins the project and the first one out. Like, I always hated RFPs and I actually always turned them down. I just realized that RFP stands for like requests for punishment, real fucking problem. Like it was just like, I hated RFPs because just like you were saying, unless I had someone on the inside or we wrote the damn RFP because that's usually who wins the RFP. Lonn: [00:06:23] Yeah. I mean, listen, you can, you can sell your soul to the devil in an RFP and maybe get a pretty serious look on price, but then you're not happy that you have the business. Jason: [00:06:33] I was chatting with a guest not too long ago, and he was telling me after the show… I wish I recorded after the show. I think maybe that should be a whole new segment because that's when a lot of the good stuff comes up, but he was telling me he on a lot of pitches, sometimes they'll spend a million dollars on a pitch. And I'm like, holy cow, like that's a huge gamble. He's like, well that'll win like 3 million for the year. I'm like, that's not a gamble I would do. And I do a lot of dumb stuff. Lonn: [00:07:03] No. I mean, even if you're a really great agency, I can understand the margins on that would not work. So I think we need to be able to show in the pitch that we care. And if they don't give us an opportunity to do that, we're out of the pitch for sure. Like that's, it's just either, it's going to be so easy that I can just send a spreadsheet in an hour with, with some sort of price and I'll just take a shot at it. Or I really need to be able to show who we are and showing who we are comes as you know, from a lot more than some document. Jason: [00:07:33] So now that you started building the sales team that are farmers, what was the other part of the teams that you actually your leadership that you started putting together in order to really kind of take the agency to the next level? Lonn: [00:07:47] So Chris, our founder, had always created this… I joined a company that had an incredible culture. Let me, let me start with that. And there was, I'd say for the size of the agency at the time we had more of an investment in HR and leadership, than other companies I had been at. And so my background previous to them had actually been at a company that sold HR solutions specifically around motivating and engaging people. And so I would say that with me coming in, we, we doubled down on that. We doubled down on the concept of having more HR investment than other agencies. We figured out that if we could get really awesome people in and keep them here, because that's a huge problem for agencies, that alone would allow us to have sustained relationships with customers. And that has proven time and time again, to be an awesome investment for us. Jason: [00:08:43] Give us some examples of what you doubled down on in HR. Lonn: [00:08:48] So at first we thought, uh, and this it sounds funny and COVID times, but at first we thought that ping pong tables and fruit and all those things were important. And they were. We quickly shifted to understanding that each individual employee needed the time and attention and the effort from us to understand their role here, what they actually were going to do and how they were actually going to grow. That was critical. And so every single employee had a performance discussion. And so HR would get very involved in creating those forms and making sure that every person had those discussions. And we would do those multiple times for per year. And we still do those. We, we changed them from very formal and like scoring based to much more conversational, getting to that human side of things and actually understand what makes the person tick. And with the ultimate goal of, of course having great people and them being happy, but ultimately knowing the market that we're in and how much people get poached and move around to, to make more money we wanted, I guess that goal was to have a chance when someone was poached, we wanted them to either say no, or give us the first chance. That was sort of my, always the, the goal I put out there is that I want it to be so good that someone would even with a big paycheck in front of them, someone would come to us and give us a chance, basically. Jason: [00:10:21] Are you looking for a content creation solution for your agency and or clients? Verblio can help you with everything from blogs, EBooks, to video scripts and a lot more. Verblio is a crowdsource solution to content creation with the pool of more than 3000 highly vetted writers who produce custom SEO-rich content. In fact, my team has been using Verblio, and we love the ease of their process. With Verblio, we set the criteria for the style and the tone, and then they match you with the writers that have the expertise in your subject matter. Verblio is a platform specifically designed for agency, and that's why for a limited time they're offering my listeners 50% off the first month of content. Just go to verblio.com/smartagency to learn more. That's Verblio, V-E-R-B-L-I-O.com/smartagency. Yeah, I was going to say in our mastermind, one of our members, he always does this and I always preach this to the mastermind. He always said to his employees, if I do anything or anything happens in the agency that you don't like that demotivates you, or you're not happy with where you think "I need to go take an interview", or "I need to get my resume ready", come to me right away and let's chat about it. And there's been so many people, so many mastermind members that have saved great employees from literally just starting the interview process, because once someone gets an offer somewhere else and then they tell someone about it, dude, they're gone. Lonn: [00:11:57] Yeah. It's tough. It's tough at that point. So we started recognition programs. We started doing a lot more social activities as a group, so to create bonds, to create… There's a great book actually called, um, 12, which is by the Gallup organization. That's just about the 12 reasons, 12 things that motivate employees that are non-compensation based. And we started doing that with all our managers. We started doing a leadership program internally with our managers, where we would go through personality types and conflict types and all the classic leadership programs to start building up our leadership practice so that, that could trickle down to people. And that retention, I think is a huge driver of client retention. Jason: [00:12:43] Yeah, I think that's huge because you know, I look at there's six stages an agency goes through and the last stage is really building the leaders in the organization. It's kind of like, you know, in the very beginning, it's kind of getting leads. Having a sales system and then the owner gets to a certain level, but, and then a lot of times people stop there. But if the leader that one leader is smart, they'll try to build multiple leaders where they're not the toll booth. And that's, that's really pretty smart about figuring out what works because everyone's different. But the people you hire, I find if you hire on values, they're going to be very similar in their values, but different in skill set, different in everything else. Lonn: [00:13:31] Yeah. And so that culture fit, we always emphasize that and we call it being a Bammer, but that's critical. And there's been a big shift in that permeating from me and our leadership team to now everyone knowing what that feels like. And we can't necessarily articulate it, but it feels like something. It's very cool to see that permeate down to, to everyone, even a new person who comes in and they're like, oh wow I, I feel it too. And we're on zoom every day right now, so it's, it's very cool to see that start to happen. And the other thing I'll say that I think is really interesting is that as we've grown those people, we invested in as leaders, 10 years ago, our, our leadership today and so that's really cool. They've been with us for 10 years and even if they were leaders back then they are much more mature and awesome leaders that I would be happy to give the keys to the car. Jason: [00:14:30] Yeah. The one thing I learned about selling the first agency was when I turned into an employee, you don't have to motivate the good employee. But you have to worry about de-motivating them. And I was de-motivated by a number of different actions. That's the biggest thing I worry about with my team and I tell the mastermind members, I'm like, if you have to motivate an employee, you hired the wrong employee. I'd tell them like, like, get rid of that person. Lonn: [00:15:01] A hundred percent. Yeah. If they're not happy here, they, the writings on the wall, right? Like that's… We want them to go because they can be happier somewhere else. And I think that's the other concept of empathy is I would rather them be somewhere else and be happy than be unhappy here. Jason: [00:15:15] from someone that's been fired from almost every job that is totally true. Some people held onto me too long. Wendy's fired me the first day. So they, they had no empathy. I appreciate them because I wouldn't be where I was without them firing me and telling me I can't work at fast food anymore. So thank you, Wendy's. I've never publicly thanked them before. Well, awesome. Um, this has all been amazing. Is there anything I didn't ask you that you think would benefit the audience? Lonn: [00:15:48] No. I mean, listen, we're working a lot on extending that concept to our end customers and trying to teach them how to actually care about their customers in the same way as we care about our employees. And I think, you know, that's for us been a big driver growth and success now is how we actually sit with our customers and say, you, you need to care about that end person buying your product in the same way you care about your employee because that's what creates brand loyalty today. And that's to me, the joy of, you know, the cookie going away and all those things that people are scared of is actually, we have to actually show a value now. And to me, that's exciting. And if you're an agency who can deliver value to customers and help your customers figure that out, it's a bit of a holy grail, I guess. Jason: [00:16:31] Awesome. Well, what's the website people go and check out the agency? Lonn: [00:16:34] bamstrategy.com. B-A-M strategy. Jason: [00:16:37] Awesome. Well, Lonn, thanks so much for coming on the show. You did amazing. Make sure you guys go to their website, check it out. And if you guys want to be around amazing agency owners on a consistent basis, that can see the stuff that you're not able to see and be able to hear the strategies that are currently working, not strategies from 10 years ago. But are currently working right now. And just have a lot of fun and connect with amazing people. I want you guys to go to digitalagencyelite.com and fill out an application. If we feel that you'll be right, we'll have a conversation and we'll chat about it. And then we'll start introducing you to all the other amazing members all over the world that run agencies that can help you grow and scale faster and have a lot of fun. So until next time, have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How to Build an Ideal Team By Marketing Your Agency's Culture

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Jan 9, 2022 15:57


Are you having a hard time hiring the right talent to build your agency team? Manish Dudhareija first started his journey as an entrepreneur nine years ago when he noticed there was a huge demand for skilled developers trained in the latest technologies and there was a gap in hiring, training that fit his expertise. He created E2M Solutions, a full-service agency that offers website design & development, SEO, copywriting, and content marketing. In this interview, Manish shares how agency owners can address the common struggle of finding and hiring new talent. He also talks about how advertising your culture can help attract the right people, and the creative ways you can make your agency stand out to top talent. Advertising your culture. We've talked about how many agency owners need to do more to market themselves to potential clients. Manish adds another layer to this: marketing aimed at attracting the best people to your team. You're really missing out if you're not marketing your culture to attract the right elements. He likes to use LinkedIn to showcase his agency's values and says he is as interested in candidates' personality traits as he is in their skills. In this regard, he is looking to identify do they have the right kind of attitude? Do they have the willingness to learn? Are they curious? Are they accountable? The answers to these questions will be just as important in the process of selecting a new team member. Be creative in your search. When searching for your ideal team, Manish recommends creating ads that contain some sort of challenge, like code in the case of developers. This will help your agency stand out from the many messages just stating “we're hiring” and is a way to spark the interest of the type of dynamic and curious individuals he wants to attract. On training his team. Manish has a team of senior developers whose main task is to be constantly researching and testing new technologies. Once the agency gets a new project, the team identifies the latest technology that they could work with and try to implement it. Later, when the opportunity arises, they propose that technology to their existing clients to let them know that they are always on the lookout for new developments in their area. This is also a good way to always have someone on the team that can train the rest of the developers and are creating the processes to do so. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Getting Creative in Your Search for New Talent For Your Agency & Advertising Your Culture {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, agency owners? Jason Swenk here, I have another amazing episode and we're going to talk about, because look, I've been chatting with so many agency owners over the past months, and one of the big things is hiring the right people and just finding the right talent. On today's episode, we're going to talk about some ways where you can find the best talent, should you hire seasoned pros or train them up? How do you train them up? And it really cool solution at the very end. So make sure you listen to the whole episode. So let's go ahead and jump into it. Hey, Manish. Welcome to the show. Manish: [00:00:38] Hey, Jason. Thank you. Thank you for having me. Jason: [00:00:41] Yeah. I'm excited to have you on. So tell us a little bit about your business. You know, you've been doing this for a while and you have over 110 people, but tell us a little bit about who you are and what you do. Manish: [00:00:52] Sure. Yeah. So I'm kind of an entrepreneur. I started this journey nine years back, uh, in 2012. So I founded E2M nine years back. And one of the reasons I founded this company is to solve a specific problem. That was kind of seeing, like, there is a huge demand of skilled and trained, you know, people, resources in terms of technology. And there was a gap, you know, I thought we can really feel where my expertise is, uh, strategy, uh, hiring, training people and, you know, injecting the traits like personality traits and how to have the force ready, where someone is looking for, like, you know, Uh, someone is not looking to hire people and they are looking for people who are trained to work with. So that's how I founded E2M. So it started like nine years back and we are kind of a white label, uh, you know, outsourcing company. Uh, we build websites, we do a lot of web development. With WordPress and Shopify and big commerce. And we work with digital agencies, regardless of the size, across the US and the other parts of the world. And yeah, you know, we help them scale their agency business with our white label services. Jason: [00:02:13] Awesome. Well, let's get into it and let's talk about, you know, a lot of agency owners struggle right now because there's a lot of demand for what we're doing, right? But it's really challenging to find the right team members. So what has worked for you? Because you guys have over 110 people what's worked for you to constantly keep getting the best people? Manish: [00:02:36] Yeah. That's a very interesting question. And, um, I think, you know, similar, like the US, we have an adequate role here in India and we are also facing similar challenges hiring people. But one of the things, you know, we are trying to do something is, so we often do a lot of marketing to attend the customers, right? But we never do a marketing to attract the people, right? Because we always think like, okay, you know, uh, that early the marketing has to be only to drive in the sales and leads. But I also feel like, you know, that you should also do a marketing to attract the people, right? So we do a lot of branding our HR team, and we have a social media team, we do a lot of granting on LinkedIn. We expose or culture, you know, more often on LinkedIn and that builds the transparency, that builds the, like, that kind of showcase what we are, what our value is, right? So, we pay a lot of attention in that we, uh, be are vocal and we speak loudly about, you know, what our culture is, what kind of initiatives we have. So it is not just about, uh, like, you know, the team outing lunch, or get together, but it's more than that, right? So one of the things, you know, which I believe is other than the skill, the traits are very important as well. The personality traits, right. We kind of, you know, when we look for the people, we just do not look for the skill, but we also look for the traits, like what kind of traits to the have, right? Do they have right kind of attitude? Do they have the willingness to learn? Are they curious? Are they accountable? Are they responsible? Are they good with working with the people? Are they having an open mindset? That allows us to train people faster, right? So obviously we look for the skill, let's say, if you are looking for a WordPress developer. Yeah. WordPress is something, you know, definitely that's the reason we are interviewing them. But apart from that, we also look for the traits, right? So we are kind of a company where we pay a lot of attention and a lot of importance to the traits. So that's kind of showcase, you know, in LinkedIn. And transparency, right? I think, you know, one of the things that… Where people love to be in a transparent culture, right? So we don't ask them, we don't lock them into the contract that you have to sign bond with us. You have to work for X number of months or years with us. It's kind of a very open culture we have where we explain them the benefits, how we are different. Uh, we showcase and we let our other people speak, right? So we are over… uh, so we are like one hundred people right now. So a lot of our existing, we talk about how we have a higher retention ratio. The other team members, they speak about their experience openly. So these kinds of things, you know, help us attract a really, really good talent and, yeah, happy, happy people. I would say like, you know, we get a lot of, uh, new hires through over existing members. So because they are already happily working with over here, right. So they do a word of mouth. See, it's the concept of like, you know, the customer brings some other customer happy customer will bring another, you know, a customer. The same concept applies when you were hiring people as well, right? That, okay, if you have a happy employees, happy you happy people working with you. Obviously they are going to bring other people, their friends and family members and friends and friends, they are going to bring that right. So I think, you know, there are the companies right now facing two types of challenges. One is hiring new people, as well as retaining existing people. Fortunately, we are only facing one problem, which is like, you know, this is a good problem to have, hiring new people, for which we are also like know, working in a way that we are getting rid of that problem, but we do not have the second problem is retaining the existing people because we have a very transparent culture in a way where, you know, people feel more accountable and responsible and they can end with them the kind of growth they're looking for. So that is helping us a lot to retain existing talent and bringing on the new talent. Jason: [00:07:21] I love that, you know, because I think a lot of agencies are missing out on always be recruiting. And, and be marketing to, you know, the people that you may need, because like you were saying, I think they're focused on, you know, oh, I need to market to the clients. And, and look, if we're all honest here, digital agencies do a pretty crappy job at marketing themselves, let alone marketing to the people that they want. But you know, as, as you guys are listening to this episode, I really want you guys to go, man, this makes total sense. You know, first I need to market to, I need to do a good job of marketing to my clients, because there's a lot of agencies that are built on word of mouth. But I need to commit to, you know, going forward to marketing our culture. Because when you market your culture to people you're trying to hire, it will actually help you with your clients, because they'll be like, oh man, that's pretty cool. Like, I want to work with this, this team. And the one other thing that we did, and you guys may do this as well, especially as, you know, your employees refer other employees to the team. We would do a commission structure or like a little bonus to them if, once we hired someone and they stayed for three months or longer. Manish: [00:08:38] Yeah, that's what we have already done. We already have that in practice. So it's, we also do bounty. So, you know, when you bring, refer to your friends and, you know, uh, any other candidates, if they get selected, you get a bounty of X number of amount once they complete three months. So we already had that in place. The other thing, you know, we are doing differently is something… We know that, okay, the, everyone is using a Facebook and Instagram, right? So generally we do our services and what is meant on Facebook and Instagram. We are also doing our hiding our ads. So we have paid budget, uh, specifically allocated for that on a monthly basis where we do already creative posts, where not… Okay, if you are looking for a WordPress developer, we put a PHP code and we say, okay, no, find an error on this. If you can find an error on this, you know, we are looking for you, right? So generally, you know, we do kind of this kind of creative ads and another example, you know, we, uh, that is kind of like, okay, our QA team is challenging that, okay, you know, if I'm going to review your code and I'm going to find X number of bucks, for sure. If you challenge that, okay. If you, if you do a code where I cannot find a bug at all, then we are looking for you, right? So a lot of this kind of interesting ads we run on Instagram and Facebook that also helps us to be in front of, you know, people who are not even sometimes, no, they are not looking for a change, but the way we present ourselves, it makes them interested to apply for the position and change their mind. So I'm actually reading a book right now, Atomic Habits. I'm sure you must have read. It's a really interesting book. I'm reading, you know, it's Atomic Habits. And, uh, one of the things, you know, that's book I read is see when you sell something, people are not actually interested what you are selling, but they get more curious, how you present it to them, right? So it's like when we have an opening, we just don't say we are looking for a WordPress developer, but we present in a way that, okay, we are looking for WordPress developer when we don't write it very obviously. And that's kind of, you know, attract them. Okay. This company is standing out and that's where we are getting a lot of attractions. Jason: [00:11:07] I love it. And I want to switch focus just a little bit, you know, as we kind of end the, or getting more toward the end of the show. How do you constantly…? Because I see agency owners struggling with constantly training their people with a new skill. So what have you seen work for you guys? Manish: [00:11:30] That's a good question. You know, so we have, you know, different people with different, uh, you know, skill set, right? So we have project managers who just look after the projects team and like that. Then we have technical leads, they are only there to solve developers, technical problems. And then we have a senior developer, some of our developers are just working on exploring the new technologies, right? So what we do is, you know, when we work with agencies and they are looking for, let's say they are hiring a WordPress developer with us, so then we ask them, okay, you know, there is a core vital, which is very important these days. We have started exploring onto headless CMS right now for building a fast-loading website, using react as a front end, WordPress is the backend, right? So we kind of identify what is the latest in terms of technology. And we have a specific people who are just working on, you know, doing research and exploring the new technologies. And then when there is an opportunity, you know, we propose that to our existing clients that, hey, you know, we have been working since long and this is something new. What do you like us to try it out? And they are always open for that. And that gives us a live project to work on. So it, it, it is kind of like, you know, we keep our eyes and ears open and we do a lot of research and we work with a lot of agencies. So we always get to know different problems than we have a technical team with just doing research, what's the latest out? And then, you know, they learn for us because they are highly experienced and then they, you know, teach that they kind of teach that to other developers as well. And that's how we train that. One thing we do when they are doing that, they make sure to have the processes, they make sure to have documentation, right? They make sure to have proper standards, coding standards in place. So there is documentation, there is a checklist. So the other developers who are being trained, they don't have to train on the wheel, they get drained faster. So this is something, you know, this is how we are managing basically Jason: [00:13:41] I love it. I love it. I love that you have dedicated people to, to that, that train the rest of the team. I think that's where, you know, people make a mistake of, especially when they bring in a junior person and they think they're just going to learn up very fast. If you don't have a dedicated person or a dedicated system for training them, it's going to be a challenge and it's going to cost you more than it would of just hiring the more experienced person. Well, this has all been amazing, Manish. Is there anything I didn't ask you that you think would benefit the audience? Manish: [00:14:14] Yeah, I think, you know, the one thing is that, uh, we work with a lot of agencies and help them scale and grow with our white label. So this isn't like that. So in case if any agency is facing a problem with management and you know, when you have projects on board, but you do not have anyone to help you executing those projects, then yeah we help agency owners, you know, with our white label services. So we have a special offer for our listeners today. So we are, you know, we have, we are productized our white label services. So we have different monthly plans to choose from. So if you are listening to this podcast, you can go to E2M, to our website we have specifically designed for this audience, which is e2msolutions.com/smartagency. So that's E and 2 is a numeric and M for marketing e2msolutions.com/smartagency. If you go to that, that is so when you, you know, use this link, and if you are going to sign up for any of our plans, you will get an additional 10% discount for first three months. Jason: [00:15:23] Awesome. Well, thanks so much for doing that for the audience. Make sure everyone goes there and, uh, check that out.culture And, uh, I think that will be a great resource tool in helping you all build in 2022, I can't believe it's 2022. That's crazy. So go to the website now go claim that offer and Manish, thanks so much. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Are you using your resources wisely in order to scale content creation? Are you leveraging partnerships that will help you grow your agency? Content creation is following a classic marketing channel trend and continually evolving every year. If your agency is not keeping up with the increased demand, you're missing out. In this episode of the podcast, Jason talks with Laura Smous and Steve Pockross from Verblio about how agencies are helping their clients do more with content, as well as some common mistakes agencies make when it comes to content creation. They'll also share the biggest investments your agency needs to make in 2022 and how your content efforts can work with AI. Laura Smous is the VP of Product Marketing at Verblio and Steve Pockross is the CEO at Verblio, and a three-time guest of the Smart Agency Masterclass. He believes content is still king, especially in a struggling economy. 3 Golden Nuggets Top trends in content creation entering 2022. Keeping up with content demands has become increasingly more challenging for agencies. Clients need original content, but that doesn't necessarily mean reinventing the wheel. Verblio's survey of agencies has shown the current trends include refreshing old content and repurposing content in new ways (like turning videos into blogs). Mistakes agencies are making in content creation. Verblio has identified 2 key mistakes they're seeing agencies make when it comes to content. First, an over-reliance on technology to create content results in sameness. AI has a place in content creation, but using it to create all content is a mistake. Secondly, it's important to have a content lead who sees and touches content as the core function of their job. If your agency is having people wear too many hats it becomes evident in the content output. Use AI for things humans are bad at. As Laura observed, "humans are bad at getting started." While she is not a fan of using AI to write content, she says there is a place for it in helping humans get started with content. Some great uses for AI is sales scripts, outlines, and other repeatable functions. The Changes Your Agency Should Make in Order to Scale Content Creation in 2022 Jason: [00:00:00] Welcome back, agency owners. I'm excited, I have another amazing two guests coming on. It's been a long time since I've done a three-way on the podcast and we're going to talk about the three biggest investments you can do next year. We're going to talk about Verblio's survey that they did to all these agency owners that you need to be aware of. So let's go ahead and get into the show. Hey, Laura and Steve. Welcome to the show. Laura: [00:00:32] Hi! Happy to be here. Steve: [00:00:33] Hey, Jason. Good to be back. Jason: [00:00:35] Awesome. Well, Steve, welcome back. Laura, welcome to the show. So I'm going to start with ladies first. Tell us who you are and what do you do? And then we'll go to we'll. Maybe get to Steve later. Laura: [00:00:48] Sure. Well, I'm Laura Smous. I'm the VP of product marketing at Verblio. We're a content creation marketplace and platform. And I've been doing some sort of messing around at the intersection of marketing and technology for over a couple decades now, with the last number of years really focused on product marketing for high growth startups. So really happy to join. Jason: [00:01:09] Awesome. Well, welcome to the show. And, Steve, I don't know how we'd let you back on, but tell us who you are and what you do? Steve: [00:01:20] It's good to be back. I'm Steve Pockross. I'm the CEO of Verblio. I've been here for five years. I have been working in startups, nonprofits, and Fortune 500's for the last 20 something years, always in high-growth industries. And Verblio is the intersection of my, two of my favorite places, the future of marketing and the future of work. Jason: [00:01:35] I love it. I love it. Well, let's go ahead and get into why everyone's listening, which is every year you guys do an amazing survey and you always find out really cool stuff. So what have you found out in the survey? What are kind of the three big investments that we need to be thinking about for 2022? Laura: [00:01:55] Well, I think the first piece is just that the demand for content has only increased. So, uh, that's a really good thing for all of us, but it is a, perhaps a really frustrating thing for a lot of the agencies that we've been polling because they're having a lot of the, the second piece of that would be they're having a lot of trouble meeting that demand. So, uh, whether it's hiring, whether it's figuring out how to um, assemble a team of freelancers or whether it's leveraging technology or platforms like ours, they're having a lot of trouble making it work to meet that demand. So they know there's this huge growth opportunity, but rising to the challenge is tough. And I think along with that, there's all of the change that you deal with at any time. Um, but it's just accelerated. So, um, new content types, huge focus on video. And I think that the biggest piece is figuring out where does AI fit into this puzzle? Is it friend or foe for digital agencies and the ones who are smart enough to figure out how to leverage that are really seeing an unfair advantage? Jason: [00:02:50] Awesome. Let's talk about how are certain things changing in our market around blog posts or landing pages or, or the use of video? What are you guys seeing? Laura: [00:03:03] Well, I think the first is just that, you know, there was already a challenge with content saturation, um, and the, the bar for content quality and what it takes to actually get noticed and, and sort of, and maintain performance was already really high. But I think with the pandemic, um, there's been this massive rush online, so there's just more stuff, right? So the definition of what's good, um, what's performing content, whether it be a blog post or a landing page has changed and keeps changing. I think that's, that's the first piece. And then I'm also understanding that it's not an option, really not to do video, not to have mixed media content and different ways to consume your content and to have that really be not only some standalone pieces, but part of everything you do. So really enhancing what used to just be written form content so that it's more engaging so that more audiences can engage with it and it can live in more places successfully. Jason: [00:03:53] Yeah. You know, when I first started in this business eight years ago, I can't, oh my gosh. I can't believe it. I don't think I had this many gray hairs, Steve or Laura, but, um, I saw so many people just writing blog posts and that's all they were doing. And I felt like there was a lot of tone being lost. And then I also saw when I just started doing video because I was a horrible writer before we started using you guys. Like literally it was like, people were like, you're an idiot, no more writing. But I like to kind of do the combo of you know, using all of the different mediums. When I was made aware of you guys, I really liked it because I was like, hey, I'm going to send you my videos, and then you guys kind of summarize this in a blog post, and then we can turn it into micro-content, all that kind of different, really cool stuff. Do you find that a lot of agencies that are using you or are they using you for that? Or what do you see the trends going into? Laura: [00:04:50] I think the really smart ones are. And I think that's one of the cool things. I mean, there are a lot of, um, agencies and, and direct brands that are using us to just build their core business. They've recognized that content is not only a thing that's necessary to grow a successful business, but it can actually be at the heart of the business itself. So we're certainly seeing that definitely with niche agencies that really, um, understand that they can focus in one specific area. They can really scale and knock it out of the park by leveraging Verblio as a close partner. But I think there's still quite a few that focus on just one content type, just delivering it in one way and haven't really looked at how do you, how do you think about content is really being, repurposable chopping it up and making the most out of basically every dollar you spend there by making sure that it can live across channels and that people can consume it, how they want to consume it. And knowing that a lot of us are on the go, we're almost entirely on mobile devices, but we do still have that human need for a deep, rich, engaging content. So it's not one or the other. Um, and I think that that's a thing, you know, a trend that is going away is really over-relying on technology and not thinking about the fact that we do need this really well-rounded content mix to have a, to have an effective content effort. Steve: [00:06:02] And so one of the things that it follows is content is really following a classic marketing channel trend, which is it matures every single year. And as it matures, basically things that were cutting edge before now become must-haves. So what we're finding is you've got your marketers who are still doing the must-haves, which is blogs. It just requires more every year. So now it requires blogs, SEO optimization, more frequency, more video. And then we have this next layer of agencies that are looking at how do you actually use this really powerful channel to create more of a competitive advantage, especially as it becoming a more powerful marketing channel. And so we have a lot of agencies that are investing in, how do you go much bigger than ever thought of before if you have a partner that can help you provide it to do hundreds of pieces a month and really create a competitive moat? Uh, and so we're seeing these really kind of these three different types of agencies. And I think it's also one other thing point to pull out is it really depends on what vertical is your agency's looking for. If you're in a super laggard industry, you can use some of the old techniques and it still works. But if you're in a super competitive one like, you know, personal injury attorneys where everyone's fighting tooth and nail in order to be successful, you really have to be at the edge. Jason: [00:07:12] And so is the solution just do more like more content? Is that the trend that you guys see? Laura: [00:07:19] I think it's a little more nuanced in that. I think one piece is do more. So all the things that were true before is still true, right? You still need consistency, you still need frequency. Um, and that's kind of the bummer, right? Is those, those have become table stakes. But now we're starting to look at things like content refreshes as important a part of your content strategy as new content creation. And so there's a, there's a level of sophistication required to understand what's the right mix for, for any given client, for any given month, um, what should you be focusing on? And that's, I think where it's difficult, um, as an agency to, to do that without a partner, to really even understand what are the options. And then two agencies, I think in general, are somewhat risk averse and hiring more people can be, can be a real dangerous proposition if you don't know that you can maintain that. So I think leveraging a partner that you trust that you can turn on and off scale up and down, um, over time as, as your needs change is a safer way to grow. Also to be able to bring that expertise to your agency without having to always hire. Jason: [00:08:21] So I like that you mentioned content refresh. I did a masterclass for 50 agency owners yesterday, and I talked about the low-hanging fruit in sales. And that's contacting your existing clientele and looking at the old prospects, right? That's a low-hanging fruit. I look at kind of content refreshing is low-hanging fruit for content you've already created. So can you talk a little bit more about how are people doing that? Like, are they looking at Google analytics and being like, man, this page is getting a lot of traffic, but like we've changed a little bit. We should maybe redo this or what? Laura: [00:08:57] Yeah. I mean, there's a few, there's a few different flavors of it. I think that, um, the agencies that we're seeing really take the lead on content refresh, um, understand that they're talking about that and they're able to sort of templatize their strategy or process to match what they're, what they're trying to do. I mean, there are some very straightforward ones. Uh, my people really focusing on, you know, for example, local SEO for personal injury attorneys. You're going to want to make sure that every one of those many, many hundreds of posts or pages is really hyper-focused on a danger in that area, or, you know, things that might happen, things that are really relevant to that specific location. And just going back and making sure that that information is, you know, that the statistics are up to date, um, that it is hyper-relevant to, um, the area, all of that is, um, is working really well. And, and from a strategy perspective, that's pretty formulaic. Then you have the other ones that are going back and saying, ok, we have this really strong performing post. It's declining. How do we understand what's missing now? Maybe what other people have caught up on? What other people who are ranking have added that, you know, looking for content gaps. And then I think there are some that recognize that, you know, content is not really precious anymore, right? They may have thought something was going to do really well, put a lot of time into it. And I think just accepting that the analytics are not telling that story and maybe it's just, you know, the search intent was not there, right? So you may have, uh, thousands of words and it should have been a listicle. You know, something like that, recognizing we're barking up the right tree that people are looking for this, but the way that we did it, isn't working and we need to redo it and make it a better match what people are actually looking for. And then that will, um, be much more successful as part of the mix. Steve: [00:10:35] And we see is kind of, uh, like a it's still formulaing how agencies are gonna work with this the most successfully.  You'll have agencies that are basically saying, hey, we're going to do our table stakes. And then everything left over we'll put into SEO content or into content refreshes. We have agencies that are coming in and saying, hey, our policy is five to 10% of your blogs or your posts will refresh every year. And then we have agencies that are looking at it bigger and basically saying, hey, we think if we use this percentage, could be 35%, ee fresh all of these. This is the cost for all of these, this is the ROI we expect you to get in our, selling them as larger packages. So we're, we're looking forward to the dynamic trends as they evolve with agencies. Laura: [00:11:14] Yeah. And we're, we're finding too that they're, their clients are open to it really, even in terms of what they're charging for it, it's almost an even swap. They're starting to recognize the value and be as willing to pay for content refresh as they are for new content creation provided that they can be sort of walked through how that's going to impact them. Jason: [00:11:32] What should agencies stop doing in the new year that you guys have found? Laura: [00:11:38] Um, I think one thing is, um, maybe an over-reliance on technology. So as, um, you know, we know that the rules change constantly, the algorithms change constantly. So, um, there has been, uh, a huge sort of swarm towards really relying on those tools to tell, to tell us what to write and how to write it. Um, but that's created this sort of sameness in what's out there and, um, they've forgotten the human element, right? So I think that, that complete reliance on technology to do that, thinking that it is really something that can be done without, um, having that human touch I think we'll start to go away. Because uniqueness and sort of authenticity is a piece that is still required for content to perform really well. And you can't get that necessarily out of a machine. Steve: [00:12:22] I'll add that I think there's like a couple of different ways that, so that we have agencies that manage us, the agencies that have a person who's senior level who's in charge of content at their agency who looks at it all the time and it's consistent perform really well. We have, and then we'll have agencies who have a different contact for each member, for each one of their clients to work with Verblio, without having somebody oversee it and how to get the most value from their content. And so we'd really recommend that there's a content lead at your company, whether they're part of the, each one of your client representation or not. Jason: [00:12:55] Gotcha. And for the past year, I've been hearing a lot around AI, around content writing. Where does that fit in? How do you feel that that's changing things in the industry? Laura: [00:13:07] You know, I think for, for folks who are relying on it completely, you know, they are getting a sort of sameness or a lack of originality, uh, in the content. So I think that is, uh, maybe not the direction I'd recommend. I would say that, um, figuring out how to use AI for the things that humans are bad at and use humans for the things humans are good at. So an example of that would be humans are bad at getting started, right? They're bad at doing that first step towards that task and AI, uh, it can really do a lot right now to, um, to give you a content outline, to give you a draft, to help you understand points, you should be hitting to do some of that underlying research, even for, you know, fairly specific topics. You know, we've, uh, we've done a lot of exploration of the tools that are out there and, you know, I could write an article on orthopedic surgery that would at least cover a lot of the bases, right? So kind of getting you to that, uh, jumpstart, uh, is one piece. Humans are also bad at, I think knowing how, uh, how thorough they are, how closely they're following a process. You know, when you think about someone's own ability to determine whether or not they're following a sales script or something like that, not super high. So I think just being really honest about what we're good or bad at, and then using AI for those things. Because it is really good at making sure you can be consistent, repeatable that there's some sort of ability to learn over time, um, and to actually catalog that information. But allowing humans to really focus on, you know, some of that originality and uniqueness bringing voice and tone. AI is improving there and it may get there, but there are still a lot of challenges I think in bringing that, that originality to content that AI has not so far been able to touch. So the marriage of the two really, to me, seems to be the, the ticket. Jason: [00:14:47] That's awesome. Yeah. I'm going to let you guys on a secret. I'm doing the Scooby-Doo moment. I'm really an AI bot. Jason's actually skating. I'm just kidding. That would be cool. If it could do that. Well, this has all been amazing. Is there anything I didn't ask you, um, both that you think would benefit the audience before we wrap up and tell them about you guys, a special offer for the listeners? Laura: [00:15:11] That's a really good question. You know, Steve mentioned having one person be your, you know, your point of contact, something like that, to just make sure that you can leverage efficiencies, you know, pattern match. Um, I think just, uh, thinking about how can you consolidate the types of entities that are creating content in your organization. You know, we have a lot of folks who have internal content teams. They have external freelancers. They're messing around with some different platforms and some different things. They're trying, you know, the, the sort of generic marketplaces, like an Upworker or Fiverr and, um, that's a ton of overhead. And even if you get it right a few times, being able to scale that predictably is super difficult. So, you know, I think. Yeah, agencies should really focus on how can we make our own lives easier and take away some of that overhead and really focus on, um, a handful of scalable resources that can work together. Because, again, focus on what humans are good at. That time and mental energy is much better spent thinking through a strategy for your clients and strategy for your agency growth than it is, um, just doing air traffic control. So that would be my advice. Steve: [00:16:16] I have a totally different line of thought, which is a, I'm just thinking back, Jason, to when you were our first guest on our podcast. When we were trying to, uh, right at the beginning of, uh, March, 2020, and we were talking to about what marketers should do at the downfall. And one of the big things that you stressed was take really good care of your clients. This is when they need you the most. This is like, this is the most important time to be authentic people, to really care about who you're working with. And I think we're at the opposite side of that trend, which is there's so much business to be had by so many companies and we're seeing so many junior level people coming on and working at agencies and scaling as quickly as possible. I would just say, please be really conscious of your clients and the relationships you want to build on the way up. How many can you take on and really do well, because they'll remember it at the downturn too. And we'll be having similar discussions, hopefully, hopefully not soon, but, uh, at the next downturn, we all know that they, they, the cycles keep happening. Jason: [00:17:11] Yeah, anybody can be doing good in business right now. So I love that. It's, it's very customer-focused. Tell us about where people can go, uh, to, you know, try you guys out and tell us a little bit more about that. Laura: [00:17:26] Well, um, anybody listening here can go to verblio.com/smartagency and get, get a nice discount on getting started with Verblio. Um, and you can also find out a lot more about what we do and all the different types of content we can help you with. Jason: [00:17:39] Awesome. Well, guys, really appreciate you guys coming on. Make sure you guys go to verblio.com/smartagency. We've used them for so many years. They do an amazing job. If you're not using them, go try them out. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Do You Want to Sell Your Digital Agency in 3-5 Years?

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Jan 2, 2022 17:51


Is it time to sell your digital agency? Considering a merger or acquisition in the near future? John Burns worked in mergers and acquisitions for 15 years when he realized a gap in the market, specifically for agency owners. So 7 years ago, he started Clare Advisors, a company that provides mergers, acquisitions, and financial advisory services to privately-held digital agencies and companies in the marketing, media, and business services industries. In this interview, John discusses what owners should consider preparing to sell their agencies, the common misconceptions of when to sell, and why now is a good time if you're considering selling in the next three to five years. What you need to start preparing. There's a number of factors a buyer would potentially look at in evaluating whether or not they should buy your agency. One of them is profit margin, whether you're consistently making profit and whether your profit is expanding. Also, revenue growth and scalability, since obviously buyers want to buy agencies that are growing and have a lot of momentum. John says the important thing is considering whether you have the infrastructure in place and the right team to grow, over any earn-out or follow-up period. A common misconception. One of the most common questions John gets is around the target revenue for selling. Whether an agency should be at $10 or $5 million and then sell. “This is a common misconception from owners,” he says because people think the right time to sell is when you've topped out at a particular number. Many commonly look to sell a business when their lease is up, and John agrees it could be a factor, so have in mind it may come up. But actually, the right time to sell is when you have the most momentum behind the business and the most wind behind your back. If you're not in this situation and still want to sell, remember that Jason always advises the right time to sell is when you need the money or you hate the business. Thinking about selling soon? We have a very active market right now with a lot of owners who are thinking of potentially selling. There are really low-interest rates, so cash is easy to come by, and a lot of companies have excess working capital on their balance sheets because of either PPP loans or some of the fiscal stimulus. Also, capital gains tax rates are potentially going to increase at some point in the near future. It is a very dynamic climate and John advises taking some of those factors into consideration. Don't necessarily sell sooner than you want, but it is a good time if it's been something you're considering the next 3-5 years. Common Misconceptions About Selling & Tips to Selling Your Agency in The Current Active Market {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, agency owners? Today I have an amazing guest. We're going to talk about valuations and preparing your agency for selling and why you would sell or why you would not sell. So let's go ahead and jump into the show. Hey, John. Welcome to the show. John: [00:00:21] Hey, Jason. Great to be here. Jason: [00:00:22] So tell us who you are and what do you do? John: [00:00:25] Uh, I am the founder and managing director of Claire Advisors. Claire Advisers is a boutique mergers and acquisition and financial advisory firm that specializes exclusively in working with agencies and marketing services companies. Jason: [00:00:38] Cool. And so why did you get into this business? John: [00:00:41] I've been doing mergers and acquisitions for about the last 15 years. Uh, started initially working in New York for a couple of different investment banks. And about seven years ago found there was a real gap in the market in terms of, uh, resources for agency owners specifically related to mergers and acquisitions. So I decided to found Clare Advisors in order to specifically work with boutique agency owners ann the mergers and acquisitions field. Jason: [00:01:12] I wish you just said that, uh, I got into it to pick up women. Because I keep thinking of there's a movie going, like, what do you do? I've been mergers and acquisitions. I've always wanted to say that. And now I'm kind of am and that's the kind of… John: [00:01:25] I was going to say. I think you technically can. Jason: [00:01:28] Well, but I'm married. So I can't. Let's talk about what are some of the things, if someone's listening and they go one day I want to sell. Jason, I want to sell, like you did in your agency or, or like someone else, what do they need to start preparing? John: [00:01:49] So there's a number of factors that a buyer would potentially look at in evaluating whether or not they should buy your firm. They should be looking at profit margin specifically. So whether you're kind of making, whether you're consistently making profit and whether your profit is expanding. Revenue growth, obviously buyers want to buy agencies that are growing as opposed to shrinking and scalability, realistically. It's very common for any deal that happens to specifically have kind of an upfront piece and an earn-out or roll-over equity piece or some piece that's based on value later in the future. And so the important thing to prepare for is that your agency is in a position where you've got a lot of momentum and where you can grow, uh, over the, over the period of the earn-out, um, in order to maximize your valuation. So you need to really have the structure and the infrastructure in place where you're in a good position to grow. Jason: [00:02:44] And how big does someone have to be in order to really kind of start thinking about, hey, I want to possibly sell my business? John: [00:02:54] So there's no predetermined limit in terms of, like I said, in terms of overall value. Firms sell that are two and $3 million of revenue. Firms, obviously sell that or 20, 50, a hundred million dollars of revenue. So deals happen at all kinds of places in the spectrum of size. The main thing I would consider if I was thinking about selling is specifically, do you have the infrastructure in place? Do you have the right team in place to be able to grow over any earn-out or follow up period? Because there will inevitably be a link between the ultimate value that you get and the ability you have to grow the agency under someone else's ownership. Jason: [00:03:33] What are some of the criteria that go into valuation outside of profit? John: [00:03:39] Uh, so the rate of growth, if you're, you know, if you're doubling in size every year, you're certainly going to get a higher valuation than somebody who's growing at, you know, five or 10% or who's flat. I would say the quality of the management team to a certain degree, um, whether you've got that infrastructure and that team in place, and it looks like a team that can really, really scale and really, really grow the business. The quality of your clients is another one. Uh, buyers obviously prefer retainer-based clients. The world is looking less and less like retainers these days and more like project-based work. But then the quality of the clients becomes really, really important. Is this a client that keeps coming back to you for more and more services? Is there consistency in your clients or are you effectively, you know, recreating your pipeline every three to four months? Jason: [00:04:26] Gotcha. And a lot of people think there's a threshold on top-line revenue for when to sell like, oh, I'll get to the million mark or is it based on profit? What, what are you seeing? John: [00:04:39] So the most common question that I get that is a misconception is owner say exactly what you just said, which is I'm going to get to $10 million and then I'm going to sell, I'm going to get to $5 million and then I'm going to sell. The right time to sell is when you have the most momentum behind the business. So specifically, it's not necessarily that you're at $10 million. Um, it's important to be at $10 million dollars if you think that over the next couple of years, you can grow to 11, 12, 13, and 15, because the thing that will hurt you the most is if you decline after you sell during your earn-out period, that'll financially hurt you. And so the ideal time to sell isn't when you've kind of just topped out at a particular number. The best time to sell is when you've got the most momentum behind you and the most wind at your back, going into your earn-out period. Jason: [00:05:31] I've been telling people the best time is when you need the money or you hate the business. John: [00:05:37] Those are alternatives as well. Yes, I agree. Jason: [00:05:40] Alright. But the funny thing, I remember reading a stat many years ago, they said one of the most common reasons why to sell a business is when their lease is up. And I read that… because and then I thought about it and I was like, you know, they got something there because the lease is the longest term commitment that you have. John: [00:06:03] It's certainly a factor that's brought up, especially nowadays of the question of do you have a lease and, just because everybody's working remotely or at least partially remotely, the question of, do you have a lease? How much space is it for? Where is it? And when is it up? That certainly comes up most buyers I know wouldn't make or break their decision based on that one factor, but it is a factor. Jason: [00:06:23] And which deals do you see most? And let's say we value the agencies under 10 million. Agencies under 10 million is it more an asset purchase or are they buying everything? John: [00:06:36] So I would say, generally speaking, most buyers want to do asset purchases as opposed to equity purchases, but that's going to vary between buyer and buyer and specific structure. So I don't think there's, I don't think you can put too much into that as a generalization. It's really going to depend on the individual buyer. Jason: [00:06:58] Let's get real for a minute. Do you want help scaling your agency so you can scale it faster? Now you might've been following my content for a while and you really wanting to accelerate your agency's growth. And maybe you're just too close to your agency and not sure which areas you really need the most help. You know, I hear this all the time from a lot of agency owners, and that's why I brought in a new team member to help you figure out your next step. Now we spent the past couple of months working side-by-side, a little too close, and now we're setting up a free strategy session so you can grow and scale your agency faster. And so I want you to meet Darby. Darby: [00:07:34] Hey guys, I'm Darby. Jason: [00:07:35] If you want to walk through a framework for scaling your agency faster, Darby's the guy. He can assess what's going on in your agency and really help you figure out our next step. He'll be candid, he'll be Frank and he'll be brutally honest. Just schedule a time to chat with Darby. Darby: [00:07:51] That's me. Jason: [00:07:52] No strings attached. He's ready to meet with you. So book a call at jasonswenk.com/darby. That's jasonswenk.com/darby. Darby will spend a little time getting to know you, your agency, your goals together. You'll figure out your next steps for scaling your agency faster checkout and wait for Darby. Darby: [00:08:17] Uh, am I allowed to talk now? Jason: [00:08:19] You can book a call with Darby. Just go to jasonswenk.com/darby and… Darby: [00:08:25] Have a Swenk day. Jason: [00:08:19] And I know when our agency is buying agencies we set a certain kind of requirement. You have to be close to or well, over the million in EBITDA because that's when the multiples really kinda start going up. I, I've always seen kind of anything under that the multiples are really fairly low. Are you seeing the same thing? John: [00:08:56] It varies a little bit, depending on the specifics of the deal and the structure. I wouldn't generally say the multiples are… Generally larger firms get larger multiples, that's a fair generalization to make, but it really depends on the structure. If you are a smaller firm, you can partner with somebody and they can subsequently give you a tremendous amount of business because you do a capability that they don't do. Talk about a social media or a digital agency kind of partnering with a PR firm as an example, if one can open up their client lists to all those services, maybe technically they're selling for a lower multiple than a much larger firm would get. But if they're able to really expand their revenue and expand their profitability in a way that they couldn't do on their own, regardless of kind of where the multiples fall, that's probably a deal that maximizes consideration for the seller. So generally it's true, but it's, it really depends on the structure more specifically. Jason: [00:09:53] And let's talk about what's the most common structure for something like that. John: [00:09:57] Sure. So the typical one that you see in the market is like a three or five-year outs where you get a portion of cash consideration at close. Then there's either some kind of rollover equity or some kind of earn out over a three to five-year period. You actually, as a seller, want a longer earn-out period, if you can do it, if you're, if the timeframe works for you, because it gives you more opportunities to grow, uh. If you have a very short earn-out period, you know, let's say 12 months and let's say COVID happens, or let's say there's a dramatic downturn in the economy, or you lose a client. It's really hard to make up that lost revenue in that lost profitability. Having an earn-out for at least a couple of years or a few years, at least gives you a couple of opportunities in the event anything goes wrong to subsequently build back up and still try to maximize your valuation. Jason: [00:10:47] Yeah. And I always tell everybody, you know, like the cool thing we do at Republics is where there's no timeframe on there now. It's just when you hit it, you hit it. And we want you to hit it. Where, when I went through, I did well, but I could have done, I lost millions in the earn-out because someone didn't tell me to think about a longer-term earn-out. And so when we were sold for the second time, that was nine months later, that sped up and it was just, it was over. I was like, oh, wow, you douchebags sold a day after I went out of the window. That wasn't designed, was it? Um, but, uh, yeah, it was. John: [00:11:27] Your model that you're talking about with no timeframe that looks a little bit more like what you would see from… It, it's a little bit on the unique side. I would say there's normally a defined timeframe just because there's, you know, kind of investment criteria that has to be made depending on who the buyer is. So your model's a little bit different. It feels a little bit more like, it looks a little bit more like it's a partnership a little bit more like kind of they're rolling footy. So it's not something I've never heard of, but it's certainly more unique in the market. Jason: [00:11:55] Yeah. Well, I mean, we look at it as we want it to be a win-win, you know, it's not, we don't want to… And, and the thing too is like, when we put the requirements on who we buy, a lot of people think oh, the market turned because of COVID, which it didn't, it actually went up. But there were thinking in the very beginning, oh, I'm going to take advantage of all these people that are losing and going down. And I'm like, we don't want to buy agencies that are going on the down projectory. We want them to be going up so that they can speed up our, you know, success. And then we can go do the things that we really want. John: [00:12:30] And if you buy somebody that's in a negative position or that's in a really, really desperate position, you're really not getting, you're truly not getting partnership from that owner. Realistically, that owner is looking to cash out, looking to leave. It's not… Yeah. And it's just not a good situation for them either. So it's hard to make those situations work. Jason: [00:12:52] Yeah. I mean, they're just, they're an anchor dragging the whole boat down and, uh, I'd just cut the line and be like, you can sync. For the agency side. Now, if you're sinking, you can come to us and we can help you out on the consulting and you can be around amazing agency owners. But, um, let me ask you this. What is the biggest multiple you've seen for an agency? John: [00:13:18] That's hard to say… Jason: [00:13:20] Just on evaluation and, and I'll preface this because like you talk about different deal structures. Most people that are listening, if you think the valuation is the amount of cash you're getting, you should think again, that's just the valuation. You'll get maybe some cash. Like, you know, a lot of times what we'll do at Republics, we'll do 50% cash sometimes a little bit more. But it depends on situations, but there's a lot of situations I've seen where people are like no cash upfront. We'll give you the valuation, whatever you want. But that doesn't mean anything. John: [00:13:54] So the way that buyers generally approach valuation is ultimately it's gotta be a win-win for the buyer as well. Buyers are not in the business of giving away money just for the sake of giving away money. So there has to be some type of alignment between the buyer and the seller. If you take a look at some of the publicly traded holding companies, as an example, when they buy firms, they typically would want those deals to be a creative to them. Meaning that when that profitability comes over to their publicly traded stock, they get more value for it than they paid for. What that generally means is that they should be buying companies at some type of discount of multiple to what they're trading at in the market. So if you've got a publicly-traded marketing holding company and is trading at 14 times earnings or 15 times earnings, or, you know, something of that nature, most likely they're not going to be buying firms for, or be willing to buy firms for that multiple, because it's basically, you know, they're taking $2 over here and then moving $2 over there. It doesn't really add any value for them. So they'll probably buy at a significant discount to that. So, If you've got a buyer, who's, who's a publicly-traded company and they're trading at 15 times, you probably, you should probably should expect your valuation potentially depending on the specifics of your company to be somewhat of a discount from that, either a high single-digit or low double-digit, depending on the buyer and depending on the circumstances. Jason: [00:15:22] Well, this has all been amazing, John, is there anything I didn't ask you that you think would benefit agencies listening? John: [00:15:29] I think that the, the only other thing that I would say that is relatively unique about this particular time period, that we're having this conversation in right now, post-COVID and just kind of the economic factors that they are. It's a very active market right now. Uh, there's a lot of companies that are for demographic reasons you have a lot of owners who are thinking of potentially selling now. You have really, really low-interest rates. So cash is really, really easy to come by. A lot of companies have excess working capital on their balance sheets because of because you know, of either PPP loans or because of, you know, some of the financial stimulus that's been in the market and they've actually done pretty well through that period. You potentially have capital gains tax rates going to increase in some point in the relatively near future. And so it's a fairly active market right now. Um, and if someone's thinking about potentially selling, I would recommend to them that they give it very serious consideration because there's a lot of people looking for companies right now. There's a lot of… the landscape is changing and people are looking for different capabilities than they were a few years ago as you mentioned earlier, is that some companies did really well during COVID. And, um, so it's just a very dynamic market right now, so if anybody's thinking of selling in the next couple of years, I would say that they should probably take some of those factors into consideration. And effectively, uh, not necessarily sell sooner than they want to, but, um, it's, it's definitely a time to be thinking about that if you're, if you're planning on selling in the next three to five years. Jason: [00:16:59] Awesome. What's a website people can go and check you out? John: [00:17:02] Uh, our website is Claire, claireadvisors.com. So we're at Clair Advisors and you can, uh, you can find us there any time. Jason: [00:17:10] Awesome. Well, thanks so much, John, for coming on the show. And if you guys are interested in selling your agency and maybe, you know, you want to get my advice, or maybe you want us to even buy you, I want you to go to jasonswenk.com/sellagency and just a quick little form. And then if we think, uh, we can help you out or position you to a certain buyer, uh we'll we'll help you with that. So go to jasonswenk.com/sellagency. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How to Grow a Multimillion-Dollar Agency By Staying In Your Own Lane

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Dec 29, 2021 16:17


Are your wondering how to get bigger clients and grow into a multi-million dollar agency? Mary Ann Pruitt has a background working in media and was unsure about starting her own agency. Now at her agency, Mosaic Media, she works hand-in-hand with other agency owners, business owners, marketing departments, and media buyers to provide a multi-pronged strategy supporting clients' marketing goals. On the show, Mary Ann talks about the early days of having a full-service integrated media agency and how things changed once she took the step to niche down. She also shares why agency owners should trust their team and stay in their lane to focus on business development and growth. 3 Golden Nuggets Focusing on what you do best. Like most agencies, Mary Ann's started being a full-service integrated media agency. It worked for a while, but she says she was constantly banging her head against the wall feeling frustrated. She felt like they could never land a big brand or were not able to make it. That all changed once she started asking herself how she would build the agency into what it needed to be. She figured out what they're the best at and what's a business model they could build. Niching down was a scary step, but after getting the first client in their niche, Mosaic Media saw significant growth in a 12-month period. Focus on your own marketing. Too many people think they need to hire a sales hunter right off the bat but don't give them a clear call to action. Mary Ann works with many agencies and something she says is an unpopular, but necessary tip is there is no magic salesperson to grow your business. You need to be building your own brand and build your own funnels. It's your job as the agency owner. As you're scaling and as you're growing, 50% of your day should be spent on business development. Stay in your lane. Agency owners can sometimes get caught in growth mode. They keep going and pushing. But when your team doesn't need you for the little things anymore, it's a great moment. That is when you know you have transitioned from agency owner to agency CEO. You may feel your team no longer needs you but actually, there's a lot for you to do. Like figuring out what new offerings should you be researching and how can you take this to the next level and continue to grow. Grow your team and nurture your team to the point that you can trust their judgment. “We just need to know where our strengths are and our lane is and stay in that lane and not get in the way of everybody else doing the work,” Mary Ann assures. Sponsors and Resources Gusto: Today's episode is sponsored by Gusto, an all-in-one people platform for payroll, benefits, HR where you can unify your data. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Head over to gusto.com/agency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Growing To a Multimillion-Dollar Agency By Focusing on What You Do Best and Staying on Your Lane Jason: [00:00:00] What's up, agency owners? Jason Swenk here and I am excited, I have another amazing woman that owns an amazing agency on today's podcast. And we're going to talk about how she's grown to a multimillion-dollar agency in the past decade, what she's learned, what you can learn and learn it faster, right? So let's go ahead and get into the episode. All right, Mary Ann. Welcome to the show. Mary Ann: [00:00:31] Thanks, Jason. It's so great to be on. Jason: [00:00:33] Yeah. Excited to have you on. So tell us who you are and what you do? Mary Ann: [00:00:37] Yeah. My name is Mary Ann Pruitt and I'm with Mosaic Media. We are a media firm that partners with agencies in the paid media space, uh, anything with traditional, digital, and even in the PR and crisis comms space. So that's what we do. Jason: [00:00:52] Awesome. And so how did you get started? I always like to ask people why they got into this industry. Mary Ann: [00:00:59] My background. I mean, it's so funny. My background was in media, actually. I was in media sales for many years as a top sales agent for some of the largest media firms in the nation. And frankly, I fought going agency side for a long time, just because there was an image that went with that, and a… Jason: [00:01:17] What image is that? Mary Ann: [00:01:20] Yeah, is that you go from that side just because, and you're never going to be actually a successful agency. So, yeah. So I fought that for a while and frankly it, I realized, okay, you've reached your peak. You're still young. You can keep making great money for the rest of your career and stay comfortable, but you'll never be challenged. You'll never feel excitement like the new sale and the next sale, everything. It's just gonna be the same thing over and over and over again. So I took that leap of faith in myself and started an agency. Uh, we started really small. We started, like most agencies, we started full service where we were very broad and we're the full service integrated media agency. Jason: [00:01:58] We don't want to seclude anybody. Mary Ann: [00:02:00] Yeah. We don't, no, we're going to… We serve everybody. And then we realized, really honestly about six years ago is when we made a huge shift and focusing on what we were good at. It's an amazing thing. Focus really on the one thing you're good at. And we started to see our revenue, frankly, start to double year over year. Jason: [00:02:19] So before you got the focus, where were you at in revenue, head space, and number of people? Mary Ann: [00:02:28] We were at, in a very, very good year we were having a million like year over year. You know, when you first start, it's pretty easy to double your revenue because your first year's revenue is 250, 300. Then you're going out 300 to 600. That's such an easy, easy jump. And then really, truly, probably in 2016, we were hitting just at a million. And now we are projected eight times that. So where was my head space in that? I felt like I was banging my head against the wall constantly. It was this… why do I feel like we can't ever land the big brand? Or why can't we ever do this? Or why, you know, it's that frustration. And in our team, there was five of us? And actually, the wonderful, amazing thing about that, it would, we still have to have those employees with us today. They were with me from the beginning and now they're our senior VP team. And it's amazing to see how they have grown as we've evolved as an agency. Uh, so yeah, so the headspace, the revenue, it was frustrating. It was, uh, you felt like, okay, how do we break through? And then frankly, I had, I called them come to Jesus moments where I was just like, look, what are we going to do? How, how, how am I going to build this agency to what it needs to be? And I frankly locked myself in a room for a couple of days. And what are you good at? What are you the best at? And what's a business model you can build. That's where we went and it was a leap of faith. It was scary to niche down, but we did it. And now we've seen that revenue just multiply every year. Jason: [00:04:05] How long did it start until you… When you committed to that decision, when did you feel that you started getting momentum? Mary Ann: [00:04:13] It really takes a good, well, almost right out of the gate within the first three months we caught one client that was, all right, this is part of our niche. And I was like, all right, this is great. It's going to work. Then I started testing it with other people of how I was using that language and how I was using that elevators speech and all of a sudden things started to happen more and more. I'd go to a conference and I test something and… more and more. And really that first year is where we saw it grow significantly, probably that 12 month period. And I think that's one thing for agency owners is patience is a good thing, and we have to have faith that we know what we're doing. We're planting the seeds. Things are happening. Decisions are not made overnight. And we have to continue to cultivate that. Probably within… so the first year and two years, it's then refining the systems. You're going from being small mom and pop to now, okay, I've got decent sized revenue. How am I growing the team? How are we building our efficiencies and building the processes a whole new level of challenges come. And then when the pandemic hit, actually, we grew even more. Part of that was our inbound and our thought leadership was pretty strong going into the pandemic and people were looking for answers. And frankly, that's where we started to just evolve from there and get more and more out of it. But really I'm a big believer in helping people and when you have that mindset and you're not going in for the pitch all the time, but you're there for the relationship and to help… That makes a big difference. Jason: [00:05:53] Taking care of your employees has never been more important than right now. And while paydays are great, running payroll is a major pain, from calculating taxes, deductions, compliances. None of it is easy. Unless of course you have Gusto. Gusto is simple, online payroll benefits built for small business. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Plus with their help, you can offer benefits like 401ks, health insurance, workers' comp, and a lot more. And because you're a smart agency master class listener, you're going to get three months free once you run your first payroll. Go to gusto.com/agency. That's gusto.com/agency for three free months. I'm so glad that you said that because people have such an angle of going, well, I want to scale. Well, first they don't know why they want to scale, and there's no reason, I guess it's just a brag. I mean, I remember, when I had the first agency, I remember we would brag by how many employees we would have. And then if someone was like, I have 50 employees. Oh, fifty. I have a hundred. And then you're like, what's wrong with me? Or, you know, like when you were at 10 or 20 and, uh… So I'm glad you mentioned that because that's, you gotta have a direction, but I'm glad too, that you started focusing on the brand and doing your own marketing. I think too many people think that they need to hire a sales hunter right off the bat. They don't give them a clear call to action of who to contact, but I'm like if you build the brand and you build a brand that's helpful for a particular market, you can create all this business that a closer can come in and close and it makes it so much easier. Mary Ann: [00:07:54] That's exactly right. And frankly, a lot of agency owners and we primarily work in the agency space. That is what we do. We help agencies. So we help you build your media team, we help assess your media team. We help be the relieve pressure for a big agencies and their media. But then also helps supplement anything that you can't offer currently and actually become a revenue source for you. That's what we do. So I'm in contact with agency owners every day, and a big thing that I say regularly that they know they need to hear, but probably isn't too popular is business development falls on us as the agency owners. And we can try all day long to go get that magic salesperson or go get somebody to go get the sales for us. We need to be building our own brand and we need to be building our own funnels. And frankly, it's the expertise that we offer. That's our job as the business owner and as the agency owner. Um, frankly, we shouldn't be in the weeds all day long of doing the actual work. We need to be, if you're, as you're scaling and as you're growing. 50% of your day should be going towards business development. That is how you grow. And that is how you focus and get your company back onto a growth path, frankly. So I'm with you on that of you have to be patient and you have to cultivate those seeds. Uh, but also don't look for a magic bullet. Know what you're good at. Niche down to that. And don't be scared to niche down to that and focus. I mean, I live in Anchorage, Alaska. Okay. We're a small. 95% of our work is not in Anchorage, Alaska. We are in all 50 states doing work. How are we doing that? Because I didn't get caught in the market that I live in. I didn't get caught into a small mindset. I got, I let myself and the company then evolve to think bigger than where we lived or where we operated out of. Now I have employees all over the place. I live in Alaska. It's amazing how, honestly, frankly, the last 18 months have taught us all a lot of you don't have to be in a brick and mortar anymore. And we all knew that, but now we're so much more comfortable with it. So there's all these different elements as an agency owner that we have to be honest with ourselves and we have to know what's holding us back. And sometimes it's us. That's the bottleneck. Jason: [00:10:17] Truth be told we're always the bottleneck until, until you realize you're the bottleneck and you get out of your way, you know, like we had, um, a couple of weeks back, we had our agency experience where we had 25 of the best agency owners come out to Colorado. And a lot of us were taught like a lot of the takeaways were, man. We, we have the best like they're multi-million dollar agencies. We've done this over the years and the owner is still crippling their team for making decisions. And they're like the toll booth that everything's flowing through them. And we're like… I literally stole the computer of one of our members so she couldn't be emailing all day and like hid it. I was like, no, like your team will be fine. Like go, go on vacation. And that's a lot of advice I give to people a lot is, hey, go wait for a week or two weeks and come back. Mary Ann: [00:11:15] Yep. And honestly, so if we look at it and we realize and recognize where we're holding things up or what we're not doing on our end, we need to question, why are we doing that? What control am I trying to gain back from my team or from the product? What am I afraid of? What's holding me back? What anchor is holding me back there and what anchor do I need to cut? I often say this and is that anchor serves a purpose. They are things that are supposed to keep us grounded. There are things they're supposed to keep us steady, but anchors also can hold us back. So what is it that I need to work on that I need to cut back because we are the bottlenecks. So before COVID, I had this rule that I'd actually work out of the office one day a week. And what I found was that was the most productive day for my team because I wasn't there and they got so much done and they knew exactly what they were doing. And like, you know, this is a true testament to let them be, let them do their job. They'll come to you when they need things. So when we feel like we need to control, or we feel like we need to be on top of everything, is there a trust factor there? We hired them, we trust them. We know our executive team, so we know that we can trust them in that element. I'm not saying be completely hands-off. That is not what I'm saying in any way. We just need to know where our strengths are and our lane is, and stay in that lane and not get in the way of everybody else doing the work. Jason: [00:12:41] Yeah. And, and when you start getting out of the way, and I always warn people on this… When the agency doesn't need you for the small things that you used to do, it's all pretty hard thing to swallow because you're like, oh, crap business doesn't need me anymore, but I want you to remember it needs you for something else. So you're transitioning from an owner to a true CEO. Then that's when you can scale. That's when you can sell it, if you want, or you can take long vacations. I've had clients that have come to me in the past that never took vacations. And I'm like, that's the number one thing we're going to work on. Like, why the F are you working so hard if you can't enjoy it? Like, this is crazy. Mary Ann: [00:13:32] Well, and I think… We also get caught in our growth mode of where we want to be, right? So we're on that trajectory. We keep going, we keep pushing and, you know, it's the, it's the oxygen mask. We have to take care of ourselves first, we have to put the oxygen mask on first and then put it on the others. So we're building this team in order for us to be able to then transition, like you said, transition into something else. So when, when they no longer need us for the little things it's actually a great moment of we've grown as a company. I'm now a CEO. I'm no longer just a small business owner. Now I'm a CEO working at an executive level, thinking visionary thoughts of where I need to go with the company. What do I need to do next? What new offerings do I need to be researching? How can I then take this to the next level and continue to grow? So it actually opens up so much more opportunity for us as agency owners to have that growth trajectory and mindset. It's a total mindset shift. Jason: [00:14:32] It is, it is. Well, this has all been amazing Mary Ann. Is there anything I didn't ask you that you think would benefit the audience? Mary Ann: [00:14:38] You know, I think we always just have to be honest with ourselves of how are we getting in the way for our own good, but for others and our team. And making sure that we are doing everything we possibly can to just grow our team, but nurture our team and take care of ourselves in the process, as well as grow the company and stay into the, and get out of the way mentally, physically get out of the way. It's fine. And now I've heard about it. Don't worry about it. Jason: [00:15:08] Awesome. What's the agency website people can go and check out? Mary Ann: [00:15:12] You can go to mosaic.agency/contact that comes straight to me. Jason: [00:15:16] Awesome. Well, thanks so much, Mary Ann, for coming on the show. Lots of amazing information for all of us to take in. Hopefully, you guys go start executing it. If you enjoyed this episode, make sure you subscribe, make sure you comment as well on your biggest takeaway. And if you want to be around amazing agency owners on a consistent basis, and be able to come out to Colorado and do the digital agency experience, go to digitalagencyelite.com and see if you qualify. This is only for experienced agency owners that are really wanting to scale fast, have fun and just, you know, create an amazing agency and amazing life. So go to digitalagencyelite.com and until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
6 Layers of Shaping an Agency Culture That Wins More Clients

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Dec 26, 2021 22:27


Want to build an amazing agency culture and brand? After running his own agency, Historic, for eight years and leading teams of creatives, Ted Vaughn took on the task of co-writing the book on all aspects of building your agency's brand and how leadership shapes its culture. Ted is on the show talking about how you can use culture to help further grow your agency. He covers the six parts of marquee culture established in his book, Culture Built My Brand, the biggest gap he's noticed in company culture, and how to align your principles and values to attract the right people. 3 Golden Nuggets Shaping culture to grow your agency. If you're an agency owner looking to create a brand and culture that can help grow your business, remember your leadership, the decisions that you make, the ways in which you operate all become more critical than technical expertise or unique ability. Your role as a leader determines how the culture works or if it becomes toxic. Ted explains one of the biggest gaps he's seen in company culture is leaders who fail to understand the reality of their power and do not build bridges over to the people they lead so that they can actually be given feedback on how to reshape their HR systems or their values. The six layers of marquee culture. In their book, Ted and his partner identify six layers of marquee culture. Your marquee culture is at your forefront. It is the thing that galvanizes and draws attention to your agency, attracts great people, and keeps great people. Each of these layers translates into behavior-shaping principles for the people who are a part of our organizations. These 6 are: principles, architecture, rituals, lore, vocabulary, and artifacts. The single most important layer is the first one. Ted and his team have found many times the values or ideas that hold an organization together are too vague or abstract. He talks about the way to transform them into behavior-shaping principles for the people who are a part of your team How the 6 layers interact. A lot of agencies might already have some of these layers in places but not in a way that actually transforms them into core values. This is because they haven't actually integrated them into their decision-making. For example, in the case of architecture, Ted believes HR systems and structures should not simply be healthy or unhealthy. They really need to be built in a way that furthers aspects of your brand value. For rituals, it needs to be organic experiences that energize your people, not just staff meetings. Remember these layers are permeable, they're not just independent ideas that operate independently from the others. Your principles should inform your vocabulary and rituals and so on. Sponsors and Resources Sharpspring: Today's episode is sponsored by Sharpspring, an all-in-one revenue growth platform that provides all of the marketing automation, CRM, & sales features you need to support your entire customer lifecycle. Partner with an affordable marketing automation provider that you can trust. Head over to sharpspring.com/smartagency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Shaping Agency Culture With the Six Layers that Build an Effective Brand {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, agency owners? Jason Swenk here and I have another amazing episode for you where we're going to talk about culture and how you can get the right people. Who do you need to bring in? How do you evaluate them? All that kind of good stuff, so you can grow your agency faster. And so let's go ahead and get into the episode. Hey, Ted. Welcome to the show. Gotcha with the water. Ted: [00:00:28] You did. That was so fast. Thank you. It's a pleasure to be here. Huge fan, uh, really have been inspired by your work and your network. And, uh, just a real honor to be on the show. Jason: [00:00:40] Awesome. Tell us a little bit about who you are and what your agency actually does. Ted: [00:00:45] So I've spent most of my life leading in non-profit circles, leading teams of creatives. Um, started an agency with my business partner, Mark Miller about eight years ago, called Historic. We thought it would be just a cool idea to serve some of our niche clients. Bootstrapped it, and, uh, you know, eight years later, we're, uh, we're doing over a million dollars in business and have a staff and a brick and mortar. And we've learned a lot in the journey, both about who we are and about what makes us tick. And I think that's why we wrote a book and it's why I'm talking to you today. Jason: [00:01:19] Great. Let's talk about building a culture within your organization. You know, I look at it as everyone's building a culture… Matters of, are you building the culture that you actually want? Ted: [00:01:30] Yeah, I mean we... believe senior leaders are shaping culture as the most significant contribution to their organization. I mean, if you are leading an agency, the how of your leadership matters more than the unique skill that you bring to the table. Unless, it's a boutique lifestyle brand and literally you are an employee of one, but if you want to scale, if you want to grow, the single greatest question you have to wrestle with is the how of my leadership more than the what of my technical skill or talent. Jason: [00:02:05] So give us a little bit more about what's the difference between those. Ted: [00:02:09] Yeah. I mean, I think a lot of times, you know, even for Mark and me, we each have really unique skill and technical ability that offers value that our agency still really needs. But as we've taken on staff and as we've grown and as we've had to empower our staff, the company culture that we shape and that we lead becomes our brand in ways our skill and talent alone could never fully embrace. Our brand, the touchpoints of our brand, our growth, and this will certainly be true if we go beyond, you know, our current, you know, one point, whatever million-dollar mark to 5 million… exponentially becomes the case. Then you go even further and it gets even more important. Your leadership, the decisions that you make, the ways in which you operate become more critical than your technical expertise or unique ability as a designer or as a strategist or as a PR person. Jason: [00:03:06] Now I've had people on to talk about culture from Zappos, who so many people modeled, you know, Tony Shay and all those guys did. So what are ways where agencies listening right now… How can you start shaping the culture in order to scale your agency faster? Ted: [00:03:26] Well, we've the book that we wrote, “Culture Built My Brand”. It was really written on the back of our learning. We have sweat a lot of blood made a ton of mistakes. And I think the idea for us in the book is, is a marquee culture and a marquee culture is like that marquee sign. It's that well-lit banner. That is the forefront. It is the thing that galvanizes and draws attention, attracts great people, keeps great people. So in the book, we talk about a marquee culture, having six layers or six dimensions. And the single most important is the first, which we call principles. What we find often in our, in our own agency it was true and the clients that we serve it's true. And I would assume for many of you listening it's true. We have these values or these ideas that hold us together that become our riverbanks or our guiding ideas. But they're so vague or abstract or unclear they don't actually translate into behavior shaping principles for the people who are a part of our organizations. And I would say probably one of the first places to start the first layer in our book on culture and brand is principles. Taking your values or recreating your values so that they're actionable, applicable culture-shaping principles that really give those who are a part of your team, clear behavioral guidelines, so that they know how to be on-brand, how to operate, how to make decisions in ways that will really further your brand in unique ways and not just have abstract ideas. Jason: [00:05:01] So one of our principles in our culture is really being resourceful. So give us an example of… all right, that's kind of the, the layer here. How do we take it further. Ted: [00:05:14] Yeah. I mean, we often will work with brands that have some version of innovation as their value, right? Maybe it's stated that way, or it's stated with a really sticky phrase. But then when you look at how people behave or you begin to ask questions around decision-making, or you look at how money is spent, you quickly realize that the organization's not structured in a way that actually takes the value of innovation seriously. It's because they haven't actually taken that value and then integrated it and baked it into decision-making in all sorts of different ways, which really is the second layer of our book and culture, which was architecture. We don't believe that HR systems and structures should simply be healthy or unhealthy. They really need to be built in a way that furthers aspects of your brand value. So if you articulate innovation, that should absolutely show up and shape how HR functions and how decision-making and power and governance take place in your organization. Jason: [00:06:16] So like with, you know, our organization being resourceful. Like how would you bake that in even more and kind of take it up a notch? Ted: [00:06:25] Well, I'm assuming that when you say resourceful, you're talking about resourcing others, right? Being a part of something larger than yourself? Jason: [00:06:32] No, I'm talking about being resourceful is like figuring out like, all right. You know, we normally do it this way, but we could do it another way. Or, oh man, I don't feel like we have enough resources, you know, just figuring out a better way to do things more efficiently. Ted: [00:06:51] Yeah. I mean, again, I think what's interesting is even, you know, I, from the outside of hearing that word immediately took it in a different direction. So I think one of the questions that I would have would be when you say resourceful, what are the specific behaviors or ways in which that value translates to how your people lead, behave, are asked to budget how they solve problems. You know, I think there'd be fantastic ways for you to approach problem-solving in more bootstrapped, organic lean ways where you create heroes or you reward people who approach problem-solving through resourcefully challenged opportunities versus just throwing money at problems or thinking everybody needs to have support staff or, um, but I mean, there could be so many different ways that that value shapes the brass tax of your agency. I think it'd be a fun conversation to figure out how you're doing it today. Jason: [00:07:45] Gotcha. And so what are the other layers now that we have the principal. And then I think the second was architecture, if I…? Ted: [00:07:50] Architecture. Yeah. So principles being the idea that you want your values to be actionable and really shape all sorts of practical aspects of your people's behavior. Architecture being the structures that support your people. We talk a lot about Frank Lloyd Wright and the architecture that he did intentionally around the environment he was in. Third layer would be rituals. We talk about the experiences that energize your people and the best rituals and organizations are those that are organic. Not just top-down staff retreats or all staff meetings, but those rituals, like we talk a lot about the pumpkin carving contest in the jet propulsion lab and NASA. The next layer would be lore, the sticky stories that shape us. There are some really fantastic ways you can shape story, do storytelling in ways that further your brand value that help provide differentiation to your brand. Next layer is vocabulary, having phrases, words, ideas. We talk a lot about Netflix and some of the great language that they have from “Sunshining” to, um, different terms that they use to shape their culture. And then the last layer would be artifacts, which are everything from clothes to your physical space, to brands that we've worked with that set up unique opportunities for people that have private space in a shared workspace. One brand that has a football field mini version of a football field in their environment because they have a value of leaving it all on the field, all sorts of ways that you can physically shape your brand value in your space. Jason: [00:09:34] Is your agency struggling to deliver real revenue growth results to your clients? You know, agency marketers can consolidate data and align marketing and sales teams goals to achieve real results for your agency and clients using revenue growth platforms. Sharp spring is an all-in-one platform built for agencies like yours to optimize digital marketing strategies with simple, powerful automation. Manage your entire funnel all in Sharpspring. Now for a limited time, my smart agency listeners will receive your first month free and half off onboarding with SharpSpring. Just visit sharpspring.com/smartagency to schedule your demo and grab this offer. That's sharpspring.com/smartagency. Very cool. So give us some more examples of each of the layers, just so people can start going oh, okay, cool. This is what we can actually do. Like once we form the principles, how can we build a better architecture and so on? Ted: [00:10:41] For sure. So these layers are somewhat, uh, permeable, right? They're not just independent ideas that operate independently from the others, right? Your, your principles should absolutely shape vocabulary. As a matter of fact, a lot of times in brands, we see those, those values, those principles show up in their vocabulary because they get phrased in ways that become really sticky and interesting and helpful. Uh, architecture is absolutely informed by your principles. The way that you conduct HR hiring, onboarding. Rituals, uh, those again, in the book, we talk a lot about rituals being organic. When you have people that love your brand, they will often create their own experiences of the brand. One practical example for us at our agency, we do staff camp, we do Christmas gatherings. We constantly ask our staff how they want to participate and engage and be a part of those experiences. And in the process we've gotten all sorts of rituals in our agency that have been organic from our people, but mark and I would have never dreamed of. From cool patches and stickers and badges that have been developed in previous years that continue on to this day to other activities and games and things that operate within our agency. And another great example is we had a member of our staff want to do a music club, right? That's a great example of a ritual. We were like a music club! Awesome. Why not? That's becomes such a significant part of our agency that any new staff person is given a Sonos speaker so that no matter where they are in the US they can be a part of music club, be on Spotify, be a part of this experience. It's a way that we want to honor that because it's become such an important ritual within our organization. And we have no formal authority over music club. It's just an organic thing that our people develop that's become a key part of their… I think they would say a key part of their positive, satisfactory experience of working with us. Jason: [00:12:45] So are rituals more kind of like experiences and then like architecture is more like systems and…? Ted: [00:12:51] A hundred percent. Yeah. I mean, you think about architecture, right? Like no architect designs a home and simply says, well, it's safe, it's stable, the plumbing works. You're good. That's not an architect, right? An architect is very, very interested in the design and shape of that structure, matching its external and internal audience and environment needs. It's not just safe or not safe. There are so many other dimensions to architecture. We think HR, the systems that support your people. should be the same way. You know, a lot of agencies, when we were a young agency and even today we cannot comp like 52 or 72 and sunny, not 52, 72andSunny, or, you know, name the agency, right? That has fantastic compensation plans. But there are so many different ways that you can do comp. One for us, one of our architecture branded ideas at, at historic is travel pizza. What is travel pizza? Anytime somebody on our staff has to be gone overnight, we provide a $50 stipend for meals for their family. It can be Ubereats. It can be pizza, it can be whatever you want it to be. Travel pizzas become an unbelievable way that our people feel valued and their families feel valued because they get a cool night out whether it's out or it's brought in on us because their person that they care about is gone. Lots of other ways to do compensation, to structure, to architect compensation that deliver unique value through your agency. That go way beyond annual salary. Jason: [00:14:32] Yeah, I like that. Remind me, what's after ritual and let's talk about examples. Ted: [00:14:38] There's a lot. It can be complex. So the, the layers of culture, somewhat in a linear order would be principles, architecture, rituals, and then lore. Lore being those sticky stories, right? Every brand that we've a part of I've been on staff that has had those stories that echo through the hallways and often they're incredibly toxic. Jason: [00:15:01] So would that be like, like what a story…? This happened at our agency where we were sent these lounge chairs that were double-sided and they sent it like 10 of them from China in these boxes with all these packing popcorn. But when we opened the boxes up, we had so much packing popcorn. It literally went down a hallway. And so we were like, let's keep it. We'd literally kept it until we sold the office. There was a whole hallway of packing popcorn that you could run and jump and do flips in and lose articles of clothing. So is that like a lore? Ted: [00:15:39] Well, that sounds like an amazing ritual, but I would say the minute, the minute you cleaned up that popcorn, I believe that was probably an incredible story. A lore that is a positive example of how your agency describes its culture through story. And if I'm you, you know, Jason, I want that story to continue echoing through the halls. I want new staff to be told that story when they're onboard, because that says something about who we are, what we value, how we behave, that goes way beyond any HR manual or onboarding. That is a great example of lore. A great example of toxic lore would be when I got hired as a C-suite leader in a non-profit and the second day in I was told by one of my colleagues, you know, you're just a plane flight away from losing your job. And I was like, huh, tell me more. He's like, well, the person that you're replacing was hired when the CEO sat next to them on a plane and before the plane landed, they were hired on staff and a negotiated salary. So just remember if he sits next to somebody who does your job better than you, well… Now that story had existed for years in the hallways of this organization. I, dumb enough thought I'm going to ask the CEO about that. So I brought it to the CEO and said, hey, I heard this crazy story. Is that true? He's like, well, it's kind of true. Not really true. Who told you that story? I was like, well, this is where I heard it in multiple places, but, um… He's like, you heard it in multiple places? Like a lot of people told me the same story. Point being, that negative story, toxic story shaping this leader's culture had been told for years and he had never heard it. The idea here is the more senior you are in the brand that you lead, the more self diluted you probably are as well. The more people are saying things about you or about the brand that you don't know about just by nature of your power and position. It's incredible how often senior leaders and brands we serve are clueless about stuff multiple people on the ground talk about and say on the routine. Jason: [00:17:55] Oh, yeah, yeah. And one of the things just going back to that story that I'm thinking about now, is the only time we cleaned up that popcorn was to put all of that in my VP of operations sunroof in his car. And we filled up his whole car. So when he came out to his car and just literally went… Ted: [00:18:16] I mean, to me, that's the epilogue, that's the, like the story, the story lives on there's layers to the story, right? I mean, you know, I would say like, Jason, that's a great example of how a story could very well create a sticky idea, vocabulary, which is the next layer, and that sticky phrase becomes a principle that now… This is how these layers work together. Sometimes principles create stories that create rituals. Sometimes the way in which we have the principle or value shapes our architecture, which creates it, these layers work together. But the point is there's a reason why Southwest and Netflix and Zappos, and many of the brands we know and love and talk about in this book are as successful as they are. It's not a happenstance coincidence they hit the market at the right time. They were aligned intentionally from the inside out, right? We have a philosophy of brand that your brand is your culture, your story, your product, your experience, and your identity. Don't start with identity. Start with culture. Defining that from the inside out is always far more sustainable and effective and long lasting, and has far less drama than starting with identity. Jason: [00:19:36] I love that. Well, this has all been amazing, Ted, is there anything I didn't ask you that you think would benefit the audience? Ted: [00:19:42] Well, you can't talk about company culture and brand and agency life without addressing power. I think maybe one of the tangential elements to this conversation today has been the dynamic of power. And I think anybody listening who's a leader or being led, understands that power is a thing. I would say that one of the biggest gaps that we experience in company culture are leaders, is leaders who fail to understand the reality of their power and build bridges over that power to the people they lead so that they can actually get the truth. They can actually be told that toxic lore, they can actually be given feedback on how to reshape their HR systems or their values. It's amazing how, again, self diluted senior leaders are because of the power gap and their failure to build a bridge over that power. I would just challenge all of your listeners, if you have power of any form, be aware of it and build a bridge over it for the purpose of shaping a healthy company culture. Jason: [00:20:49] I love it. What's the name of the book and where can they get that? Ted: [00:20:53] Yeah, the book is Culture Built my Brand. Originally we wanted to call it Culture Ate my Brand, but the publisher thought that was a little too, little too negative. So they scratched it out and we have built, you can get it at any bookseller near you from Amazon to Barnes and Noble to… They just started shipping. We had some shipping-related challenges as I'm sure everybody's experienced. Um, but, uh, you could also visit culturebuiltmybrand.com to get access to a whole suite of tools that I actually think as agency owners… You may or may not ever want to take culture seriously as a part of your service group as a brand, but I guarantee you, if you apply some of the thoughts and ideas we have either to your agency or to how you serve clients, it'll make you a better agency. So take advantage of these tools, CultureBuiltMyBrand.com and then our agency is just Historic Agency. Jason: [00:21:47] Awesome. Well, Ted, thanks so much for coming on the show. And if you guys enjoyed this episode, make sure you guys subscribe, make sure you like it, comment and share it with a friend. And, uh, if you guys want to be around other amazing agency owners, sharing what's working and being able to see the things that you might not be able to see. I'd love to invite all of you to go to digitalagencyelite.com. This is our exclusive mastermind, just for experience agency owners that are trying to just grow faster, have a lot of fun and just build an amazing culture. So thanks so much. And until next time, have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
3 Pillars to Fill Your Pipeline and Grow Beyond the $3-Million Mark

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Dec 22, 2021 14:22


After working for big agencies for part of her career, Josy Amann decided that starting her own business and getting rid of the commute would align more with her plans to have a family, so she co-founded Media Matters Worldwide. Today, her agency is an experienced, independent media strategy, planning, buying, and analytics partner that has grown beyond the eight-figure mark. In her interview with Jason, she talked about the "scrappy" first years of starting an agency, how she realized they needed layers and strategy to beyond the 3-million mark, and the three pillars to build your pipeline. 3 Golden Nuggets Learning to implement layers. They were a very linear organization for a long time and that worked well for them, but growing their business beyond the 2 million mark required a leadership team, as Josy realized, she calls this “putting layers in place”. Josy and her partner needed to get out of the business to run the business, and their leadership team was pivotal for that. So, when they first started the business, for example, they used to have an analytics lead. Now they have someone that minds the data, an analytic storyteller, and someone that does all the business intelligence and dashboarding. It is more expensive this way, but it definitely improves the level of the service they are able to provide. More clients or bigger clients? Once they were ready for growth, Josy knew it was important to have a growth strategy. You want to grow, but how are you going to attract bigger clients? Bigger clients bring the bigger dollars. “You can use the same team that you have built for a client half its size and really scale the agency,” she says. Some agency owners focus on having more clients at that point. That's valid, but you may end up adding a ton of people and having less profit. And when it came to getting those bigger clients, Josy had some names in mind, but also industries. Her agency has grown while remaining wide, with half of their clients being B2B and the other half B2C, and that has allowed them to ride through difficult times while exploring new industries. The pillars of building your pipeline. First of all, put your money where your mouth is. Do all the lead generation run, retargeting campaigns, LinkedIn, etc. Run on all the lead gen sites that are out there so that when people search for an agency they can find you. The second pillar, something that people don't talk about enough, is identify similar culture-like creative agencies, marketing agencies, and marketing consultants that you can take time and really build relationships with and be there for each other over time. And finally, get serious about PR and hire a PR agency and get out there, do things like this and be on panels and write articles and really be more involved in the ad community. Sponsors and Resources Gusto: Today's episode is sponsored by Gusto, an all-in-one people platform for payroll, benefits, HR where you can unify your data. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Head over to gusto.com/agency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM What Are The Pillars of Building Your Pipeline & Attracting Bigger Clients? Jason: [00:00:00] What's up, agency owners? Jason Swenk here, and have another amazing episode coming from an amazing agency owner that's grown her agency to well over eight-figures. And we're going to talk about how she's done it. So let's go ahead and get into the show. Hey, Josie. Welcome to the show. Josy: [00:00:24] Thanks, Jason. Nice to see you. Jason: [00:00:26] Yeah, you too. So tell us who you are and what do you do? Josy: [00:00:31] I am Josy Amann. I'm one of the co-founders of Media Matters Worldwide, and I started the business with a business partner, Taji Zaminasli. Jason: [00:00:40] Awesome. And are you guys still business partners? Josy: [00:00:42] We sure are, since 2005. Jason: [00:00:44] That's amazing. Josy: [00:00:46] We've been working, talking every day for over 20 years. I feel very blessed. Very lucky. Jason: [00:00:53] Well, tell us, how did you get started? I'm always curious why people, like, where were you accidental? Did you guys have a mission to do? How'd you guys start? Josy: [00:01:02] I, you know, I, we both had worked at the big agencies. That's how we got our start right out of college. We've always been in media. That was, that was the beginning. And then I think it was 28, we were working at an agency together. That's how we met. We were working at a performance agency and I said, how are we ever going to work at this pace and commute and all of these things and have a family? Like I knew I wanted to have a family, had just gotten married, at 26 I knew that was on the horizon. So that was a big piece of kind of the thought around starting our own agency. We also had really unique backgrounds in that Taji was in buying and broadcast. And I was in planning. We just had very different backgrounds that came together. So we knew we could create a holistic solution for a media company. Jason: [00:01:51] Awesome. And what was it like the first couple of years? Now you're where a lot of the listeners are wanting to be right now. You guys have an independent agency that's doing really well, it's growing. But obviously, it didn't start that way. Josy: [00:02:08] Yeah. The scrappy days, right? Uh, so Taji and I both, when we started the agency, we didn't, we didn't raise money. We didn't have any… we weren't like trust fund babies or anything like that. It was all kind of bootstrap. So when we started the agency, we said, why don't we become a freelancing team. And we'll become an arm of some of the bigger agencies. We've worked for Gyro and they did all of their media and it was a really great way to get our foot in the door and it kind of bought time so that we could get our clients of our own. So that's kind of how we started. Then we started getting clients of our own. Then we moved away from the agency model and that just kind of built upon itself. And as we grew and as we saved money, that's when we started to hire. And I think that's why it's taken 16 years. Jason: [00:02:55] Exactly. Overnight success in 16 years later. Looking back, especially, uh, I always talk about, it's easy to get to the million mark by accident, or maybe even the two or maybe even the $3 million mark by accident. But really kind of scaling it from there, you have to have the right systems or the right team member in place. What systems or teams or rolls did you feel that you needed in order to get you to the level you{re at now? Josy: [00:03:26] Yeah, you've obviously done this before. I could have used your advice years ago, but by trial and error. We learned that as we grew, we needed layers. We were a very linear organization for a long time and that served us well. And to your point, got us to the million, 2 million mark. But to grow the business, we needed more layers and also a leadership team. And that has been pivotal to our growth. So having a leadership team, having the layers, it a hundred percent key cause Taji and I needed to get off the business so we could run the business. And the leadership team has really allowed that. Jason: [00:04:04] Yeah. What were the layers? Like, give us example of some of the layers. Josy: [00:04:08] Yeah. So instead of where we started our business, we would just have, say like an analytics lead. Now we have someone that minds the data. We have an analytic storyteller, and then we have someone that does all the business intelligence and dashboarding. So in ways business has become more expensive cause we need three people to do the job that one person did years ago. But the services and the level of customer service we're able to provide. You need those layers. Jason: [00:04:39] Yeah. And talk about a little bit about the team structure. Like, because obviously, you guys have gone through many different levels over the years, right? From, you know, the infancy of getting the $2 million mark and so on. If you had to go back and do it over again, or if you're chatting with someone that's at the two or $3 million mark and they really want to excel past the eight figure mark, what would be some of the important things that you would tell them? Josy: [00:05:08] Hm, come up with a strategy for new business because I think that's one of the things when we really… We knew we could scale the team. We knew we were ready for growth, but how are we going to get the bigger clients? Because the bigger clients are what bring the bigger dollars. You can use the same team that you have built for a client half its size and really scale the agency. So coming up, we came up with this marketing flywheel we called it. And really a three-pronged approach to getting new business. And I think that really started to fuel the funnel and get us in front of bigger names. Jason: [00:05:50] Taking care of your employees has never been more important than right now. And while paydays are great, running payroll is a major pain. From calculating taxes, deductions, compliances, none of it's easy, unless of course you have Gusto. Gusto is a simple online payroll benefits built for small business. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Plus with their help, you can offer benefits like 401ks, health insurance, workers' comp, and a lot more. And because you're a smart agency masterclass listener, you're going to get three months free once you run your first payroll. Go to gusto.com/agency. That's gusto.com/agency for three free months. I like that you said bigger clients because a lot of agencies, when they think of scaling, they think of, I need more clients. That's a possibility. If you want to add a ton of people and make a lot less profit. So when you started saying I want to target bigger customers, did you get specific and going, like let's start naming them and coming up like a hit list or did you start picking a particular market? Josy: [00:07:10] Yeah, it was kind of twofold. Yes, definitely picking up names, but it was also thinking about industries. And we've always been an agency, we've had half of our clients, B2B and half B2C. And I feel that has given our agency strength, just the people working for, uh, the agency specifically, but it's also given us the ability to kind of ride through difficult times. So in COVID, for example, the beginning of COVID, we had some of our retail clients that only, they don't even have e-commerce, shut down their stores, shut off their budget. Who was still up and running? All of our B2B clients. So that really helped us weather the storm. And we've learned over 16 years, you know, we've made it through the 2008 crisis and different ups and downs of the business through the years, that kind of balance of portfolio has always helped us. And in the B2C realm, same thing, you know, looking at the industry, looking at what the hot challenger brands are is really key too. When you look in the FinTech space and the beauty space, they're really changing the world of media and that's exciting and it builds your portfolio. You're not just doing the same same. Jason: [00:08:20] And now you have a bigger team that you can kind of focus on multiple industries. Would you have done it different? Do you think if you picked one particular industry in the very beginning, laser focus, do you think you could have gotten to the level quicker, or are you glad that you were spread out. Josy: [00:08:37] I'm glad we were spread out. There was a moment in time before really it was popular to be women-owned at the time, but we said, you know, why don't we embrace kind of who we are instead of always hiding that we're women-owned business, which we did early on. Why don't we embrace that and focus on only, you know, women focus brands, sustainable brands, eco brands? So we thought about going in that direction and then it just seemed too limiting from where we came from, but it actually opened up the doors. So I think just that like opening up of the universe to say, we want to go in that direction, opened up those brands for us. Um, so, you know, whether it worked or not, but I don't think I would've done anything differently because again, it's so exciting to learn about all the different industries. And I think our people love it too. It's constantly making you think about different audiences and how to reach them. Jason: [00:09:29] And I think you mentioned kind of three pillars and building that pipeline, what were they, or what are they? Josy: [00:09:36] Yeah, the first was put your money where your mouth is and do all of the lead generation run retargeting campaigns, run on LinkedIn, run on all the lead gen sites that are out there. So that when people are looking for you paid search, you're there. Step number one. Step two is identify similar culture like creative agencies, marketing agencies, and marketing consultants that you can take time and really build relationships with and be there for each other over time. So not just a meet and greet, but really have brainstorming sessions and really be there to help each other. That, that has brought in a lot of business as well. And then the third is really get serious about PR and hire a PR agency and get out there, do things like this and be on panels and write articles and really be more involved in the ad community. Jason: [00:10:32] Yeah, I totally agree. And because there's so many agencies that just depend on one channel. And you know, they look at well, we're just relying on all the business coming on a Facebook. I'm like what is Facebook changes, right? You need all the other… Josy: [00:10:48] What if it changes? Jason: [00:10:50] Yeah. And I love that you built strategic partnerships too, because not many people do that and they just… You know, I get those emails all day long going, hey, you got a big audience of agencies. You send out my email. I'm like, how is that a relationship? That's just a, it's a transactional thing. It's like, Hey, why don't you try to help someone and then become friends and then you could both take over the world together, a small part of the world? Josy: [00:11:18] That's business, right? I mean, that's what it should be about, should be about relationships. It should be leaning on each other. It should be about transparency. Jason: [00:11:25] Yeah, exactly. Well, Josy, this has been amazing. Is there anything I didn't ask you that you think would benefit the audience? Josy: [00:11:32] Maybe advice around, uh, we've been a remote agency since 2005. That's when we started the agency, that was one of the ways that, like I said earlier, how are we going to have a family? We're still gonna work our tails off, but taking away the commute might help. So we started a virtual agency back in 2005. Which, you know, we didn't have all the tools we have today. So people, I get a lot of other agency owners calling saying, how, how can you give me advice on how to kind of weather the storm and how to create this remote agency that we've now, you know, we've canceled all of our office space and now we have a remote agency. How do we fix it? Cause people aren't super happy. And, I would say hire people that love to work from home. And I think that's what we've always done. We've always hired more senior people, people that don't need handholding trailblazers. That's created a different kind of agency culture, which we love, but hire people that really love to work from home. Cause if they don't, they're never really going to embrace it. Jason: [00:12:40] Yeah. Yeah. And I know. And when you're a virtual agency, it really kind of takes the handcuffs off of you for finding talent because there's amazing talent all over the world. In a lot of remote cities, we were, I was chatting with some of the mastermind members and people are like… And they're all over the world. And, and some of were in California and New York, and they were like, are your employees coming to you asking for raises because everything's costing more? And everyone was like, yup, yup, yup. But one person and he was in Kentucky and were like, we all need to recruit from Kentucky. Josy: [00:13:16] Yeah. I love having our employees all over the country. It not only helps with hiring, but it also helps with times zones. We have a lot of global clients. So being able to kind of have people pinch hit early in the morning or late at night is super helpful. Jason: [00:13:29] Yeah, it's awesome. What's the agency website people go and check you guys out? Josy: [00:13:34] Oh, mediamattersww.com. Jason: [00:13:36] Awesome. Well, everyone, if you guys enjoyed this episode, make sure you subscribe. Make sure you go to their website. Say a thank you to Josie for coming on and giving you guys a lot of value. And if you guys enjoyed this and you want to be around other amazing agency owners where they're sharing out strategies that are currently working right now and having fun and, and a lot of times it can be your shrink when things go blow up. We all need that, right? Because who else are we going to go to? I'd love to invite all of you to go to the digitalagencyelite.com. This is our exclusive mastermind just for agency owners. We'd love for you guys to apply. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How to Successfully Bootstrap Your Way Into a Thriving Agency

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Dec 19, 2021 13:20


Would you like to successfully bootstrap your way into a thriving agency? Rich Kahn has been fascinated by the internet since its very beginning in the 90's. He started a newsletter to talk about new internet developments and grew his audience to a point where he got offers to advertise products. He realized with a relatively small investment in hardware and his home internet connection he could make profits of thousands of dollars. From that point, he made sure every little success in his business could lead to further success by testing his ideas small and not going over budget. In his conversation with Jason, they talked about his formula for bootstrapping a business into success, why a bootstrapper should always be willing to learn everything they can about a business, and the importance of differentiating between profit and profit margin. 3 Golden Nuggets Bootstrap from success to success. The internet has been a passion for Rich from day one and led him to start his first business, a newsletter. He quickly grew his following and started advertising on it. He did this with a very small investment, some hardware and the internet connection he already had. So he turned a couple hundred dollars into thousands in earnings. “That's how I've always done it,” he explains. “You just kind of take one success and roll it into the next.” When he gets a new idea, he tests the waters small to see if there's approvability. Then he runs a bigger test and, if that works, he just keeps growing that and scaling that as fast as you can with budget you have. Learn as much as you can. If you're planning to bootstrap a company, you should try to minimize costs wherever you can. Of course, at some point it may be better to look for investors, but at the very beginning, when you're first figuring out your business model, margins, and everything else, you have to be a sponge and be willing to learn. For his first company, Rich took a week off from work to learn everything he could about HTML and web design and started making websites for his clients. “You gotta be working 70, 80, 90 hours a week to learn everything and do everything that needs to get done because you can't afford to bring in a high-end CFO to help you manage funds,” he insists. Profit vs. profit margins. Something he always makes sure his team and clients understand is the difference between profit and profit margin. A lot of times people get hung up with trying to make 70 or 80% margin on a campaign that at margin level there will be not enough room to scale it. In the end, you may have a killer margin but are making $2 on a campaign. It's important to try to maintain a balance between the profit and the profit margin. Although it's hard to talk in general terms when there are so many business models and variables, Rich recommends proving something that works and find the scaling point and always keep in mind that you pay the bills with the profit, not with the profit margin. Sponsors and Resources Sharpspring: Today's episode is sponsored by Sharpspring, an all-in-one revenue growth platform that provides all of the marketing automation, CRM, & sales features you need to support your entire customer lifecycle. Partner with an affordable marketing automation provider that you can trust. Head over to sharpspring.com/smartagency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Be Willing To Learn Something New and Bootstrap Your Way Into a Thriving Agency {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, everybody? Jason Swenk here. And I have an amazing guest where we're going to talk about bootstrapping your agency and how to grow it. I'm excited to get into it. So let's jump into the show. Hey, Rich. Welcome to the show. Rich: [00:00:18] Hey, thanks for having me. Jason: [00:00:20] Yeah, man, excited to have you on. How have you been able to bootstrap a lot of these companies? So let's talk about some of the companies that you've done and how you bootstrapped them and grew them over the years. Rich: [00:00:32] I guess bootstrapping is done regardless of the business. So we've done everything from email newsletter, right? And email marketing, basically back in the nineties, early nineties, like 93. I ran an ISP out of my house with 300 phone lines coming in. I've ran click networks, I've ran contests search engines, and now an ad fraud solution. And the bootstrapping technique for me has always been the same. Take what little resources you have, and most of my companies have had just a couple thousand bucks to get started, and really do as much of the work as you possibly can yourself. Even if it comes to web design, learn it yourself, or you hire some people that can do it very inexpensively because you've got to protect that what little budget you have. And get the company started, right? As I've started to see a little bit of success in small pockets of each of the different companies and each company's a little different. But when you start making a little bit of profit from something that I zero in on that, to make sure it's actually profitable and it's not just a fluke and slowly start to scale that up. As I was able to scale up stuff like that, go back to 93, my email newsletter. I was writing a newsletter because… it actually, it wasn't for profit. It was just fun. I was thrilled with the internet. It was launched in 91 for public consumption, I think it was September 1st of 91. 93 I got started and I started writing articles on all the new things that were happening and what was making it… Because I knew this was going to change the world. I just, I was hooked day one. And so I started with just writing a letter because I thought like a newsletter that I thought it was interesting. And I thought people would be interested in it. Back then with a couple of months I had over 20,000 subscribers, which back then was a lot, considering the makeup of the network and everything, there was more… Jason: [00:02:14] Were they all AOL email addresses? Rich: [00:02:17] Yes. Yes. What ended up happening was I was a big chatter in the AOL chat rooms and I would jump to the chat room, just say, hey, I've got a newsletter talking about the changing internet. If anybody's interested, sign up here. And that's all I did. And I ended up getting 20,000 subscribers that way all up. Back then they didn't call it opt in, but it was all opt in. I just started writing because it was something that I found interesting. And I'm not a writer by any stretch of the imagination, but it was something that I wanted to do. And probably once I broke about 10,000 subscribers, somebody said, hey, can I advertise in your, in your newsletter? I thought, sure, why not? And so I tested it on one article. I wrote in, I had one person advertise in it and obviously it was all profit, cause it was, there was no cost to my part. I was just my internet connection. And that was pretty much my total overhead for the month. And it made money. I'm like, wow, this is pretty cool. And as I'm analyzing saying, wow, this might be a business model, because the Ms model didn't really exist back then. Also, after the first article opposed I got three or four more people said, hey, can I advertise in your newsletter? So, again, I started the company buying some software to help me manage the list. I had my AOL connection, my normal internet connection, some hardware upgrades that I needed to do. So that was my initial cost. Put a couple hundred bucks into it, nothing crazy. And before you knew what I was making a couple thousand a week, just from people wanting to advertise in the newsletter. That started the growth from there. And then what was interesting, again, bootstrapping the whole way. Somebody again said, hey, you know, the worldwide web is out now. Maybe you can start a mall. I'd be happy to sign up and have a store in your mall. Cause that was kind of the thing back then. So I put a newsletter, I put a newsletter out, said, hey, we're going to put together a web mall. I'm going to basically build your website, give you three pages, do all the design work, host it for X number of dollars. If you're interested, you know, send me money. It was, it was that poor of a campaign and I got something like in the first week I got like eight or 10 grand. So it took a week off from work, because of course it was still working full-time, and read 2000 pages of HTML and then graphic design and put together the whole mall, wrote all the 50 or 60 websites, whatever it was. When it was all said and done, I finished it up in a week and the mall was launched and we were up and running. And that, that's how I bootstrapped into that. And all of a sudden we started growing a web development business. Then the next thing was people like, hey, I see that you guys do web development services. Do you offer a way to connect to the internet? I'm like, all right, I'm sure I could figure this out. So I, I ordered a couple hundred phone lines into my house from Verizon, got a T1 routed to my house. There was a big story behind that, but. You, just kind of take one success and roll it into the next. And that's how I've always done my stuff. So if I came up with the idea and not all the, not all my ideas were successful. But you came up with an idea, you test the waters small. And if there's approvability, then run a bigger test and that, that if continues to prove itself, just keep growing that and scaling that as fast as you can with budget you have naturally, you know. You don't want to start taking loans and bringing on partners. I have not had any luck, you know, going after funding and stuff like that. That's, I've always had to bootstrap and you just continue to parlay your success into the next success, until the next success. Until next thing you know, we end up selling that company. So, again, I'll start bootstrapping. You know, one of my more successful companies, we started with five grand and just took a while to parlay each little success into the next and trying to find out what campaigns worked until the next thing you know, you're doing really well. You know, you're winning 500 awards, you know, winning Ernst & Young awards. I mean, you start winning all this other stuff and people recognizing what you're doing. And it all started with $5,000 investment. So you can definitely bootstrap your way to big money, but you gotta be very careful with how you do it. It's always just testing the wins and like, I'll remember the first one, I'll give you an example. I ran a campaign that I was testing and I made 10 cents and I was flipping out. I was like, this is great. My wife's like you made 10 cents, big deal. I'm like, but you don't understand. I only spent two and a half cents to make that 10 cents. Now, if I could multiply that by a factor of a hundred thousand or a million, we could make some money, but this looks like a scalable... And like, she couldn't understand like initially why I was jumping up and down about seven and a half cents profit. But when it's 75% profit and you start doing the math and you start, and then you start proving that it is a scalable solution, things get a lot more exciting. But again, testing something as simple as, as a 10 cent campaign. You know, with a seven and a half cent win. To me, I get excited about as a bootstrapper Jason: [00:07:11] Is your agency struggling to deliver real revenue growth results to your clients? You know, agency marketers can consolidate data and align marketing and sales teams goals to achieve real results for your agency and clients using revenue growth platforms. SharpSpring is an all-in-one platform built for agencies like yours to optimize digital marketing strategies with simple, powerful automation. Manage your entire funnel all in Sharpspring. Now, for a limited time, my smart agency listeners will receive your first month free and half off onboarding with SharpSpring. Just visit sharpspring.com/smartagency to schedule your demo and grab this offer. That's sharpspring.com/smartagency. That leads me to kind of think about, because… Yeah, I mean, in the early days, I'd be like, well, yeah, who cares about the couple of cents. But how are you able to kind of multiply that by a million? Rich: [00:08:15] That's the trick. Whenever I talk to clients from an agency voice, I always, I explained to them, there's two things. There's your profit margin. And then there's profit, right? You pay your bills with profit, not with margin. So a lot of times people are so hung up with trying to kill the margin and make, you know, 60, 70, 80% margin on a campaign that at that campaign, at that margin level, there's just not enough room to scale it. So maybe you're making two bucks on that campaign for the month. You can't do any with two bucks, even though you have a killer margin. So what I was trying to talk to my agency guys about, and the buyers is there's a good balance between your margin and your profit. You pay bills with profits. So I would rather have give up margin so I can scale it versus focusing on killing the margin and not being able to scale it. So depending on the campaign, depending on the business model, there's a lot you have to contend with. And again, each there, you know, it's hard to talk in generalities because there's just so many different business model types, but you got to prove something that works and find, find the scaling point. Like, don't worry so much about the margin. Worry more about how much cash you're going to put in your pocket that month. Because that's how you pay your bills and that's how you make money. Jason: [00:09:29] I always tell everybody it's like… When you're scaling, you don't have to worry about that as much. Like, there'll be like, oh, if we dip below this certain percentage, then you know, hey, we're in the red, but you're doing this for the longterm. And you know you're investing in the number one resource, you, that you can rather than putting it in the stock market or putting it somewhere else. So I'm like, hey man, go do it. So this has all been amazing, Rich. Is there anything I didn't ask you that you think would benefit the audience listening in? Rich: [00:10:04] Uh, you know, I've seen lots of companies do very well with bootstrapping. I've seen lots of companies do very well with investors getting, you know, raising capital. And I always point to like if you have a really good, unique idea, that's hard to enter into the marketplace because you've got some unique IT, IP or something like that. Sometimes going after funding is the right way to go. Like look at the big companies that we all know how many of them bootstrapped? Very few, right? They always got to a certain inflection point where they said, okay, now it's time to bring it. And there's a certain point where it makes sense to bring on outside money so that you can really scale something fast. If Facebook didn't bring on investors, we may not have heard about it. They may not have been as big as it is. They blew up once they brought on their investors who had, you know, different relationships, different ideas, different experience in managing a company at that level. So for a bootstrapper, you know, in the very beginning, when you're first figuring out your business model, first, figuring out your margins and everything else, you gotta be a sponge and you gotta be willing. It's not like, hey, I own a business. I can sit back and work the hours I want. That doesn't work with bootstrapping. You got to bust your ass. You gotta be working 70, 80, 90 hours a week to learn everything and do everything that needs to get done because you can't afford to bring in a high-end CFO to help you manage funds. Can't afford to do that. You have to do that yourself. Maybe you have that skill, maybe you don't, but you have to sit back and learn as much of the areas that you don't know about. Maybe you don't know about content marketing, maybe don't know about SEO. You need to learn it, because you can't afford to pay someone else to… The only thing you do have is time and you don't have a lot of money to invest as a bootstrapper. Well, most bootstrappers don't have a lot of money to invest, so you really have to focus on learning everything you don't know. And the more you learn, the more you realize you don't know anything. So you've got to really spend the time a good chunk of your time, learning every aspect of your business in order to how to grow it. Podcasts like this are awesome because... When I was growing up in the business, there were no podcasts, there were no… People that you can turn to, you couldn't connect with people who knew the space very well easily. Unless you knew their phone number, you weren't getting in touch with them. So today's, you know, entrepreneurs that are coming up in this space that are bootstrapping have access to all this great content, you know, tidbits like this, you know, 10, 12-minute podcasts they can absorb and pick up some information from experts who've done it for years. That is invaluable information. And you really gotta get plugged into the right places to learn as much as you can about the areas that you don't know. So you can grow your business without having to go hire somebody to do it. Jason: [00:12:28] Love it. What's a website, or how can people get in touch with you if they want to chat with you? Rich: [00:12:33] I'm on LinkedIn. I got a huge following and I post almost on a daily basis on LinkedIn, just Rich Kahn. Or you can find me all the contactinformation@anura.io, which is the current company that I'm growing. Jason: [00:12:45] Awesome. Well, everyone go check that out and, Rich, thanks so much for coming on the show. If you guys enjoyed this episode and you want to fast-track your agency a little bit more, and you want to know some of the systems, some of the framework that's working for agencies that's worked for me and what I would actually use again, I want you guys to go to jasonswenk.com/playbook and request an invite and check out all the systems that we have. That's jasonswenk.com/playbook. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Is Your Agency Constantly Evolving to Stay Relevant to Clients?

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Dec 15, 2021 14:14


Is your agency constantly innovating and evolving in order to stay relevant? Clients needs are constantly changing as technology evolves. Are you keeping up with what clients need? Julia Smith has worked in digital advertising for over 25 years and has made a name being her client's mouthpiece. They even call her "the voice." She took that concept and formed her agency The Digital Voice, a B2B boutique PR agency that brings brands to life through engaging PR campaigns, awareness-driving communications, and immersive virtual experiences. Julia sat down to talk to Jason about how her agency has changed over the years, especially after the pandemic, and how this has ultimately had a positive impact on the agency. She also discusses the transition from being just a PR agency to being an experience agency, and what she wishes she had known when she first started. 3 Golden Nuggets Being a virtual voice. Before she started her own business, Julia worked at a company that didn't quite know how to label what she did. They settled on “the voice” to describe that she was basically the company's mouthpiece with everything she did. She represented them on stage and before the press and was their voice in sales and throughout all their business. She later took that concept with her when she decided to create her own PR agency and continued to represent her clients, organize events, networking events, speaking slots, etc for years after that. Every year brought different changes, but 2020 brought a real shift in the way her agency was doing things. The transition to agency experience. For Julia, the last 18 months especially have brought a lot of change and evolution that has had a huge positive impact on them and their clients. “It made us stop. It made us think a little bit more about how we can use every platform possible,” she explains. The agency went from relying on networking events, standing on stage, and getting their clients speaking slots to investing in a platform to now offer speaking events with live voting polls and 3D networking floors. How to use that on social media? You can use that same content of the speaking event and can take snippets of that to social media and do polls, write a news story based on that, do a thought leadership piece, do Q&A's and a podcast. This is what they now bring to their clients. The impostor syndrome. One thing that Julia wishes she had known when she first started her agency is that, more than vanity metrics like whether or not you have a huge reach, it's all about who are you? Are they you for the message? What are you trying to say and who do you say it to? Now it is all about taking that and make it count and make it measure and show that the value is there. She used to let those vanity metrics get to her and have impostor syndrome but now she feels confident having a wide range of clients and loves working with startups. She has also accompanied some of her clients on their journey from being a small tech company to taking the step of going public. Sponsors and Resources Wix: Today's episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Be Your Client's Voice and Make a Transition from Just PR Agency to Experience Agency {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, agency owners? Jason Swenk here. I'm excited to have another amazing episode for you. We're going to talk about how a PR agency is really morphing to an experience agency. And even if you're not a PR agency, you're going to benefit from this episode. So let's go ahead and get into it. Hey, Julia. Welcome to the show. Julia: [00:00:27] Hi, Jason, how you doing? Jason: [00:00:29] Yeah, I'm excited to have you on, so tell us who you are and what do you do? Julia: [00:00:32] So I'm Julia Smith. I'm the founder and MD of a B2B PR agency called The Digital Voice. Jason: [00:00:40] Awesome. And how long have you been doing your agency? Julia: [00:00:44] Well, you know what I suddenly realized that I've just gone over a quarter of a century last year in working in digital advertising. But I set up, which is shocking in itself, but I set up the digital voice it's going to be 10 years next June since I set out. Jason: [00:00:59] Wow. Congrats. And, and how did you get started by starting your own agency? I always like to know that origin story. Julia: [00:01:06] Yeah, but you know, it's strange because actually the name of the company is based upon… about 11, 12 years ago I was working for a company and they couldn't think of what to call what I did. And we settled on the voice, because almost that's what I was for them. I was the voice, the mouthpiece of that business. And I did everything for them from represent them on stage and the press. And I was their mouthpiece and sales and throughout all their business. And that's when I then a year later decided it was time to set up on my own. And so The Digital Voice was born. It's kind of out of how a lot of people know me as the voice in this industry. Probably stems from the fact that I have a very big mouth as well. Jason: [00:01:50] Awesome. And, um, how has your agency changed over the years? Julia: [00:01:56] Do you know what? It's been a complete change at every year. But more so in the last 18 months that we've had to, as everybody has had to is evolve their businesses. And I think it's, it's had strangely hugely positive impact for us and for our clients. It made us stop. It made us think a little bit more about how we can use every platform possible. And we had to stop being so reliant on networking events, standing on stage, getting our clients speaking slots, being able to set up wine and dine, networking, physical events. And you actually took a step back and went, hand on a second? We can make this complete, an experience in everything that we do and on every platform. And it ended up as a company we went from being… So I think 10 years ago it would just have been about content. It would have just been about press and content and every year is added on more and more. And this year, I was thinking about before coming on here, Jason, and thinking, what do we do? And it's actually press concept, thought leadership, SEO, social media, newsjacking, virtual experience, speaking, awards…  It's everything. And it becomes very much of taking, uh, the voice, being the voice for clients in the new way of communicating. So big changes. Jason: [00:03:24] Oh, yeah, definitely. And tell me, you know, because our industry is really, there's a ton of… Kind of male owners. And there's far fewer, you know, woman-owned agencies. Why do you think that? And tell us a little bit more about that because I always love having women on the show because I'm like, oh, another woman, this is awesome. Julia: [00:03:50] Well, you know, it's strange you say that. Cause I, I know quite a lot of female owners of agencies, actually, over here of PR agencies. And lucky, I'm lucky enough to be co-founder of Digital Leading Ladies. And I'm a member of Bloom. All of these different organizations. So I kind of don't see it. I see a lot of women actually running their own companies. I'll tell you why this also it's a massive benefit. I did it 11 years ago because I had young children. It enabled me to work the hours I wanted to work. And I still work strange hours that I do 6:30 AM to four, because at four o'clock my children, who are now teenagers, they walk in the door then. And my rule was that I'm then… They don't really need me, but should they need me, I can open that door. I can be there for them after that. So running your own company actually gives you complete flexibility to choose how you work and what you work. Interesting enough, we were a team of nine, 10 women. We've now changed and we've got three and seven now. And so my, the, the, my head of content, Adam was delighted, he was like, thank goodness he was getting so outnumbered. But to my mind, I'm still one of those believers that it's about who does the job right and nothing more. And I don't think it should even be, I don't see it, or I've never felt in any way that I've missed out or been treated unfairly for being a female. Um, I actually feel quite positive and I've had, I believe, quite a positive experience. And it's what you make is how. If you don't make it in too much of an issue and you're strong in what you do and what you say, and, and you're, um, reviewed based on what you deliver. Jason: [00:05:34] Yep. Exactly. And that's, that's how it should be. Tell us about kind of the transition from the agency to delivering more of an experience. Julia: [00:05:44] Yeah, this is an interesting one. So I describe it like this. So I was saying to my clients, you know we get them… we ended up last year investing in a virtual experience platform called Rainbow. And I love it. It's fantastic because what it did was we create virtual experiences. And it is just that, it's an experience. You can do live, you can bring people up on stage. You can do live voting polls. But it goes to, we have 3d networking floors, where you actually mix and mingle in bar rooftop lounges. We've got, we've done campfire settings. We did loads of Christmas parties and what we always discover… that kind of that's one part. So you create an experience, but then we also said to our clients that everything you do needs to be off of one thing. So say you speak at an event. That's an experience. But let's look, go further. How do we take that experience and keep the engagement going on social media? You take snippets of that video of you speaking and you pop it on to your social, but you then do a poll saying I've got three other topics that are going to be talked about. Which one do you want to vote on what comes up next? You take comments and news jack. You then write a news story based on what I said at that event, what the clients said. You then take it into a thought leadership piece and then you do Q&A's and then you do a podcast with Jason Swenk. And all of it is kind of building up though… It becomes not, it's not so two-dimensional then, is it? It's everything is about the experience. How do you feel, how does the audience feel? How much engagement…? That's the experience. How are we engaging? And can we make it into more of an experience? Jason: [00:07:26] I love that. I love creating things and an experience. And I want to take a brief 20 seconds to have a mastermind member come on and tell you about the digital agency experience, which you kind of set it up pretty well. So let's go ahead and hear what Justin has to say real quick. Justin: [00:07:43] I was just talking to one of the other members a little bit ago. And I was like this event is absolutely incredible. And I've been to a lot of events and I think I have like 19 pages, something of notes. And we're only part of the way through day two. And I came at it with no agenda, but I came at it because I'm, we get holed up in our little bubbles. You know, we go through the grind. We're in the office every day, or, you know, we're working with our employees, we're working with our clients and I really just wanted to be a group of people that have been there and done that, that can speak the same language, have some of the similar problems that I have. And I have found that to be the case, meeting a lot of great new friends now and making a lot of great connections and learning a whole heck of a lot that I'm going to take back. In fact, I've been messaging my business partner non-stop like, Hey, it's go time when we get back, because I've got a lot of good things to him. Jason: [00:08:37] When you're an agency partner with Wix, you unlock an entire digital ecosystem for creating, managing, and growing your agency. Get the full coding and design freedom to create anything your clients need along with the tools to manage and collaborate with your team seamlessly from anywhere. And when it comes to growing your agency, you can get matched with new leads every day and earn revenue share for every website you guys create. They're backed by the Wix industry-leading security and site performance. You'll also have a dedicated account manager on standby 24/7 so you can reach your goals and start setting new ones. See for yourself, head over to wix.com/partners and re-imagine what your agency can accomplish. Awesome. Well, thanks, Justin. If you guys are interested in more of the digital agency experience, go to digital agencyexperience.com and check it out. All right, let's get back to you, Julia, and talking more about what are some of the things that you wish you knew about five years ago? That would benefit you in your agency. Now today Julia: [00:09:52] Vanity metrics meant everything five years ago, and that's how we were perceived. And I didn't have the confidence then to go it doesn't have to be that you've got to be seen in the big types lists and obviously in the US the Bloombergs and the CNNs and the Forbes. And they're great. But what I wish I knew is I had the confidence to go, you know, in the same way that I work with advertising and companies. And they're trying to always say, we're all about targeting. We can take your brands and we can talk at the exact user at the right time, right place. That should follow through in PR. That we now work with titles that are so wide-ranging and we don't care necessarily on their huge reach it's about who they are? Are they right for the message? What are you trying to say and who do you say it to? And then match that up and, and then make it count and make it measure. And make it show that the value is there. It's not all about the scale and the reach. And I wish I'd had the confidence to do that. Cause I think, I think you start to, you get that imposter syndrome when you're not appearing in those big titles. And for a lot of our clients, we work with Adtech and MarTech companies predominantly. We love working with startups. Two of our clients have been one of them has been with me seven and a half years. They went from a smaller company and they're about to IPO next year. Another company doing the three years there was, starts out, they're about to IPO next year. I love those companies. Now for them, they're startups. They were never going to get into those big mainstream titles. But what we have the confidence now to do, and they love it and they get. Is that it's about what you're saying and the audience that's buying that. And the same goes for social. It doesn't matter if, it's not about how many, it's not about how many followers you necessarily gained through. It's who followers are and how engaging they are and what your percentage of engagement. Wish I'd known that. It would have saved me a lot of heartache. Jason: [00:11:50] I know, I, I think there's a lot of us that have that imposter syndrome, right? It's kind of like, or, and we look at the wrong metrics and we look at those vanity metrics. I mean, I always tell agencies, you need to be creating content and really building your brand. And a lot of times for the first couple of years, they get discouraged. They're like all the a hundred people checked it out. What if they were the perfect hundred clients for you? Julia: [00:12:16] A hundred percent. We always say this and it's, uh, you know, you just go, it only takes one. It needs just one person to actually responded and go pick up the phone and make that sale, you know, for a lot of these companies. And that's what we're enabling going actually let's look and see what, uh, how it worked and how it responded. I also try to explain to people it's about the mix with anything it's trying different things. See what works, see what fits and the same way you do within your day to day, life of trying on clothes. You then find what fits and what works. The main message I always say is Be loud. Be brave, be you. Do not try and change, do not to try and be like somebody else. It will ultimately fail. And especially for agencies who are looking at, with their own with trying to advise the brands. Those that can be consistent in their tone and their message and ultimately make it resonate. It makes it far easier for the whole company to get behind you when you going, oh, I get it. I'm just, that's who we are. That's what we do. Be loud, be brave, be you. It's kind of my big mantra that I try to… Jason: [00:13:20] I love it. If people want to know more and check out the agency where can they go? Julia: [00:13:24] So they can go to thedigitalvoice.co.uk or check us out on LinkedIn. So what we do, we almost use our LinkedIn, the digital voices, our runbook, and see all the different pieces of content from our brilliant clients. Or link in with me, Julia Smith. I'd be delighted set to meet with them as well. Jason: [00:13:42] Well, awesome. Julia, thanks so much for coming on the show. You rocked it. Thanks so much. Make sure you guys go check out the website. Ad if you guys want to come to the next Digital Agency Experience, I want you guys to go to digitalagencyexperience.com and apply, and maybe you'll be with us at the next experience. Until next time, have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Start With Confidence and a Long Runway to Grow Your Agency

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Dec 12, 2021 23:39


Scott Harkey had a rocky start in the agency business, having to keep other jobs while he tried to get his agency, OH Partners, off the ground. It took time, but he built his reputation and now runs a stable of agencies, as he says. Scott talks about how the first years of agency growth are always difficult and why new agency owners should give themselves a long runway to get their business off the ground. He also reflects on the mistakes he made and why he should have focused on strategic growth and talks with optimism about the future of the agency business, where he sees tons of opportunities for independent agencies that are starting out as well as opportunities to rebuild trust with clients, which is at an all-time low. 3 Golden Nuggets Getting your agency off the ground. For Scott, the biggest challenge to getting over the million-dollar mark was gaining the experience he needed to project the confidence that would actually lead him to land jobs. “You almost have to earn confidence in this business,” he explains, “because people are smart and they smell your bullshit.” He advises people who want to make as an entrepreneur to give themselves a long runway until that plane finally gets off the ground. It's very difficult, as he acknowledges, it will take time and you will need to become an expert on your client's business before you can confidently say that you know exactly how to do a great job for them. Stop wasting time on bad pitches. After working hard to getting his agency off the ground and past the million-dollar mark, what would Scott do differently? For starters, he wishes he had been more strategic about growth. He is sure he wasted too much money on bad pitches and that he should have considered that the agency didn't have the capabilities for that yet. “I should have only pitched what we had business pitching or key relationships that I had,” he says looking back. Another regret was holding on to unprofitable accounts. We're all guilty of this, low-dollar pain in the ass clients that you didn't let go quick enough. “If I had done both of those things. I would probably be at 50 million in fees right now,” he adds. Hope for the future. With client dissatisfaction rates in the industry at 80%, Scott believes this is something we should all take seriously and try to work on. The good thing is, this industry tends to thrive during difficult times. There's real opportunity to see eye to eye now that clients increasingly have more in common with agencies and can learn from each other. So there's reason to be optimistic, he says, at a time when bad practitioners are getting weeded out of the industry and people who are doing things the right way have a ton of opportunity. “Especially for independent agency owners,” he insists. It is a good time for small agencies that want to do the work and build their reputation. Stop Wasting Time on Bad Pitches & Earn the Confidence to Get Your Agency Off The Ground Jason: [00:00:00] What's up, agency owners? Jason Swenk here, and I have an amazing guest who's grown a really big agency well over the eight-figure mark. And we're going to talk about his path to starting the agency, to growing it, to scaling it. So let's go ahead and get into the show. Hey, Scott. Welcome to the show. Scott: [00:00:24] What up? Thanks for having me. Jason: [00:00:25] Yeah, man. Excited to have you on. So tell us who you are and what do you guys do? Scott: [00:00:30] My name's Scott Harkey, I run a stable of agencies. You know, anything from a film company to a research company, to a digital social agency. And been doing it about 13 years. We have 170 ish employees corporately based in Phoenix but also have an office in Las Vegas. So, uh, I do a lot of clients within entertainment, casinos, hotels. And then, you know, other stuff, CPG, healthcare. Faking it till we make it, uh, until they keep hiring us. Jason: [00:01:02] We all do that. Scott: [00:01:03] …continue to hire us for 13 years and then sometimes we get fired too, but that's okay. Jason: [00:01:08] That's awesome. How did you start the agency? Scott: [00:01:12] Funny story. So I started the agency with my second cousin once removed. He was in the agency business. I was selling radio. His dad, my uncle was in the agency, great uncle, was in the agency business for twenty-five years. And, uh, I wanted to be in the agency business and literally like, no one would hire me because they thought I was a radio sales guy or a billboard sales guy. So he and I talked and he just lost his biggest client and his partner left. And he had one other small client that I think produced like $8,000 in revenue, it was the Arabian Horse Show. And, uh, he filed the paperwork next day and we started an agency in his kitchen table and worked out of his little condo in Scottsdale with the two cats. So I had a lot of motivation to get more clients so we could have an office and I wasn't in the condo with cats. Jason: [00:02:04] There's nothing wrong with cats. I mean… Scott: [00:02:07] Yeah, I love cats. It was fine, but like you have like a meeting and you have to, like, this was before like meeting for coffee was like, cool. We had to like fake it to like the, okay, you want to meet for coffee? Because they couldn't come to our office. It was embarrassing. Jason: [00:02:19] Oh yeah, the cats would jump on them? Scott: [00:02:23] Yeah, it was like what? You're in a kitchen table. This is like a, you're like in an apartment, bro. Like, what's going on? Jason: [00:02:28] I remember my first address for Solar Velocity. It was 9 25 Canterbury Street, suite 250, because I was in apartment 250. Scott: [00:02:40] Exactly. Yeah. So we, we got an office after that. Like, you know, there was like bail bondsman and like some weird clientele. I was just happy to have an office. Like I didn't, I did not care. So, uh, it's funny to see like what we've come now. Like we're all have high-end tastes now in office and stuff. Like we've scrapped this out. Jason: [00:02:59] Exactly. Let's talk about the different couple stages that you've probably gone through. So how long did it take you guys to get over the million mark? And what was the biggest challenge for getting over the million mark? Scott: [00:03:10] Yeah. That's the hardest part, honestly. I think it took us… I mean, I, I remember like leaving radio and I was like pretty confident. Like I was like, oh, I've got three or four clients I know are going to come with me. And none of them did. And I can remember, like my first client was like a personal injury attorney that I like had to like beg to hire us. And he would spend a lot of money in the market and he was, he was insane. But it probably took us three years to get over the million mark in fees. It was so hard, dude. That's why I always tell people, like, when they're starting out, like give yourself a runway. Give yourself a long runway because it's not smart… And I think to make it an entrepreneurship, I think it's just the people that like have the longest amount of time to get this big plane up off the ground. And then once you get off the ground, that's where people… You know, I think it's overstated, but like hockey stick growth and it can like go. But like getting that sucker off the ground is it's horrible. Like you need other jobs. Home hosts, you know, like I was still selling billboards like part-time. I had like some rental houses, like I was hustling. Anything I could get to like scrounge money just to like make sure that we had enough longevity to like, get this thing going. Jason: [00:04:23] What were some of the different things that allowed the plane to take off? Scott: [00:04:27] I think there's something inside of us that like, you almost have to earn confidence in this business. Because people are freaking smart and they smell your bullshit. And like, if you don't believe your own bullshit, like no one else is going to believe it. So I think for me, it's about doing the work and failing enough times to where you know, like you're up, gonna bat. You're in a pitch or like, you know, a business so well, like, you know you're going to make somebody money. Like until you are sitting across from a client and you are so confident that you can drive a business outcome, then I don't think you're going to get any business. And for me, that stupid personal injury attorney, like I knew everything about his business. I had studied everything. I knew how I was going to buy the media. I knew how the spots were going to be different. I knew everything I got and he knew it because I was, I literally told him that like, if we didn't improve his business, I would give all my fees back to him. I was like, I had to beg this guy. And then the same thing happened when we won the Arizona Lottery account. It was a, it was a $55 million account in Phoenix in Arizona. And, uh, I studied the lottery business for two years before the pitch was up. Like I had lottery consultants. I literally have a master's degree in lottery business. So when the pitch was up, I had talked to like every former marketing director. I talked to everyone, I looked at every form of pitch. And I think like in pitches, there's just a, there's a vibe of confidence that you've done the homework and that's when you're going to get business. And when you get business obviously that's when you start becoming profitable. You can't cut your way into profitability in the agency business. It's about getting business and then keeping it. But initially, it's about gaining business. And I think you have to have like a real sense of confidence when you're going into a pitch like that. Jason: [00:06:17] Yeah. I mean, we were talking kind of the pre-show it's kinda like, we think we do the best work. And I was like, we should all think that because if you know, you don't do the best. That's the problem. Like so many people come to me, they're like, Jason, how do you scale an agency? How do you grow? How'd you get to where you're, you're at? I was like, we knew how to do something really well. And then we positioned that to the audience that we could do it really well for. And then that's how we were able to get the plane taking off and off the ground. But then it's kind of like, all right, now you've got the turbulence, right? The smack and the plane back down, or it's hitting the tarmac. So what was the hardest part of scaling the agency for you to date? Scott: [00:07:03] I think just in general, dealing with failures and. And I think in our business, the worst thing is perfectionism. And that's hard to say, right? Because in one hand, we're like, we need to do the best work. But on the other hand, I think perfectionism is a real disease in this business. And you can't be in this business if you have that, because nothing's going to be perfect and there's going to be tons of stuff broken. And so I would say every year there's like a new failure learning that I have, um, that we've seen. And it's always different. And so I think the hardest part of scaling an agency is not being prepared for like the new failure you're going to face that year. But having some maybe general skills or maybe some personal development that will just allow like perseverance through the failures that come. Like this year for me, it's been, you know, agency turnover and the great resignation. Last year, it was a major partner, minority partner fight. You know, the year before that it was a ton of client loss year before that it was like mid-level managers that I was trying to empower and get less hands off on certain things and working more on the business, not in the business. So it's like every year there's like something you want to… In the early stages, it was like just trying to literally get business, anything. In some years it was… I think I lost in one year, like 60 pitches. Like why was I pitching 60 pieces of business? I don't know, but I lost 60 pieces of business. And I think like each year the learning from those failures, catapults, like to the next form of growth. And I think like, we all want like just a steady Eddy kind of growth, but this business is so volatile it typically is like this, but like the trend line is like this. And I always notice like my worst prior ends up being my best year, the next year, right? Like it's preparing me for the next step that I think we need to get to. So I think that's the hardest thing is that you're like in an octagon and you don't know what punches are going to be thrown, but you know, you've got to like figure shit out and, and, and kinda like get counselors, get mentors, get coaches, listen to the industry. And like figure out your move and your counter punch when those come through. I think that's the hardest part. Jason: [00:09:22] Yeah. Well, yeah, I mean, it's like Mike Tyson says, you know, you never know how you're going to take a punch until you get hit. Scott: [00:09:28] Yeah, for sure. Jason: [00:09:28] And, you know, we get hit all the time. It's just… Scott: [00:09:32] All the time. Well, people are smart in this business. Like theirs. I, I'm not sure there's a business where there's more smart people that I've ever worked with. Well, there's been clients' side or other industries or lawyers or doctors. I talked to really smart agency people and they blow me away. They're freaking smart. And I think, um, and they're planners, like, like a lot of us are, or will be, we want to have a plan. That's the business we're in, we plan for clients. And so just to your point, when you're in the fire front, you get punched, the plan's out the window and you're scrapping. And I think, I think that can really rattle people. And I think just the tenacious kind of scrappy, kind of street fighter mentality people end up pushing through that and the perfectionism like, hey, I have my perfect plan and now I need a new plan. And like the freak out people, like, you're not gonna, you know, this business isn't for you and you're not going to make it. Jason: [00:10:25] Is your agency struggling to deliver real revenue growth results to your clients? You know, agency marketers can consolidate data and align marketing and sales teams goals to achieve real results for your agency and clients asing revenue growth platforms. SharpSpring is an all-in-one platform built for agencies like yours to optimize digital marketing strategies with simple, powerful automation. Manage your entire funnel all in Sharpspring. Now for a limited time, my smart agency listeners will receive your first month free and half off onboarding with SharpSpring. Just visit sharpspring.com/smartagency to schedule your demo and grab this offer. That's sharpspring.com/smartagency. Yeah, you know, I never… I'd always have a north star, but I would never have a plan, right? Like I'm the type of person that when I'm building something, I always have extra parts because I'm more efficient. That's how I like to look at it. And I look at the agency business for me, even the community that we've built over the past seven years, it's always excelled when chaos has happened everywhere else. And the same thing, like what I was telling you on the pre-show. I'm like, I really don't have anything planned to ask you. It's more, just a conversation. I'm really better at that. If I have to plan it out, I'm kind of like, oh, what's the next question I'm answering? And I can't be in the mode now. Now that's just me, but I think kind of the moral of the stories is you have to figure out what's the truth or what's the north star of where you think you want to go. And then you start bringing on the right people to help you with that and realizing, and I think you probably will say this too… You're not going to be able to do everything, like your agency has grown to the multiple eight figures of where it's at now is probably because you brought the right people in and you probably said, who do I need to bring in rather than how? Am I stretching or is that right? Scott: [00:12:32] Yeah, I think, you know, I think for me, like, certainly we've done like every two years, we'll do a branding workshop for ourselves and we'll reevaluate mission, vision values, and, um, what we're trying to do. And certainly that's been successful. But I think when I'm at my best, I know when our agency's at our best, it's, we're open to a reset every day, every month, every year. And I think people think when you, when there's a reset, like you're starting over. And I think like a reset, like I remember we were playing like, you know, Nintendo I'm, I'm older, but like, you know, I used to play Nintendo. Jason: [00:13:08] I was Atari. Scott: [00:13:10] Yeah, ok. So you're older than me. Nintendo there's a little reset button and you would get to a point in a game and you're just like, screw this. And you like hit the reset button. You just start over. You don't start over, you know, where the little points in the game are that like trip you up and so you can get through. And I think for even my life personally, my business life, like when I'm okay with like a reset and knowing I'm not fully starting over because I have, I have a wealth of knowledge. We have a wealth of knowledge and agency and processes and clients, and, and we're just, we're just resetting, it's more like a digital campaign and like an optimization kind of, kind of piece to it. So I understand the north star and I agree, I think there should be a north star. But I, I also think kind of being willing to just reset things like everybody, hey, let's freaking reset real quick. Like, you know, what are we doing here? And not be so, you know, not like die on the sword on some plan or some north star that you think is like, perfect. Like if we would've done what mirroring the industry would have said, we, we should have done, we would have no casinos and hotels clients. Like on our Vegas office, we'd like be doing CPG, you know? And now have like 60% of our businesses that, so I think just being open-minded to where the world and energy and your capabilities and your purpose, like is going to take you. Jason: [00:14:31] Very cool. Now that we've talked about kind of getting the plane off the ground, let's talk about there's a lot of people listening, going alright, I'm in the multimillion-dollar mark, but I want to get over the eight-figure mark. For some odd reason. They want to do that because they think there's sunshine and rainbows over there. But if you had to go back to yourself, when you were around the 3 million mark, what's a single thing that you would do in order to get to the eight-figure mark? Scott: [00:14:59] It's a great question. I think I could, uh… I'm a wild card, I think I could have been a little bit more strategic on growth. I think I've wasted a ton of money on bad pitches. I think I've convinced myself so many times that we can get a piece of business, which we couldn't. We had not, we didn't have the capabilities. We didn't have the experience. Didn't have the relationship. And I think I could have got to eight figures... So that's like, okay. So like you're talking, like I get confused on the, I know that's kind of your terminology, but like I'm at like 5 million in fees and I'm trying to get to 10, right? How would I got there knowing what I know now? Jason: [00:15:36] Yep. Scott: [00:15:36] Yeah. I wasted money pitching. I should have only pitched what we had business pitching or key relationships that I had. And every time I can convince myself that we can get any pitch. Jason: [00:15:47] Where you doing RFPs? Scott: [00:15:49] Oh, yeah. Oh, hell yeah, I've done it all. Jason: [00:15:53] You know what RFP stands for right? Scott: [00:15:55] What? Jason: [00:15:56] Requests for fucking punishment. Scott: [00:16:00] Actually this digital agency we bought, Nomadic. They like, they laugh at me. They have so many brands within Fortune 1000 companies that came and talk about. Cause they're like, they're like, here's the here's, it's 500 grand. You want us to do this, this and this or not? We don't report hours. We don't do RFPs, kind of blew my mind. Jason: [00:16:17] That's how we were. Scott: [00:16:19] It's smart. It's how it should be. Like people, you know, you need to build confidence with CMOs and people, you know, they… Just doing blank RFPs, rarely works. And even when you get them, you know, they're bad clients. Although I have had good success too. I mean, it's gotta be the right ones. Like I pitched Monster and it costs me probably a million dollars. And then, you know, like everybody it's like, oh, you finished second. And I was just, I was devastated. Jason: [00:16:44] A million dollars on a pitch. Wow. How much of a engagement would that have won you? Scott: [00:16:51] Oh, man, it would have won me probably… three or maybe three to 5 million in fees. I mean, I this business is like, uh, you know, we have a lot of casinos, you know, resorts is our client, Virgin's our client. Jason: [00:17:04] Put it all on black. You did it, you did it on that one. Scott: [00:17:09] Exactly, bet on red. You know, but I do think… So I say that, but I do think you have to have some bets. You know, you have to have, if I wouldn't have made some, some crazy bets, like we wouldn't be where we're at. So it's hard to, but there's, you know, there's definitely some really crazy bets that I think if I would've taken back, especially early in our cycle. We weren't ready with the processes. We didn't have the talent capabilities. I think we could have got to that five to 10 million faster. And then the second piece to that is I think I've held on to unprofitable accounts. That 80/20 rule always exists, right? You know, I've probably had three to five unprofitable, low-dollar pain in the ass clients that I didn't let go quick enough. Jason: [00:17:51] Walk me through the mental on… Because I find that I'm guilty of it. We're all guilty of it. What was the turning point? What was the switch that you were like, dude, I'm losing too much money on this client. Get rid of them. Scott: [00:18:03] I just think more data and awareness for internal operations, right? Like we had better systems to identify it more and you're not making biased decisions. You're making more data-driven decisions. So we have an analytics group that really, we nail this shit really well now. So it's not like, oh, this is a $500,000 client. No, this is a $72 an hour client, you know, and we only make money at $92. So you're, you know, $200,000 client, you make $250 an hour on they're actually great. So just having better awareness for that. And I think, I think agencies should go through this process monthly and really have their finger on the pulse. And most likely everyone has the 80/20 rule. I, every year I've done it, I've had it. And I think I was losing out on organic opportunities with my big clients that I'm holding on to shitty low dollar, low dollar amount clients and low dollar per hour clients. Um, that also were a pain in the ass and it was just killing us. And I was burning people out… If I'd figured that out earlier, probably even more so than pitching bad business. I could've got to eight figures faster. But if I would have both those things dammit. Man. I, I probably would be at like 50 million in fees right now. Now that I think about it. Jason: [00:19:15] Well, we had mastermind members all the time… they're always looking to scale faster. And one of them, we do this exercise quite often and we identified for one of the mastermind members there was a number of different clients that he needed a literally double the rights in order to make it profitable. And so literally we came up with a game plan and we just said, hey, just chat with them, double the rates. If you lose half of them. Okay. And that's what we were fully expecting. He retained all of them and literally by just talking to them, he increased his MMR by 60K. Scott: [00:19:51] What's MMR? I'm not used to that terminology. Jason: [00:19:54] Monthly recurring revenue. Scott: [00:19:55] Okay. Yeah. Yeah. Jason: [00:19:57] So just doing nothing. So that turned out to be what, 700,000 extra a year. And if you just do that, like, I'm glad you walked us through all of that, because at the end of the day, it's about pricing. Scott: [00:20:10] And we suck at pricing. We suck. I've learned a lot around. And just what you said. I agree with, like you just go to the clients and be like, dude, here's the… I'm getting crushed. Like I'm out. Or we got to change and either they go away or you get, you get the rate. Jason: [00:20:25] Awesome. Well, Scott, this has all been amazing. Is there anything I didn't ask you that you think would benefit the audience? Scott: [00:20:30] I, I do think that the industry is changing a lot right now. And like you said, I, I think that's when… That's our time to shine, honestly. I think this year, this has been my best year ever, you know, with all the chaos. But I do think that our client dissatisfaction rate in this industry is still at an all time high. I think it's in the 80 percentile. Basically our clients say we suck as a, as an industry at serving their needs. I think we've got to solve that better. I think there is a real opportunity. And I, I think for the first time ever, we're seeing CMOs and VPs in marketing… We're seeing our clients and us have more in common than ever. They all have agencies and we run agencies. So I think we can learn a lot from each other. And I think the new model is really trying to find gaps that they have, we certainly have. And being respected in the industry, I think it means a lot more. And it's really interesting, I think time for the business. And I think the people that really run good agencies are doing things the right way have a ton of opportunity. Cause I, I think a lot of the, the bad practitioners are getting weeded out of the business. It's getting too hard for them to survive. So I would, I guess I would just leave the audience with like a sense of real optimism and encouragement. And especially for independents, especially for independents, especially people grinding it out. The publics are, are so fucked right now. Good friends of mine run, run a lot of great agencies and some of our amazing agencies. And they're not going away. Let's not kid ourselves. But I think for the first time in our business, there's never been a better time to be an independent agency and to offer real solutions in a humble, cool vibe way to brand marketers. And the playing field is probably more level than it's been in a long time. So that's, that's a lot of fun. That's what gets me really excited. Jason: [00:22:22] Yeah. I interviewed someone and they're doing a lot of research and agencies fell… For trust levels, agencies fell between politicians and car used car salesmans. So let that all sink in guys. It's, it's about building trust and reputation that, you know, it takes years to build, but seconds to knock down. Think about that. So what's agency website people go and check you guys out? Scott: [00:22:50] Yeah. So our, our main agency is ohpartners.com. A couple of our big sister agencies would be nomadic.com and a matteroffilms.com. And so you can see some of the additional agencies we have, but the main one is the ohpartners.com. Jason: [00:23:06] Awesome. Well, Scott, thanks so much for coming on the show. And if you guys enjoyed this episode and you want to be around amazing agency owners that are constantly chatting about the industry, sharing what's working. Sharing what's not working. Be able to see the things that you're not able to see. I want all of you to go to digitalagencyelite.com now. This is our exclusive mastermind that is only for amazing agency owners. So go to digitalagencyelite.com and until next time, have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How to Grow Your Digital Agency Smart Instead of Fast

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Dec 8, 2021 18:15


Ben Worthen was a journalist for most of his professional career. During those years, he heard many marketing pitches and grew to dislike the type of marketing that focuses exclusively on selling a product. That's why, when making the transition to creating his own digital agency Message Lab, he focused on combining journalism, data, and design to create content that resonates with people. In this interview, about how he has focused on marketing that creates meaningful interactions. Ben also shares his agency's growth strategy and why it's important to grow smart rather than growing fast. 3 Golden Nuggets Creating meaningful interactions. Most companies are focused on trying to sell you something all the time and are missing 90% of the chances to create opportunities for meaningful interactions. In this sense, Ben has never really liked the type of marketing that focuses exclusively on selling a product. Instead, when he transitioned from working in journalism to working in the marketing industry, he knew he wanted to bring his approach to storytelling to his agency and always ask “how can I make someone care?” This is what he tries to do for his clients. Making stuff and putting it out into the world with the goal of making it valuable. What's driving their growth. When it comes to creating something that people will care about, you don't want everyone to care. You're trying to find your audience, find the people who care, and then focus on them and show them understanding, authority, and a plan. If you try to create something for everyone you'll end up creating something for no one. This is what Ben has been working on to effectively communicate with people in the key non-sales moments and it is what has been driving his company's growth. “You care about people that you're trying to reach, and those people are somewhat narrow,” he says. Growing smart. Despite seeing some pretty big successes in just three years, Ben regrets starting with the idea that running a digital agency would be really easy. This drove him to make mistakes like going on a huge hiring spree as soon as the company started to grow. “We convinced ourselves that we had the business model of a high growth startup,” he recalls. This meant that, as much as they were growing, they were not growing smart or strategically. They were not investing through time and ewsearch strategy and trying to make their service better and that created what Ben calls weak growth. Now he tries to look at growth as an indicator that what they're doing is what people want. Sponsors and Resources Gusto: Today's episode is sponsored by Gusto, an all-in-one people platform for payroll, benefits, HR where you can unify your data. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Head over to gusto.com/agency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Focus On Creating Meaningful Interactions and Grow Smart, Not Fast {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, agency owners? Jason Swenk here. And on today's episode, I bring on an agency owner that's only been doing the agency for three years and has already grown a huge agency where a lot of you would like to be and created this singular mission. And we're going to talk about it a lot of what's worked for them and what's not worked for them. So this is really good episode. I hope you enjoy it. Hey, Ben. Welcome to the show. Ben: [00:00:32] Thank you for having me. Jason: [00:00:33] Yeah, man. I'm excited to have you on. So tell us who you are and what do you do? Ben: [00:00:38] I'm Ben Worthen. I'm the CEO of a company called Message Lab. And we are a content agency, which can mean all things to all people, but we have a very narrow focus, um… Specifically, we're focusing on using journalism and that kind of storytelling to help our clients communicate with the people that they want to reach outside of a sales opportunity. So if you think about the world in terms of when you want to buy something and when you don't want to buy something, a kind of binary reductive way of thinking. If you're anything like me, I want to buy something five, 10% of the time. And when I do, having someone come to me and give me a product information is really valuable, super helpful. But most of the time, I'm just a person in the world who wants to be entertained, want to be informed. I want to be engaged somehow. I want to flip through stuff on the phone. I'm going to have to search around to listen to something cool. And our belief is that, you know, companies that are focused on trying to sell you something all the time, which is like, you know, most companies all the time, they're just missing so many opportunities, 90, 80% of the chances that they have to engage with you and have some sort of meaningful interaction around an idea. So that's where we come in and that's where this background that we have in journalism and some other things that we do, which I'm happy to talk about, come into play. And where we think that we can create opportunities for meaningful interactions that over time are going to pay off for the companies we work with. Jason: [00:02:03] Yeah. You know, I mean, that's a good mindset and a good north star to kind of follow because, you know, I would always, as I was training my sales team or as I'm you know, helping out the mastermind members… I'm like, look, you're not selling anybody anything. You're positioning what they actually need. But if you're trying to sell them something you've already lost. You got to ask the right questions and really kind of position it in a way where… Let's just jump on a call. Let's see if we can work together, see if I can help you out. See if I understand your problem. And then if we do, and we both agree, then I'll tell you how we can work together. And it just kinda just takes down everybody's fences and then be like, all right, cool. That sounds good. Ben: [00:02:47] Yeah, exactly. And imagine doing that in the digital environment where it's a one to many interaction. You know, there's the, the point, the number of times, you know, like a banner ad, as an example for a product is like the ultimate spray and pray, you know, experience. It's super cheap. It doesn't cost much to make, and it doesn't cost much to get in front of somebody. But if you're lucky, 1% of people are going to be interested in it at any given time. So our whole mindset… And so I'll back up for a moment. Early in my career, for most of my career as a newspaper reporter, a journalist. I worked in the Wall Street Journal and I was someone who day in and day out, had companies come in and just try to pitch me. And it was always this schlocky marketing message. And I would sit there very politely. But in my head of thinking like, you know, nobody cares, how on earth is this going to be interesting to people? And, you know, and I was the one who was being paid essentially to listen and hear out people. When I made my own transition to marketing, I think I brought with me some of that disdain for the way marketing has always been done. And in particular, this notion of like, people just don't care, we don't care about what you're trying to say most of the time. And if you think about what you try to do as a journalist, you're really, you're sitting there trying to think about like, well, how can I make someone care? You know, what's the story? I think this thing is cool. I think this guy, Jason has this great story. How do I tell it in a way it's going to be interesting to people? And that's sort of the filter through which you run everything. And as I spend more time in marketing, what actually happened was I gained a huge amount of respect for the rigor, the discipline, the analysis, the, the process, everything that goes into doing marketing on behalf of a big entity. But I still couldn't let go of that notion of like come on, let's just make something people care about, you know, that can be valuable too. And when you're describing, you know, working with your team, you're talking about trying to create a moment that's valuable for the person on the other end of the phone call, uh, in that moment. And what we're trying to do with our clients is do that same thing digitally. Do that same thing in a one-to-many scenario where you're making stuff and putting it out into the world. But the goal of it is to be cool. The goal of it is to be valuable. The goal of it is to, you know, find someone who has a problem and give them an answer that's going to help them. It's not really about your product or to find someone who's curious about a topic and inspire them. You know, they don't know that they're looking for it, maybe, but it finds them and it creates a moment of value for them. And then, you know, from there, that's where the marketing part kind of kicks in, you know, what do you do with it? How do you make it part of your go-to-market motion? How do you integrate it into, you know, the data collection and aggregation of everything else that you're trying to do? So that you can not just like make cool stuff and pat each other on the back, because like, wow, that was so cool. We love it. Shiny. But it's doing something for you. It's valuable. And you can, you can look at… You can go to your boss at the end of the year, put up a slide that has some data points that shows what you've accomplished through making that kind of content. Jason: [00:05:57] Taking care of your employees has never been more important than right now. And while paydays are great, running payroll is a major pain. From calculating taxes, deductions, compliances. None of it's easy. Unless, of course you have Gusto. Gusto is simple, online payroll benefits built for small business. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Plus, with their help, you can offer benefits like 401k's health insurance, workers' comp, and a lot more. And because you're a smart agency masterclass listener, you're going to get three months free once you run your first payroll. Go to gusto.com/agency. That's gusto.com/agency for three free months. Yeah. And I think it's, you know, when you're trying to reach out to people and, you know, why is it important and share and care? It's not about caring for everyone. It's actually about like, trying to push the people that you don't care about away and create this little segment that you actually care about.  And then show them empathy and understanding and a little bit of authority and show them a plan. And I think you can destroy it. I think most people try to be like, I'm this for everyone. And I'm like, you're this for no one when you actually try to do that. They just have a hard time wrapping their brain around it. I mean, that's, you know, we were talking to the pre-show like, you've grown your agency fairly quick and you're like, what was that impressive? I was like, yeah. Some people wait a decade to get to where you're at. Some people never even get close to it. I find when there's a turning point in the agency owner the mindset shifts a little bit. That's when their agency can really excel. And it's not all like, you know, like you said, it's not all about sales. It's about so much more in order to grow the agency. Do you agree?   Ben: [00:08:05] Yeah. Well, the funny thing listening to your description is the thing that I feel has propelled our growth is just looking at this challenge of you know, how do you effectively communicate with people in these non sales moments? And it's doing exactly what you said, which is, you know, you don't care about everybody. You care about people that you're trying to reach, and those people are somewhat narrow. My mom, I always use this example, but my mom loves me dearly. And if I do something, she's going to read it. She's going to check it out. She's going to watch the video that… Jason: [00:08:35] My mom is the same way. Ben: [00:08:05] Yeah. You know and she's going to listen to this podcast. But, she's not going to buy something… Jason: [00:08:41] Say hi mom. Ben: [00:08:42] Hi, mom. She's not gonna buy for most of our clients, right? You know, like our, our clients run the gamut from like B2B companies. It's just like, there's no way she's gonna buy a million dollars worth of software. You know, it's just not plausible. And so it doesn't matter to them if my mom sees it and likes it. But that's where, you know, to go back to our growth, that's, what's been driving it. You know, it's not… I mean, yes, it's hard to make something cool, but it's not hard to make something cool. Lots and lots of people make cool stuff. And yes, we have our own way of doing it. We have our own way of positioning it. We can talk to about the skills that we use in order to make cool stuff. And, and that's part of it. We have to bring together and our side people who are journalists and people who are designers in order to create experiences. But then like, let's go back to that question, right? Like how do you know that it's reaching the people that you want to reach? That's hard because it starts getting into how you promote it effectively, you know, how do you target? How do you do segmentation? And then how do you know that that's working? And it gets into analytics and like, oh my gosh, now this is getting crazy, right? Because how do we, you know, page views for the web? That's like the first thing everybody looks at, right? Page views, because right. Well, if you're getting a million moms coming in, giving your page views, and if that's all you're looking at, you're going to think you're killing it. When in reality, You're not reaching the people that you're trying to reach. And then it gets even more complicated because, you know, we're not really trying to sell something. We don't want you to, to click and buy. You know, what we're trying to get you to do is we're trying to create an impression. We're trying to prime the pump. And that means that the key thing isn't, you know, did you click on the buy now button? The key thing is that you come back. You know, the key thing is if you came back another time where you more likely than somebody else to do something that we want? Then that's what you had previously had an interaction with our content. And to do that you got to mix together a lot of different people with a lot of different backgrounds. And so for us, that meant like you got, we got to get people who can create the content. So we brought in a bunch of people who were journalists. You know, we needed people who could make experiences that people wanted to consume, so we brought in a bunch of designers. And then we needed people who could do the promotion and the audience development and all of that, so we had to bring in into those people. And then analytics. It's like, well, if the traditional way of doing analytics, isn't giving our clients the kind of data that they want, we kind of have to invent our own analytics. And so we did, you know, we hired a bunch of people who understood analytics, were able to grapple with this challenge of how do you do analytics specifically for content that isn't meant to sell people anything. So our team just started to grow and grow as we introduce these new capabilities. And every single time we're introducing a new capability we didn't really have a market for it. We didn't have someone who wanted to buy it. We just felt like in order to do this work well, we needed to be able to do this. So we effectively brought on a team, built the team because we thought that the proper way to do this work needed to include the skills that they brought to the table. And then something that we've had as sort of a through line in our experience was once we had the team in place, we could go either to our current clients or other clients. And we could begin to have conversations about the, hey, you know, it's cool. What if we were able to do this? And then only after we had the capability and the capability, would it be good to have a market opportunity to do it? Jason: [00:12:15] Very cool. What's a big mistake that you made that you wish you could go, go back and redo? Ben: [00:12:22] For me. And it's so laughable at this point was just thinking that this whole agency thing was really, really easy. Yeah. We had had this experience where in 2018, I walked into the coworking place and it was like, all right, great. Now we're a company. Let's see what happens. And I was lucky that I knew some people who want to take a chance on hiring us. I say I was us even though, initially it was just me. You know, where able to pull together some teams, ran the whole business that first year on a spreadsheet. I had this enormously complex spreadsheet, but everything worked. The cells always added up. And, you know, and things were growing. People were coming in. We're adding more people and very quickly at the beginning of year 2, 2019, we went on a huge hiring spree. And I think we convinced ourselves that we had the business model of a high growth startup, meaning that all we had to do was just bring on the people and no problem, no problem, no problem. So we didn't grow smart. We just sort of found people that we thought were cool. And we brought them in and we also had simultaneously, we were going really fast, but I don't think that we were growing strategically. In the sense that we weren't selling the same set of activities, the same product over and over again. People were coming to us for a really broad range of things that broadly fit the skills that we had. And we were saying yes. What ended up happening is I think it was what is called weak growth. We had pockets of revenue that if we took a step back weren't services that we would really ever sell again. And in that meant that we weren't staffed deliver it. We weren't, we weren't investing and through training through time through search strategy and making that service better for our clients. And we weren't creating a path for us to take the effort that we made, developing that and sell it to somebody else. And so when those projects went away, they just went away and we weren't able to take that and transition to some something else. So it took a little while to retrench our growth, also vastly exceeded our operational capabilities. We out kicked our coverage, to use a football analogy. And it, it meant that we had to do some catch-up from a process standpoint, from our financial understanding of the business. Like they just didn't have a great read of what was happening. We were surprised at the end of every quarter, uh, which is not a place to be. So we did a lot of work to fix those things, to have a, to refine what we did to narrow our focus a bit that. You know, it's tough because I think we look at the world through a lens of possibility and opportunity. And I still believe that to do the kind of work that we want to do is we want to do well. It requires more skills, more people with unique capabilities working together towards this one vision. But now we're just having to be a little bit more smart about when we add that capability. Why we add it? Where does it fit in a roadmap? Versus just a like, yeah, come on. Let's do it. Jason: [00:15:39] Awesome. Well, this has all been amazing, Ben. Is there anything I didn't ask you that you think would benefit the digital agency owners listening in? Ben: [00:15:47] I don't think this is going to be relevant for everybody, but it's what's got us to where we are, which is there's a lot of things that matter as an agency and revenue is certainly one of them, profitability is one of them. And we've adopted the mindset of looking at those factors as market validation for what we're trying to do. You know, if we are trying to put in place a new product. If we're trying to put together a new capability. If we're trying to combine data and journalism and design and experiences in a way that people haven't done before, you know, the way that we're going to know is working is if we're growing, if more people want the thing that we're doing. And so rather than thinking of revenue as something that we're targeting and, you know, and, and designing around a revenue number, taking the model of saying, well, we have to hit this kind of growth as an indicator that what we're doing is what people want and looking at it that way. And then designing the service that we think that we believe is what's going to be the thing that drives us forward and then looking at that, you know, revenue profitability as the market telling us, yeah, you're right. This is, this is the thing that you want to do. Jason: [00:17:04] Awesome. What's the agency website people can go and check out the agency? Ben: [00:17:08] messagelab.com Jason: [00:17:10] Awesome. Well, thanks so much, Ben, for coming on the show. And if you guys enjoyed this episode, I want you guys to make sure you comment. Make sure you hit that like button and subscribe button. I have a question for all of you. If you are wanting to grow and scale your agency faster, do you think it's easier to do it with people that are ahead of you that are in the digital agency world? Because there's lots of opportunities that you have from working with a number of different people out there. But if you could be in a mastermind with amazing agency owners that are a lot further along than you, do you think you can grow faster? If the question is yes, I want you guys to go to the digitalagencyelite.com. I would love for you guys to apply after you check it out. And if you meet the criteria, then we'll have a conversation and see if it's right for you. So make sure you go to digitalagencyelite.com and until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How to Get Over Trust Issues and Retain Agency Clients Longer

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Dec 5, 2021 20:08


Do your clients have trust issues with your agency? How can you go about creating an honest rapport to build trust? Working at a larger agency Bob Bailey started to notice a trust problem. Clients are losing trust in their agencies. This trend has actually increased over time, with clients moving to in-house services. This is the opportunity he and his partners saw when they created their agency Truth Collective. They wondered "wouldn't it be great if a marketing agency could thrive by just telling the truth?" Then they set out to have honest conversations about strategy, creativity, and relationships. In his conversation with Jason, Bob spoke about all-time low trust levels in agencies, how he tries to build trust with potential clients from the first meeting, how he has built leadership teams in his agency, and why agency owners must themselves from being the fixer to empower their teams. 3 Golden Nuggets Honest rapport with clients. Trust in agencies has hit all-time lows, according to Bob. That's not a place any of us would want to be. So how to gain back client trust in agencies? Especially in a time when more and more clients are moving to in-house many services. Bob believes the key to building trust starts with the initial conversation. He makes it a point to treat it as a conversation, not a pitch, and makes it about them. “I feel like squaring the meeting centrally right on their business and what they need is the place to be,” he assured. Also, he's seen the positive effect of knowing who you are as a business and how you can help their business, instead of trying to do everything, which comes across as just wanting more money. Building leadership. As we always say, you can get to the million-dollar mark almost by accident. But to be a multi-million-dollar agency you'll need to start building a structure, starting with your leadership team. Bob didn't always get that right, in some cases because the people weren't quite right. But also because they weren't quite ready as new owners to really understand what that meant. They really had to look themselves in the mirror when the company hit a cap at $3.8 million and start to get serious about leadership. They needed more structure, so they selected a group and shared everything about the business with them. “If these guys are going to lead, they need all the information to become leaders too,” he acknowledges. Try to not be a fixer. How can you help your leadership team grow? Prepare them to solve issues and trust them. Bob and his partners started organizing weekly meetings with their leadership team to discuss new business leads and prospects, financial forecasts, what they call remarkable creative briefs and opportunities, they also talk about employees or client issues and possible solutions. This way, they started to prepare the leadership team and shared the information and metrics they may need to do their jobs. Ultimately, it is always about trusting that they are capable to face any issues that may come up. Agency owners normally get to where they are because they are very good at solving problems, but at some point it should be your team's responsibility to do so. Sponsors and Resources Sharpspring: Today's episode is sponsored by Sharpspring, an all-in-one revenue growth platform that provides all of the marketing automation, CRM, & sales features you need to support your entire customer lifecycle. Partner with an affordable marketing automation provider that you can trust. Head over to sharpspring.com/smartagency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Creating an Honest Rapport With Your Clients to Address Low Trust Levels in Agencies Jason: [00:00:00] What's up, agency owners? Jason Swenk here. I have another great episode and we're not going to talk about frou-frou shit. We're going to talk about rebuilding trust in our industry, and we're going to go over some really cool things. And I didn't know, he was telling me in the pre-show Bob was telling me that agency trust is ranked between Congress and I think something else. He'll tell us, I can't remember, but like it's pathetic. So we're going to talk about what you can do in order to build trust. And if you have that trust, you can make more money, scale faster. and have the life that you want, where you have the freedom. So let's go ahead and get into the show. Hey, Bob. Welcome to show. Bob: [00:00:49] Hey, Jason. What's up, man? Thanks for having me. Jason: [00:00:51] I almost forgot which buttons to hit. We were talking about frou-frou stuff before. I'm so messed up. Bob: [00:00:58] I'm just going for the ride. Jason: [00:00:59] Yeah. Tell us who you are and what you do. Bob: [00:01:02] Jason, my name is Bob Bailey. I am one of the three founding partners of a creative company called Truth Collective. And my role here is the CEO, which I have sort of reframed from chief executive officer to the chief everyone officer. And I don't know if that's frou frou stuff to you or not. But for me, it sort of keeps me focused on, you know, my most important thing and that's my team. So thanks for having me. Jason: [00:01:27] Yeah. As long as you're having fun and you guys are doing impact, I don't care what you call it. So how'd, you guys get started in this crazy industry that we're in? Bob: [00:01:38] It's a good question. I've been listening to some of your shows and you know, a lot of folks, they tend to see a, a problem or a gap out there and they feel like they can fill that. And it was, it was similar with us. We were working together at a, at a larger agency. And at the time, like there was just getting hard. Like it was, it was getting really, really hard. And we started seeing these patterns where consumers were trusting brands less. Agencies… clients were trusting their agencies less. And even like inside the agencies, people trusting each other less. And so we said, man, like… Wouldn't it be just really easy and wouldn't it be awesome if a marketing agency could thrive by just telling the truth? Like, what if you were just honest about everything? What if you weren't like out there inflating case studies, inflating agency credentials presentations? What if you could just go out there and like be yourself and tell people the information that's going to really help them? And it was a really like novel, like silly idea at the moment. But we really got behind it and, um, we've built, we built a business on that. And so it's been really fun. Jason: [00:02:47] Well, how do you separate yourself? Because there's lots of agencies out there that are full of shit and they're not truthful. But they say they are. So how do you guys do that? Like, tell me about the stat that you were talking about in the pre-show. And I kind of teased in the intro, like the agency industry is between Congress and what for…? Bob: [00:03:12] Yeah. It's, Gallup does this annual survey on like trusted industries and they go through all of them and there is like pretty far down the list used car salespeople, advertising industry, Congress. So we're sandwiched between those two, those two industries. And like, I don't, if like, for me, like that's not a place that I want to live and after eight years or so, it, hasn't not only as it hasn't gotten better. I think it's actually probably getting a little bit worse. I mean, especially when you look at how clients are responding to it and in housing, everything. And it's really, it's a pretty interesting situation. And so I think we have some stuff to fix. Jason: [00:03:55] Well, you know, when, when we chat and we interview agencies to join our mastermind, we ask lots of questions around their delivery and the results that they give to their clients. And you'll be so surprised about how many that they don't know it. And they started by accident. They took a Facebook course on ads, and then they started like, they were really good marketers, but they could never deliver their own service efficiently. And like, it just blows me out of the water that, and people always ask me, what's the one thing you have to do to scale your agency? I'm like, well, you have to do something really well for your clients. Bob: [00:04:34] Yeah, for sure. I think that the work that we tend to do tends to focus on something we actually changed during COVID. But we got really focused in, on the stuff that we love to do and the stuff that we're truly like sort of brilliant at: creative strategy, insights, and big idea platforms. And we really tend to focus on like high-impact tactics, like the stuff that's going to really like move the brand forward. Sort of gradually moving away from a lot of the activation kind of things. But, um, for us, it's really important that, you know, we're setting up. How are we going to know if this works? How are we going to be happy? Like, yeah, there's the qualitative stuff. But a lot of times there's not business metrics in place. There's not foundational stuff in place on the client-side. And so we do all that we can to build those baselines so that we know for if we're helping them improve their business brand and in the behaviors of the customers. It's all we care about. Jason: [00:05:32] What are some keys in order to build trust with your clients? Bob: [00:05:37] I think it starts from the initial conversation. And I think that that conversation has to be different than anything that they felt from other agencies. I don't have a PowerPoint that I use to introduce me or my agency to clients. I have a conversation. I feel like if you show up with your deck, then the meeting is about me and not them. And so I feel like squaring the meeting centrally right on their business and what they need is the place to be. And you'd be surprised how different that actually is. So I think it starts there and, you know, it sort of quickly goes into the things that we do and the things that we will not do. And so, you know, I think that's also been a disarming thing where clients will, they'll say, you know, well, I know, you know, as the owner, like you want to do all my stuff. Uh, because you know, you're money motivated and I'm like, well, actually, no, like I don't want to do a thousand banner ads. I don't want to do all, I don't want to do your emails. I don't want to do those things. Like I want to help your internal team be successful with that stuff. I think there's just like those sort… of known who we are and being okay with just like being okay with having a conversation about that. But I think it really just sets a tone for this is the kind of partnership that we're after, and this is how we're going to help you be most successful and help the other agencies in your network be more successful too. Jason: [00:07:03] Yeah. You know, I always use the analogy of the creepy guy in the conference. Like, do you have the creepy guy in the conference come up to you and they just start throwing up on you about how cool their company is and how amazing he is. All that. You're like, you're the creepy dude. Get away from me. The other guy comes up to you and starts asking you questions. And by asking questions, the whole attention is on them. People are going to like that conversation because it's about them. And that's what we always liked when we would come and have initial calls with our prospects. We were the same way. And I, and I always hate when agencies are like, well, we don't have our portfolio or our deck ready. What is that…? I'm like, you don't need that shit. The companies that want that, that means you're going to be doing an RFP, which really stands for request for fucking punishment. You shouldn't be doing that. So I love that approach. Let's kind of switch focus a little bit and talk about because you have over 30 people, um, you know, multimillion dollar agency. A lot of people can hit the million mark by accident. But when you start getting in the multiple millions, you have to get a lot of things right. I mean, you still haven't figured out everything. I don't have everything figured out. No one does. If they do, you should shoot them with a water gun and be like, you're lying. But how are you building better leaders? Because I feel that in order to get to the level that you're at, you have to build a really amazing team, which it starts with the leadership. Bob: [00:08:43] Totally. You're right, man. Like we, gosh… We've been in business for eight years now and you know, I always think about us like a version. You know, the current version of Truth Collective, and you know, we've been through, we've been through a few and we've tried some things and we didn't get it exactly right. Whether it was, you know, you talked about the leaders and the leadership team. I think in some cases like the people weren't quite right. But then also we weren't quite ready as sort of new owners to really understand what that even meant. We were very much in a mindset of like we're modeling the behaviors we expect and why don't you just understand that stuff? And that's not fair to anybody. And it also, you know, to your point, like you'll hit a cap and the cap… Our cap was like right around like three and a half to 3.8 million where… We can do that. Like kind of with any team, with any set of clients, like that's, that was what we were. And we, you know, we did that and we said, geez, you know, it's us. Like we looked in the mirror and said, okay, like we got to get out of the way here. And we got to get really serious about the leaders on the team, but how we going to do it? And it was about the people, but we also just needed some real structure and we were growing and growing rapidly, but we weren't growing in like an organized way. We started as an account guy, a strategist and a creative guy. And as we grew, like, we just hired more people like us. But what we weren't doing is growing from the standpoint of like the functions of the business. Like I wasn't, we weren't thinking about, okay, how are we going to staff new business growth? How are we going to staff client service? How are we going to staff creative? How are we going to staff the administrative stuff? And, you know, people just looked at all three of us all the time for decisions. And we were just, we just became the bottleneck that was holding it back. Jason: [00:10:50] Is your agency struggling to deliver real revenue growth results to your clients. You know, agency marketers can consolidate data and align marketing and sales teams goals to achieve real results for your agency and clients asing revenue growth platforms. SharpSpring is an all-in-one platform built for agencies like yours to optimize digital marketing strategies with simple, powerful automation. Manage your entire funnel all in Sharpspring. Now for a limited time, my smart agency listeners will receive your first month free and half off onboarding with SharpSpring. Just visit sharpspring.com/smart agency to schedule your demo and grab this offer. That's sharpspring.com/smart agency. Yeah, you were the toll booth. I always like to kind of say. Bob: [00:11:43] Yes, you've talked about that before. Jason: [00:11:44] Yeah, and you kept mentioning a keyword: how? You're like, how do we do this? How do we do this? When did you start realizing who? And giving them the power in order to make the decision? Bob: [00:11:58] Yeah. It was actually in the fall of 2019. So we, we decided we needed to try the leadership team again. We selected people, you know, not by title. But by, like, if you run a function in the agency, you're on the team, like that's how we made the decision. So it was very clear and specific. We got that group together, we got super transparent. We shared everything about the business. All the numbers. So no more like close to the vest ownership. If these guys are going to lead, like they need to know stuff and they need all the information so that they can also learn how to become leaders too. So we started sharing that we met weekly every Monday, same agenda for 90 minutes and we just, we got into a cadence. And thankfully we did because, you know, we all know like what happened in March, you know? So we had made about six months, five months worth of momentum together as a team when, uh, when COVID hit and sort of through everything… Um, hit the brakes on everything. And so we had to respond to that. Jason: [00:13:05] You said you meet once a week on Mondays for 90 minutes and the same structure. And what was that structure of that meeting? Bob: [00:13:12] The structure was, it was actually, are you familiar with a organization called EOS? Jason: [00:13:18] Yep. There's lots of mastermind members and I've had Gino on, on the show a number of times. Bob: [00:13:24] Yeah. We adopted that, that framework in the beginning, just because we needed a consistent framework. And that seemed to be, it seemed to make a lot of sense. It was pretty straightforward and simple. And so it's you come in and you talk about like, what are the key? You know, you have a scorecard and so our scorecard is new business leads and prospects. It's how are we doing on our financial forecast today? You know, month and quarter, how are we doing? Um, we measure our, we call like remarkable creative briefs and opportunities, like of all the work in the shop how many of those have the potential to be really remarkable? And then we, um, there's some, some accounting metrics that we measure. And so we sort of quickly hit those. We talk about any employees, uh, or client issues that are going on. And then we devote about an hour of it to like issue, discussion and resolution. And so some weeks there's a handful of stuff that you have to move through some weeks. There's one thing. But the whole point is to use that brainpower in a really concentrated focused way to, to keep us moving in the right direction. Jason: [00:14:32] I love it. I love how, you know, and thanks for going over some of the KPIs or I guess what they call rocks or, or, um, I don't know what they call it. But I get the gist of it because there's a lot of people that don't really know what to measure and they just go into a meeting. Hey, how's it going? And, uh, really kind of it. I's like none of them, what's the agenda that you have for the week and let's, let's rock and roll. So… Bob: [00:14:59] We went from having no sort of across-the-board KPIs to implementing way too many. Jason: [00:15:07] Yeah, yeah. Bob: [00:15:10] To getting it down to like now there's like five, that really matter. You know what I mean? Like, and if you get enough insight from those five to, to hit like 90% of the business. So we're, we're learning as we go, like, it gets you really hands-on. But now we've especially with COVID like, I think when she had the right team and the right sort of flow… I think letting go is actually been like a key and helping us grow and scale. You were talking about that a few minutes ago. Jason: [00:15:38] Yeah. It's very challenging. We had our digital agency experience at my house in Colorado, a couple, uh, two weeks ago. And a lot of the agencies here, multimillion, they have a hard time letting go on stuff. I'm like, you just got to trust your team! Like, it's kinda like your baby, like let the baby fall and then they'll learn to walk. If you're going to be the crutch and you're always going to catch them, well, expect to catch them for the rest of your life. Bob: [00:16:09] It's true. You know, a lot of people, and I think a lot of agency owners, you know, you start an agency because you were really good in another agency or like maybe you were the fixer. And you know how to fix it and you know how to move on, but that only gets you so far, right? You can't be the fixer, like you have to, to your point, like you got to like help him walk. You got to coach them, not do. You got to direct, not fix. And so that's, that's been a real, it seems really subtle and it seems really obvious, but it's not so easy. Um, but it's been a real game-changer, like you said. Jason: [00:16:43] Yeah. And when it happens too you get depressed, cause then they're doing the decisions and doing all the stuff without you, they don't need you anymore. And then you're like, what do I do? And you're like, well now you're the CEO, dummy. This is your new role. And this is what you're doing. Bob: [00:16:57] Yeah, figure out what's next. Jason: [00:17:00] Yeah, exactly. So I went through that and I always make fun of my mastermind members when they go through that. I'm like, hey, dummy, this is what you wanted now. Let's, let's do it this way. Life will be better. Bob: [00:17:15] It is, you know, I love it when people bring stuff that I would've never done or couldn't have done. My whole goal is I want Truth to be something that I couldn't make. I want it to outgrow me personally. And I, like, I think that's when you're really into some exciting, like durable stuff as a business. So it's fun when that happens. It is intimidating though, sometimes. Jason: [00:17:39] Oh yeah. Well, Bob, this has all been amazing. Is there anything I didn't ask you that you think would benefit the audience? Bob: [00:17:45] I think agency owners like... You put out a LinkedIn post the other day about you made a game out of it, but like, there was like… Jason: [00:17:53] Yeah. Never have I ever? Bob: [00:17:56] Yeah, yeah, yeah. And like, I've done all that. Every one of them I've done… Jason: [00:18:00] Multiple times. Bob: [00:18:02] Right. Habitually, right? I think like a key to happiness as an agency owner and the growth is like just, you know the answer. You know the answer is not to chase that stupid thing. You know the answer, you know what I mean? But the industry wants you to do that. Like there's so much crazy industry inertia out there. I think follow your gut. You know, I just, I think have the courage to follow your gut because you're going to be way happier. You're going to make room for the stuff that you really want to be doing instead of falling into those old traps. And you're going to wind up differentiating your agency as results. So your post got me really thinking about that. And I think that's helpful for it's been helpful for me. Jason: [00:18:48] Goog. Well, that's what it was designed for. What's the agency website URL people can go and check out the agency? Bob: [00:18:55] Sure it's truthcollective.com. All one word is until the truth. It's not like some weird UFO tracking organization. It's not some church, you know, we, we'd get all kinds of crazy stuff, but truthcollective.com and we're all over social. Jason: [00:19:13] Awesome. Well, thanks so much, Bob, for coming on the show, we really enjoyed it. If you guys liked that episode, make sure you like subscribe, tell a friend, tell a fellow agency owner that you'll help them out because look, we all know we're struggling a lot of the times they will help out. And if you want to be around amazing agency owners on a consistent basis and really what they're doing in order for you to scale faster. And you know, sometimes it's a shrink session. Sometimes it's a fun session. Sometimes it's like, oh my God, this is the best strategy I've ever heard. I'd like for all of you to go to digitalagencyelite.com and check out the mastermind. See if it's right for you. If you feel it is, apply. We'll have a conversation and we'll go from there. And, uh, so go to digitalagencyelite.com. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Do You Struggle Deciding Between Niching Down or Going Wide?

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Dec 1, 2021 15:11


Dmitriy Pisarev became fascinated with computers and started building his first website at a very young age. He never lost that fascination and eventually got interested in direct response marketing, copywriting, and e-commerce marketing optimization, which is what led to starting his agency Conversion Whisperer. However, with diverse interests and a wide range of skills, Dmitriy has had a hard time choosing a specific niche. In this conversation with Jason they talk about how he changed his perspective on what his agency is, the struggle between niching down or going wide, and how figuring out your 'why 'should always be at the core of everything you do. 3 Golden Nuggets Should you niche? Dmitriy loved to lead his business by looking for new challenges that sound interesting, fun or like a difficult problem. However, he was made aware of a rule in business that you should pick a market, pick a service, and focus on that. “It sounds very easy,” he comments, “but in a way, it's more difficult”. He can see the benefits and downsides of both. On one side, you're forced to do things that are not necessarily repeatable and are not scalable by not picking a market. But on the other, you're able to learn so much in those ventures, like is his case in e-commerce. He has been able to explore that space and is happy with the things he has learned by not niching down. It takes time to figure out a direction for your business. On creating an assembly line. Sometimes agency owners believe that they can teach other people to be the unicorns that they are. “It's like Superman trying to teach people how to fly,” Dmitriy says. People may not have the experience to comprehend what you're expecting. When you have a lot of talents and a lot of experience and can solve any problem better than most people, it may be difficult when you start to create a team and they can't keep up. Dmitriy realized that it's about creating an assembly line, a process that could be followed from start to finish without many tangents in an expected way with everything to set it up. The only way to do that is to niche down. Figure out your 'why.' What is your reason for growing an agency? Do you know what it is? Are you after a specific lifestyle or want to accumulate a certain wealth that you can pass on to your grandchildren? Why are you pushing through? It may sound corny, but not everyone has figured out their motivation. Dmitriy believes this is the core of everything. “Once you figure out your why, revisit it,” he says. “Figure it out. Make sure it's aligned. Talk with your partner about it with your team, your leadership, just so they're all aligned.” If the trophy is worth it, maybe you'll do something that's not as exciting but drives revenue. Sponsors and Resources Wix: Today's episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Choose Your Path Between Niching Down or Going Wide and Figure Out Your Why {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, everybody? I got another amazing guest and episode for you. One of our mastermind members. And we're going to talk about, should you niche, or should you go wide? He's been debating about this for a long time and it's going to be a really cool episode. He's a lot of fun, very smart. And let's get into the episode. Hey, Dmitriy. Welcome to the show. Dmitriy: [00:00:27] What's going on, Jason? Jason: [00:00:30] Yeah. Tell us who you are and what do you do? Dmitriy: [00:00:33] A marketer aspiring to be a great leader. Run an agency that's focused on traffic, funnels, and email nurture sequences. And, um, we work with cool people. That's the qualifier. Jason: [00:00:47] Well, why do you work with me? Dmitriy: [00:00:52] You're, you're kind of a cool guy sometimes. Jason: [00:00:53] Sometimes. Sometimes. Dmitriy: [00:00:54] Yeah. When the moon aligns. Jason: [00:00:56] That's right. So tell us, how did you get started in this agency life? Why did you start an agency? Dmitriy: [00:01:02] Has anyone ever given you like a linear answer where it's like, oh, I went to school for this. You know, took a course and graduated and… Jason: [00:01:11] No. No one has. Dmitriy: [00:01:12] Yeah, I don't think it works that way. Jason: [00:01:13] Yeah, it doesn't. Dmitriy: [00:01:15] Yeah, man. I, I got fascinated with, uh, computers when I was, when I was nine years old and I built my first website right around then. And just, I discovered the magic of the internet. Just been fascinated with it ever since. Got really big into, uh, or deep into direct response marketing, copywriting. Then e-commerce marketing optimization. I feel like I'm, uh, collecting coins along the path of like different skillsets that will help me in the future. So really the agency was the evolution of not being able to handle the opportunities that were coming in. And for the longest time it's been like, we're an anti-agency agency where, you know, we we're, we're not what other agencies are. We worked with a very limited amount of clients and it's, uh, you know, service, integrity and dedication to delivering on the promises that we set is really important. And then just out of necessity, hiring a team, and then all of a sudden it's like, well, you guys are an agency. So I guess we are. Jason: [00:02:18] Yep. Awesome. Why do you say anti-agency? You know, there's so many people that kind of say that. Like they think agency means something bad. And I get it, cause I'm the same way about coaching. I think coaches are full of shit. I think most coaches are the ones that have never done anything. Why do you think so many people are, they'll be like, oh no, I'm not an agency. I'm like you get paid for services, marketing services…? Dmitriy: [00:02:44] Yeah, man. And like, you've, you've really helped me change the perspective on that just last year. You know, I feel like there's a presupposition to what an agency is, or like a, a misunderstanding. And it's, it's just based off of the bad taste that's been left in people's mouths working with people who are more focused on the recurring revenue than the, the value of the relationship. So, you know, in a weird way, it is kind of like a, a way to reframe the relationship and just help them better understand that things are going to be different around here. And one of our qualifiers is that clients had to have fired at least three agencies before working with us. So they know that it's not a fluke, right? So they know that it wasn't just a, the person didn't get me or they didn't pay attention or they didn't understand. You know, it's like, no, this, this is really difficult, right? Just past having a plan of action and then being able to execute on it. When you are working in an agency environment, having that leadership in place, the processes, the systems to support communication and milestones and targets. If you're looking at it purely from a hitting a certain goal of recurring revenue, it feels like what we're doing is a little different. And part of that is also the complexity of some of the messes that we've gotten ourselves into by really me leading us into the unknown of like the complexities of, hey, this client has this specific need. No one's been able to solve it for them. This sounds interesting. This sounds really fun. It sounds like a difficult problem. I love puzzles. Let's try to figure it out and let's set clear expectations that we haven't done this before. We do understand kind of what it encompasses and how to approach it, and we're able to pivot quickly. So if you're up for it, let's try to figure it out. And that's been, you know, part of the distraction. Jason: [00:04:36] Yeah, totally agree. So let's get into kind of the colossal decision for, you know, niching down or going wide. Walk us through kind of what you've been through, you know, with trying to make this decision. Cause I've, I've witnessed it firsthand. Dmitriy: [00:04:53] Yeah. It's like, uh, we get those flashbacks of PTSD. The war images. Jason: [00:05:00] I'm trying to make you cry. That's my goal. Dmitriy: [00:05:06] Yeah. Yeah, man. So look… There's this concept of building a business and an assembling a business that, um, I've been made aware of just very recently. And I think building an agency is, is… You've told me when we first started working together, like pick a market, pick a service and focus on that, which is really easy to say. And I think there's been a lot of experience and realizations that are, have become so true to you that it's almost like not an option to go down the other path. In a way, this is the difficult. Playing the video game on difficult, because you're, you're forced to do things that are not necessarily repeatable that are not scalable by not picking a market. But you're able to learn so much in those ventures because we serve e-commerce. And e-commerce itself is a very interesting and really broad space. Like we've done supplements, which are some of the most restricted things to, to market online, like the amount of compliance and crossing the T's and dotting the I's required there. So I've enjoyed the learnings that we've been able to achieve by not niching down. And I feel like the realization now, when I'm looking at the efficiency of the team and our… Certain tasks that haven't been done before causing drag and lag on finishing a project that I would have been able to do. So let me back up for a second then helping make sure I don't lose focus. One of the things that I heard is sometimes agency owners believe that they can teach other people to be the unicorns that they are. And effectively it's like Superman teaching people how to fly. They don't have that skill. They don't have that experience. They don't have the, the width of knowledge to be able to comprehend even what you're talking about. So when you have a lot of talents and a lot of experience, and can pretty much solve any problem better than most of the people out there… In my experience, I became fascinated with that, just the, the joy of solving a complicated problem. So in that transition to an agency, I built a team to support me in that. And what I found myself doing is expecting them to be able to read my mind of like, hey, go do this. And it's like, well, I expected them to end up here. And they ended up in a totally different area. So having those kinds of realizations that it's about assembling, creating an assembly line that a process could be followed from start to finish without many tangents in an expected way with everything to set it up, to request everything that's needed to deliver on it. The only way to do that is to niche down. So my realization it's been 13, 14 years of, of doing this formally, is that in order to get to a certain revenue goal while keeping services at a specific level of excellence… You have to standardize, you have to have, create a process that's bulletproof. Kind of like cars' quality assurance. Like when Tesla started out, their QA was kind of shoddy. Cars were coming in, the panels had too many gaps between them or inconsistencies or like Ford's got it down. So… Jason: [00:08:24] Not on the Bronco launch. Dmitriy: [00:08:26] Yeah. I heard about that. And you got, you got one, right? Jason: [00:08:28] No, no, I'm still waiting. I ordered a year ago. Dmitriy: [00:08:32] Okay. Okay. Yeah. I'm waiting on my Tesla. Hopefully I get it before I turned 60. T Cyber Truck. So in a way it's been something that has been kind of like a worm eating away at the fruit. Where I know that I have to do it, but there's also this joy and excitement and fulfillment of solving complicated problems and loving marketing, loving the technology that supports advertising, marketing, and sales that prevents me from, you know, really picking a, a narrow space. So what we've done is we've said we help with demand generation by building conversion driven funnels, which we send highly optimized traffic to. And then the people that don't take that don't convert right away at the ideal level, we have a nurture sequence that joins the prospect exactly where their mind's at in the conversation and making that decision to take that next step forward. So we haven't really niched down, but we are streamlining a type of service and a type of focus. And then it's about qualifying the prospects that we work with and kind of like figuring out our north star as we make our way down there. Jason: [00:09:45] When you're an agency partner with Wix, you unlock an entire digital ecosystem for creating, managing, and growing your agency. Get the full coding and design freedom to create anything your clients need, along with the tools to manage and collaborate with your team seamlessly from anywhere. And when it comes to growing your agency, you can get matched with new leads every day and earn revenue share for every website you guys create. They're backed by the Wix industry-leading security and site performance. You'll also have a dedicated account manager on standby 24/7, so you can reach your goals and start setting new ones. See for yourself, head over to wix.com/partners. And re-imagine what your agency can accomplish. Yeah. And everybody listening, it just takes some time. I mean, it takes some time in order to figure out the direction, who you're going after. And the biggest thing is, is just figuring out who can you help the most and putting criteria around it. And it doesn't have to be a particular industry. You just have to know that particular person and know how to find them as well. And then when they do see you, it's kind of like… I always love to hear people are like, man, I, I started listening to your podcast and it felt like you were tapping into my office. That's kind of by design, right? Like I do have really good technology to tap into your office and here… Dmitriy: [00:11:21] You're a spy. Yeah. Jason: [00:11:22] I'm a spy, yeah. Dmitriy: [00:11:23] Yeah, yeah, yeah. Jason: [00:11:24] Dmitriy sets up the technology and I was the mastermind behind it. Well, this has all been amazing, Dmitriy. And I think this really will help some people out with figuring out like, you know, especially if you've hit a certain ceiling, a lot of times it's just a little adjustments. Sometimes if you haven't picked a niche and really got really clear at your audience, sometimes that allows you to go to the next level. So is there anything I didn't ask you, Dmitriy, that you think would help the audience? Dmitriy: [00:11:56] One of the things that I feel like is a great, great pre-phase to this conversation is what is your reason in growing an agency? You know, and you talk about this a lot too. Are you building a lifestyle? You know, you're trying to get a mega yacht? Are you trying to, you know, make sure that your kids and your grandkids don't want for anything? Are you just trying to get a bunch of skills so that you can buy and flip companies in the future? Like Simon Cenex, why I'm like, man, I, so many people recommended that book to me and I'm like, I've seen the Ted talk. I've seen his YouTube videos. I get it. But it really is at the core of everything. Like, why are you doing this? Why are you pushing through this? Because if the trophy is worth it, maybe you'll do something that's not as exciting but drives revenue creates value for the people that you serve and gives an opportunity to create jobs for people and value and give them a place to learn. So yeah, figure out your why. Jason: [00:12:50] Yeah. I love that. Because you know, there's so many people that are running digital agencies that are kind of just going through the movements and the motions and they don't know where to go. They're just… Dmitriy: [00:13:01] You can hit a million doing that. Jason: [00:13:03] You're not staying consistent. You're going down, so… Dmitriy: [00:13:07] Yeah, man. And look, you can hit a million dollars figuring things out, right? Like that's, that's the thing. It's like a million dollars in revenue is not this next worldly goal. Uh, you can do that stumbling along and figuring things out. But like once you get there, what's going to push you forward to standardize, to create processes, to do all these things that are going to help you scale? So, yeah, to the guys listening, if you have a why, revisit it. Figure it out, you know, make sure it's aligned. Talk with your partner about it with your team, your leadership, just so they're all aligned. Yeah. Jason: [00:13:41] Awesome. Dmitriy: [00:13:41] Don't be afraid to make mistakes. Jason: [00:13:43] What's the website for the agency where people can go and check you guys out? Dmitriy: [00:13:47] So Business Jet Pack is going to be the one that's going to be rebuilt, uh, by Q1 of 2022, depending on when this gets released, it might already be live. But, uh, you can learn more about us at conversionwhisperer.com. Or, you know, really, if you just want to connect, find me on LinkedIn, Dmitriy Pisarev. So, yeah, I think you'll spell my name correctly on the title there… Jason: [00:14:07] But spell it this one more time for the people listening. If they can remember. Dmitriy: [00:14:12] They won't remember. It'll be we, we'll include a link forum. Yeah, Jason: [00:14:18] I know it is difficult to spell, so awesome. Well, Dmitriy… Dmitriy: [00:14:22] Appreciate it, Jason. Jason: [00:14:24] Yeah. Thanks so much for coming on the show. Make sure you guys go check out both websites and really connect with Dmitriy. He is an amazing person. Really, really smart. And I love having him in the mastermind. And if you want to be around other amazing members like Dmitriy and be able to hang out, ask them questions, see what's working. I'd love to invite all of you to go to digitalagencyelite.com. This is our exclusive mastermind for experience agency owners that are wanting to grow faster that have a team and that are not douchebags. So you're not a douche bag, if you're a digital agency owner, you want to scale faster, go to digitalagencyelite.com. And until next time, have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
What to Measure to Create a Successful Lead Generation Strategy

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Nov 28, 2021 20:34


What metrics should you track to create a successful lead generation strategy? Kara Brown had been working on a string of supply chain corporate jobs where she oversaw IPOs and eventually decided to create her own business and focus on lead generation. She believes filling the top of the funnel now will be the first to capture market share in the recovery. With LeadCoverage, she focuses on B2B revenue operations and acquisition strategies for scaling companies. In her conversation with Jason, they spoke about what she has seen working for lead generation, what every company should be measuring to keep a profitable business, and how you can save time on prospects that won't become customers. 3 Golden Nuggets Measure what's happening in your funnel. Many agencies don't have a really good lead generation source and are leaning on word of mouth to get new clients. You really have to find that source to keep growing. Where do most businesses fail? Kara says most companies she works with fail at truly measuring what's happening inside their funnel. At the top of her lead generation strategies are “share good news, track who's interested, and then follow up.” Another successful strategy is getting as niche as possible. “When your niche is small, you can be hyper-targeted in your approach,” she says. This will save you a lot of time with clients that don't meet your criteria. Measuring volume, velocity, and value. Kara is not running a creative agency, but she is all about making her business as profitable and valuable as possible. When it comes to how valuable her consultancy or her agency is, she thinks in terms of measuring volume, value, and velocity. Velocity is how fast are they getting in your funnel? Volume is how many deals can you handle any one time and how many deals are going to fill your pipelines? This is all about close ratios and trying not to spend too much time on deals that won't close. And value is all about what is this potential customer truly going to be worth to you? For this, try to be really honest and don't overvalue customers. Lead with pricing to save time. When you are speaking with potential customers, do you lead with the budget? Doing so could really help your closing ratio and save you a lot of time on deals that aren't going to close. Kara prefers to be really straightforward with her approach and start the conversation by stating what her company does for customers and say “this is our minimum monthly rate” to find out whether it is on that potential customer's budget or not. If they're not, then she offers to use the rest of the call to give free advice. She assures this is helpful and saves her a lot of time. Sponsors and Resources Sharpspring: Today's episode is sponsored by Sharpspring, an all-in-one revenue growth platform that provides all of the marketing automation, CRM, & sales features you need to support your entire customer lifecycle. Partner with an affordable marketing automation provider that you can trust. Head over to sharpspring.com/smartagency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Measure Your Way to a Successful Lead Strategy and Stop Wasting Time on the Wrong Prospects {These transcripts have been auto-generated. While largely accurate, they may contain some errors.} Jason: [00:00:00] What's up, agency owners? Jason Swenk here, and have another amazing digital agency podcast guest for you. We're going to talk about lead generation for your digital agency. It's going to be a fun show, so let's go ahead and get into it. Hey, Kara. Welcome to the show. Kara: [00:00:22] Hey! Thanks for having me. Jason: [00:00:23] Yeah, I'm excited to have you on. So tell us who you are and what do you do? Kara: [00:00:27] Yeah, I'm Kara Brown. I'm the CEO and founder of LeadCoverage and we do B2B lead gen for supply chain, heavy industrial, and tech. Jason: [00:00:35] Awesome. And so how'd you get started in creating an agency? Kara: [00:00:40] Yeah, that's a funny story. So I was the 12th employee at a company called Echo Global Logistics. Very sexy, all the trucks. Uh, actually a super sexy, the guy that started Echo Global Logistics also started Groupon. So I got to send the first Groupon email. It's a true story. It came from my inbox. Got to watch them grow like crazy and then ended up being on the team that took the company I was working for went public. So I did an IPO at about 25. Uh, I was asked to move to Nashville to do another IPO for a private equity company, for another supply chain management company. Sort of a stream of, of supply chain, corporate jobs. And then ended up back in Chicago, popped out two kids, moved to Atlanta, moved here for a sort of a garbage brokerage jobs. So it was sort of similar to supply chain but in a different space. Instead of going public, that company raised $95 million in equity. When I exited that, the question was like, what to do next? And someone told me the statistic that less than 2% of female founders will ever break a million dollars in revenue. And I said, well, that doesn't sound that hard. So I did it with an all female team. It took us about 10 months and now we're on the path to ten million. Jason: [00:01:54] Awesome. So is Groupon still around? I haven't heard anything from them. Kara: [00:01:58] Yes. They're still around. They're a publicly-traded company. Please buy some Groupon things. Jason: [00:02:05] So you must have some stock. Kara: [00:02:08] Yeah, I think… They still exists. They're still out of 600 West Chicago and sort of a Chicago tech darling from the early two thousands. Jason: [00:02:15] Very cool. Uh, funny story, my wife got me a Groupon in a helicopter, like 10 years ago for my birthday. And I'm like, I'm not doing it. I'm scared to death of helicopters. That's right. Let's talk about lead generation. You know, I find a lot of digital agencies, they take on the wrong clients and they take on the wrong clients because they haven't been building their pipeline. They haven't been building their pipeline because they don't have a really good lead generation source in order to really kind of tap on because they're based on word of mouth. So what have you seen working for lead-generation? Kara: [00:02:55] Sure. So we have nine lead gen strategies, but I'll start sort of at the top. So at the top is share good news, track who's interested, follow up. Most companies that we interact with, either customers or people that would just help out as friends. Are doing one or two of those and almost none of them, almost none of them, of the companies we talked to are tracking any of it, right? Like really, truly measuring what's happening inside their funnel. And so one of the things that we've found successful for Lead Coverage is getting as niche as possible. So our niche is supply chain management companies over a hundred million in revenue or venture-backed. And basically, if you don't hit one or two of those criteria, we may take you on as a client, but we may not. We may say no, thank you. And that's been very successful for us. So in terms of lead gen, when your niche is small, you can be hyper-targeted in your approach. If you're wide and not very deep, it's really easy to end up talking to a lot of folks that aren't super valuable. The other thing that we like to measure, which we can definitely talk about later, we do a lot of measurement in our company, is we measure volume, velocity and value. And I think most important for agencies is value, right? So a very smart man part of the Groupon kickoff team in the very beginning of the early days said to me, hey, Kara, it is… it costs to you, just as much money to run a $250,000 account as it does a $2,500 account. So get upstream and get as big as you can. Get your, get your retainers as big as you can, as fast as you can. Because that's where the real money-making happens. Jason: [00:04:48] You mean you don't want to race to the bottom? I see a lot of people when they initially talk with us, we really kind of determined that pricing is one of their big issues. And they're like, well, my competitor is actually cheaper. We're actually more. I'm like, what does that matter? Do you want to win that race? I was like, I don't. Kara: [00:05:10] We just decided to raise our minimums. I went to a trade show last week for our very specific niche industry, right? So every single person at that show could be a customer for us, which I think is super important. We went to the show and the number that I told everyone, nobody said it was too expensive. And I came back to the office after two days in the trade show floor. And I said, we need to increase our minimum because no one told me it was too much. And when no one's telling you, you're too expensive, you're not charging enough. Jason: [00:05:40] Yeah. Yeah, totally. Yep. Totally agree. Get in a little bit more about kind of the velocity and the volume and the, the value. Let's talk a little bit more about that. Kara: [00:05:49] Yeah. We love measurement. So we are not a creative agency. We don't have a creative director. We don't do creative. We don't do color theory. We're probably very different than most of the folks that listen to your podcast. But I still listen to the two Bobs and I'm all about agency work. And I'm like all about sort of consulting and how do I make this business as profitable and valuable as possible? So when I think about how valuable my consultancy or my agency is, I think about volume, value, and velocity. So how fast are my customers finding me? And then how fast can I get them to close the deal? Velocity story is a funny one. I have a client that we have been or potential client we've been talking to for over two years. And I think I may tell him it is time to stop talking to each other. Like it's nice. But, um, I've sort of sent him enough info. I've done enough. We've had enough phone calls. I've talked to enough of his people. It's been two years. If you're not going to buy, you're not going to buy, right? So that's velocity. But we also had a few weeks ago, our first one call-close. So we were introduced to someone, they came through a LinkedIn post that I wrote, which I should definitely mention how we do LinkedIn because it's really interesting. And one call the guy was like, great. Let's do it. And our minimums, Jason, are $15,000 a month. And the guy was like, I don't want your minimum. I want to be a big fish in your pond. We were like, all right, let's do it. So those are really exciting. So velocity is how fast are they getting in your funnel? Volume is how many deals can you handle any one time and how many deals are going to fill your, fill your actual pipelines? This is all about close ratios, right? So you can have a whole bunch of conversations, but if they're only closing 5 to 10% of them, you're spending a lot of time on deals that aren't going to close. So I have a thing that I do… fair it may not be nice, but it helps me save a lot of time. I will look at who I'm talking to before I get on the phone. And if they're not in our box, I will open the call with something to this effect: It's so nice to meet you, Jason. I want to talk a little bit about what we do and who we do it for. I'm going to tell you how much. If we're not in your budget, we'll use the next 25 minutes. I'm going to give you 25 minutes of free advice. My minimum is $20,000 a month and my core market is supply chain technology and heavy industrial. Does that feel like something that you can afford? And if they're like, oh my budget's like $2,000 a month or something crazy, then I'll say, hey, no problem. Let's use the next 25 minutes and I'll give you all the free advice I can. That's really helpful. They also don't call me again. So I don't have to like go down the rigor mortise of like giving them a proposal for $20K a month. And they're like, uh, we're not on the same page. So that stops that and then value, right? What is this potential customer going to be worth to me? Like really, truly going to be worth to me. And I don't do the work you do. So I don't work with agency owners. But I would imagine that there are a lot of folks out there who overvalue potential customers, right? I think this product is going to come in at 80 grand and it comes in at 20. I think that this customer is going to stick around for two years and they stay for three months, right? So being really, truly honest with yourself on values really important. And the best way to check out value is just to have someone, probably not you, if you're the CEO. Go back and look at your, at your previous customers, right? Like take a deep dive and really be honest with yourself on how much is each customer actually truly worth to you? Jason: [00:09:21] Is your agency struggling to deliver real revenue growth results to your clients? You know, agency marketers can consolidate data and align marketing and sales teams goals to achieve real results for your agency and clients using revenue growth platforms. Sharpspring is an all-in-one platform built for agencies like yours to optimize digital marketing strategies with simple, powerful automation. Manage your entire funnel all in Sharpspring. Now for a limited time, my smart agency listeners will receive your first month free and half off onboarding with Sharpspring. Just visit sharpspring.com/smartagency to schedule your demo and grab this offer. That's sharpspring.com/smartagency. Yeah, I love it. And I love that you get right to the budget in the very beginning. There's so many people, you know, when I'm speaking to a crowd, one of the two questions I'll ask is all right, how many people get the budget every single time or almost every time? And then, you know, how many people ask for it? And by the it's about 50% of the room than ask. And then 50% of that, it's only a quarter of the percent of agencies are actually getting the budget. And that's before they put all that work in it. I would always go to them and say, I just need a range of what you're trying to stick around. Because here's the deal, especially on pricing, and I learned this the hard way when I talked to a small company, I never heard of called Berkshire Hathaway. And I pitched them like a $20,000 website. They were expecting 30,000. So like if I started out, like I would always try to lead with what's their expectation and then match them there. But I would also even have a floor. Uh, so pricing is very important. Kara: [00:11:12] So I actually disagree. I lead with our pricing. Because if they're willing to pay you $30,000 for a website, there's probably $120,000 somewhere in their budget, right? And I think as a woman, this isn't necessarily agency owner, but as a woman, knowing other women in business, we tend to undervalue ourselves. And what I've found is, as my retainers have gone from 5 to 7 to 12 to 15 to $20,000 minimums, no one's saying no, right? Like very few people say to me, I can't afford you, right? Unless they're like just out of the box, but if they're in the box and they understand the value and I've done a good job of delivering what we do and showing them what we do and how we do it and what the value is we bring. As long as I lead with my minimum… Actually, it's not even the minimum. I learned something at an EO event, the entrepreneur organization that the human brain anchors on the first number that you tell someone. So when someone says to me, Kara, how do we work with you? I say, well, our average retainer comes in between 30 and $40,000 a month, but our minimum is 20. So instead of them saying, oh, I can get this person for five grand a month because I say something like our minimum is five grand. They're already like, oh, well she's like, she's really expensive. Like, can I afford her home? Like, oh, like maybe I should find another $30,000 a month somewhere to pay this person. So I think it's really important that you set your own standards and there's always money in corporations. I have worked for enormous corporations in my corporate career. There's always money. Always. Jason: [00:12:58] Yeah. Yeah. I call it the reverse engineer effect when you're going over the range, because so many people, when they go, I just need to know a range. A thousand, fove thousand? I would literally start at a billion and then a million and then a hundred thousand and 20,000. So they echo that first number going, holy cow, no one else said that. What makes you so unique? And you can really separate yourself. And switching focus a little bit. You hinted a little bit to the LinkedIn post. Tell us how you do that. Kara: [00:13:28] Yeah, so we can attribute $480,000 to two LinkedIn posts. And that's just in 2020, not in 2021. So super proud of this whole process. I post super regularly on LinkedIn. Sometimes I post about being a woman in business. Sometimes it's about marketing. Sometimes it's just like, I don't know thoughts of the week that I've decided that I want to share. I have a ghost writer. She's on my team. Should we speak for about an hour a week. Now, because we've been working together for a while, she can get almost four LinkedIn posts out of that one hour. I also write for Forbes and Entrepreneur and other magazines. So she does those for me at the same time. And she writes the post themselves. They're my words, but she physically crafts them. They go to my team, my team adds the emojis and make sure that they're, if people are tagged and then they go into a file for me to approve. I approve. And then they get scheduled. So we have posts that are going out. We're recording this in September. We've got posts going up through the end of November and I'll be gone the entire month of October. So I'll still be posting even though I'll be in Europe, which is really nice. And so we can see attribution of almost $500,000 to LinkedIn. And this is LinkedIn thought leadership. And it cost me probably 2000 bucks a month to do this. So it's my most ROI driven piece of, of lead gen that we do for myself. And it's been a terrific way for us to meet people. You can't always track every single lead back to LinkedIn, but it was a, it was a funny story. I was at this trade show I just mentioned in our niche industry. And I ran into some guy that I had known from a million years ago. And he said Kara, I read every LinkedIn post and I was like, awesome. And he said… Jason: [00:15:11] Stalker. Kara: [00:15:12] Stalker, right? Well, that's the whole point, like, please stalk me. And he said, may I please introduce you to my CMO? I think that I'd really like to make sure that you two meet each other and now they're going to be a client. So you never know who's reading it. They may not be liking, sharing and engaging, but put it be putting yourself out there is super important. Jason: [00:15:31] Yeah. I love it. And these are just regular posts. Do you have a call to action on there or is it just helpful? Kara: [00:15:36] Yeah. So we're trying to, the LinkedIn algorithm changes pretty regularly. We do this for clients as well. So we have a human being on our team who is regularly trying to sort of like bust the LinkedIn algorithm. Not in an ugly way, just in a, how do we use it to our advantage? So one of the stats she told me that I was really surprised is that less than 2% of people that are on LinkedIn are actively posting. So just by actively engaging in LinkedIn, they're already in the top 2% of folks that are sort of voyeurs only, right? And so, as long as you just put anything out there, you're going to be sort of doing better than other folks. If you get into like exactly what, you know, doing posts, doing polls calls to action links, links back to landing pages. Links to, to form fills and video. We can, it's a whole another podcast we can do just to talk about how to like optimize LinkedIn. In my professional opinion, that this is specifically for my market, which is supply chain, heavy, industrial and tech. I don't need to put video out there. I don't need to be super complicated about it because no one's buying from LinkedIn, right? LinkedIn just keeps me front and center for the folks in my world and in my universe. That when I see them at the trade show or when I send them an email or when they see something from me that's interesting and they have a need. They're like, oh man, there's this woman who posts all the time on LinkedIn. She's really interesting. I'm going to reach out, right? So it's just about staying in the conversation. Jason: [00:17:03] Yeah. It's about consistency. You know, you mentioned you were chatting with someone for two years. Holy cow, like if I was chatting with them, but when I look at my, our stats, most people don't buy from us for about a year and a half to two years. They're digesting that content, which isn't a sweat off my back and if they never buy it and they just get helpful content, I'm perfectly fine with that as well. But, but yeah, just to go through the proposal process for two years, that is a yeah. Shit or get off the pot dude. Kara: [00:17:34] And yeah, this particular human is such a nice guy and he's so kind, and I know he does want to work with us and he is very specifically strapped by, you know, investors and sort of what these investors want to do. I get it. And it doesn't bother me to like, have a relationship with this person. He is also well connected. He's a good human, but we are going to have to at some point, be like, hey, I can't do one more deliverable for you, right? Like I can't, I can't put together another email or send you another proposal. Like they're all the same. Like, it hasn't changed. Like the same proposal you got two years ago was going to be the same one I'm going to send you now because what we do, hasn't really changed. Jason: [00:18:13] Awesome. Well, this has all been great, Kara. Is there anything I didn't ask you that you think would benefit the audience listening in? Kara: [00:18:19] You know, I think one of the things that's really important to us, Jason, is the combination of failed the market. That sales and marketing, including PR and AR analyst relations, which I know a lot of folks in digital marketing don't really touch analysts at all. Cause it's kind of boring, but really important to your senior leaders, right? So if you're going up market, and this is not small business, this is enterprise. So we're very fortunate in the, in our niche. We have sort of along the spectrum, small business, all the way up through sort of big corporate enterprise, even publicly traded companies. And so we get to touch everything from analyst relations to public relations, all the way through, but long story short, the deeper we get in the niche, the higher our prices can go and the more we get integrated with both PR AR and sales. And the stickier you get, the more you can deliver math back to your client that goes to their boss, that goes to the board. The longer you'll stay in the organization, the more valuable you are and the more sticky, just the stickier that you get in inside those orbes. And so that's my sort of best piece of advice is if you can deliver math back to your clients, specifically math that goes to the board or to some sort of senior executive, you will be very, very sticky. So find something that's meaningful to your customer that you can deliver on a regular basis. That means something to their boss. Jason: [00:19:46] Awesome. Love it. What's the agency website people can go and check you guys out? Kara: [00:19:50] Yeah. We're lead coverage.com and we'd love to hear from anyone who wants to talk more about lead gen or anything about supply chain. Jason: [00:19:58] Awesome. Well, thanks so much, Kara, for coming on the show. Make sure you guys go check out the website, connect with Kara. And if you guys want to be around the most amazing agency owners in the world, where they're sharing  what's working currently to be able to see the things you may not be able to see as well as have fun scaling your business. I'd like to invite all of you. Go to check out digitalagencyelite.com. This is our exclusive mastermind just for digital agency owners. So go to digitalagencyelite.com and until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Using Data-Driven Algorithms To Find Your Agency's Sweet Spot

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Nov 24, 2021 13:01


Do you know how using AI and data-driven algorithms could help you save money on inefficient positioning? Anne Cheng is an entrepreneur that started her business with an idea in mind: what if she could get inside the heads of people and understand what information they required to make decisions? Supercharge Lab is a cognitive artificial intelligence company that uses AI and data to try to understand what goes on inside customers' heads, or rather listen to the voice in their head. In this episode, Anne sat down with Jason to explain how this AI technology works, why business owners should embrace that it is the future and use this innovation to their benefit, and how agency owners could use it to create specific targeting and sales and marketing content that resonates with its audiences and find their sweet spot in the market. 3 Golden Nuggets Getting inside people's heads. How can we really understand what goes on inside someone's head? Anne explains that what really gives us away is how we write, instead of what we write. The tones, the structure, the number of emojis, and the type of words we use are giveaways that offer a glimpse into things like our emotional state, personality style, social styles of interaction, and conflict management. Her company uses this data to build algorithms that help them put people in categories of psychological profiles or cognitive styles. “After we applied it to sales and marketing, we've seen a significant lift in our customer ROI,” she says. How the industry will change. Will AI replace what agencies are doing for clients? This technology is becoming quickly democratized. A few years ago artificial intelligence was all about building training models and putting in huge massive slices of data. Today it costs $16 and 39 cents to run a learning model. It can be really quick and easy to train a model with a high level of accuracy. Is the technology strong enough to completely replace a human? “I think not at this point,” Anne told us. There is still a long way to go before that, but it is the future. For now, it's all about not wasting money on inefficient positioning. “Data-driven algorithms are not the enemy,” she adds. Advantages for agencies. We should always use new technologies and innovations to our benefit, and to benefit our clients. We all know that agency owners struggle with their own marketing and have a hard time treating themselves like their own clients. Anne believes this struggle comes from not really knowing where your sweet spot is and that using these technologies could help you experiment. Using algorithms can help you determine the accuracy of your targeting. For example, if you would like to go after medium-sized businesses with revenues between 10 to 50 million, you can test your response rates. Algorithms are great ways to experiment. It's cheap, it's fast, and you're not wasting time. Sponsors and Resources Gusto: Today's episode is sponsored by Gusto, an all-in-one people platform for payroll, benefits, HR where you can unify your data. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Head over to gusto.com/agency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Stop Wasting Resources and Use Data-Driven Algorithms to Find Your Sweet Spot in The Market Jason: [00:00:00] What's up, agency owners? Jason Swenk here, and we've got another great episode coming to you. And we're going to talk around AI and what you can do with really kind of targeting the right audience, as well as having the AI tool, write the copy for you to convert faster. So I'm excited to get into this episode. Uh, so let's jump in. Hey, Anne. Welcome to the show. Anne: [00:00:31] Thanks for having me, Jason. Jason: [00:00:32] Yeah. So tell us who you are and what do you guys do? Anne: [00:00:36] Well, my name is Anne and I'm the founder and CEO of Supercharge Lab. Supercharge Lab is a cognitive artificial intelligence company, which means we take AI and a lot of data and we attempt to understand what goes on inside your head, or rather listen to the voice in your head. And we do that for the purpose of applying it to sales and marketing. We try to improve the ROI as far as our clients. And so far it's been quite a ride. Jason: [00:01:04] Cool. And so how did you… how'd you, how'd you all come up with developing this? Anne: [00:01:11] Well, I guess it started with the idea that we said, what if we could get inside the heads of people and understand what information they required to make decisions? Uh, and that way we could make decision-making more predictable, uh, less noise and biased. And, well, improve results across all kinds of positions that are being made. Whether it's medical decisions or diagnosis, whether it's sales and marketing, uh, purchase behavior. Um, so, well we decided to try to figure out how people, what information people take in, in order to make decisions. And we came up with an algorithm that profiles, the information, uh, that people take in the site, the cognitive style of people, what we call or the psychological profile. And, uh, well the rest is history. After we applied it to sales and marketing, we've seen significant lift in our customer ROI. Um, we have had customers who literally renew their campaigns with us so often that they tell us they cannot see a day without, uh, using our solution. Jason: [00:02:20] Awesome. And tell us kind of, how does… How did you guys really kind of write the algorithm in order to get inside our heads? I mean, how does all that work? That's always fascinating. Anne: [00:02:34] So I think that's a great question, Jason. So a lot of people look at what we write because when we, when we write, um, whenever we write the contents of what we write is driven by who audiences is what we want to say. Uh, but a lot of people fail to realize that what, what really gives us away is how we write. The tones, the structure, the number of emojis or bullet points, or the kind of words that we use. That actually is the voice inside our head. That's the tone of the voice inside our head to tell gifts, clues into things like, you know, your emotional state, your, your personality style, your social styles of interaction. Or even your style of conflict management. Um, by understanding how it be right to be basically we're able to take these language models, parse it into an algorithm. And well, uh, we have been able to put everybody in some categories of psychological profiles or what we call cognitive styles, um, and hopefully using rules based and data-driven, uh, algorithms, were able to cut out a lot of the noise that actually, you know, gifts written comes from manual advertising and marketing. Jason: [00:03:57] I feel, I feel dirty. You're profiling me. Anne: [00:04:02] No, I don't do that. Jason: [00:04:04] Um, so. How would someone… As an agency, you know, they, and I'm talking more about not for their clients, but really for themselves, right? So we just got done as we're recording this, this week, our digital agency experience, where we have, you know, 28 of the best agency owners come out, um, to my house in Colorado, when we brainstorm on strategies and what's working. And the common theme, and this is among most digital agency owners. And if… If, uh, if you don't admit this you're supporting terrorism. But we, they struggle with doing their own marketing and creating themselves as their own clients. Um, and a lot of them struggle with just identifying who their audience… Cause they try to go after everybody. So how could, you know, AI really helped them out in order to reach more of the audience? Because they may not know who they're targeting yet. Anne: [00:05:08] Yeah. So I think one of the biggest struggles as a… well a marketing organization is actually understanding where your sweet spot is. And, uh, you know, using algorithms, you can actually do a lot of experimentation. Uh, one of the biggest things that, um, AI does, is that it gives you a score of how much you are able to resonate, how accurate, you know, your targeting is. So if, for example, you think you would like to go after, you know, a medium-sized business with revenues between 10 to 50 million, and you don't really know whether this is really the sweet spot for you. You can actually test, um, the, the targeting and you can test things like, you know, what we call your, your outbound messages as well as your response rates. And if you see that your response rates are lower than another particular industry, you know…  It's possibly time to change and don't throw good money after, you know, a bad result all the time. And so that's what Einstein says is stupidity, you know, expecting a different result by doing the same thing, all, all the time is insanity. So what I would do is use algorithms, use artificial intelligence, or what may be called big data, uh, to understand what your audience is and test the vigor at which they will respond. Now, I've done that a lot with myself, with my own audience. Um, and I've noticed that, you know, we try to grow, uh, our customers by, you know, going after bigger companies. Well, it doesn't work. Um, we, we realized that we were not getting any conversions. We were not getting any customers inquiring. So we said, you know, maybe we should go back to, uh, the smaller businesses. And at the same time, we change up the different industry. So algorithms are great ways to experiment and it's cheap. It's fast. It, it takes me three days to identify whether, you know, this is the right market. You're not wasting time. So yeah. Jason: [00:07:28] Taking care of your employees has never been more important than right now. And while paydays are great, running payroll is a major pain, calculating taxes, deductions, compliance. None of it's easy. Unless of course, you have Gusto. Gusto is a simple online payroll and benefits built for your small business. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Plus, with Gustos help, you can offer benefits like 401k's health insurance, workers' comp, and a lot more. And because you're a smart agency masterclass listener, you're going to get three months free once you run your first payroll. Go to gusto.com/agency. That's gusto.com/agency for three free months. Very cool. So will AI… Will AI replace what agencies are doing for clients? Like I look at it as, and I've been telling agencies like this for a long time. And if you think about kind of the car industry, you know, many, you know, many, a hundred years ago, I guess, you know, the car industry created dealers or the manufacturer created dealers, and they were the middlemen selling to the public because you can't go to the dealer. Um, and forever, it was that way. And then, you know, Tesla came out and you, you don't go through a dealer… You buy it right from the manufacturer. And I kind of see a lot of this starting to happen with agencies that are just doing a particular service where, you know, Facebook and Google would always promote agencies. But I kind of see them starting to kind of pull back from agencies a little bit because now people can go directly to them and not use the middlemen. Anne: [00:09:33] Yeah, for sure. I think, uh, one of the things about technology is that is becoming very quickly democratized. Artificial intelligence just a few years ago, was all about, you know, building training models, you know, putting in a lot of data, huge massive slices of data. Today it costs me $16 and 39 cents to run a learning model. Uh, it takes maybe about an hour to, to train a model. And you know, it, it can be really, really quick and easy, um, with a high level of accuracy to train a, uh, artificial intelligence model. Is, um, the technology strong enough to completely replace a human? I think not at this point. I think that is still a way to go, uh, where, you know, copy is not going to sound like it's artificially written. Uh, so that's, that's something which I think is going to, uh, have to develop a little bit more. But to understand your audience, to predict the audience with a level of, um, certainty, it's starting to become quite democratized. So I think, yes, logic-based artificial intelligence is going to upend the advertising industry. But that being said, artificial intelligence to going to upend almost every industry, if you let it. Jason: [00:11:01] Yeah, yeah. Well, it's, you know… That's what innovation is. It should always challenge the status quo and make us better. And you know, the one thing I always tell agencies is use the new technology, the new innovations to your benefit, and to benefit your clients, you know, going forward. Um, this has all been great, Anne. Is there anything I didn't ask you that you think would benefit the audience? Anne: [00:11:24] Yeah, I think, you know, the biggest question that we have as marketing organizations is how can we use that wastage? Um, today up to 26% of ad spend… It's wasted on inefficient, uh, positioning and efficient messaging. And I think a lot of us have to try to learn that, you know, data-driven algorithms and rules-based algorithms can… are not the enemy. Our enemy is embracing… um, the, the innovation that is coming. So I think our enemy is truly ourselves. If we get over ourselves, we can definitely grow the business, um, in a massive, in a major way. Jason: [00:12:09] Awesome. What's the website people can go and check you guys out? Anne: [00:12:14] Well, it's superchargedlab.com. Remember as supercharged lab without an S at the end dot com. Jason: [00:12:20] Awesome. Well, thanks so much for coming on the show, Anne. You did great lots of great insights. And if you guys enjoyed this episode, make sure you guys subscribe, make sure you comment. And if you guys want to be around the best agency owners out there and really tap into their heads, because maybe you haven't tapped into the AI yet, um, I want to invite all of you to go to digitalagencyelite.com and apply. And, uh, if we feel that you're right and the group's right for you, we'll have a chat and… So good at digitalagencyelite.com. And until next time, have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How Relationship Equity Establishes Your Agency as a Category of One

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Nov 21, 2021 20:03


Do you know how relationship equity could help you grow your business and establish yourself as a category of one? Michael Stamatinos has always thought of himself as a connector. His love for building bridges and connections led him to the business development, marketing, and sales world. He founded Omorfi, an agency that empowers individuals to take a leadership role in their community and he focused on his passion for the healthcare sector, the role of leadership in communities, and helping people make connections. In this episode, he sat down with Jason to talk about how relationship equity became the core of all his interactions with the people in his life, how agency owners could use this concept to improve their relationships with clients and peers, and how being passionate about your business can really help you establish yourself as a category of one. 3 Golden Nuggets Relationship equity. Michael considers himself to be a connector. He loves creating connections between people and really believes in the concept of relationship equity. To him, relationships are like a bank account, you have to make sure to make a deposit and you have enough money before making a withdrawal or a purchase. “There are folks that are very quick to make massive withdrawals and they haven't substantiated,” he explains. People will sometimes try to get something from a person without first establishing a true connection with them and building trust. How can you do that? By taking that relationship and multiplying it by time and by value. That is what truly builds relationship equity. How can agency owners use it? Relationship equity is all about connections and being bridge builders. Agency owners can really benefit from this approach when they focus on really understanding who it is that you're trying to serve and know what it is that's going on in their environment and in their world. Understand it so well that they think, this person really gets me and my business. But this is something that you can also take to your relationship with peers. “It's amazing what doors can be opened when you try to approach the world from a place of abundance,” Michael assures. Be in a category of one. Having that connection and understanding of your client's business and needs will happen especially when you find a niche you're really passionate about. When there's a connection that allows you the opportunity to start building and cultivating that relationship and building that bridge, this is the start of establishing yourself as a category of one in your industry. This way, you can empathize with and what they're going through and ask how can I help? Who can I connect you to? Sponsors and Resources Sharpspring: Today's episode is sponsored by Sharpspring, an all-in-one revenue growth platform that provides all of the marketing automation, CRM, & sales features you need to support your entire customer lifecycle. Partner with an affordable marketing automation provider that you can trust. Head over to sharpspring.com/smartagency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Investing in Relationship Equity and Establishing Yourself as a Category of One Jason: [00:00:00] What's up, agency owners? Excited to have another amazing episode. We're going to talk about relationship equity, and you're going to want to really hear what we're going to talk about and I got an amazing guest. So let's go ahead and get into the show. Hey, Michael. Welcome to the show. Michael: [00:00:22] Hey, it's good to be here. Jason: [00:00:23] Yeah. So tell us who you are and what do you do? Michael: [00:00:27] Uh, so Michael Stamatinos. Managing partner of Omorfi and we work with clients that are focused on growth. We work on strategic growth initiatives with some execution services. So it really boils down to one word: access, access to the right people, access to the right strategic partners, and in some cases, access to the right growth capital. So we really view ourselves as bridge builders and connectors at heart. I am a connector and that's really what we're focused on. So come from a pretty humble background. Parents are both immigrants, so grew up working in restaurants, being Greek, and just love working with people to the point where I wanted to be a clinical psychologist. And after my training, I realized that I didn't want to be in living receptacle to people's stuff. I still wanted to help people. So gravitate it into the world of business development, marketing, and sales, and been there ever since. Jason: [00:01:18] So I'm dying to ask you and you. And you probably get asked this a lot just based on how you did the intro about your family being Greek and in the restaurant business. Is your family like the Big Fat Greek Wedding? Michael: [00:01:29] 100% Yes. Jason: [00:01:33] How many cousins do you have? Michael: [00:01:35] We have several cousins named Nick and Peter and Costa, and it's very family-oriented. And my dad is quite a character, you know. When he talks to people, he's very animated, loves to tell stories. My mom's a little bit more of sort of the, just a homemaker, very peaceful, very calm. So sort of the ying and yang there. But my dad was a really hard worker and just grinded for a long time and stayed consistent. I think if there's anything that I've taken from him, it's that. Staying consistent and having discipline. Jason: [00:02:07] Awesome. Well, let's talk about relationship equity. How do you view this? Michael: [00:02:13] So I have an interesting story of how that kind of came about. So as I mentioned earlier, yeah, I'm a connector. I've always been a connector my whole entire life. I get a lot of joy out of putting people together, regardless of whether something's in it for me or not. And I was in a meeting one day with a client… And I don't know if you've ever had, if this has ever happened to you, but I got a stream of thoughts that were so clear that I had to excuse myself from the meeting. And I call it, I got a memo from that office, if you know what I'm saying. And that hadn't happened to me up until that point in my life. So I left that meeting. I always carry a little notebook with me. So I jotted down three sort of overlapping circles with a circle in the middle that intersects all the other circles. And I called it relationship equity, and really relationships are very similar to a bank account. When you initially start a bank account, you deposit some money. Well, if you want to go out and purchase something after you've started your bank account, you would draw some money. The reality is that if you continue to withdraw and you want to make a big purchase and you don't have enough money in there deposited, it's going to say insufficient funds. And that's really how I'm seeing the world now is that there are folks that are very quick to make massive withdrawals and they haven't substantiated. They'll do withdrawals by putting in deposits into that account. And sort of the three circles within relationship equity, that makeup relationship equity rather is trust. How do you build trust with people? Well, you have to have some level of authenticity and I'm not here trying to be someone that I'm not. I'm a real person, normal person. And there has to be some sort of a connection. In our case, it was through, you know, one of your members, Pete, Pete Cunningham. And that's how we really kind of transferred that relationship equity. And so there's that trust that. And then how do you build that relationship? Well, you take that trust and you multiply it over time. And it doesn't necessarily have to be long stretches of time. It could be short, such as it's on there's some folks that have gotten really close to in short amount of time. And then how do you build equity within that relationship? Well, you take that relationship and you multiply it by value. And the way that I define value for me is helping someone for the sake of helping them not having a hidden agenda. And when you do all those things, you build relationship equity. So when people ask me, what game am I in? I'm in the game of building relationship equity all the time. Whether it be with my wife, with my kids, with my friends and family and with clients and prospects. That's what I'm doing. And that's look, that's what got me here today. I didn't reach out to you and ask you to be on your show. It was through a series of activities of trying to add value and trying to be helpful and building relationship equity, which inevitably was transferred to this particular moment here. So this is something that I'm going to be doing until I'm not here anymore, regardless. Jason: [00:05:10] Yeah. I love the term and I've always told people, you know, especially cause they're like, hey, let me, uh, you got the audience I want. I'll give you this amount of money. I'm like, no, it just doesn't work that way. I'm like, you got to make deposits before you're withdrawing. I mean, a great example… It's always been, since I've been a kid, my grandfather worked on the long island railroad and I've always wanted to ride in front of the steam engine. And I met this one guy, Greg, that a mutual friend introduced us because he usually takes off a lot of time. We go play. And so we started kind of a couple of weeks ago, epic Fridays. So we just go out, climb mountains, do some really cool stuff. And I was telling him, you know, we were talking about like bucket list items and stuff like that. And I was like, man, you know, I've always wanted a ride in a steam engine. He's like, I know the owner of the Durango Silverton Railroad. Let me call them up for you. He surprised me. And so in the next couple of days, I'm going to get to ride, hit the whistle and everything. So just, just from relationships, like I didn't ask for that. So… Michael: [00:06:17] It's amazing. It's amazing what doors can be opened when you try to approach the world from a place of abundance and not to sound all woo or anything. But when you really try to add value and try to really help people for the sake of helping people, not only are you advancing society at large, but I dunno, it just, there's more opportunities that have come across my desk that I could ever take advantage of. It's just trying to be, be that way. So I think I'm going to keep doing that. Jason: [00:06:41] Yeah. I mean, there's so many examples. I, you know, I think of, you know, in our mastermind, you know, some members like Dunkin or Ian or Jeremy. They provide so much value to the membership, but they get so much business back and that's not their whole intent. Like they don't go in it saying like you were saying, well, what can I get from this? It's like, I'm going to give, but then whenever they need anything, like people are like, I'll give you the shirt off my back. What do you need? And they're just people that recognize that you really start scaling… You know, I was very minded, many years of my career, like, oh, you're in this business, I'm going to take you down. And then I'm like, no, no, no, you can build relationships and work with people. And even if you never get anything back from it, you feel good by doing it. Michael: [00:07:30] Yeah. The currency that I play with is relationship equity. And I get, as I mentioned earlier, like I view myself as a bridge builder. And what better way to live life than to continue to build bridges, show people how to build bridges. In other instances, you're doing the bridge building for them. But then you're also building tools to show people how to build bridges. I mean, I didn't go to a fancy school. I don't have any of these fancy degree. I didn't go in and I didn't do any of that stuff. And somehow I pinch myself sometimes when I find myself in some of these meetings with people, quite frankly, that sometimes I'm like, wow, how did I get here? Oh my gosh. And I did. And it has a lot to do with knowing how to get access to just scale. And it's all about building relationship equity. Jason: [00:08:18] Yeah. So the agency owners listening in, is there any steps or there's no trickery here, but if they're thinking, well, man, I would like to build more relationships and I'm thinking back, you know, a couple of years ago for me, I was crappy at building relationships. Like it's very hard to get in with me. Once you're in, you're in, you know, I was always closed minded and that kind of stuff. So how can agency owners benefit from this? Michael: [00:08:47] The way that agency owners can benefit from it is as follows is, understand who it is that you're trying to serve and know what it is that's going on in their environment and in their world and know it's so well to the point where they're like, wow, this person really understands me. That's how you connect with people. You having been a former agency owner and knowing the growing pains, the ins and outs you'd been there before. And when you're trying to serve a specific niche or market and you understand problems that are very… And I'm not talking about just surface level deep, I'm talking about going four or 5, 6, 7 levels down. That's when there's a connection that allows you the opportunity to start building and cultivating that relationship and building that bridge. So it starts there. And then the other thing that you really are trying to do is you really are going to have to position yourself as being, you know, that category of one. That truly understands that market. I mean, you have quite a niche and I'm assuming it wasn't, it was, it didn't happen by chance. This was done by design. And it had a lot to do with how you position yourself and how you understood the pain points that agency owners were going through. Jason: [00:10:00] Is your agency struggling to deliver real revenue growth results to your clients? You know, agency marketers can consolidate data and align marketing and sales teams goals to achieve real results for your agency and clients using revenue growth platforms. Sharpspring is an all-in-one platform built for agencies like yours to optimize digital marketing strategies with simple, powerful automation. Manage your entire funnel all in Sharpspring. Now, for a limited time my smart agency listeners will receive your first month free and half off onboarding with SharpSpring. Just visit sharpspring.com/smartagency to schedule your demo and grab this offer. That's sharpspring.com/smartagency. Yeah, I always tell everybody I'm like, you have to know your audience you're going after and understand what they're feeling. Not their problem, but yes, you have to understand their problem, but how does that problem actually make them feel? And then empathize with them. You know, there's many people that do what I do that has no empathy and they just, they just kind of go shouting down from their fake mountain going, hey, I can help you, you know, look at what all the shit I've done. Versus like, I've been what you're going through. I totally get it. How can I help? Who can I connect you to? You know, one of the things I always tell people after I, I meet with them, like, is there any back connect you with? Because I do believe, like you were saying, you're a connector, you know, I've seen that, like the people that go, hey, you need to meet this person. And then whenever they're like, man, that relationship was amazing. Thanks so much, Jason. You know, and then just keep building on that. So I totally agree with all this. It's so easy. It's not like rocket science. I think you have to be aware in order to do it and kind of almost, you're almost kind of changing yourself a little bit because I think early on, I think we're all takers versus givers and when you give yeah, you get more. Michael: [00:12:10] And there's a great book called The Go-Giver and it's, I'm looking at something that I've described to as a kid, that there's something that when you shift from everyone defines success differently, by the way. For me, it's about being able to have the time and money to do what it is that I want to do and do it with the people that I want to do with and having great relationships with those people. I mean, at the end of the day, I'm not a slave to money. Don't get me wrong. It's, it's an important aspect of things that it's not the end all be all. And when you really place your identity outside of that, you start to make this shift from being successful to then being significant. So the shift from being successful to significant is it's a long journey and it takes a lot of work. And I can't say that it was a smooth ride for me, and it's not, I'm not done. I'm not done by any stretch, just so have a lot of growing to do. And the best is yet to come. Jason: [00:13:03] Yeah. And I think when you make that shift to significance, I remember when I sold the first agency, I was depressed and it was because I didn't have that significance. And then when I was able to create the community that we've created and really connect all these amazing agency owners together. You know, then I was like, oh man, I feel like I'm on top of the world. Versus before I felt like I was on the top of the world by myself. And that sucked a lot of people look at it from the outside and they're like, oh, that's awesome. I'm like, no, man. Like I enjoyed the journey. I enjoyed the climb. And now I feel like when you're connecting all these other people, you can be on their journey as well. And that's really pretty cool. Michael: [00:13:46] It's like, you know, like, a Sherpa. Jason: [00:13:49] Yeah, exactly. But I just, I can't climb as much. I can't climb as fast as, as those guys. That's amazing. Whenever you watch any of those Sherpas on Everest, I'm like, how are they doing this? And why would they want to do it? Michael: [00:14:06] It's crazy to see that happen. But I think it's metaphoric too. The hardest clients usually have the best views does. But sometimes those climbs might not necessarily be successful. I mean, I have to tell you that, you know, part of my growth story , and I'd be remiss if I didn't say this, came through a failed startup. I had placed everything into this, everything, you know, some people spend money to go do their MBA. I dropped every single thing that I had saved into this thing. And it didn't go well. And my identity was wrapped up into that. So having visions of grandeur, you know, making it and had, I knew just kind of looking back now because you know, you get kind of depressed when you lose everything. It's, it's not a fun place. You learn a lot about yourself. Jason: [00:14:56] But it makes you appreciate everything so much more as you're moving forward, because I was hiking the mountain yesterday and I was going through this thick brush and it just kept getting thicker and thicker. I couldn't get through it. So I had to backtrack. I had to go back down. And then find another route up. And that's, that's everything. We do everything in business, in life, everything it's never a straight path. It's always the zigzags and knowing when to turn back, I mean, I could have probably made it through, but I would have been bloodied and banged up. I was like, kinda like walking. So, awesome. Well, this has all been amazing. Michael, is there anything I didn't ask you that you think would benefit the audience? Michael: [00:15:42] I think just to, just around knowing and taking that niche that you feel like you can be the best in the world. I mean, I didn't say this, but you know, we have a really big presence in the digital health space. And it's sort of done by design in that aspect. And we've really positioned ourselves and placed ourselves to being in a category of one and pick something that you believe that you can be in a category of one and name it, name it, and tame it and proclaim it is the reality is that there's a lot of digital agencies that are out there and it's hard to differentiate. So do your damn best to be able to do that and pick your claim and work it and work it and work it and work it and stay consistent over time. Consistency over time wins. I'm telling you that there's, you know, people may think that we're pretty successful at what we do, but I got a lot of scars on my back to showcase that it's been a long journey and we stayed consistent throughout the whole entire time. Jason: [00:16:49] I love it. Yeah. You know, and you have to be passionate and whatever you pick don't choose it based on money. Like we were talking in the pre-show, why you chose healthcare and why you started working with other industries, like in plastic that you were like, oh, that's healthcare as well. Cause you're passionate about it. And the more passionate about it, the more you're going to do, and it's going to resonate with your audience that you're going after. Versus just kind of getting a stupid course out there that says here's the most profitable niches for agencies and pick one. Michael: [00:17:20] Um, I care about two things that I'm very passionate about, you know, relationship equity kind of really factors into this notion of access. And the way that I view access is around customers, partners, etcetera, but on a broader scale access around access to care, access to things like food. I mean, there's 50 plus million Americans now that don't know where their next meal is going to come from. That's an access  Golproblem, access to, you know, so access is something I care very, very deeply about when I see people that can't get access or maybe someone that wants to try to get into a job and necessarily can't get in and, um, you know, that's an access problem. And then the second thing that I believe that things hinge on is leadership. And there are leaders right now that are coming into some very influential roles that they're not necessarily tech savvy, they're tech dependent. They grew up with an iPhone. They grew up with a smartphone. And they view innovation as, as a differentiator, the view innovation as a way to generate more revenue. And when you're working with a digital agency and aspect of what they do is innovation. And the way I define innovation is providing value to many. Then you can do that incrementally over time. So those things kind of combined, you know, really hinge on whether or not people are going to be accepting of adoption of some of these innovations that come through. And that's exciting to me because you interact with people that you just problems that they're solving can inevitably make a pretty big radical shift and be part of that journey is an absolute privilege. Jason: [00:19:00] Yeah, exactly. Awesome. What's the website people go and check you out if they want to reach out to you? Michael: [00:19:06] Well, I'm on LinkedIn, so people can check me out on LinkedIn, Michael Stamatinos, and they can go to our website, michaelstamo.com and they can hear from us there. Jason: [00:19:15] Awesome. Okay, everyone, go check that out. Michael, thanks so much for coming on the show. And if you guys want to build relations that equity and be around them, amazing agency owners all over the world that are sharing what's working. Having a lot of fun, passing a ton of business back and forth. I really never talked about that, but just really elevating each other along the way over the years. I'd love for all of you to go check out digitalagencyelite.com. This is our exclusive mastermind for agency owners that want to grow and scale faster and just be transparent and have a lot of fun. So go to digitalagencyelite.com and until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How To Find The Right Formula For Quick Agency Growth

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Nov 17, 2021 12:32


Are you looking for the right formula for quick agency growth? When Ellen Jantsch was working as a head of growth in a small tech startup, she felt there was space for an agency focused on testing and executing strategies into long-term sustainable growth. She held on to that idea while she worked as a freelancer and when she started Tuff, a remote growth team for hire. They work with teams in nearly every industry to deliver actionable strategies to attract and keep more engaged customers. Today she joins the podcast to talk about how she found the right formula for quick growth for her agency, her strategic move to grow the agency's most valuable asset, and the moment she started thinking of a more repeatable formula to generate new business. 3 Golden Nuggets Test to find the right formula. When discussing how to find the right formula to grow your business, Ellen recalls that, more than anything, what helped her find the right fit for her agency was finding what didn't work for them. “Testing and experimentation was a much quicker route to finding what was going to work,” she assures. The agency relied a lot on word of mouth at one point and at one point they started to try different approaches, from outbound sales to putting on workshops and events. Finally, they focused on an SEO strategy that now brings 75 leads per month to their door. The foundation to grow your most valuable asset. In an unusual move, for her second hire, Ellen searched for an HR person. “If you're serious about building a remote team and a small team,” she assures, “you have to put a lot of foundation in place.” So, she worked with this person to set a career framework and think about the hiring processes. They decided on details like how to set up benefits and compensation and how to create an inclusive hiring process. It took a lot of time, but your agency team is your most valuable asset, after all. By the time she figured out what direction she wanted for the agency and the type of roles she needed to hire, there was already a solid hiring process in place. A predictable pipeline is everything. One of the things that became very clear for Ellen when she thought about what she could do to continue to grow her agency was that she would need to figure out how to create a more repeatable formula for generating new business. A more predictable look at revenue and growth would allow making strategic hiring decisions early, versus hiring someone when the pressure is up due to so much work. The only way to get ahead of that is to predict what the next six months are going to look like. Sponsors and Resources Wix: Today's episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Finding the Right Formula For Quick Agency Growth and Generating New Business Jason: [00:00:00] What's up, agency owners? Jason Swenk here. And on today's episode, we have an amazing guest, uh, fellow Coloradan, if that's a word, I don't know. I just moved here so I don't know. But we're going to talk about how she's grown her agency so quickly. And, uh, go over some of the strategies that have worked for her and some of the things that might not have worked, so it helps you avoid them. So let's go ahead and get into the episode. Hey, Ellen. Welcome to the show. Ellen: [00:00:33] Glad to be here. Thanks for having me. Jason: [00:00:36] Yeah. Excited to have you on. So tell us who you are and what do you do? Ellen: [00:00:39] I run a business called Tuff. We're a small, fully remote growth marketing agency partnering primarily with startups, scale-ups, helping them get traffic and grow their revenue. We focus on tactics like Google ads, technical SEO, content, creative, Facebook ad, CRO, and email. Really trying to figure out how to test quickly and then operationalize small wins into long-term sustainable growth. Jason: [00:01:04] Awesome. And so how did you get started creating your agency? Ellen: [00:01:09] Primarily through freelancing. I think that's probably a common story, but I had done in my career prior to freelancing corporate marketing worked at an ad tech startup worked at like a really small startup as a head of growth. And I knew… Felt like there was an opportunity to, to start an agency like Tuff. But wanted to hone in on my own kind of experiences, primarily from an executional standpoint. So I freelanced for about a year and a half. Some consulting to strategy work, but a lot of executional work running Google ads, running Facebook ads, writing email copy. Trying to just kind of hone in on the services that Tuff was going to provide initially. And then got to a crossroads where it felt like I had enough money in the bank. I knew I didn't want to ever take capital as I started Tuff. And so I, I pretty much planned to have enough, enough money to pay myself a salary as well as two other people for six months, even if we didn't sign a single client. And at that point about three years ago, decided to start Tuff and put the freelancing work to the side. Jason: [00:02:11] Awesome, and so what were the roles of the two people that you hired first and why? Ellen: [00:02:16] Yeah, two people. Um, the first one was a PPC strategist, somebody to take over a lot of the day-to-day executional work I was doing for clients, Google ads, Bing ads, YouTube ads, that type of work. It allowed me to take off one hat and pass it to somebody else. The second hire was crazy to think about now, a non-revenue generating employee. Somebody to help us with people ops. I do think that if you're serious about building a remote team and a small team, you have to put a lot of foundation in place. We worked on a career framework. We thought about hiring processes. How do you set up benefits? How do you think about compensation? What's equitable? How do you create an inclusive hiring process? Just spend a lot of time getting that in place before we started actually thinking about building a team. Jason: [00:03:00] That's great. No, that's really great. That's first time I've heard someone bring on like an HR-type person as their second role. I thought you would say like project manager. And everyone always thinks they're not billable. Like, they're billable. I don't know why no one thinks that, but I usually tell people around the 10 person mark to get the HR and people usually are shocked. They're like, I thought you had to do that much later on. But I think a lot of people think they're just doing paperwork. And they're not doing all the other things to make sure you get the right people. Because the people in agency are the most valuable asset. Ellen: [00:03:36] Especially in a service-based agency, you know, I think it's people work with Tuff because they like the experience of the team members here. And if you don't get that right, then you have a lot of employee turnover. The cost of hiring the wrong employees is astronomical, if you ask me. And so I'd rather get it right the first time around. Jason: [00:03:54] Yeah. Well, do you guys feel that you've got it right on the first couple of hires? I know. Man, I hired so many of the wrong people. I got rid of a lot of the right people too. Many, many years. Cause I didn't have that person. Ellen: [00:04:06] Yeah, we really struggled in the beginning, mostly because we had a strong process for hiring, I feel, but didn't really know what we wanted. And I think that goes back to as well as being the kind of first-time founder never working on an agency before. We hadn't really established our playing field. So we were kind of like saying yes to every opportunity. We were doing any type of service that we could offer. We were just trying to generate revenue. And I didn't have a clear enough picture around what we actually need out of team members and what kind of like the long-term vision and who the right client is for Tuff. And we've kind of paralleled those. And as it became more clear around where we get the right results and the types of clients we want to work with, it becomes a lot easier to hire because you know exactly what you're looking for. But in the beginning it was a cluster. I was just shocked anybody wanted to work with us, to be honest. Jason: [00:04:50] Yeah, I think everyone has to go through the cluster. It's like that Vegas buffet, you're trying out everything. What was the pivotal moment where you got that clarity? Ellen: [00:05:00] Yeah, I think it probably happened about 18 months ago. And two things became really clear if I was going to continue to have any chance of growing Tuff, we had to figure out how to hire talent that's adaptable, autonomous more senior in position. So not people that we'd have to train extensively in the beginning who had experience working on small teams. So really honing in on characteristics versus job responsibilities, and that's been really helpful. Um, the second thing would be how do you create a more repeatable formula for generating new business? I think when you have a more predictable look at revenue and growth, it becomes a lot easier to then make strategic hiring decisions early. Versus waiting to kind of like feel the pinch in the stress of like, oh gosh, we've got a lot of work. We've got to hire somebody else. Or this whole thing is going to collapse. You can get to a point where you slowly get out of that and get ahead of it with hiring and you can't do that unless you can predict what the next six months is going to look like. Jason: [00:06:03] When you're an agency partner with Wix, you unlock an entire digital ecosystem for creating, managing, and growing your agency. Get the full coding and design freedom to create anything your clients need, along with the tools to manage and collaborate with your team seamlessly from anywhere. And when it comes to growing your agency, you can get matched with new leads every day and earn revenue share for every website you guys create. They're backed by the Wix industry leading security and cyber performance. You'll also have a dedicated account manager on standby 24/7 so you can reach your goals and start setting new ones. See for yourself, head over to wix.com/partners and re-imagine what your agency can accomplish. Yeah. Building a predictable pipeline is everything, right? Like if your business is built on word of mouth, which I always joke around saying that's just not scalable. And you're relying on other people, then you're going to take on work that you probably shouldn't be. Because there's no such thing as a bad agency client and only a bad prospect or a bad process. And, and so when you can build that predictable pipeline, it makes things a lot easier where you're picking and choosing. So let's transition to that. What's worked for you for building a more full pipeline? Ellen: [00:07:25] I think more than anything, what hasn't worked. I have found at least with Tuff, testing and experimentation was a much quicker route to finding, finding what was going to work. And I think in the early days we relied a lot on word of mouth. Um, larger agencies. We tried to kind of like create partnerships for any clients they didn't want. Jason: [00:07:43] That doesn't work. Ellen: [00:07:45] No. Let's see, I put on workshops, I went to events. I would like get in touch with people that had been connected with LinkedIn. We tried outbound sales, um, saw some success there, but definitely not like a natural skillset for me. So a bit of a stretch. So we tried a whole bunch of different things for about a year. Um, got exhausted. And finally realized how do we generate more inbound leads then have, have healthier conversations and get people knocking on our door and getting curious about working with top and wanting to work with us. And so we started getting really specific with an SEO strategy. So that took, you know, that's a slow burn. It's not a, it's not like paid acquisition. It's not like referrals. It takes a long time to build it was a schlep. But now when you go into Google and type growth marketing agency, you're going to see Tuff in the number one spot. If you type content, strategy, agency, technical SEO agency, YouTube ads agency, we're going to be in the top three. And now we're lucky and humbled enough to have 75 leads knock on our door a month. And we maybe take on one or two. And I couldn't have predicted that level of scale ever, but the organic acquisition has really been important for us. Jason: [00:08:52] Very cool. Yeah. You know, I always tell everybody, it's kind of like, as you're building and growing the business, you got to experiment with what's not working. And then kind of go back to kind of the basics and really build on that foundation. And what we found too cause a lot of times. In the very beginning, when we were growing our agency, we grew it from being in the search engines and people coming to us. Then when we started getting, wanting to get to the next level, we started realizing, man, we need this outbound channel. Man, we need this strategic partnership channel. You know, Google changes one thing, we're toast. And then we're laying off a lot of people. So it's always… always a work in progress. Ellen: [00:09:37] Yeah. I couldn't agree enough. And I think we kind of, you know, like we partner with clients every day to think about growing revenue and acquiring new customers or users for them. And we try to apply the same process for Tuff. So we do quarterly growth marketing strategies. We stay pretty committed to it, but I would say we're like in that moment right now, Jason, where 75% of our leads come from organic traffic. And when you think about having all of your eggs in one basket, it's terrifying. And so we're starting to get to this point where we're capturing a lot of existing demand, how do we start to create a little bit more demand? And how does that look like for us long-term? Jason: [00:10:12] Yeah. I almost even look at it too of like, when I hear 75 leads a month, I'm like, okay, good. How can I make them even better? Or how could I even convert them more? Like I was talking to Darby or skill specialist. I'm like, well, out of the conversations that you set up, how could we have the ones we want… How do we increase that conversion rate? Just a little bit. That's always those little fine tweaks that work. I'm going to ask you something I've never really asked anybody that I'm gonna start doing the show. What's the thing that you've regretted that you haven't done in the agency yet? Ellen: [00:10:47] For the agency. Hmm. That's such a great question. I think, um, this is very tactical, but I apologize. It's top of mind. We didn't add on our creative team until recently. And in the growth game, we're really metrics driven data driven, thinking about tactics and the strategies behind those. But if you don't have really good creative, you're not going to get very far. And for so long we outsourced that. Not really trusting in our processes, not really understanding what that would look like in house. And we didn't bring it in house until about three months ago. And now I'm like, oh shit, we need to triple that team tomorrow. And so I think I would've just looked a little bit more holistically at our services and figure out… Again, it just goes back to how do you exchange the most value? And where can you team be the strongest? And I was slow to, I was slow to pick up on that. Jason: [00:11:34] Awesome. Well, Ellen, this has all been amazing. Is there anything I didn't ask you that you think would benefit the audience? Ellen: [00:11:40] No, I think you've covered it. Jason: [00:11:42] All right. Perfect. Uh, what's the website people go and check out the agency? Ellen: [00:11:46] tuffgrowth.com. Jason: [00:11:48] Awesome. Very easy. Everyone go check it out. And if you liked this episode, make sure you guys subscribe. Make sure you hit the like button, comment. And uh, if you guys want to be around amazing agency owners on a consistent basis. Where you can grow your agency faster because you can get their opinions and then they can share what's working for them. So you can scale and grow faster. I'd like to invite all of you to the digitalagencyelite.com. This is our exclusive mastermind where the agency owners are growing very, very quickly and having a fun time doing it. So make sure you go to digitalagencyelite.com. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Why Becoming the Agency CEO is a Marathon, Not a Sprint

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Nov 14, 2021 20:32


Are you looking to start your transition to the role of agency CEO? David Anderson started living the entrepreneurial dream more than twenty years ago when he started Off Madison Ave, a full-service marketing agency he founded with his partner after getting fired from his agency job. After two decades as a business owner, David has experienced success and failure. Having learned from many successes and the hard knocks of business and life. In his conversation with Jason, he talks about the many challenges and mistakes that helped him learn, why taking a step back from day-to-day operations is a marathon, not a sprint, the importance of building your leadership team and letting them make their own mistakes, and what he has learned after many agency acquisitions. 3 Golden Nuggets Taking a step back is a process. After many years in the business and finally being able to take a step back to being his agency's CEO, David admits that he made many mistakes along the way. The first time, he recalls, he hired someone from the outside and did not have a solid onboarding process for that person. That fell apart quickly and they even ended up losing clients. Later, he had a leadership team implement EOS, which he highly recommends, but he chose not to be the innovator and integrator. It fell apart and he had to step in to fix the situation. Finally, he brought somebody up through the ranks, worked on a transition plan, clearly defined authority, and is holding that person accountable. “It's a process,” he says, “and you will have your failures in it.” Allow leaders to learn from mistakes. David has figured out a leadership team system that works for his agency. There were mistakes along the way, however. One of them was tying the head of the team's financial bonus to their financial income. He later changed that and now their bonuses are tied to the overall performance of the agency, not of an individual. Also, what business owners need to do is let go as they bring on those senior people. You don't hire senior people and micromanage. They don't want to be told what to do. With that, you also have to accept that there will be failures and things that don't work. If you want to grow your team, you need to let them make mistakes. On mergers and acquisitions. With 24 years in the business, our guest has seen his fair share of acquisitions. So, what does he look for in a potential purchase? In their case, as a full-service agency, they look for businesses that can complement their services. So they've purchased agencies that allow them to gain a deeper focus on some aspect of the business. On the financial side, they are definitely looking at the EBITDA. He's also made some mistakes on this front, and his advice is that, when it comes to people who will help you evaluate a potential acquisitions organization, they need to understand the industry. The person selling won't mind if you're uneducated, but you will surely overpay. Sponsors and Resources Sharpspring: Today's episode is sponsored by Sharpspring, an all-in-one revenue growth platform that provides all of the marketing automation, CRM, & sales features you need to support your entire customer lifecycle. Partner with an affordable marketing automation provider that you can trust. Head over to sharpspring.com/smartagency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Building Your Leadership Team & Letting Go of Day-to-Day Operations is a Marathon, Not a Sprint Jason: [00:00:00] What's up, agency owners? Jason Swenk here with another amazing episode and amazing guest. We're going to talk to an eight-figure agency owner who's going to talk about how he really kind of transitioned out of really doing everything and transitioned more to a leadership role where he doesn't have to make all the decisions, which I think a lot of us like. We're also going to talk about M&A, growth, getting bigger, so sit back and let's get into the episode. Hey, David. Welcome to the show. David: [00:00:35] Hey, Jason. Thank you for having me. Looking forward to it. Jason: [00:00:38] Yeah. Excited to have you on. So tell us who you are and what do you do? David: [00:00:42] All right. So Dave Anderson, I live here in sunny Arizona, where it's still a hundred plus degrees here, today when we're recording this anyway. I am in Arizona. I have been an agency owner for about 23, 24 years now and worked at another agency for a good three years before that. The name of the agency is Off Madison Ave. We are a full service, kind of going back to the old terms, full-service agency that does everything from creative media, public relations, social media, digital. All of the kind of stuff that we've had. We're about 35 full-time people but our business model is really evolved to where we're with a plethora of great talent out there now of how we're using a real combination of full-time people and people with specific skill sets to do our diverse client work every day. Jason: [00:01:41] And so tell me kind of how did you guys get started or why did you start? David: [00:01:45] Ah, that's a great question. So I have one business partner. Roger Hernie, a great friend of mine. So we were both working… Jason: [00:01:52] Still, still business partner? David: [00:01:53] Still business partners, 23, 24 years in October years later, still business partners. And I can, I can give some insights if you like, why I think that has worked overtime. But we were both working at the same agency. And to be honest with you, I got fired one day. First time I'd ever been fired in my life from a job. Um, my wife and I were one month pregnant with our first child on the way. I still remember going and telling her and picking her up at work. And she said, how'd the day go? And I said, well, they got fired today. That'll stress out your wife in any situation. Jason: [00:02:26] Was it Friday? David: [00:02:27] Uh, it was Monday. I started the week off the right way for her. So… Jason: [00:02:33] I've always been fired on Fridays. David: [00:02:35] Yeah, no, this was a Monday. And it's a story that needs to be told over alcohol. The agency kind of turned into, um, the culture was bad and the CEO asked me one day why it was bad. And I told him my honest opinion and I didn't last long after that. So I come from the PR side of things. Background in politics, PR. My business partner worked for McCann Erickson, he is the creative guy. And we just working together, saw the value… Again, I'm an old guy way back then were PR and creative, but didn't really work well together, they were more siloed. And we really wanted to bring that together to bring a total marketing picture. So yeah, 23 years later, we've done three small acquisitions over the years to help us grow. And like every one of you, we've had our best of days on our absolutely worst of days. Um, I'm a lot grayer now, but you know, we've survived. Jason: [00:03:32] Very cool. And, um, tell me what's been the process…? How long did it take you? Or if you kind of remember some of the key elements or key things that happen to get to a point where you don't have to be in the day-to-day operations anymore. David: [00:03:50] Yeah. It's a great question. And I'm going to be honest with you. I severely messed it up two times before I got it right. And it's a thing that I work with kind of both other business owners now, and agency owners. The process of working on the business every day, not in the business. And then ultimately be able to move where I am now today, where I don't really have any day-to-day role in the company. I'm still involved from a financial side. If we do an acquisition, like we did last November, I'm very involved. Um, but I work directly with our GM. So the first time I messed it up, I hired a person from the outside who supposedly had a lot of agency experience, bigger agency actually. And after going through the process, what I did horribly wrong was I didn't have a solid onboarding process for the new person that was coming on. Honestly, I kind of said, this person's hired, he starts on Monday. And by Monday afternoon I was like, good luck! You know? And within six months, we've lost clients. Most hurtful was I lost, I think, three of our top-five leadership team members because of that person's leadership style, how they were doing. Just a bad, bad time. So I had to come back in and fix that. The second time, I had a leadership team and we implemented EOS to be honest with you, which I'm a big fan of. But I chose not to be the visionary or the integrator and I left it to our executive team and the partners that were involved in the business. And that went really bad too, because when you kind of pick the integrator to lead, the other people didn't agree. There was no solid decision-making. There was not clear definition on when to bring it to the owners or me as the owner of decisions. And, again, it completely fell apart and I stepped back into fix it again. Now this time, I think I have finally gotten it right where we brought somebody up through the ranks, worked on a transition plan, clearly defined authority. I am holding that person accountable. The biggest thing where I failed was lack of accountability as I kind of turned the day-to-day operations over to others. Now there's a level of accountability. I still am very involved at times on the EOS part of it on our rocks and making sure where we are. And we are more than a year into it now and the person who runs the bay, they, her name is Sasha has done a fantastic job. The agency is growing. Our clients are happy. Our culture has improved. So what I would say is it's a process. It's a marathon, not a sprint, and you will have your failures in it. Jason: [00:06:47] Is your agency struggling to deliver real revenue growth results to your clients? You know, agency marketers can consolidate data and align marketing and sales teams goals to achieve real results for your agency and clients using revenue growth platforms. SharpSpring is an all-in-one platform built for agencies like yours to optimize digital marketing strategies with simple, powerful automation. Manage your entire funnel all in SharpSpring. Now for a limited time, my smart agency listeners will receive your first month free and half off onboarding with SharpSpring. Just visit sharpspring.com/smartagency to schedule your demo and grab this offer. That's sharpspring.com/smartagency. Now I've seen it all kinds of different ways where… There's two ways I've seen it work out well. One is to bring in… One of the first guests actually brought in someone as a consultant to work with the team and to really kind of get to know them. And then eventually they hired that person as the CEO and it was kind of like, oh, well, you're part of us. You've been working with us for six months. That kind of stuff. I've seen that work. And it's a good test. And then I've also seen kind of going through the ranks. But a lot of times what people struggle with is if you don't have people through the ranks, what do you do? And that's why I wanted to kind of give you option number one, that I've seen work. I've also seen it not work where they brought in someone temporarily, and then it doesn't work, but that's fine. They're not the CEO yet. You're testing out the waters and then you can kind of go… Let's talk about a lot of times when agency owners get over the couple of million mark, right? Like you can get to the million mark by accident, I feel. And then you can kind of get to the 2 million mark by accident and a lot of luck. But then to really kind of take it up from there, you have to build out a really good leadership team. So let's talk about how did you build out your leadership team? Like not particular names, but what were their roles? What did you learn from that? Like, what did you… what didn't work? David: [00:09:05] Yeah, so great question. And again, I feel we're in a good spot now, but lots of mistakes along the way. So how we do it, we call them group heads in our organization and we put people at the lead of like our account service team, our creative team, our PR team, and our media team and creative team. So we put a person at the head of all of them, and then I made them the leadership team that they were the ones to work collectively. Um, you know, we're not big enough to, and never have been. And I, quite frankly, I don't think I agree with having people that are just managers and not… So they're working directors is what we call them. They were directors that head of their group, group heads. But they were the ones who were responsible for making sure we weren't siloed and the workflow and functioning like that. And that has worked very well with us. But as agency owners know, actually any CEO leadership knows… The challenge there is managing the personalities, the issues, the finances. You know, one of the biggest mistakes I made was tying my group head's compensation to the financial bonus to their financial income. And then it was a question of how much money do I get? Because I get to put more in my pocket on that. And so what I did was their, and still is, their compensation of bonuses and stuff like that is based on the overall performance of the agency, not of an individual. Otherwise, you'll always have people looking out for their own personal wellbeing that they go through. So it's really that… Now also as a business owner, agency owner, what you need to do, two things is one is you need to let go as you bring on those senior people. You don't hire senior people and micromanage. They don't want to come in and be told what to do, but you as an owner have to relinquish that. And with that, you have to accept, there's going to be failure. There's going to be things that don't work. These are how people learn. And we as owners, when the first time something goes wrong, we jump back in to save the day and tell everybody else what they did wrong. And believe me, I, you know, if you can see me, I've lots of gray hair. This is how I got to that point. But I think, and I've seen, you know, in entrepreneurs, business people as general, we hate to fail we're as competitive. But I believe if you really want to grow your team and you have to let them fail, just like our kids, you know, you have to learn lessons the hard way. So I hope that's helpful. Jason: [00:11:39] Yep. What was your first leadership role that you hired and second and third? David: [00:11:44] I still remember that when it was Roger and I. Well, the first full leadership role that I hired was in our media group because it was the area that we were most knowledgeable in. Roger being a creative guy, me being a PR person. So we brought that media expertise and was one of the very first things. Jason: [00:12:06] Gotcha. And why the media role if you guys had expertise in it? David: [00:12:11] Well, we really didn't. We were faking it. We were using a lot of outsiders to do the work for us. And when we got to a certain point in billings of media, we realized that we needed that expertise of not only just for placing and all of that, but the analytics behind it. And that's where we really needed the expertise. That's why we started there. Jason: [00:12:35] Gotcha. I always like to see when, uh, when people are like, well, so many people hire based on things that they don't know. And I'm like, I think the best thing is, is like hiring on the things, you know. Cause then you can actually, you know, are they full of shit or not, you know? Going there. Kind of switching focus a little bit… This focuses on growth, mergers and acquisitions and buying agencies. You know, with our agency Republics, that's how we've been able to grow, we've done 10 acquisitions so far in the past year and a half, and just had tremendous growth. So, and you've said you've done some MNA as well. So what do you look for? What's worked what hasn't worked when you bought agencies? David: [00:13:21] Yeah, that's a great question. Our philosophy right now is to find things that complement the services. We aren't necessarily looking for another full-service agency. That's going to come in with creative teams, PR teams, all of that. Like the acquisition we did, um, in November of last year was a PR agency based out of San Francisco. And we wanted to really bolster our PR capabilities. It was also a step in over 20 something years and probably something I would do different, maybe do different is… We've always been more of a generalist agency. We've had some core areas of focus and we really want to move to a much deeper focus in two areas specifically. And this was a great way to bring in a book of clients that fit into that area where we want to be more specific. So I would say is, you know, an M&A there's two types: financial, which you're just adding revenue dollars, and they're strategic. And we're looking more strategic with the one we just did. The one before that allowed us to get deeper into technology. How do we use technology more in our marketing? As a result of that, we've also started another startup, um, a SAS-based product in the marketing space that we've also done that. And if I go way back to the early two-thousands, we were a very traditional agency and we didn't have the digital capabilities that the whole marketing world was going to. And we made an acquisition to get us really deep into that space also. So they've almost all been very strategic for us. Jason: [00:15:05] Awesome. And when you're looking at buying an agency or when you bought these agencies, is it a roll up? Is it cash? How are you evaluating them? David: [00:15:18] Yeah. You know, we do the typical valuations stuff that we have. And I'm sure you've seen more than once or twice that people in their minds have a much greater valuation for their agency than what the numbers… I can tell by your face you've seen that a couple of times. And I've had, you know, while we've done four acquisitions, I've probably had 20 where we got to a serious conversation that we do. So we really look at the numbers. I'm actually a finance major coming out of school. But then you also have to take the intangibles into it. So it's always, usually a combination of some upfront money earn out that, you know, goes with it from there. Jason: [00:16:01] How do you evaluate how much they're worth? Is it on EBITDA? Is it on top line? What are some of the factors that you put in there? David: [00:16:08] More EBITDA. More is EBITDA. And then, you know, you play the whole add back game of what to, you know, really kind of goes to… From my country club membership, to my Ferrari, to my vacation home in there to get to where, it's a game. I mean, you know, as well as I do, it's a game. What I would tell… and I'm sure you've had similar experiences use people who can help evaluate a potential acquisitions organization who understands our industry. One of the big mistakes I made on the first acquisition that we did is I used my regular attorney who knew nothing about the marketing industry. I overpaid without a doubt because of that, the, you know, you know what you're doing. Because it does, it does become a game with add backs and you know… How owners are willing to structure their compensation. Jason: [00:17:04] Well, if you're selling you don't mind, if the person buying you is uneducated. Make sure you tell us that lawyer so all the sellers can use that versus David: [00:17:14] Yeah, I totally agree with you. The other thing, I had this happen once as we went through a whole valuation. We were moving forward and then it came back and I had this owner. It was a PR agency said… I think the valuation of their company came back and like 1.5 million, something like that. You know, pretty small agency. And the agency said, well, just our contacts are worth a million dollars alone. Who we know in the media is worth just a million dollars alone. So I would never sell for less than $4 million. And I was like, well, I guess we won't be moving forward. Jason: [00:17:47] Yeah. I always like to tell that person I'm like, well, you can wish in one hand and crap in the other, it gets filled up first. David: [00:17:53] I love that. I'm going to steal that if that's okay. Cause that's very well said. Jason: [00:17:58] Yeah, Well, I stole that from cousin Eddie on Vegas Vacation. David: [00:18:04] Love it. Absolutely love it. Jason: [00:18:06] Well, this has all been great, David, is there anything I didn't ask you that you think would benefit the audience? David: [00:18:11] No. Well, a couple things. One is, you know, as agency owners and entrepreneurs, make sure you have a great network around you of advisers is what I would say. Find like-minded… I'm a member of EO Entrepreneurs Organization. It's, you know, provides the CEO forum. Vistage. I was part of Vistage. Get people around you who know more than you, have more experiences that you, that you can experience share. Because that's how we learn and grow. And that's what we do best. I would also say, do whatever you have to do to work on the business every day, not in the business. And I fully understand when you're a smaller agency crossing that first million-dollar mark, $2 million mark, and you're finally making good money. And then the thought of hiring a six-digit leader, a six-figure income. Oh my gosh, that's going to set me back again. That's how you grow, you know, and it's just what you need to do um… If you want a growth the company. If you want a lifestyle company then, you know, that's perfect. And neither one is right or wrong. It's just, you have to marry it up with what you want to do. And the whole process I went through of getting out of the day-to-day, it's absolutely a marathon. It's not a sprint. I would say you need at least 18 months to plan properly for that. That's just my experience to do it in the right way. Jason: [00:19:36] Awesome. And, uh, what's uh, the agency website people go and check you guys out? David: [00:19:40] Uh, Off Madison Ave. A V E, not avenue. So offmadisonave.com. Jason: [00:19:46] Awesome. Well, thanks so much, David, for coming on the show. It was awesome. And I totally agree with you on surrounding yourself with amazing people that are further ahead, so they can actually help you and see the things… And kind of setting me up for that, that was perfect. I want to invite all of you to go to digitalagencyelite.com. This is our exclusive mastermind just for experienced agency owners. So I understand that there's other groups out there that have all kinds of different industries. But if you want to be surrounded by amazing agency owners on a consistent basis, I want all of you to go to digitalagencyelite.com. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Why Adapting to Change Is the Secret to Longevity in Agency Life

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Nov 10, 2021 17:16


Forbes has called Nancy A. Shenker a “bad girl” because she selectively breaks rules and takes calculated risks to help companies innovate and grow. Nancy had worked as a CMO for big brands like MasterCard and Citibank when she ventured to start her own business, TheONswitch. That was more than 18 years ago and she credits her client side work for providing the insight needed when she first started. Those experiences are what contributed to her still being in the agency world today. In her conversation with Jason, they talked about how staying in business through the years has meant adapting to different challenges. They also touched on some of the lessons learned in more than 18 years of owning her business, and why people shouldn't underestimate experience and the wisdom that can come from it. 3 Golden Nuggets On adapting to changes. Nancy actually credits the hard times of the 2008 recession for preparing her for the pandemic. “When the economy takes a downturn, you're sort of stuck throwing all of this stuff overboard,” she recalls. When it came time for everyone to welcome the new digital and minimalistic model, she had already adapted to it years ago. “I've been co-working and managing a virtual team for the last decade, so I was good.” In her opinion, the pivoters were the ones surviving and thriving. It was a time to do market research, to find out how customers were behaving, but many went into a state of inertia. Lessons learned over the years. After 18 years in the business, lesson number one for Nancy has been to always trust her gut. She doesn't have a lot of regrets, but she always regrets moving forward with projects where she felt like something didn't seem quite right. Another important lesson is to always watch your P&L. Hope is great but money in the bank is better. Always make sure to have that cushion because you never know when things can go south. Also, remember that a good profit margin for your business should be an average of 30%. And finally, invest in things that will bring you long-term value. Don't underestimate experience. Nancy is very passionate about calling out ageism in business. “I now bring to the table wisdom that I didn't have even 18 years ago,” she says. She calls for people not to assume that an older person cannot understand technology. She even challenges anyone a social media strategy contest, since she's been in the social media and digital media realm since the late nineties and feels that, at 65, she can offer a unique perspective. Sponsors and Resources Gusto: Today's episode is sponsored by Gusto, an all-in-one people platform for payroll, benefits, HR where you can unify your data. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Head over to gusto.com/agency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Lessons Learned After 18 Years in the Business & Why We Shouldn't Underestimate Experience Jason: [00:00:00] All right. What's up, agency owners? Today I have an amazing guest who has been in business for over 18 years. Actually, today is their 18th birthday. We're going to talk about the lessons learned about growing their agency. And let's go ahead and jump into the show. Hey, Nancy. Welcome to the show and happy birthday to the business. Nancy: [00:00:25] Thank you. How are you doing? Jason: [00:00:28] So, uh, tell us who you are and what do you do? Nancy: [00:00:32] Sure. My name is Nancy A. Shenker. And as you just said, today is the 18th birthday, so it's fortuitous timing, um, of my consulting company slash agency called TheOnswitch. Um, I was an early-stage entrepreneur. I left corporate life and started my own business long before it became popular to do that. Um, and previously I was a CMO at a company called Reed Exhibitions, the producers of Comicon. And then before that I was at MasterCard and Citibank. So the first part of my career was on the client-side. So when I got ready to start my own consultancy, I sort of knew what things look like from the other side of the desk, which gave me tremendous insight and probably contributed to my still being around 18 years later. Jason: [00:01:26] Yeah. What were… Going back to when you were the CMO and working with a lot of different agencies over the years, what were some things that really pissed you off? Nancy: [00:01:39] Um, I think that, um, account people who had never really worked in or on the business, um… Always seemed sort of whimsical to me. Like if you couldn't tell me specifically what was going on with a project or why I should be spending my money on direct rather than conventional print… Then you were really just like a host or a hostess. So that was like number one, that stuck in my craw that I didn't really need somebody to take me out to lunch or invite me to parties. I needed a person who was going to give me creative ideas to grow the business. Jason: [00:02:22] A strategist. Nancy: [00:02:22] Um, yeah. Yeah. The other thing, um, was, um, paying for people who weren't actually working on my account and the recession was a tipping point for me when I really had to take a long, long, hard look at my overhead as a business and to say, whoa, whoa, like my clients are paying for my equipment. They're paying for my toilet paper. They're paying for, you know, all of this stuff. And when the economy takes a downturn, you're sort of stuck throwing all of this stuff overboard that you just bought in the previous 10 years. So I was actually really in great shape to handle the pandemic. Because I went with this minimalistic virtual model back in 2008, which suddenly became popular in 2020. And I'm like, whoa, I've been doing this for 10-15 years. I'm all good. I don't have any stuff to throw overboard at this point. I'd been co-working for the last decade. I have been managing a virtual team for the last decade. So I was, I was good. I mean, no one was really good in the pandemic, but I was better than most. Jason: [00:03:47] Yeah. I saw a lot of agencies growing actually in the pandemic, just because, you know, there were so many businesses that… Traditional, their traditional way of getting business they couldn't get anymore. And they really needed, you know, that digital, um, expertise in order to reach their customers and really kind of make, get, get them through because you know, the, the loans of the government only goes so far. Nancy: [00:04:15] Yeah. I mean, I would say probably, you know, 20% of clients said... Oh my goodness, the world is changing. Human behavior is changing and my customer's changing and I'm going to get first-mover advantage by dealing with that. And then there was a whole other swath of the population that went into this like inertia state. So the nimble, the strong, the… I hate the word pivot, but the pivoters are surviving and thriving. And those people who sort of… pause. I mean, I just saw this statistic that was shocking that two-thirds of companies, you're talking about major companies, postponed or canceled market research during the pandemic. And I would argue that that was the time to really be all over how are my customers behaving? What are they buying? What are they clicking on? How are they shopping? Because if you understood that, like, if you really understood, basic human behavior, which shifted largely to digital... Um, you were way ahead of the game if you were on top of that. Which is what taught us this lesson that, you know, I've learned starting in, when I first started my career in the 1970s. You know, our tagline as a business is bright and timeless marketing. I've seen media change radically. Um, but, um… What has stayed the same is your understanding of basic human behavior. Um, that's timeless, whether it's B2B or B2C, if you really are inside the head and heart and wallet of your customer, you'll never be wrong. Jason: [00:06:08] Yeah. What were, what were some of the things that you've learned over the years of running your business? Nancy: [00:06:15] Um, well, my lesson number one for today, I'm doing a series of nine lessons learned over 18 years. And lesson number one, which is live on my LinkedIn profile today is trust your gut. You know, and I think that it's very easy when you're a business owner to be swayed by clients, by your team members… But at the end of the day, you know, if you're a successful business owner, your intuition is usually pretty good. So if you have the heebie-jeebies, as I say, about a client or about a prospective employee or a current team member. You know, the chances are probably better than even that your gut is right. So, um, you know, the biggest mistakes I've made or learning moments I've had in the last 18 years have been when something didn't feel right to me and I moved forward with it anyway. Jason: [00:07:14] Yeah, exactly. Cool. And what are, what are some of the other nine? Obviously we, we don't have time to go over all nine. Um, and I'm not gonna put you on the spot for that, but look, give us a hint for some other ones. Nancy: [00:07:26] Um, always watch your P&L. You know, especially if you're a creative, um, and a storyteller, it's pretty easy to delude yourself and say, well, things will turn around tomorrow. Or, you know, I'm, I'm spending $10,000 on this because I think it's a good, calculated risk. But, you know, that's one of the big lessons I learned from the recession is that, um… Hope is great, but money in the bank is better. Like always have that cushion. Also because you never know when things could go south and you don't want to be too leveraged when that happens. So, you know, as I like to say, especially for women, business owners, PNL does not stand for purses and lipstick. Um, when you're in a service business and your biggest expense is people, um, you really have to spend very, very wisely. Jason: [00:08:34] Taking care of your employees has never been more important than right now. And while paydays are great, running payroll is a major pain. Calculating taxes, deductions, compliance, none of it's easy. Unless of course you have Gusto. Gusto is a simple online payroll and benefits built for your small business. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Plus, with Gusto's help you can offer benefits like 401k's health insurance, workers' comp, and a lot more. And because you're a smart agency masterclass listener, you're going to get three months free once you run your first payroll. Go to gusto.com/agency.  That's gusto.com/agency for three free months. Yeah, I always, when I work with agencies, I'm always surprised about how low their profit margins are. And they think in the agency business that 10% is good or 15%. I'm like the average is over 30%. And then they kind of get shocked a little bit and I'm like, that's the average. I was like, you can go over. And they're like, but when you get bigger, it goes down. I'm like, no, it doesn't. Only if you're, if you get dumber. Nancy: [00:10:02] Exactly. Exactly. Yeah. And, um, you know, when I first started my business, I think I was more into the creator comforts. Um, you know, I'd mentioned to you that I just moved to Arizona about three, four years ago. And I was kind of shocked at how many agencies have big spaces and their names on the door and big staffs. A lot of them did have to do some serious bloodletting when the pandemic started, you know. And you're right, there are some who didn't miss a beat and whose clients really needed them. And there are others that just could not sustain their expense base when things took a turn for the worse. So I'm a, I'm a minimalist both personally and professionally these days. Jason: [00:10:52] Yeah. I, I would always invest in anything that would be for the long-term that they would generate. And then personally, I would only invest in things, um, that were related to experiences. I would never buy a $50,000 watch, but I would buy a $50,000 experience. Nancy: [00:11:14] Oh yeah. I mean, you're talking to a woman who spent an insane amount of money on a 12th-row seats to see the rolling stones when they came through, um, a few years ago, pre-pandemic. And I will never, ever regret that expense. So, yeah. Memories, travel, experiences… And talent, you know, if you find people… I'm working with a couple of women now who I've known for years who are worth every penny, I pay them and then some. Because they are helping me scale the business and deliver great quality work and enabling me to sleep better at night, which at this stage of my life is super important. Jason: [00:11:58] Yeah, exactly. Uh, give us two other tips that you've learned over the years. Nancy: [00:12:04] Um, build a really… Another people tab is build a really strong inner circle. And that inner circle can change or evolve over time, but you really have to have people in your life who will tell you the truth, who aren't just bobbleheads. Um, operations is really key. You know, you could be doing the best creative in the world, but if stuff isn't happening on time and on budget, you're screwed. Um, and then, you know, this isn't one of my nine tips, but it's my, you know, one mini regret, in terms of how I started and scaled the business… I think having product, having tangible product is super important. Because being exclusively in a service business, no matter how much you productize your service, it's still a service. So, I mean, I'm not done yet. I have another 18 years at least ahead of me. And I have a few product concepts that I hope to launch over the next five to 10 years. Including, you know, I, I'm a writer and I have a bunch of books on Amazon and I have, um, some courses I'm developing. So yeah, I'm really into passive revenue these days. Jason: [00:13:24] Well, let me, let me tell you, the grass is not always greener on the other side. It's greener on the side you water. When I sold my agency, I thought just like you, I was like, ah, I've been in the service business for 12 years. Let me go develop a product. And I developed an iPhone app and I hated it. I literally wanted to… I put a gun to it and just blew it up behind the shed. And… Nancy: [00:13:46] Yeah, and that's one of the reasons why I haven't launched my… I have one product idea that's actually a physical, tangible product, a household product. And when I started delving into manufacturing and trademarking and distribution, I'm like, nah, I'm not, I'm not doing that. So I think that there is an opportunity and I think you've actually done it really well. You know, and I'm not just being, you know, a sycophant here. But like developing products that people in your industry truly need, you know, it's productizing your service, which is also a form of a product. I think smart, digital marketers are doing more and more of that these days. So kudos to you on that. Jason: [00:14:32] Thank you. Well, uh, is there anything Nancy, I did not ask you that you think would benefit the audience? Nancy: [00:14:39] Um, yeah, I mean, something that I think a lot about these days is, I turned 65 last February. Um, I have been very often told that I don't look 65, but what I say is this is the new 65. I would like to see the agency world and the marketing world become more age diverse. Um, it's something that I'm passionate about and you know, I now bring to the table wisdom that I didn't have even 18 years ago. So when you see that person who's old enough to be your mother or your grandmother, don't assume that they don't understand technology. Because I challenge any millennial to a social media strategy contest because I've been in the social media and digital media realm since the late nineties, early two thousands. I helped build the first website for MasterCard. I was on Twitter day one of the Twitter launch. And it's funny cause I recently said to one of our associates I've been using social media since 2005. And she said, oh my God, I was only six years old then. So yeah, don't assume that because somebody is older doesn't mean that they can't understand new tricks. So that's my final bit of anti-ageism bad-ass wisdom. Jason: [00:16:15] Awesome. And what's the URL. People can go and check the business out? Nancy: [00:16:20] theonswitch.com, T H E O N S W I T C H.com just like a light switch, but not. Um, my daughter actually helped me name the company and, um, feel free to follow me on LinkedIn because I'm, as I said, I'm a storyteller and that's where a lot of my content goes. Jason: [00:16:39] Awesome. Well, thanks so much, Nancy, for coming on the show. And if you guys want to really be around an amazing inner circle, kind of like Nancy mentioned, where they're all digital agency owners and we're all wanting to grow and scale up faster. I'd love to invite all of you to go to digitalagencyelite.com. Go and check that out and apply. And if we think it's right for you and vice versa, we'll have a conversation. So go to digitalagencyelite.com. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Which Levers Do You Need to Pull to Scale Your Agency Faster?

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Nov 7, 2021 14:11


Do you know which levers you can pull in order to scale your agency faster? Greg Bond believes his purpose in life is to add value to other people's lives. He is the head of revenue at SharpSpring, a company that aims to help businesses better understand their customers so they can maximize their value proposition. Greg oversees the sales function and works really close with the marketing team. He understands what it is agencies, and end-users, are really trying to do with that platform. Greg discussed the levers agencies need to pull to scale faster, some of the challenges agencies face, and what works for showing ROI and continuing to grow. 3 Golden Nuggets Levers you can pull to scale faster. One of the biggest challenges for agency owners is when they need to hire new employees and must raise their prices to be able to afford that. Will their clients pay that? Well, that depends. Do they know how much value they are delivering to their clients? Sharpspring focuses on ROI and being able to report specifically on this piece of revenue. With the consolidation of tools and bringing data into one place, you'll have a centralized data repository that drives your automation engine and behavioral tracking, making your message more relevant. This is what gets you extra conversion rates and will help you grow your revenue. Why are agencies bad at their own marketing? You probably recognize this. The cobbler's shoes. Agencies spend a lot of time and effort working with their customers and they don't do a great job of marketing for themselves. Agencies spend all their time trying to blow their clients away to get more clients through word of mouth. That's great, of course. It's the first requisite to start scaling. However, you can't raise your prices when you're built on referrals. About this, Jason asks, what if you hire a hunter? That way, con can stop self-sabotaging, you'll continue to scale, and you can finally raise your prices. What works for showing ROI. For Greg, it's all about showing value at the end of the funnel. Agencies bought into the lead marketing approach, he says. But with new customers these days there are multiple interactions before they actually make a purchasing decision. So the idea is being able to track all the different interactions across the entire funnel. Having all that data in one place and being able to map it to a singular campaign and then show when this deal actually does close enables agencies to tell what contributed to a sale and report on it in a way with confidence. YOUTUBE AUDIO LINK Levers You Can Pull To Scale Your Agency Faster and Why Agencies Are Bad at Their Own Marketing Jason: [00:00:00] What's up, agency owners? Jason Swenk and I have another amazing episode with my friends at SharpSpring. We're going to talk about what are the levers you need to pull in order to give your clients better results to scale your agency even faster. We all want to know this, so let's go ahead and get into the episode. Hey, Greg. Welcome to the show. Greg: [00:00:25] Hey! Thanks, Jason. Happy to be here, man. Jason: [00:00:28] Yeah. Excited to have you on. So tell us who you are and what do you do? Greg: [00:00:32] Yeah, so my name is Greg Bond and I'm the head of revenue over at SharpSpring, which very recently we were acquired by Constant Contact. So, um, a lot of really cool integration stuff going on there between those two companies. And yeah, I just kind of oversee our entire kind of sales function and work really close with our marketing team. I actually, I've been with the company a while and I came from VP of customer success. So very close to our customer base and really understanding what it is that our agencies and even our end users are really trying to do at the platform and kind of what their pain points are and what they're struggling with. And I've been able to bring a lot of that into the revenue focus of the company. So… Jason: [00:01:13] Awesome. Let's get into it. Let's talk about some of the levers that agencies can pull in order to kind of scale their agency faster and get better results for their clients. Greg: [00:01:25] Yeah. And I, I think, you know, when we talk about this, especially in the context of SharpSpring, I think what a lot of it focuses in on for us is tool consolidation. I think is one of the main things. Over the years, the technology revolution of the past 10 years, you know, the past decade. Um, has brought a lot of different point solutions to market that are fantastic tools. But the problem with them is that you end up with siloed databases and all this information that, that sits in each individual tool. And you almost have to have a whole team of operational wizards to connect these things and pull all that data together. You've got all this different reporting that's ended up end up in silos. And you can't really work to unify that customer experience and report on where exactly what attribution is the attribution that you should be pointing towards for your clients that you're working with to say, hey, this is where that sale came from. And at Sharpspring what we really focus our customers in on is ROI and being able to report specifically on this piece of revenue, where did it come from? We talk a lot about being a full-funnel marketer, and I think that's really the space where we want to play and where we think agencies can leverage to improve their own results. Jason: [00:02:45] So ROI has always been very important. And I think a lot of… You know, when I talk to agencies, one of their biggest challenges that they have is well, I can't afford to hire someone right now. I'm like, well, why don't you charge more? They're like, well, I don't know if they'd pay that. Um, and then my next question to them is, well, how much value do you deliver your clients? And a lot of them go, I don't know. And which is really freaking scary. So depending on your industry, sometimes it's hard to show an ROI. How have you found... Or what are some of the things that have worked for agencies for showing ROI in order for them to, you know, have the client stay with them longer, as well as to charge more? Greg: [00:03:29] It really is about showing that value at the bottom of the funnel. I think agencies in the past and marketers, just digital marketers period, they… They bought into this inbound marketing approach where you have the lead magnet. Somebody fills out a form and that form gives you somebody's email address in a really nice tidy bow of, hey, this is where this person came from. But the new customers, these days, there's multiple interactions before they actually make a purchasing decision. And so you have all of this noise in the system. So being able to track all the different interactions across the entire funnel, sometimes people move into the middle of the funnel and then back up to the top and then back down. And, you know, they may not necessarily be ready yet when they talk to your sales team. And to be able to kind of… Keep all of that data in one place and be able to map it to a singular campaign and then show when this deal actually does close. That's the place where I can now track all of those interactions back and say, whether I want to look at first touch or last touch or any different number of touches and attribution. I can tell you what contributed to that, that sale and be able to report on it in a way with confidence, right? Like being able to go to your client with confidence and say I am 100% sure that our marketing efforts drove this sale. As well as your sales team, right? Like, I don't want to take the sales team out of it. The sales team has a role to play as well. But marketing runs alongside the sales team and helps enable them to be able to close those deals. And you need a singular system that can track all of those interactions without some sort of XL ninjitsu happening there in the middle of it. Yeah. Jason: [00:05:14] You know, Dean Jackson always talks about out of a hundred percent of the pie. Like he always draws like this square and then he basically draws a line down the square and says 50% will never buy from you. And that out of the other 50%, they'll eventually buy from you, but maybe like 10% are ready to buy now. Then the other 40% is over time, right? And so it's really important to really kind of think about it in that way, because a lot of people just go after the 10% and they forget about the 40%. Like, when I look at our data and the different things… There's a lot of times people don't engage with us or, well, jump into the mastermind or buy a, our framework for like two or three years. Which I'm like, that's awesome. Like we held their attention that long, but you know, some people. Yeah. Greg: [00:06:07] And I talk a lot about it with our teams. I talk a lot about the buyer's journey. And there are plenty of people who fall into the bottom of your funnel, who are ready to buy right now. It's the first time you ever talked to them, right? But that's where they are in their buyer's journey. And they just happened to find you at that time. I think so many people look for that, you know, zero moment of truth, that, that place where, you know, that's all marketing is like targeting that person. But there are so many other people, like you said, there's a, the vast majority of the people who will buy from you in the future are not at that point yet. And how do you nurture them to get there? And how do you drop them in at the top of your funnel? Where at the top of your funnel, it's damn near impossible to keep them accurately it attributed to the right campaign over a long period of time. But you still have to fill that top of the funnel and help nurture them down. But with a unified database and behavioral tracking and a tool like SharpSpring, you now have that ability to get all those different touch points in and have them all in the system so that when two years from now three years from now, they actually do convert into a sale, you know exactly how to attribute that marketing spend. Jason: [00:07:19] You've been working with agencies for a long time. Why are agencies so bad at their own marketing? Greg: [00:07:25] That's a great question. I mean, I think one of it is, it's, you know, the cobbler shoes. They've spent a lot more time and effort working with their customers and in collaboration with their, their clients. So they don't do a great job of marketing for themselves. And I, and I think the other one is the number one way that agencies get businesses through word of mouth. Word of mouth is about delivering results, right? If you deliver results above and beyond the expectations of your clients, that's where you get that word of mouth from. And so they spend all their time and I believe rightly so, they should spend all their time trying to blow their clients away and just deliver those results. Again, being able to point back to the ROI and say, hey, this marketing spend this effort that we drove, drove these results. And if you do that over and over again, you'll get word of mouth. And so it'd be great if you could also fill the top of your funnel with a bunch more content, but if it comes at, at the risk of losing the results for your clients, then I don't think it's worth either. Jason: [00:08:28] Yeah, I see that, you know, I, I just had, um, as we're recording this. A week ago, we had 28 of the best agencies over at the house for a three-day experience. And we all talked about like, where were the biggest challenges? Some of them were, you know, we're not doing our own marketing. And they thought, well, in order to scale my agency, the lever I need to pull is the sales. And I need to find a hunter. I, I started asking more questions as well, why? I was like, well, what about the business coming to you? And they said exactly what you're saying, most of their businesses generated by word of mouth. I said, well, congratulations, you're doing a great job. That's prerequisite one for scaling an agency. Right? Like, because there's a lot of people that take a stupid Facebook course and go, I'm a Facebook ads agency. They can't deliver shit. And then it screws it up for all the legit people out there. But what I told them, I said, what if you actually hired a hunter in order to scale? They're like, what about the leads? I'm like, well, that's the other thing, you pull the marketing lever, you can start generating and building your pipeline. Because what I found was there's a lot of owners that the better they do in marketing, the more meetings they have. Soon they get overwhelmed and then they start self-sabotaging themselves. And a lot of you listening right now, you're doing this shit right now. I can promise you. You're self-sabotaging yourself, but if you hired a hunter, then they can start closing that business. They're not going to sabotage you. They want to do well. And then you can scale. Then you can raise your damn prices because when you're built on referrals, you can't raise your prices because they're like, oh, I paid 10,000 a month. You can't charge a hundred thousand to a guy that just referred you 10,000. It's just a different playing field. Greg: [00:10:16] And I think agencies, it's such a unique business because it is a professional service. And, in professional services businesses, it's the expertise that people are buying, right? And the agency owner and the principal is that main source of vision and creativity. So you have to have them involved in the sale. And you also want them involved in every client engagement. That's what the clients purchased, right? So it becomes a scalability issue for your agency, right? Like there's only a certain amount that you can scale yourself. And so you have to hire people who have that ability to cast a vision and be that sort of thought leader as well alongside of you. And you need to be able to share the spotlight a little bit with them. Or at least have, like you said, that hunter that goes out and brings people in front of you and does it in a way that doesn't require a ton of your time so that you can spend the time delighting your customers with incredible results. Jason: [00:11:09] Yeah, exactly. And, and I look at it to have going, you know, as your business scales and you scale the agency, you better damn well start putting the people in place for this, right? Like you should have someone like the director of happiness, making sure you're delivering the results, right? That's what we have. So I don't have to. Like, my attention to detail is probably like everybody else's, that's why I was telling you, like our shows use like 10 to 15 minutes. Like we're all like attention to detail, like bird, where's the bird? So… Well, this has all been amazing, Greg. Is there anything I didn't ask you that you think our audience needs to know about? Greg: [00:11:47] I don't think so. I mean, I think we kinda covered all the, all the main topics that I think are worth really focusing on. But I think one thing that I want to make sure is clear here is when we talk about tool consolidation… And I think everyone hears cost savings, right? They hear that, oh, I can make my life a little simpler, have fewer log-ins and things like that. And that's not really what we're saying. What we're saying is the consolidation of tools and bringing all that data into one place and being able… For that CRM, that centralized data repository to be the thing that drives your automation engine and all that behavioral tracking, being able to make your message more relevant. The right person, the right message. The right person, the right time. That is what gets you those extra conversion rates. That is what helps you grow your revenue. And it's not just, oh, you get to save some money. Yeah. Okay. That's cool. Yeah. That's another benefit. But the real benefit here is... It's actually the right way to build a customer experience that people will go nuts for. Jason: [00:12:52] Awesome. I love it. Now, Greg, you guys have a special offer for our audience for a short time. So tell us about. Greg: [00:12:59] We do. We want to offer anyone that that's a listener of your podcast series a half off their onboarding and their first month free. So big offer here for, for you guys, um, especially for, for this podcast and your audience, Jason. Jason: [00:13:13] Sweet. Thank you very much. Where can they get this? Cause now they're, you know, if you want to get… right? Like, we need to tell them. So where's the call to action, so you can give me attribution for it? Greg: [00:13:24] So head over to sharpspring.com/smartagency, and you can schedule a demo right there and that will help us secure that offer for you. Jason: [00:13:35] Awesome. And you'll be able to schedule with one of their cool strategists that can walk you through everything and set you up. So I highly recommend SharpSpring, go check it out and get your half month or the full month and a half off the onboarding. That's a tongue twister. Greg: [00:13:52] It is a tongue twister. You know, it's about a $1,600 value right there. Jason: [00:13:55] Ooh, go get it, guys. Go get it while it's hot. But, uh, thanks so much for coming on the show and uh, until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How Relationships & Collaborative Culture Help Agencies Scale Faster

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Nov 3, 2021 16:30


Do you know the importance of building relationships to help your agency scale faster? Brian Cosgrove was doing well at a big agency but felt it kept him from doing what he really wanted to do, which was starting his own business and bringing innovation to the way the services are provided. Once he founded BrainDo, they started scaling and, within a year, had already grown from two to eight employees. In this conversation with Jason, he talked about the important role that building relationships & collaborative culture played in getting his agency off the ground, why he was always confident that they could run a big program, and what bringing value to his clients really means for him and why it is one of the guiding principles for everyone working at his agency. 3 Golden Nuggets What contributed to their growth. Once he and his partner hired their first employee, figuring out how to get benefits for their staff, how to do payroll, and making everything official with the agency made it a lot easier. They ended up going after a big contract, and that led to them getting at least 8 more workers, which allowed them to build out a lot of different services. What contributed to their faster growth? Brian credits the importance he places on maintaining good relationships with past clients, team members, and employers. He left his position at a big agency in good terms and, thanks to this, they still wanted to contract him afterward. Also, they were always confident that they could run a big program and positioned themselves to be ready for it. Building relationships & collaborative culture. Other agencies started reaching out to partner with them because their expertise. This helped them start to build relationships with local agencies that could refer clients. Also, former clients that were working at different companies started calling them. So Brian highlights the importance of these connections to get his agency off the ground. The importance of building the type of network where everyone is willing to help one another and believe they can all rise together. Of course, good work is a big part of it. “Because of that relationship, I don't want to leave the client in a worse place,” he says, “I refuse to do it.” The chain of value. After signing a contract, the agency will usually deal with the company's manager on a day-to-day basis. One of the guiding principles at Brian's agency is to make sure that that manager is benefitted from this relationship with them. They want to see that person get promoted and fully engaged. They should love what they're doing and help break down barriers within the organization to provide value. “The way I see it,” Brian says, “is I need everybody on my team to say everything that we do has provided value.” The principle is to make sure that what they do brings value to the customer, but also helps them help their team, their whole company and organization. And make sure all of that ends up helping their end customer. Sponsors and Resources Wix: Today's episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Building Relationships that Will Help You Scale & The Guiding Principle of Providing Value Jason: [00:00:00] What's up, agency owners? Jason Swank here and I have another amazing guest for the podcast so you can grow your agency faster. We're going to talk about building relationships and creating a collaborative culture within your agency so you can scale faster. So let's go ahead and get into the show. Hey Brian, welcome to the show. Brian: [00:00:25] Hey, how are you? Jason: [00:00:26] I'm excited to have you on. So this is your first podcast. I'm honored you picked me to be your first podcast. But, uh, for the people that have not heard of you yet, tell us who you are and what do you do? Brian: [00:00:39] Yes. I'm Brian Cosgrove. I'm the owner of BrainDo Interactive Consulting, and we do a lot of work across the board, uh, focusing in analytics development and different areas of digital marketing. Jason: [00:00:53] Great. And so how did you get started? Brian: [00:00:55] Interesting story. I was in aerospace engineering and I was looking for as some side money during the holiday season and I applied for warehouse job. And found out I wasn't the best at doing packing boxes, but I was a bit overqualified. And the owner of the company asked if I could help out with some things related to their SEO program. So I read a bunch of like white papers. I read a bunch of like academic papers on people that were actually developing these engines. I tried to figure out, okay, who's the talent? Like how they did it? And then figure out what we should do and came up with a plan. And implemented it and started ranking top. In my other career I was like, okay, I can see where I'm going to be at in 10 years. And that's cool. But this is like amazing growth and I'm able to have a huge impact and I'm still in my early twenties. So I got into that and that kinda got me to crossover into this digital marketing thing. Worked in that space for a little while, went to my first agency Razorfish and started off in SEO. And then I had to fix analytics. Was there for about three years and then went into another company another comp company to help them build out their digital practice when they were doing all kind of like direct mail TV, pretty much all traditional marketing. I went there with some, you know, one of my colleagues from Razorfish. And then that went really well and kind of grew that. And then struck out with a good friend of mine on our own in 2013. Jason: [00:02:38] What made you want to leave? Since the one agency was going really well and you were leading that. What was that itch? Brian: [00:02:44] I already knew, like, I kinda knew since I was young, that I wanted to kinda like start my own thing or make my own thing. I always kind of had a sense of, you know, we could do things a little bit differently. We could innovate a bit in how these services are provided or culture. So for me, it was kind of like I liked doing what I was doing. But it was almost like a trap because it was keeping me away from what I really wanted to do, which was kind of start something fresh. Jason: [00:03:10] Gotcha. Awesome. And when you started the agency, how long did it take you to really kind of start bringing on and building a team? Brian: [00:03:20] So it was just myself and my partner for, I guess, February to November. And then we hired our first employee in November. And at that point we figured out how to get benefits for them. We figured out how to do payroll. We figured it out, we made everything official and we got all that squared away and that made it a lot easier. And then we went after a kind of big contract to kind of do all many different digital channels in, you know, a year two and ended up hiring eight more people that year. That kind of allowed us to build out a lot of different services that we needed someone to run point on. So I'd say within a year and a half, we were at 10 from, you know, two. Jason: [00:04:05] That's great. So what do you think contributed to that growth? Like how did you have that fast growth? Because a lot of people for a couple years, they're just kinda, it's kinda them, their business partner, maybe a couple of contractors. Brian: [00:04:18] It's an interesting thing. So while I was still working, before I even started, I really cared about the relationships with my clients, with my colleagues, with my management, with team members, with vendors. So I had a pretty big network at that point. And it was… You know, there's an interesting thing that happens when you kind of let people know like, okay, I'm going out to do this on my own, you know. People that you've built relationships with that care about you they kind of want to figure out how to work with you. So it helped out tremendously just to kind of lean into that. As soon as we left the place that we were working on asked if we could do some contracting with them. And I was like, we can, but you know, it's gotta be at our contracting rate. You know, it will give you somewhat of a discount for a period of time, but this is how we have to work for our business. And we were able to end up converting our former employer into our client, which was based on the fact that it maintained good relationships. We also took a lot of care in transitional work. Backfilled our roles sort of before we left. We left them in a good place to be like, okay, they're good. All of our big retainers are renewed. Our team they're fully staffed. They can run without us. And then they still wanted to contract with us afterward. Other agencies reached out, they wanted to partner with us because they knew that just individually, myself and my business partner had some expertise in certain areas. And they said, hey, we need help there. Can you guys help us out? So we ended up building relationships with other agencies that were in the area, you know. And then it was like someone who was a former client, you know, went to another agency, brought us in. I'd say a lot of it was kind of just relationships that got us off the ground. I think a big thing for us is we're kind of confident we could run a big program, like an enterprise program. And so, while we took on some smaller clients, we kind of just always positioned ourselves to be ready for that. Like we always kind of really played that role that we're ready to do enterprise work at a moment's notice. And we knew that that would get us a six-figure contract or something like that from a client, which again is sort of like a game-changer when it comes to hiring employees and say, I already kind of have your salary on contract. Like I can afford to pay you in the future without worrying about that. Jason: [00:06:37] Yeah, I think so many lessons in there that I want to make sure people don't skip over. It's you know, the one is you gotta be really good at what you do. Like a lot of people are like, how do you, how do you create a successful agency that's growing? And I'm like, well, you have to know how to do something better than most. And to actually get people results. That's rule number one. But I also liked that you talked about building relationships and really not just going, you know, what's in it for me, you know, like a lot of our mastermind members, they do this amazing… where they're like, look, I don't have any problem today, I just wanted to show up and help. Like help other members, right? And then when they do need help, everyone will… Here, here's the shirt off my back. Here it is. And it's not like I'll do this for you, if you do this. Like we get, you know, all those slimy emails that you get? Like, oh, you have my audience, can you just blast this out? Brian: [00:07:43] Yeah, there's a lot of that going on. Honestly, it's, it's building a tighter circle with people that you don't have to… You know, there's no fakeness to it. There's a lot less agenda. It's sort of like let's all rise together, to me has always been important. Jason: [00:07:59] Yeah, iron sharpens iron, right? Brian: [00:08:04] And I also really care about doing good work. So that point, and so I think that was another thing was that we were kind of committed to making sure we did great work no matter what. It wasn't like, uh, maybe we'll do well, maybe we won't. It was like, we're going to do great work no matter what, because of that relationship. I don't want to leave the client in a worse place. I refuse to do that. And that, and that was just sort of a… an important lesson, I think Jason: [00:08:34] When you're an agency partner with Wix you unlock an entire digital ecosystem for creating, managing, and growing your agency. Get the full coding and design freedom to create anything your clients need, along with the tools to manage and collaborate with your team seamlessly from anywhere. And when it comes to growing your agency, you can get matched with new leads every day and earn revenue share for every website you guys create. They're backed by the Wix industry-leading security and site performance. You'll also have a dedicated account manager on standby 24/7 so you can reach your goals and start setting new ones. See for yourself, head over to wix.com/partners and re-imagine what your agency can accomplish. And I think a lot of people forget that, you know, we kind of ring the bell. Or the gong, you know, ring the gong when you sell a deal and you're like, yeah, that's good for you. But you know, the client is already thinking, like having buyer's remorse, like you should be thinking about… Like, I was chatting with Darby, our agency scale specialist yesterday, and he's been bringing on a lot of really amazing members. And he's like, look, I'm so invested because I want them to have the best experience because it's, it's my word of what they went on. And I'm like, that's why we get along so well, we will do anything to move people along rather than like yeah. You gave us money. Yeah. Good luck. Brian: [00:10:10] Yeah, exactly. I mean, the way that I've seen it. So usually when we take on a contract, there's occasionally if it's smaller company, we might be dealing with the owner or upper executives. But usually when it comes to day-to-day, we're dealing with the manager that they have on their end. That's managing the relationship with us. And I've always told my team and, and this is kind of been a guiding principle… I want to see that person be in a position to get promoted. Just for working with us, they're doing so well, but they're now getting promoted. They're fully engaged. They love what they're doing and they're helping break down barriers within the organization to provide value. On top of that, the way that I see it, especially in the bigger organizations is I need everybody on my team to say everything that we do has provided value. Obviously, like it provides value to the brand that we're doing this work for… We're, we're billing for it. And that works out and ultimately it should be contributing to our culture. But after that, the client, that first person, that first line of contact or the person on the front lines, make sure that we're doing everything we can to help them. Make sure that what we're doing not only helps them, but helps them help their team. Make sure what we're doing not only helps them and helps their team, but helps their whole company and organization. And make sure all of that ends up helping their end customer. Because like, if you can follow that, that thread all the way through, and there's no conflict anywhere along the way, let's proceed. Let's move forward with this project and give it everything you've got. If there's a conflict on the way, maybe that's project we don't want to take on. Maybe there's a different reason that we, you know, maybe we want to propose something else. But if you can't follow that all the way along the way, then you can't have confidence that what you're doing is going to provide value. Another thing, I think that was important for us is... And this came up after working in other agencies was, you know, I remember a gentleman said to me said, look, I want to be able to be proud of who I see when I look in the mirror. I want to be able to be proud to tell my kids, the clients and the projects that I work on. And so another thing that we took on very early on was like to be picky. And so it's picky not just on the clients and the projects we work on. We want to do things that provide value to the world, but we also care about kind of like… Are we providing value to that organization? And so the how is just as important as like specifically what we're doing. And I would say, I want to add too, that team members put a lot more energy into it. Jason: [00:12:26] Oh, yeah. I think a big part of why you've gotten to grown so fast too, is you have belief in your team and you. And you said that we knew right away we could take on enterprise clients, right? There's so many of us that didn't start that way, right? We didn't start with at a big agency, like a Razorfish or go to... Like me, I was accidental. I remember I joke with people. I'm like, my first client asked me for an invoice. I didn't even know what an invoice was. I didn't know all these terminologies. And so for many years I had kind of that, um, imposter syndrome. That I could do a website, but I can't do anything else. And I see a lot of people that way. So I just want everybody listening, even if you have that… Look, I even feel like the imposter syndrome too. And I've been in the agency space since 98. And so you got to kind of go look, I'm really good at this and I can dominate this part and go do it. And build relationships like Brian has talked about… Correct me if I'm wrong, if you make all your managers and all those people rockstars, they get promoted and where do they go? Other companies, and then they bring you along. Don't they? Brian: [00:13:43] Yes, exactly. And so, in fact, I just received an MSA for a sneaker brand I'm super into, you know, like huge brands that I liked already loved are now like our client base. And I feel like… This morning, just from work, doing, working hard with some people while they worked in other companies before that. And so the way that I say it is just, that should almost be the end goal. That should be the expectation. Like we're all kind of in our careers together. We are all sort of like at certain points in certain stages. Our clients should be going to other companies, and when they do, they should want to come into work with us. And we should be sort of a secret tool that they bring to the table. Is that it bring that success along with them. Jason: [00:14:26] Exactly. Yeah. Cool. Awesome. Well, this has all been amazing. Brian, is there anything I didn't ask you that you think would benefit the audience listening in? Brian: [00:14:34] I just want to touch briefly on the collaboration part. One thing that helped out was that a lot of our brainstorming sessions early on, and what helped us grow is that we, you know, this person was a graphic designer. This person is doing SEO. This person is an analytics and that person's doing paid media. We would do a lot of like collaborative work early on to say, you know, kind of all hands on deck. Like how do we solve this client's paid search need? And get ideas from a lot of different people and made sure that everybody on our team knew Google analytics, knew kind of some of the mechanics of how the other channels worked. And that went a long way to them building relationships, them doing sort of cross-channel collaboration. And then being able to offer solutions to clients that were kind of like a bit more thought through. A bit more holistic or integrated, and a bit more defensible, maybe from different angles. So I would just say like, if you have a few different disciplines, like make sure to figure out how those two go together to be better than if you only worked on just one discipline alone. Jason: [00:15:38] I love it. I love it. What's the website people go and check your agency out? Brian: [00:15:43] Uh, brain.do. Jason: [00:15:44] Awesome. Well, everyone go check that out. Thanks so much, Brian, for coming on the show. Lots of amazing stuff. And if you guys want to be around amazing agency owners and you believe that iron sharpens iron, where other agencies are sharing the strategies that are working for them, and they're able to see the things you might not be able to see. I want to personally invite you all to go to digitalagencyelite.com. This is our exclusive mastermind just for experienced agency owners. We only take a few every couple of months. So go there now, fill out an application and maybe we'll chat if we feel it's right for you. So go to digitalagencyelite.com and until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How to Build Better Client-Agency Relationships to Scale Faster

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Oct 31, 2021 23:52


Do you know how you can improve client-agency relationships to scale faster? Joe Koufman has worked in the agency world for over 20 years. He was actually a guest on the podcast during its first year. In 2014, he decided to use his experience in marketing, business development, and management to create Setup, a company that works to connect brands and marketing agencies by helping companies find the right agency to meet their needs at a given time. Today he returned to the podcast to discuss what clients look for in an agency, how does a successful client-agency relationship looks like, why you shouldn't be afraid to challenge your clients, and more. 3 Golden Nuggets What do clients look for in an agency? Setup has set out to really understand client-agency relationships and asked several companies what are some of the things that matter to them in their agency partner. They found that most clients really don't care about things like proximity, size of the agency, or awards. Clients were mostly looking for chemistry, transparency, good communication, and creativity. As to the things they wished agencies knew, they wanted agencies to be more strategic partners. They also wished agencies had a better understanding of their business and that they understood that not all ideas could be executed. Building better agency-client relationships. It was curious that, when asked about what they wished to improve in the client-agency relationship, both parties seemed to ask for the same things. The reality is that, in order to have a good client-agency relationship, they need to have shared goals, sharing common KPIs. And, of course, there must also be a high level of transparency between client and agency, even some vulnerability in terms of what they are sharing. A big frustration for clients was when agencies claimed to be good at something that they are not. Agencies have to set clear expectations and be completely transparent and candid about what they do well and what they don't do well. Don't be afraid of tension. “You're not looking for harmony,” Joe says, “you're looking for tension in the relationship.” Don't strive to be your client's buddy. You can be buddies with your sales rep, but never buy anything from them. The idea is that you push the client and bring them an insight that's not obvious to them. Get them to agree that there's an issue in their organization and then present your solution and the best option. Remember that usually, clients don't hire an agency because they want order takers. They hire an agency because there's an unmet need. “The byproduct of being a real challenger,” Joe assures, “is relationship.” Sponsors and Resources Gusto: Today's episode is sponsored by Gusto, an all-in-one people platform for payroll, benefits, HR where you can unify your data. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Head over to gusto.com/agency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM The Byproduct of Being a Real Challenger is Better Client-Agency Relationships Jason: [00:00:00] What's up, agency owners? Got another exciting show for you. One of my good friends from Atlanta that was actually back on the podcast the first year we've done this. And we're going to talk about building client relations so you can scale your agency faster. So let's go ahead and get into the show. Hey, Joe. Welcome back to the show. Joe: [00:00:27] Hey! Thank you. It's been a long time since I've been on this show. Jason: [00:00:31] Yeah, I mean… seven years? And that back with the intro in the, in the video with the cup. I was like, oh, I'm here. Joe: [00:00:42] We, uh, we haven't aged a bit in seven years. Jason: [00:00:45] No, I've, I've just gotten a lot more gray in my beard. Um, a lot more gray. Yeah. No, you've always been kind of peppered. I think… Joe: [00:00:56] Yeah. Just more so. Jason: [00:00:57] Exactly. Well, um, tell everybody who you are and tell them a little bit about your, uh, your background of working with the agencies. Joe: [00:01:05] Sure. So I'm Joe Kaufman, I'm the founder and CEO of Setup and we are marketing matchmakers, meaning that we connect brands and marketing agencies together. So from an agency perspective, um, what that usually means is that we connect agencies with potential clients. From a client perspective, they look at us as a search consultant or a, an augment of their team to help them find agencies that can fill gaps in either capacity. Like they don't have enough arms and legs to do the work they need to do. Or capability, they're missing some capability that an agency could fill. Jason: [00:01:43] Very cool. Awesome. Well, let's, let's kinda talk about what people are listening in for is like building better relationships and, you know, and re-engaging. You know their client year after year, you know, because you, you've worked for, you know, many agencies in the past before doing the matchmaking service. We've had a lot of those guests on from Hill Meyer. It's, uh, you know, uh, Sims and those guys. So I guess let's, let's get into that. How can agencies build better relationships to scale better? Joe: [00:02:15] We, we think a lot about that agency-client relationship. And to that point, we actually do an annual marketing relationship survey. Um, Ad Age actually picked it up, uh, earlier this year, which was pretty cool. But basically what we wanted to do is understand what the reasons are that clients look for agencies. Why do they hire agencies? What do they expect out of their agency relationships? And, um, and we also actually did an event earlier this year, where we were calling it group therapy for the agency-client relationship. And we add a bunch of agency people and a bunch of clients on a Zoom call and we talked through that relationship. Um, you know, as I mentioned before, the clients often look for agency support because of an issue with capacity or an issue with a key capability that they're missing. And, um… That survey that we do annually to understand that relationship, we ask clients, what are some of the things that matter to you in your agency partner? When you're looking for a new agency partner. And the things we didn't hear, the things that came up really low on the list were things like proximity. You know, I don't care if my agency is down the street. Particularly in the days of a pandemic I really don't care where my agency's located physically. I don't care so much about the size of my agency. Smaller agencies can do amazing work for larger clients. Um, I don't care so much about what awards they've won. Just agencies often… Yeah. Agencies often think awards are important. And for some clients, they really do care, but most don't care about… Jason: [00:04:00] Well, those clients are idiots. Did I ever tell you that…? Did I ever tell you the story of, um, we were pitching Mellow Mushroom and, uh, they… If you've ever been to their office, it's like in the middle of nowhere and they were joking around about oh, here's a map to find her office. And like, I want you to show you how, how, how I want you to show me how creative you are. So I showed up at their office in full camping gear. Like they thought I was a homeless person. And like I had like the portfolio in this bag… like, and they were like, we loved it, but we're going with… You mentioned in the pre-show. I won't, I won't bash them now. Um, so I won't bash them on the show. But they were like, we're going with so-and-so because they won a ton of Addy awards and we want to win an Addy award. And I tell them, I go, I'm never eating your pizza ever again. Joe: [00:04:56] You don't want to sell pizza. You just want to win awards. Jason: [00:04:59] Yeah, I've never eaten your pizza. Joe: [00:05:01] That's right. You, you reminded me of a time that I wore an entire cowstume to the Chick-fil-A headquarters. Um, and my goal was to not smile the entire time. I was just going to be deadpan serious. Everybody would cut off pointing at me when I was walking through the lobby and walking through the… The women that check you in at the front desk did not think I was funny. Uh, and in fact, the client told me two or three times during the meeting to please keep my utters underneath the table. He said he found them a little bit disturbing. Jason: [00:05:33] What you should have done is started messing with your utter… utters. Joe: [00:05:38] I, I may or may not have done that. Maybe that was the reason he said that. But, um, I did think it would have been really fun to get some camelbacks or something and have like chocolate milk come out of one and strawberry milk and vanilla and whatever. But… Jason: [00:05:53] And then could be like just tap me. Joe: [00:05:57] Right. But it was an innovative idea for a client. I mean, dispensing cow milk dispensing cow on site. Uh, but anyway, so, uh, we, we found through the survey that, you know, those, those things are less important to clients. The awards, location, size, et cetera. What they really care more about is some of the soft and intangible things that the client can do well. Like… I'm sorry that the agency can do well. Like, um, they're looking for chemistry and relationship and transparency and, and good communication. And they're looking for, um, you know, creativity, uh, th, there are not… Many of those things are things that are within an agency's control. Um, and you know, we did, I mentioned, we did an event where we asked the questions, what things… What do you wish agencies knew? You know, we ask clients, what do you wish agencies knew? And they said things like we wish they were more strategic partners for us. We wish that our agency would help us navigate some of the bureaucratic red tape within our organization. Um, we want them to act as an extension of our team. We want them to I understand that not all ideas can be executed. Sometimes agencies come with these big glossy, creative ideas, but there's just not realistic for, for this client. And they wished that the agency would just understand their business better. Um, we built a series of resources for clients, um, in our resources section of our site. And, you know, there's a complete guide to finding a marketing agency in there. There's a scorecard in there that... There's two versions of the scorecard. One version is if the client is trying to decide between three or four different agencies, how do you choose in a pitch kind of situation? But the other scorecard is made for agency or for clients to evaluate their agency on an ongoing basis to see if they still are feeling the love. Jason: [00:08:05] Yeah. And what are some of those…? What are some of those questions that the clients are actually looking at? Joe: [00:08:12] Yeah. I mean, how, how creative is agency? How, how innovative are they in terms of, you know, finding new ways of doing things? How good is their, their, their communication? How good is their project management, their service? Um, you know, uh, uh, how are, how tech savvy are they? Even if they're not a technology agency, or, you know, a CRM agency or something like that. You still want to know that they're leveraging the best tools and that kind of thing. Um, and you know, we do it like a scorecard. I mean, they can rate each category and section and then decide is this agency is still the right one for me in the future? Um, the flip side of that conversation that we had about what, uh, you know, clients wish agencies knew. We asked the agency people what they wish clients knew. And I'm sure some of your listeners will, you know, feel some of these things. They, they wish that the clients would be patient and answer also, but also answer all the questions that you ask. When, when an agency asks a lot of questions, it's usually to uncover some insights so that they can deliver value for the client. They wish that the client would lean on the agencies for their expertise in a bigger way. They wished that the client would provide all of the crucial information upfront. I think sometimes there's a hesitancy for a client to open the kimono and give you everything as an agency. But if you truly want your agency to be a partner and not a vendor, then you gotta be really. You know, up front about all of the, the, um, information that might be useful. Jason: [00:10:00] Taking care of your employees has never been more important than right now. And while paydays are great, running payroll is a major pain, calculating taxes, deductions, compliance. None of it's easy, unless of course you have Gusto. Gusto is a simple online payroll and benefits built for your small business. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Plus, with Gustos help, you can offer benefits like 401k's health insurance, workers' comp, and a lot more. And because you're a smart agency masterclass listener, you're going to get three months free once you run your first payroll. Go to gusto.com/agency. That's gusto.com/agency for three free months. Well, you, you, you know what, like… I'm glad you're going over this part. Because if I had one of my agency clients go to me going, and I wished they could do this, I'm like, well, hey, dumb ass, they could. You're taking on the wrong prospect. Um, you know, I, I did a video, I think back around when you were back on the show, and I remember it was the worst background. I looked like Oompa Loompa in it. And the title of it was like, there's no such thing as a bad agency client, there's only a bad prospect or a bad process. And if you don't have the right, if you don't have the right qualification to check, if that prospect is legit or going to be a nightmare client, or it was going to be good. Because like, you've been on so many pitches, like I have, right? Including the cow utter or, or the campaign… Joe: [00:11:54] That, that was planning for cow appreciation day. So it was very appropriate to wear a cowstume. Jason: [00:12:00] Of course, of course. I mean, right? So we've been on all these pitches and like, if you can look back at when the guy was offended by your utters, right? It'd be like, you're probably not going to be a really good client for us. I don't care if your Chick-Fil-A. Uh, like, I need to pick. And then the other point, I think that you mentioned, you know, like kind of like to sum it up is that the end of the day, the agency needs to be the advisor. You can be a really good advisor if you really get laser focused at what you're going after. And having a niche or a specialization rather than a generalist and going after all the big brands. Like when we did that, it was just challenging. But when we started going after automotive, I could talk to Porsche, I could talk to Lotus, talk to Maserati. Like I was like, hey, I speak your language, guys. I race cars too. Like, I'm one of you. So… Joe: [00:12:53] Yeah. Super cool. Yeah, we, it is interesting that, um, they both sides of the equation were talking similar language though in terms of what they were looking for when it came to strategy. And I thought that was interesting that clients were saying, I wish my agency were more strategic. And then the agency people were saying things like, I wish my client would let me be more strategic. So, you know, we, we started that conversation like the old book from the, I guess it was the 80s or something. Men are from Venus & Women are from Mars or whatever it was. And that was sort of like the agencies and clients. But the reality is the best agency-client relationships have shared goals. You know, do you have shared and common KPIs, your key performance indicators that you're trying to achieve. And, you know, sometimes clients will give their agencies skin in the game and, and tie their compensation to, you know, some metric that is important to the larger business. But at the end of the day, those best agency, client relationships, you know, there's no surprises. There's a high level of transparency between client and agency. There's some vulnerability there in terms of sharing, more than you maybe should on purpose. Um, and then just being super clear with expectations about, you know, and that goes on both sides. I mean, the agencies setting clear expectations and being completely transparent and candid about what they do well and what they don't do well. Uh, a big frustration for a lot of clients that we talk to is, you know, my agency says they're good at everything. And I know that they're not. Jason: [00:14:35] Yeah. Yeah. They're full of shit. Yeah. I mean, at the end of the day, it's even if you have the client that like when… Going back to I wish I could be more strategic and I wish you were more strategic… Well, it sounds like, you know, if you find the right client, like it's about the communication or the process in order to show them that, rather than going, you should go do this, but then you can't back it up. I'm like… Joe: [00:14:57] Yeah. There's a, there's a book that I've always loved since I first read it. And I recommend it to a lot of people in The Challenger Sale. And I think you've probably read it. But the concept of The Challenger Sale, the biggest concept to me is you're looking for tension in the relationship. You're not looking for harmony in the relationship. Or relationship… people think they want to hire a relationship builder as a sales guy or saleswoman. The reality is a relationship builder. You can be buddies with your sales rep, but never buy anything from them. But those that really challenged… So the idea of the challenger sale in the book is you push the client, you bring them an insight that's not obvious to them. You get them to nod their head that, yes, that same issue happens within my organization. And then it only, then that they've nodded their head and said, yes, this happens within my organization, you can present your solution as the best. Or maybe the only way to solve that specific challenge or problem. And, um, and I had always been that way with clients where I was constantly, you know, pushing them and looking for tension. And there's a fun byproduct of being a real challenger and the by-product is relationship. Um, because I think that the clients will appreciate... I don't think clients hire an agency because they want order takers, usually. They hire a client, they hire an agency because there's some unmet need. You know, we talked about capacity or capability need, and they feel that the agency could not only solve that problem, but help them think through the future and, and overcome challenges that they haven't even anticipated yet. Jason: [00:16:48] Yeah. We, we were talking about this in our mastermind. We were helping a member out. Um, and they just, their close rate just kept going down and down. And everyone, a lot of people were starting to focus on the end. Like what, how are you asking for the close? We're like, let's start at the very beginning and let's, how are you setting up the meeting? Like, how are you starting the meeting? Are you letting them know…? Like whenever I would do a sales call, I'd be like, hey guys, I'm like, I'm going to build rapport really quick, but I'm not going to be their friend. The friend can come later on, but if they look at me as a friend, they're never going to buy from their friend, they have to, I have to position as an advisor. And then right after I do that, I'm like, hey, I have this quick little framework I'm going to go through to make sure we stay on time and make sure I can really figure out what your biggest issue is so we can fix that out. Can we, can we stay on track? And like, if you audit your process, like start from the very beginning a lot of times people get off track there. And then what do we have happen? The prospect just won't shut up for 40 minutes. They tell you this crap story that you don't need right now. Um, I'm being nice. Uh, but among … Joe: [00:18:00] Yeah. Well, or even go back further. I mean, you know, and to you, you kind of made this point earlier a little bit, which is, are you prospecting the right kind of opportunity? You know, before you even get to the meeting or the conversation, is it the right person? Uh, back when I was at a small digital shop, when I began, you know, my, my mark, my agency career, I had four criteria to determine if I wanted to pursue an opportunity. One was, do we want their logo on our logo slide? You know, is it a brand that we just really need, we really want? Number two was, is it a hundred thousand dollars in revenue and profitable for us as an agency in terms of opportunity? Third was does it teach us a new skill that we need to have? We just don't have today. And then fourth was, are there hungry mouths to feed within the agency? And we just, we'll take it even if it doesn't meet those three criteria because the thing that they need is the exact thing that we have some capacity on right now? Over time, we became part, we were acquired and became part of a kind of medium-size full service agency. We went from 50 people to 250 people. And that number, that second criteria, which was a hundred thousand dollars, became 200 became 500,000, became a million. And by the time we sold to a massive holding company in 2013. Um, I was… if I didn't see a million dollars in revenue in year one, they were too small. And it wasn't just size, but it was just the commitment of does this client…? Are they committed to marketing and working with us on a larger scale than just, we want to give you a little project here? And that doesn't mean we would never take on a project if it was a foot in the door that meant, you know… We would get in and get an opportunity to earn the larger piece of business. But we were really careful about that. We wanted to know that there was a path to a million dollars in revenue in year one. Um, and, and I think, you know, setting those parameters upfront, you know, if you're talking about an agency business development standpoint… You need to have your criteria. I have, an agency we work with that, um, that also has a PITA criteria. Do we think that the client is going to be a pain in the ass? And if the answer is yes, I don't care how many… you know. There are some red flags that sometimes occur upfront. To your point, when you're first having the conversation that the money looks attractive, but maybe you should run away. Jason: [00:20:43] Yeah. Trust your gut, your gut never lies. Joe: [00:20:46] And I'll give you one other piece that you probably experienced in your days running an agency. But nothing is motivational to the team in a positive way, in a very positive way than you firing a pita client. Um, you know, if a client truly is abusive or, you know, doesn't treat the agency like a strategic partner and treats the agency like a vendor or something like that, um, it's not worth the revenue. It's just not. And, and nothing, nothing helps your team be more supportive of the overall mission of the agency than when you say, look, we won't tolerate… You know, a client that's not supportive, not, not, uh, that that's abusive or… Jason: [00:21:36] Yeah, we. Yeah, I can't agree with you more on that. I mean, we literally, there was a… There was a member in the mastermind, not too long ago, that was doing stuff that we didn't agree that we asked to leave. Um, and then it just rallies the other, the other people. They were like, oh wow, they're not just, just taking for the money. They'll defend me. Um, and, uh, yeah, I think it says a lot about your company and character in that. So… Well, this has all been amazing, Joe. Is there anything I didn't ask you that you think would benefit the audience? Joe: [00:22:13] Um, I would just say that if there's an agency that's interested in growth, um, there are certainly… We can offer some services that help growth. Um, the four primary services can be found at setup.us/four-agencies. And I can send you a link to that. But essentially the services are around how do you help the agency position itself for growth? How do you, um, really uncover insights about the agency, that'll help you do that. And then we actually do help agencies grow through business development services on our sustainable pipeline. So we do have some pretty strict criteria about the kinds of agencies that we'll take on to work with. So we're not working with really small agencies. If they've got fewer than say 50 full-time employees, we probably won't we'll work with them on an ongoing… You know, sustainable pipeline basis. But happy to have the conversation with, with anyone that might be interested. Jason: [00:23:14] Awesome. Well, thanks so much, Joe, for coming on the show and everybody go check out their website. If you have more than 50 employees and you need help, go check them out. And if you want to be around amazing agency owners on a consistent basis where they can see the gaps that you're not able to see. Help you climb that mountain a lot faster, prevent those falls from crashing in the crevasses. Uh, I want you guys to go to a digitalagencyelite.com. This is our exclusive mastermind for experienced agency owners. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Get Your Agency To the Next Level By Focusing on Who, Not How

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Oct 27, 2021 19:00


Do you know the importance of focusing on the who, rather than the how, to get your agency to the next level? Dallin Cottle had a degree in political science and was heading to law school when he started working at an agency and discovered a knack and passion for advertising. He quickly felt that he couldn't continue to grow at that company and decided to branch out and start his own business, Roar Media. Now, after scaling his agency and getting through the many difficulties that COVID brought for business owners, he sat down with Jason to talk about how he got his first clients, how getting his agency to the next level meant focusing on the who, rather than the how, and how he realized when it was time to start transitioning from his role of agency owner to being a CEO. 3 Golden Nuggets Making the first $100,000 from unqualified leads. Coming from many years in the agency world, Dallin already had some contacts and an idea on how to get his first clients. He reached out to some of his connections in local agencies and asked if they could refer some unqualified leads. “There's a lot of them and they were just throwing them out like garbage,” he recalls. And that's how he got the first clients for start building his agency and made his first $100,000 from calling up leads that nobody wanted. Focusing on the who, rather that the how. When building and starting to grow an agency, many people focus on how to get to the next level and start to work more and more. Dallin believes that the more you learn, the more you'll realize that you have no idea what you're doing. “This is a pivotal moment for any agency owner,” he says. It is at that point when you have to look around and realize where the business is at and where you are going and you have to surround yourself with the right people that are going to help get you there at that moment. Transitioning to the role of CEO.  Agency owners typically have many capabilities. They can wear a lot of different hats and this can result in a failure to recognize when it's time to look for experts that can help you scale to the next level, as well as the time to transition to the role of CEO. In his case, our guest understood it was now or never and organized a 6-week vacation. Just the thought of leaving for a long period without answering calls or emails forced him to start delegating tasks he would normally do for his team. At this point, part of your role will be setting the vision for the company and coaching and mentoring the leadership team. Sponsors and Resources Ninja Cat: Today's episode is sponsored by Ninja Cat, a digital marketing performance management platform where you can unify your data, create beautiful, insightful reports and presentations that will help you grow your business. Head over to ninjacat.io/masterclass to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Focus on The Who To Get Your Agency To The Next Level And Transition To The Role of CEO Jason: [00:00:00] What's up, agency owners? I'm excited to have another amazing guest. We're going to talk about the who, not how, which is real important when you're growing and scaling your agency. So let's go ahead and jump into the episode. Hey, Dallin. Welcome to the show. Dallin: [00:00:21] Thank you. Thank you. Excited to be here. Jason: [00:00:24] Yeah, me too. Tell us who you are and what do you do? Dallin: [00:00:27] Yeah, so I'm Dallin Cottle. I own a marketing agency in Salt Lake City, Utah, Roar Media. We specialize in Facebook ads, Google ads for the real estate niche, fitness and personal development spaces primarily. So, yeah, excited to be here. Jason: [00:00:47] Yeah! Tell us, how did you get started? Like why create an agency? Because, you know, as we all know, it's, it's a hard life for a number of different years. Dallin: [00:00:54] Yeah. So my story is actually really, you know, unconventional. I actually got a degree in political science and I thought I was heading straight to law school. And, you know, I got, I graduated and I was looking around and I'm like… Man, I don't really actually see the type of job that I was thinking I was going to have right here at the end of the road here. And looking at a lot of years ahead with law school I'm like, man, I don't know if this is it for me. So I took this job at an agency and, you know, day one, I was like, man, I, I'm home. Like, this is what I love doing. And a lot of parallels from just human psychology and everything I've learned, I learned in political science of how people vote is very similar to how they respond to ads and different things. So it was kind of a, you know, it's definitely a match for me. And from there I, just about a year later, I realized that I had I've reached my destination at that company. I had… making the six figures. I bought the Beamer. I bought the house. Bought the 4runner. I mean, we had a kid, I felt like, wow, this is, this is a great life, but I'm like, man, I'm tapped out in here. I can't continue to grow. And so I decided to jump and to branch out on my own and start, start my own thing. It was the dumbest thing I ever did. No, I'm just kidding. Jason: [00:02:13] Oh no. That was probably the best thing. Yeah. So how did you land your first client? Dallin: [00:02:19] All right. This is a, this is awesome. So my first clients came from… Being at an agency, I realized there's a lot of unqualified leads. And they were just throwing them out like garbage, right? At least the agencies that I was familiar with here locally. And so I was just, I mean, I had made really great connections. Even the, you know, the place I previously worked, like I was, you know, all on good terms and everything else. So I just started reaching out to some of these local agencies and the people that we had partnered with or worked with. And I just said, hey, I'm just kind of doing my own little thing here, freelancing. Would you mind if I just shoot me like 10, like crappy, crappy leads that I could just call and just cut my teeth out on, right? And that's how I made my first a hundred thousand dollars in like six months, right? It was from calling all the leads that nobody wanted to work, right? And just put in some serious time to learn the ropes and started from there. So… Jason: [00:03:14] Did you find that the first couple of clients that you got that made the, you know, the first hundred thousand… Do you still have those clients or did you, did the agency outgrow them? Dallin: [00:03:24] Yeah, that's a great question. So it's really interesting because the first out of my first four clients, the three of them I've had up until this last year, one sold their business. One, unfortunately, had a partner in the business passed away and they actually kind of just shifted gears and decided not to do advertising anymore. And another one, we stopped working together a couple of years ago, right? And I think that for that person, I think that, yes, that one probably was a little bit of a we've, we've kind of outgrew that modelers the expectation at the beginning of, you know, what you're charging and what you're doing. It's hard for that kind of growth. But for the most part, there's kind of a little bit of everything there, right? From the ones that we saw kind of continue with us. And then there's the other set kind of fell, fell off. So... Jason: [00:04:20] Well, let's talk about kind of the who rather than the how. Because a lot of people are always kind of focusing on, well, Jason, how do I get over the million?Or how do I get to the multi-million? Or how do I get to the eight figures? How to get to the next…? And I always tell them, you're kind of focused on the wrong thing. So tell us a little bit about what that means for you. Dallin: [00:04:41] Yeah. Well, when you first start out building an agency, there's so many things that you are learning. And there's so many things that you start to realize there's kind of that unconscious competence at first, where you are like the… where you feel like you're kind of there. And you are, you kind of have that ego in you and you're like, yeah, I can do this. Like, I'm good at this, right? And the more you start to learn, the more you start to realize that, wow, I really have no idea what I'm doing, right? And it's at that point where you realize you actually have no idea what you're doing is, I think, a really pivotal moment for most agency owners. And it's in that moment that I was really grateful that I've had mentors and coaches that, you know, I've spent a lot of money to surround myself with those people. But in those moments, that was the counsel that I was given, right? The council was, hey, perfect, you recognize that you don't have it all figured out. And what you need to do is start looking around at who's done this before. Cause it's not an impossible task. Like I'm not a surgeon, I'm not, you know, working on someone's brain or whatever it is, where I'm going to have, have, have to know the how of all of this. I just have to know someone who's actually done it before, or who's done something similar and go and find that person. And that principle is served me, so, so well, and… I mean over the years and when COVID hit, we've had the seriously change the who. Like we had to change a complete who. I had to let go of 12 employees at one point. And it was like the hardest decision I ever had to make in the business. But, you know, you, you look at where the business is at, where you're going… And you have to surround yourself with the people that are going to help get you there at that moment. Jason: [00:06:28] Yeah. I always tell everybody kind of what got you to the point you're at right now is not going to get you to the next level. Like for example, getting to the million mark, you can get there by referrals and marketing. But then, you know, that's not going to get you to the next level, which you really need kind of a system in place where, you know… All right, I put this amount of money in. I know if I can get this amount of people through this. This is how much we're going to, you know, build in the pipeline. Or even looking at kind of on the sales part, right? A lot of times what got you to a certain point is a person. And that person could be you doing the sales or maybe one salesperson. But you need to build a sales system, a sales team that can operate without just one. And it just goes on and on and a lot of people don't realize that. They go, I've grown really quick to this one point and then they go, well, I'll keep going this way. I'm like, no, no, no, you got to constantly adapt or you're going to reach a level. And then you're going to constantly go up and down. And when you're going through that roller coaster, which gets you through that is luck and determination. Depending on how many times you go through that, you know, that takes away a lot of energy and sometimes it puts you on a downward spiral or you're like, I'm just tired, man. And I, I can't tell you how many people I talked to that just like… Can you just by me? I'm like we don't buy dying businesses. Dallin: [00:08:01] Exactly, yeah. No, exactly. Well, and then, you know, what's interesting with, with all of that, I mean… Being an agency owner, most of the time, the agency owner started the agency because they're really good at marketing. And if you're really good at marketing, chances are you're really good at a lot of different things, or you can wear a lot of hats. And so you're typically good at sales because you know how to write copy for a great ad to get sales, right? You know how to do a webinar. So you're great at presenting things. And so you help do sales presentations, right? And you can kind of do a little bit of everything. So it's one of those things where if you're, you know, if you're selling real estate or you're doing something else there where you're like building a house, like… You may not know how to do all of the, you know, you may not be a good electrician, there's plumbing. Like there's so many other factors where you're going to have to rely on the who and not, you know, just the how to do all of that. With an agency owner you're kind of in this like really awesome pocket where you have so many capabilities. It's really hard to just be like, you know, I'm not going to do that myself. I'm going to find an expert that can actually help me scale it to the next level. Jason: [00:09:09] Do you feel like you have to come through mountains of data, jumping between multiple platforms to spreadsheets, to slide decks and back again, in order to create performance reports for your clients? It's a constant drain on your agency's time and resources. And that's where our friends at Ninja Cat can help. Ninja Cat is a digital marketing performance management platform that really unifies your marketing data and empowers your agency to automate insightful, beautiful client reports that scale. Now, Ninja Cat keeps your marketing performance and presentation tools in one place, freeing you up from manual data wrangling. And it really gives your team more time to focus on strategy and growing your business. And for a limited time, my smart agency podcast listeners will receive $500 ninja credit. When you go to ninjacat.io/masterclass to claim your offer and schedule a demo that's ninjacat.io/masterclass. Yeah, and I find a lot of people get to a point where they're okay at everything. That's what I'll put. And they go, well, Jason, I don't want to become a big agency and a big agency to them might be 40, 50 people. They are like, yeah, I already have 10 or 20, and that means I'm going to have double or triple the amount of pressure on me. Or, and I'm like, no, no, you don't get it. The more people you hire and the more of the right people you hire, the less you have to do. Like one of the things when I'm working with mastermind members or clients, is once they get the right system set up, I tell them, take a month off. And then don't even pick up the phone, don't check, email. And then come back and what you'll find a lot of times is now you're ready to kind of change your position from an owner to a CEO. Because the CEO role is really going to setting the vision for the agency, communicating that to the team, coaching and mentoring and leadership team. And really being the face of the organization and a couple other ones, but that's really it. Then you can have all this free time to do, like we were talking pre-show… We were joking around about I'm researching building a teepee and putting on top of the mountain. And then you talked about buying real estate, all kinds of stuff. So, you know, it's like you have time to do other things. So I want you guys to have time to research teepees and go buy your own teepee. Dallin: [00:11:55] We're going to wait to post this episode, right? So you can get this teepee. Jason: [00:12:00] I'm going to corner the market. I'm going to corner the market because I'm checking out these websites and they do a piss poor job at marketing. So there might be, if you could be the number one agency in the world for going after the teepee niche. Dallin: [00:12:16] That's right. If you learn one thing from this episode today, it's that. Um, no, but to your point, I, this last summer, we've been an agency, route four and a half years now. And so, you know, it's always, it's been a grind, a huge grind. I haven't done a lot of vacationing, okay? But I told my wife that that's the danger it's like next year, next year, right? In a month or so. And then pretty soon I was like, you know what I'm gonna do? I'm going to force my hand here. And I said, we are going to go to Hawaii for six weeks this summer. So we left the first part of June and got back the, the end of July, um, this summer. And man, the lessons I learned from that, just exactly what you were saying. It was absolutely insane because the preparation, knowing that you're leaving in a couple of months. Everybody, at least most people that I know. And I've talked to you about this. When you go to leave on vacation, even if it's for a weekend or a week or whatever, the house is clean. All the, you know, the bills that were on the counter are paid. All the things are kind of cleaned up and you kind of leave… You try to package things as nice as you possibly can cause you're leaving. And so that same principle, like when I'm thinking, leaving for two months in my business or six weeks like that. Man, I, all these certain things that I would have just normally done, I started handing off. And I couldn't believe the difference that it made in my business. And then just like you said, just stand back and like put my hands up and be like, Hey, it's on you guys. Like, keep it going, right? I don't want to get that phone call, right? And so that was an awesome experience. And coming back, just like you said, I was able to really shift that direction. It also forced the team to be able to do that. And I think sometimes we don't let the people that are, that could step up and be leaders in the company, we don't really give them an opportunity to step up and be the who. We just focus on them always being the how, right? And so in that moment, we're like, hey, can you do this while I'm gone? Because if I got hit by a car and I was out for six weeks, they totally would've, right? They would've stepped up in a big way to make sure that things continued on they're on that path. So it's, uh, it was a huge lesson for me this year. I'm like, man, should've done that a lot sooner. Just planned it out and did it. Jason: [00:14:31] Yeah, you should never look at like tomorrow, tomorrow, tomorrow. It's like. You know, it's like today living today, don't live in the past. Don't live in the future either. I make that mistake. I, I make that mistake all the time. You know, it's like, we've always done it that way. And then I'm like, I quickly slap myself in the face going that's the kiss of death and… Or I'll say, oh, I'll do that tomorrow. And be like, no. I've always been really good at executing if we have an idea… And my team always laughs. They're like, oh, Jason has another idea. When's it going to be done? Probably in like two seconds. Dallin: [00:15:08] That's right. Jason: [00:15:10] Like buying the teepee. Uh, I think that's what the title is, how you can grow your agency to afford a teepee. That's right. Dallin: [00:15:18] That's all you need, is the teepee. Jason: [00:15:21] Exactly. Perfect housing, right? That's all you need. Well, this has all been great. Is there anything I didn't ask you that you think would benefit the audience? Dallin: [00:15:31] No, I just, I mean, just to kinda summarize that. I think that, you know, you, you look around and like where you want to go, right? Find the people that have that have done it, you know, keep continuing to listen to this podcast and, and see all the, you know, all the different stories and learn from that. And you'll find the people that are around you. It's so crazy how close those people really are. If you don't mind, I'd love to share one more thing with you. Jason: [00:15:58] Go for it. Dallin: [00:15:59] I recently was watching, um, Undercover Billionaire. I don't know if you've seen that show on the discovery channel. But, uh, man, what an awesome, just like… Jason: [00:16:08] The second season or first season? Dallin: [00:16:10] Both. I watched both of them. But I thought they were both amazing in their own kind of way. But yeah, no spoilers, but Grant Cardone in the second season, you know, agency directions, right? And so looking at kind of that whole approach, there's no fear in, well, I don't have money to hire, I don't have money to find the who. I don't have, like, you know… There's no resources that are like they're building, you know, a million-dollar evaluation business in 90 days... With literally they have no contacts, no resources, no nothing. It's literally just asking people and trying to find out what their passion and their drive is and how they can help contribute to the, you know, a greater vision, right? So you sell that vision and you build the life and the agency that you want. So I highly recommend plugging that in there. No, I wasn't called to plug that in from the Discovery Channel or anything. But it was a pretty cool, um, you know, kind of looking at it from a, just a straight-up business standpoint. But it's good entertainment too. Jason: [00:17:13] It was really good. I, I just think, you know, people are like, I remember watching something, um… A Tony Robbins video and Al gore was in the front row. And I guess that beforehand, he was like, if I had the Senate or Congress, I don't, I don't know the, uh, you know, I would've won the presidency. And Tony was like, no, it's never a lack of resources, it's about a lack of resourcefulness. So I just want to leave everybody with that of going, if you can dream it, you can build it. You just need to figure out the who can actually help you and just build that community, build those relationships and that's really everything. So what's a website people can go and check the agency out? Dallin: [00:17:59] Yeah, roarmedia.io, and basically you can find us anywhere on roarmedia.io on social media as well. Jason: [00:18:08] Awesome. Well, cool. Well, thanks so much for coming on the show. If you guys enjoyed this episode, make sure you go check out their website. Make sure you subscribe. And if you want to be around amazing agency owners that are constantly challenging you and constantly motivating you to push harder and be more resourceful. I want to invite all of you to go to digitalagencyelite.com. This is our exclusive community and mastermind for only the experience agency owners that are really wanting to change the game and really take it up a notch and have a lot of fun and share what's working with other amazing people. So go to digitalagencyelite.com and until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How the Right Foot in The Door Offer Helps Land Bigger Retainers

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Oct 24, 2021 19:08


Would you like to land big retainers of $50,000 to $100,000? Spencer Brooks is the founder and principal of Brooks Digital, an agency that empowers health nonprofits to build engaging digital platforms that improve the lives of patients. He has worked to create an agency that brings a new perspective to the nonprofit sector, which is very one-time project-focused, and tries to bring a more agile approach to help them adapt to changes in online health information. With this in mind, Spencer has created a system where the agency looks for opportunities for a longer-term relationship with the clients in 12-month retainers. In his conversation with Jason, he talked about choosing a niche, how he goes about offering retainers, and the point at which the working relationship can lead to bigger retainers. 3 Golden Nuggets Choosing a niche. As it tends to happen, this agency stumbled upon its niche after hearing many times that he should choose one. At first, it was just about realizing that 60-70% of their clients were nonprofits and making the move to start focusing on those clients. It was fairly easy because as a niche it was still quite large. Another look at their client roster revealed that most of those nonprofits worked with health issues. The decision to focus on those clients was much harder because it was scary to move into a much smaller niche with about 20,000 nonprofits. However, it was the right move for them and they've made it work by bringing a more agile approach to the sector and working with the perspective that their digital presence is a product, not a project. Landing big retainers. Of course, there are agencies that can get six-figure retainers from day one, but in Spencer's experience, the agency's biggest retainers have come from a working relationship with a client that matures to that point. It usually starts with a client that has a very specific project or something that they want to do. Spencer will then evaluate whether there's an opportunity for a retainer with this client. What are their challenges? What are the organization's goals? It usually goes beyond just building a website. He informs the client that there's an opportunity for a longer-term retainer with their project and makes sure to have a roadmap for the post-launch of the website. Timeline to get a retainer. When working on the initial foot in the door project, Spencer and his team are usually looking for ways to craft a winning strategy. After that, he says, it's usually either simple and takes just a few weeks  or it'll take months and months and never come to anything. It's the ones in the middle, the ones that take up to six months that are more complicated because, in his experience, they are always tied to trying to sell the retainer upfront. The idea is that the client can make that decision in a few weeks or on the spot. Because the foot in the door offering is an opportunity to build trust, as well as for the agency to evaluate that client and decide if it's worth it to commit to them for the long term. Gusto: Today's episode is sponsored by Gusto, an all-in-one people platform for payroll, benefits, HR where you can unify your data. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Head over to gusto.com/agency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Choosing a Niche and Creating a System to Land Bigger Retainers Jason: [00:00:00] What's up, agency owners? I'm excited for another amazing episode. We're going to talk about how to land bigger retainer. My guest on the masterclass today is going to talk about how he sold 30,000 to 100,000 dollars plus retainers, which all of us want to do. But a lot of times we're doing it the wrong way. And, uh, so let's go ahead and get into the show. Hey, Spencer. Welcome to the show. Spencer: [00:00:32] Hey. What's up, Jason? Glad to be here. Jason: [00:00:34] Yeah, I'm excited to have you on. So tell us who you are and what do you do? Spencer: [00:00:39] Sure. So, like you said, my name is Spencer Brooks. I run Brooks Digital. We're a digital agency. We do a lot of strategy, like user experience, as well as design and development for nonprofits. Specifically, those nonprofits that focused on a health condition like cancer, diabetes, something like that. We take the perspective that their digital presence is a product, not a project. Because there's certainly a lot of one-time project-based thinking in the nonprofit sector. So we try to bring a more agile approach to help them adapt to changes in online health information and things like that. Jason: [00:01:15] Awesome. And so how did you get into doing this and how did you wind up picking this niche? Spencer: [00:01:21] Yeah, that's a great question. I mean, I, I stumbled into it to be honest, I think as many people do, or at least other agency owners I talk with. I started as a, as a freelance web developer. And so over the years, I started hearing about, oh, you need to niche down and you need to choose a good position and things like that. I began by just honestly examining the clients that I was working with already. I looked at them and I went well that 60 or 70% happened to be nonprofits. And so for a while, I focused just on the nonprofit niche. And I made a decision, hey, this, this is still quite large. There's like a million, you know, there's a million nonprofits that are seven figures plus in revenue, that's still quite large. So took another look at our client roster and realized we just happened to be doing work with a lot of organizations that focus on health issues. And so that was much scarier to do because that's a, it's, it's a much smaller. You know, you're, you're talking about maybe 50 or 100,000 tops. Uh, you know, more realistically the, the ideal client is somewhere in like that 10,000. There's probably 10, 20,000 organizations and in that space, so it was a little bit scarier to make that decision, but, uh, I went ahead and did it. And so that's, that's sort of how I ended up in this space today. Really, by just sort of looking back at what clients happened to be working with us, what clients happen to uh, you know, the clients have the highest revenue and making those decisions with a whole lot of courage. And, and, you know, some help along the way to, to get to where I am right now. Jason: [00:03:09] Awesome. So let's talk about how are you landing such big retainers? Spencer: [00:03:14] Yeah, that's the mega question, right? I, I think I'll start by saying that the biggest retainers have come, in my experience, from a working relationship with a client that matures to a point of a big retainer. So it's not necessarily from day one that I'm getting a retainer that's six figures. I'm sure that there are agencies out there that have developed a market position and that, that claim to expertise where they could theoretically do that on day one. But I think much more commonly and certainly in my case, that that develops over a period of time. So I'll usually start with smaller projects and that's usually the case with clients is that they come and they have a very specific project or something that they want to do. And I evaluate their organization as a whole and say, okay, this is what you want to do right now. But in my head, I'm sort of thinking, is there an opportunity for a retainer here? Do they have ongoing needs? And so I'll, I'll take that. I might take that small project and do some sort of strategy or examination of, okay, what are your needs? Do a discovery and then pitch them a, a little bit of a larger project. And then telegraph that there's probably a longer term retainer here. And that's just how we work. So it's a progressive process, but I telegraph that that's usually how we work and then I build the client relationship into that place. Jason: [00:04:48] Yeah. I mean, I, I totally agree with that just because I see so many people that they're pitching marriage right off the bat. And I don't think it works for either party because it's a big commitment. Like for example, I remember many years ago, and this happens all the time as well. I had a client that came to me and said, hey, you know, charge $5,000 a month on a retainer. Um, and, uh, it's month to month. I'm like, well, why is it month to month? They're like, well, it's easier to sell. And I was like, well, why wouldn't it be 12 months? And they're like, well, that's big decision and a lot of risk. I said, well, do you want to kind of eliminate that? So I like kind of what you, you probably do the same thing, kind of start with a strategy and really figure out like a, like you said, kind of figure out where they're wanting to go, what their biggest challenges are. And then, you know, we put a high-level plan together and then that probably leads to a project, I presume, or a smaller project? Spencer: [00:05:46] Yeah, exactly. So if… let's say someone, I had a, a lead come in the door and they want to do a website or something like that, right? So I might start to examine, okay, what, like what's the context in which this project happens? It's usually not just a website. That's like a lot of the work that we do ends up being website-related. But talking to them about what are the organizational goals? What, what is this, what are your challenges? What is this solving for? And then laying out a plan for, okay, maybe a website's part of that, but have you considered all these other things that you might want to be doing, right? Have you, you want this website, but have you actually even researched your audience at all? Like the people… You're thinking about it this way, but you know, we take the perspective that your website is a product. So are you thinking about this like a one-time project and it's going to be, is it going to be done? And how are you going to then adapt to that over time, right? And sort of, and take their project and bring our perspective to that. Then that usually… our perspective, of course, being that the website is a product naturally leads into a retainer-based relationship. So then we'll say, okay, we'll build out your, your MVP, you know, this, uh, the, the initial version of the website, and we'll help you do that. But then here's our roadmap for post-launch for this website. So we'll do the build, but then know that after that, here's what we're trying to do. So here's the retainer that's gonna come along with that. And usually, by the time we get done with the website, I don't think a website project has ever been finished without a phase two wishlist at the end. And so it's just very natural to just say, all right, like we'll, I'll scope control the project by bundling all of the stuff that comes up during the middle of it into retainers. It just, it flows really nicely just through the course of the project and helps me say yes to a lot of the stuff like strategy-wise or helps the project manager say yes to that during, um, you know, during the build-out. But then say, yeah, well, yeah, phase two, yeah, but this is the retainer. Jason: [00:08:08] Taking care of your employees has never been more important than right now. And while paydays are great, running payroll is a major pain, calculating taxes, deductions, compliance. None of it's easy. Unless of course you have Gusto. Gusto is a simple online payroll and benefits built for your small business. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Plus, with Gusto's help. You can offer benefits like 401k's health insurance, workers' comp, and a lot more. And because you're a smart agency masterclass listener, you're going to get three months free once you run your first payroll. Go to gusto.com/agency. That's gusto.com/agency for three free months. Yeah, I, um, I like that you kind of start selling the retainer while you're in the first engagement. I find if there are people where they wait until the project's done, then I think it's sometimes too late. Because they're already kind of like checked out, right? Like, do you see that as well? Spencer: [00:09:33] Yeah, I think it's super hard if you're, if you're acting as if you're just this super project face company agency. And then all of a sudden at the end, you're like, hey, by the way, uh, I am... I'm going to recommend that you spend a hundred thousand dollars a year. They're like, wh…? You know, it's just like a truck hits them. Uh, and so I do think that telegraphing, that that's the way that, that we work, that you work as an agency, helps them prepare over time. And I, and I phrase it in a way that says, you, you, if you want to continue working with us, then this is how we work. If you, if you, for whatever reason you don't like this, that the product that we put in. If you don't like the experience of working with us, then after the project, like you can take it and you can go and you can find someone else to do it. And so that sort of relieves them of this pressure of committing to the, uh, effectively committing to a retainer at the beginning of our project. But also telegraphing to them that this is the conversation that's going to come after the project's done. And then it just leaves us as the agency in the position to just deliver a great experience. So that, that conversation is easy when the project is done. Jason: [00:10:51] So what is your close rate percentage or have you been tracking that of when people come to you for all this? Spencer: [00:11:00] Yeah, no, that's a, it's a, it's a good question. Um, I don't have like a hard number off the top of my head. So I'll give you my, my ballpark guesstimate. It's very high. Usually, like, frankly, if someone, if I get a sense that a prospect is just interested in a project and there's not even an opportunity of a longer-term relationship there, then I'll probably pass. So I mean that in itself takes my retainer close rate up a notch because I'm not trying to funnel people through that. It's kind of part of my qualifying process. Uh, so like that being said, I I'd say it's at least 50% or 60% uh, that go into a retainer, if not more. And then the folks that don't go into our retainer, they typically stick around, but they're still thinking about the project-based kind of work. So as a fallback with the, with the clients that just say, no, I'm not going to do a retainer. Then I'll probably do the more standard, you know, account management, follow up every couple months and generate some more projects. But typically those kinds of clients, they know that we work on retainer and if we're not available, we're giving priority to our clients that are on retainer. And so that, it's kind of a nice way to you prioritize the people who are on retainer and then the clients that don't end up closing on a retainer, like you can sort of nurture them to fill any gaps that you might have in your pipeline. So that's how I think about it. Jason: [00:12:31] Yeah. I mean, that's huge. Because I see when people are pitching retainer, run off the bat. They're less than 25% because it's a big commitment, right? And now you said 50%, but I want everybody to hear this is 50% to a retainer. So they've already gone through strategy and projects and to the retainer. So the close rate for, you know, what I call the foot in the door or a project is going to be skyrocket much faster. And then also what is typically the timeline for closing, for getting that client to pay you right up, like for the first time? And then also what's the trend, like how long is the timeline to get to the retainer average? Spencer: [00:13:12] Yeah, it's a, it's a great question. So initially, when you're doing like the, I think you mentioned like foot in the door, that initial project. That, that my entire goal with that is like, how, how do I craft a, uh, like some sort of quick wins strategy engagement? And then we're talking like two weeks, right? It's usually very easy. It's either like they're going to probably pay up within two weeks and sign, or I'm going to chase them for months and never hear back. Um, it's only that middle, you know, when you get like that three-month close or six-month close, where... Those are in my experience, usually always tied to these huge, mega, you're trying to sell the retainer upfront. You're trying to sell the six-figure seven-figure project right off the bat. And those, of course that takes months and months to close because that's huge. But it's a much smaller… it, the idea is that they can make that decision in a few weeks or on the spot. Jason: [00:14:05] Exactly. Spencer: [00:14:06] Then we'll typically go through a process that's about three months. If we're going to do a project like a website build or a relaunch I'm shooting for about three months. There are three or four months. And then after that, I'm looking to close a 12 month retainer on the back of it. So really it it's actually fairly accelerated. And usually, once we get past that initial project, that the foot in the door and then ladder it into a larger project. Then by that point, they've gone through two projects with us, essentially. There's a lot of momentum behind the relationship… they're, they're in a position where they're liking what they see. And so then when you're like, yeah, let's just keep working together. Like we've all these things that we've been talking about, the strategic roadmaps we just need to now do that work. And so it just makes the, the retainer conversation very, very easy. Jason: [00:15:02] Yeah. Well, I mean, you build trust, you made it an easier decision. And then you're building trust as you show them little wins, you show them the plan. You know, one of the things I always told people is people chose us because we made it easy for them to choose us. We explained exactly how our process worked rather than hiding or stra… or secret strategy soft… You know, like all this super-secret shit. And then, you know, we did a little commitment on their end. And we also too, we were evaluating them and we let them know we were evaluating them. Just kind of like you, like, if people are wanting to go right to the retainer. Yes, that's exciting. But it's also should be a red flag. Do you really want to commit to someone for 12 months and be miserable? You know, you gotta, you know, we, uh, and, and I can't tell you how many members in the mastermind I chat with that, uh. You know, in the very beginning when they join… There's so many clients that they need to get rid of because they're not profitable or they're a pain in the ass and it's an easy... And we walk them through our offering ladder and the foot in the door and all of this. And it really solves a lot of their pain. It doesn't solve everything, but it solves a good portion of it. Um, well this has all been amazing, Spencer. Is there anything I didn't ask you that you think would benefit the audience? Spencer: [00:16:29] No. I think that maybe the one comment that I would add to kind of, to flesh out your point, Jason. Then, um, then I think that's, it, is that yeah, the, the... The foot in the door in the larger offering is absolutely, uh, that chance to evaluate a client. And over the years, that's certainly the thing that I've discovered with retainers is that great, okay, you get awesome at closing retainers that… But if you close a client that you don't really like working with it, then you're stuck with them for at least 12 months. And then of course, everyone knows, it's really hard to say bye-bye to revenue. Even if there's so much pain associated with that. And so you really got to think about it from that perspective as well is give someone… Just progressively unlock your services to them so that you have that experience, that opportunity and experience with them to just say, no, thanks. I don't think this is going to work out and save yourself a lot of pain. Jason: [00:17:29] What's the website people can go and check out the agency? Spencer: [00:17:33] So it's brooks.digital. Not.com, but the fancy new dot it's not new anymore, I guess. But… Jason: [00:17:47] At least you didn't do like some of my guests going WWW… I'm like, wow. You just aged yourself. Spencer: [00:17:50] HTTPS colon forward slash forward. Jason: [00:17:55] Well, I used to do that for many years and then someone made fun of me and then I'm like, ah, maybe I need to switch that. So, but uh, well, amazing. Uh, thanks so much, Spencer, for coming on the show. Make sure you guys check out his agency's website. And if you guys want to know more about really crafting your own foot in the door and really how you can start selling bigger, bigger retainers, faster, closing, more, making it easier, getting paid for the proposal. I want you guys to go to footinthedoorframework.com. This is our exclusive program that I did with my good friend, Ian Garlic aka Sasquatch. He makes a lot of cameo appearances on our videos. Really good friend. And he's been doing the foot in the door framework for many, many years, and perfected it. And he's been really helping out a lot of mastermind members... In the mastermind walk through this and we just launched this program. So go to footinthedoorframework.com and until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How to Boost Productivity by Supporting Your Team's Work-Life Balance

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Oct 20, 2021 11:33


Are you looking for ways to boost your team's productivity while also improving your work-life balance? Jason Berkowitz was working as a personal trainer in NYC when he discovered SEO and decided to become a freelancer. He grew his business and started hiring and building his team to create a legit agency, Break The Web. Now that he has a team, he has been implementing a few ways to boost productivity and morale. In this conversation, he talks about the key roles he hired to start growing his agency, why offering unlimited PTO has worked for his team, and how a special summer schedule allows the team longer weekends 3 Golden Nuggets On growing his agency. Jason found success learning about SEO practices and how to help people implement them in their websites. However, freelancers have to take care of different aspects of the business like admin, selling, project management, execution, client management. Some people are comfortable with that, but he wanted to delegate certain aspects of the business to increase his income. For this, the first strategic hire was an account manager, which was the first step to start building a legit agency. This way, he didn't have to spend so much time speaking with clients, relaying information, and setting expectations and could focus on other aspects of the growing business. On unlimited PTO. More and more people are deciding to offer employees unlimited PTO. It is an ongoing debate and, in his particular case, Jason decided to do this at his agency. The main reason has to do with fairness. “If I wanted to take unlimited vacations, it was only fair to allow that as well in the team culture,” he says. But there was also the matter of allowing people to enjoy their time off and see how that affected the way they enjoyed work. There are still rules, it is based on performance, employees have to put in requests for PTO at least 10 business days beforehand, and it can be approved or denied. But it has been a success at his agency. Boosting his team's productivity. Other than offering unlimited PTO, another strategy introduced this year at the agency to boost the team's morale was working half-day Fridays in the month of June. It was a way of letting them enjoy their summer weekends, but it actually ended up improving team productivity from Monday to Thursday. Work was being executed much faster and more efficiently. It also helped Jason maintain a better work-life balance. Overall, it was a success for this team and something that they may continue to do every year. Sponsors and Resources Wix: Today's episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Growing Your Agency, Work-Life Balance, and Boosting Your Team's Productivity Jason Swenk: [00:00:00] What's up, agency owners? Jason Swenk here and I have another amazing guest and, uh, his name is Jason. He's also from New York. So don't get confused. He's probably better looking than me, but, uh, we're going to talk about growing his agency, life balance, and a lot of cool stuff. So, uh, I'm excited to have him on. So let's go ahead and get into the episode. Hey, Jason. Welcome to the show. Jason Berkowitz: [00:00:29] Hi! Thank you so much for having me, Jason. It's a pleasure and, yeah, best name ever. Jason Swenk: [00:00:34] I know. I was like, don't get confused. You're the newer and better version of me, I guess. But tell us who you are and what do you do? Jason Berkowitz: [00:00:42] I am the founder of the search marketing agency Break The Web, and we specialize primarily in SEO and paid search. We help in-house marketing teams, integrate SEO, which is always nuanced and confusing and annoying, into their existing marketing practices. So it's seamless all around. Jason Swenk: [00:01:00] Very cool. And so how did you get into this space? Jason Berkowitz: [00:01:03] It was probably by accident. I used to be a personal trainer, way back when in New York City. And I was tired of working for a gym and basically working off the leads that they gave me, which were new membership signups. And I had the idea of what if I can get people to come to me? Is there a demand? So of course people are going to Google typing in personal trainer NYC. Saw the acronym, SEO started implementing it on my website at the time. And then I was like, screw personal training. Uh, this SEO stuff is fun. Of course, SEO was way different back then anyway, but it was kind of a paradigm shift. That's where the journey started. I worked as a freelancer for a while, but that's where it started. Jason Swenk: [00:01:39] How long ago was that? Jason Berkowitz: [00:01:42] Around 2009, 2010 is where I started actually getting into the practices of SEO what's involved? What does everything mean? What's the methodology? So about a decade now. Jason Swenk: [00:01:53] Very cool. I remember when you could get right for any term by just putting that keyword in the background at the same color. So I might be dating myself on that one, but that was a really… Jason Berkowitz: [00:02:04] The good old days. Oh yeah. One among the many different things that would work really well and really fast back then. Jason Swenk: [00:02:13] What made you decide to go from a freelancer to hiring people? Jason Berkowitz: [00:02:18] Yeah, I think I wanted to have a certain income. The problem with being a freelancer is that you're managing everything. When it comes to admin, selling, project management, execution, client management. All these different aspects. And some people are comfortable with that, but I felt like I needed to delegate certain aspects if I wanted to increase my own personal income. So then I started bringing on VAs to help with some of the smaller things. And then before you know it I'm like, wait, I can let go of this one thing too and not have to worry about it? And I can let go of this one other piece? Then before you know it, you just look up, you're like, oh shit, we're a boutique agent. Jason Swenk: [00:02:59] Yeah, it's exciting to let go of the stuff that you don't necessarily want to do anymore or have to do. And then other people actually start doing, you know, a better job. And I'm always curious, who was the first hire? Not the person's name or well, please list out their social security number. I'm just kidding. What was the role? What was the first role that you hired? Jason Berkowitz: [00:03:23] The first unofficial, non US-based was a VA in the Philippines. That was to help with link building as one of the big, uh, time-consuming aspects related to SEO. The first US in which we officially, you know, start with like, hey, we're going to be legit and grow a real agency was an account manager. I found myself just taking a lot of time speaking with clients and trying to relay information, setting expectations. So the account manager was our first hire. Jason Swenk: [00:03:51] Awesome. There's always a debate around kind of PTO. Well, there's more and more people now kind of giving unlimited PTO. Why did you go to that? Jason Berkowitz: [00:04:04] I think if I wanted to take unlimited vacations, if it made sense or just take off when I wanted to take off, it was only fair to allow that as well in the team culture. I think just people are going to enjoy work if they could also enjoy pleasure. And if you restrict them by X amount of time that they have for that pleasure, they may not enjoy work as much. So if they just needed an extra three or four days on a certification or an extra trip. Or maybe they were capped out throughout the year for the amount of days, that just gives them a bad taste in their mouth. So we'd rather if you're doing great work, if things are looking good and we won't be set back, if you take an extra couple of days off by all means, go for it. We just care about the output more. Jason Swenk: [00:04:48] Yeah. Some people are always concerned about can people take advantage of it? Like, have you ever had anybody try to take advantage of it? Jason Berkowitz: [00:04:55] No. They still have to put in requests for PTO at least 10 business days beforehand. And they still could get approved and denied. I don't believe I can recall offhand recently I have denied someone. But we do have it in our knowledge base internally and our SLP is that it is based on performance. So yeah, technically, if you want to go ahead and request. One thing we'll be looking at is how much time they've taken off previously, a culmination of hours. But also the performance and the output overall, as well as what things might look like around the time period in which you plan to take off. But yeah, I don't think I've ever denied someone and no one hasn't taken advantage yet. Surprisingly, I find what might be, if you do have, for example, two weeks or 80 hours of paid time off towards the end of the year, people want it. So then you've got people taking off just for the health taken off and they may just sit on their couch. Jason Swenk: [00:05:53] When you're an agency partner with Wix, you unlock an entire digital ecosystem for creating, managing, and growing your agency. Get the full coding and design freedom to create anything your clients need, along with the tools to manage and collaborate with your team seamlessly from anywhere. And when it comes to growing your agency, you can get matched with new leads every day and earn revenue share for every website you guys create. They're backed by the Wix industry leading security and site performance. You'll also have a dedicated account manager on standby 24/7, so you can reach your goals and start setting new ones. See for yourself, head over to wix.com/partners. And re-imagine what your agency can accomplish. Yeah. You know, we had that in the very beginning of our agency where everyone, like, we would say, hey, it doesn't rollover. You got to use it or lose it. And then they wouldn't use it until the very end. Then literally right when all the clients want all the work they're like, I'm taking time off. And it really screwed us majorly and it was pretty hard, cause sometimes we had to deny it. I do like how you have, hey, we have unlimited PTO. But you have to put in like, and you're a lot nicer than I would have been about 10 days. I'd have been like, at least give me a month. Or like, if, if there's emergency, like your parents need you or something or kids or something like that, obviously go. But if it was like, hey, I forgot to tell you about my Hawaii vacation. I'm gone for two weeks and it's happening next week. I'd be like, well, you might not want to come back. Jason Berkowitz: [00:07:37] Yeah. You know, I know we were just talking about New Yorkers and whether New Yorkers are mean. And I guess that's, you're in New York attitude right there. Jason Swenk: [00:07:45] Yeah. Well, I think I was telling people, I was like, and I could say this cause I was like, yeah, cause we're brutally honest and a lot of people do take that as mean. But you definitely know where you stand with the New Yorker. There's no beating around the bush. Jason Berkowitz: [00:08:02] No sugarcoating. No. Jason Swenk: [00:08:04] Is there any other interesting things that you guys do around making your team happy? Uh, you know, incentivizing them or anything like. Jason Berkowitz: [00:08:14] Yeah, we tested out in the month of June as the intro to summer half-day Fridays. And everyone loved it. So it's just half the time you normally would be estimated for that hourly output of the day. I loved it. So I was happy with it. And after interviewing every team member, they loved it too. And I think it's something we might do recurring every June, maybe even possibly thinking about just doing four-day workweeks, the month of June. Just to see and everyone loved it because they were able to take, they didn't need to put in for PTO or maybe half day PTO on that day. Uh, which was nice. And just having a longer weekend as the summer rolls in, especially after the last year and a half or so. It was nice to boost morale a little bit. Jason Swenk: [00:08:55] Yeah, I see more and more people doing that. And actually, if you think about it's probably should do it for the rest of the year, honestly, half day on Fridays, or maybe even one a month be like Fridays are completely off. I've seen some of our mastermind members actually do it on Monday because everybody hates Mondays and… right? And it's a little bit easier, but a lot of times on Friday afternoon, people are just messing around. I remember walking around the office, like they're not getting shit done. Uh, you might as well, hey, here's the benefit. Go home. But, uh, yeah, it's, uh, it's definitely pretty interesting. Jason Berkowitz: [00:09:31] Yeah. I dunno if I will be able to do Mondays. I feel like Monday is like the first half that they are catching up from what you might've missed over the weekend. But good for them. I appreciate it. Jason Swenk: [00:09:40] Yeah, well, they were just like, and how I do my schedule now is I don't do any meetings on Monday, even though I'll work Monday. And then I take off Fridays. I never work on Fridays. And just by doing that, it just eases you into that, that week. And it's amazing how much more you get accomplished in the shorter week, rather than just sitting around. Because I remember seeing some employees, they were just sitting around and they like, like looking at the clock. Jason Berkowitz: [00:10:12] Yeah. Well that's was one of the things we noticed with the half-day Fridays is that productivity during the week, Monday to Thursday was actually up. Deliverables and stuff were executed much earlier. According to like our time tracker, which I don't know how they gauge productivity, I guess, user movement on the mouse and stuff. Uh, productivity went up and everyone was saying that like, yeah, I was actually getting stuff done quite quicker and sooner and probably more efficiently. Jason Swenk: [00:10:34] Yeah, exactly. Awesome. Well, Jason, this has been amazing. Is there anything I didn't ask you that you think would benefit the audience listening in? Jason Berkowitz: [00:10:42] I don't think offhand. Um, maybe where to find us in case you're curious about learning more about Break The Web, always a shameless promo, uh, breaktheweb.agency. Jason Swenk: [00:10:50] Awesome. Well, what's a website people can go in and check you guys out? Jason Berkowitz: [00:10:54] Yeah, breaktheweb.agency or you can just Google "break the web." Jason Swenk: [00:10:57] Awesome. Well, thanks so much for coming on the show. And you guys go check out their website. If you guys enjoyed this and you want to be around other amazing agency owners that could really help you scale faster and share what's working with you. So, uh, we all can grow together. I want you guys to go to the digitalagencyelite.com. This is our exclusive mastermind. That's only for a select few and not everyone gets in. So go to digitalagencyelite.com. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Can You Continue to Scale Your Agency While Staying Lean?

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Oct 17, 2021 16:30


Do you think that growing and scaling your agency means always going for more in every aspect? Will Russell is the founder and CEO of Russell Marketing, an agency focused on product launch marketing, crowdfunding, e-commerce, and Amazon. Through his experience with his agency, he created a five-step launch process meant to enable anyone to validate and pursue an idea in an affordable manner without taking a massive amount of risk. In this episode, he'll talk about how to prepare for the launch, why you should never ask family and friends what they think about your idea, and how he approaches the idea of scaling his agency while staying lean. 3 Golden Nuggets Pursuing an idea. There are no guarantees when it comes to ideas. If there were, major brands like Apple wouldn't launch products that fail. This is why Will's process is all about swiftly and, and affordably pursuing an idea. Lots of people have big ideas, but not everyone has the right feedback. Preferably don't lose time asking your family and friends if your idea is good. You won't know for sure until you start selling. Sometimes the market will tell you that the idea is not good, Will's system is all about preparing as much as you can and anticipate some of the possible hurdles. The five-step process. The mistakes made when pursuing a bad idea or pursuing an idea in the wrong way can be very costly. This five-step system was created to avoid those mistakes. 1. Validation, which is understanding how a product resonates in the market. 2. Build an audience, 3. Engage your audience, a key here will be resolving sales objections by trying to understand as many of those objections as possible and getting them resolved in advance of the launch, 4. Focus on audience conversion, 5. Scale and optimize. Not more but better. Something that really describes Will's philosophy and the direction he wanted to take with his agency is “the goal should not be more, the goal should be better” and how he wanted to continue to scale his business while staying lean. This applies to pretty much everything. From the number of clients you have, the number of employees you need, and the number of hours you're working to get your agency to the next level. The answer doesn't always have to be more, more, more. Sometimes we should ask ourselves how we could work better or smarter. Gusto: Today's episode is sponsored by Gusto, an all-in-one people platform for payroll, benefits, HR where you can unify your data. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Head over to gusto.com/agency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Continue to Scale Your Agency While Staying Lean With this 5-Step Process for a Successful Launch Jason: [00:00:00] What's up, agency owners? I'm excited to have another amazing guest in the masterclass. We're going to talk about the five-step launch system that you can follow for yourself or for your clients. We're going to talk about how Will's actually grown and scaled his agency while staying lean. And having a lifestyle that he's always wanted, where you have the freedom to pick and choose to do the things that you love doing rather than being forced to do everything. So let's go ahead and get into the episode. Hey, Will! Welcome to the show. Will: [00:00:39] Hey, Jason. Thank you for having me, pleasure. Jason: [00:00:42] Well, um, thanks for coming on. Uh, tell us who you are and what do you do? Will: [00:00:48] Absolutely. My name's Will Russell. I'm the founder of a launch marketing agency, Russell Marketing. We specialize in product launches, idea launches, uh, such as crowdfunding, Amazon, e-commerce, and so on. Essentially we have a five-step system that we, we bring to our clients and help them successfully launch their, their big ideas. Jason: [00:01:12] Awesome. Well, let's go ahead. And, um, you know, before we kind of jump into it, how did you start the agency and why? Will: [00:01:21] I used to… About six years ago, I, I was working at an organization and the organization relocated. That would have meant a kind of a 19-minute commute, either way for me. And that was not what I wanted to be doing. You know, my, I created this business and I wanted to always wanted to have a lifestyle or life outside of work. And so three hours every day commuting wasn't my cup of tea. So I decided if there was ever a time to pursue something myself, then, then that was it. I went ahead, just kicked it off with some freelancing work. So, if, if the business was viable, if I could start bringing in clients like that and. And it was able to, and we successfully just continue taking steps since then really. Jason: [00:02:07] Very cool. Well, let's go ahead and jump into kind of the five-step launch process. Uh, tell us a little bit about that and walk us through it. Will: [00:02:17] Absolutely. So this five-step launch process is all about swiftly and, and affordably pursuing an idea. Lots of people have big ideas. In my early work as a freelancer, I saw how costly mistakes can be when pursuing a bad idea or pursuing an idea in the wrong way. And so what I did is I created this five-step system, which if follows like a recipe, uh, should enable anyone to validate and pursue their idea in a, in an affordable manner. Without taking a massive amount of risk. I'm a pretty risk-averse person and my, my processes and my in my business, uh… reflect that. So the, the system is, as I say, five steps. We start with validation. Validation is short period, which I'm sure many of your listeners know, know well. You know, product market fit. Understanding how this product, how this idea resonates in the market. Steps two and steps three a then a curve between the validation period and the actual launch. And it's all about acquiring prospective customers and getting them excited. Getting them ready to buy. And essentially a key is resolving sales objections. If you're launching a new product, you're not going to know what those sales objections are until you actually start selling. So this prelaunch period is really about trying to understand as many of those objections as possible and getting them resolved in advance of the, of the launch. Step four is once the launch occurs, you build your prospective customer audience. Now you've got to convert them. So we're going to focus on converting them into customers. And step five in this system is scale. So most folks, when they're launching, we'll have a call launch period, and I'll go with our clients is to scale as high as possible as many units sold as much revenue, whatever that goal is… As possible during that, uh, during that footstep scale, during that pre-order period. So we'll set and done. That, that five-step system can usually take around four or five months. And coming out at the end of it, a client has, uh, early customers, early adopters, uh, engaged communities around their product and knock on wood, they'll be ready for a real ramp up on their e-commerce. Jason: [00:04:39] That's awesome. I love it. I love how simple it is and I love, um, you know, the step number two, kind of around overcoming objections. Uh, yeah. Like I totally agree with you, you can't overcome objections until you've actually tried to sell and exactly convert people, uh, to figure that out. Cause everybody, like I remember, you know, I, I did many, many companies and came up with many dumb ideas. And I remember telling people, like, hey, this is idea, what do you think? They're like, we love it. And then you get to, you know, selling it and like no one buys it. I remember doing this one thing. It's when I did a lot of triathlons. And I just thought of like, as gag gift, I was like this beer trainer. It was like a helmet with a big, uh, little, like, like a wire that hangs a beer out in front of you that you never could reach... it was the dumbest thing. Will: [00:05:37] Yeah. I mean, it's little funny, it's funny that… It's obviously, it's impossible to predict. Otherwise, you know, apple and Google wouldn't launch products that fail. You can't predict them. However, there are a lot of things you can do to really understand, uh, the potential of an idea well before you have to invest. And so a lot of folks do come to me like you might have, have with, with your idea, which was kind of, you know, kind of unusual… Jason: [00:06:07] You can say it's stupid. Will: [00:06:11] And, and… they've been told by their family and friends. Oh yeah, I would definitely buy this. But there's a great book called The Mom Test. I can't remember the author but, you know, you don't ask your family and friends. If your idea is good, you got to get it into the market and got to get that feedback. And sometimes you get told by the market your idea sucks. And that sucks. Uh, but in my opinion, it's better to find that out before you've invested thousands of dollars, tens of thousands of dollars in pursuing it. Jason: [00:06:45] Taking care of your employees has never been more important than right now. And while paydays are great, running payroll is a major pain, calculating taxes, deductions, compliance. None of it's easy, unless of course you have Gusto. Gusto is a simple online payroll and benefits built for your small business. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Plus, with Gusto's help, you can offer benefits like 401k's health insurance, workers' comp, and a lot more. And because you're a smart agency masterclass listener, you're going to get three months free once you run your first payroll. Go to gusto.com/agency. That's gusto.com/agency for three free months. Yeah, there, there was one situation where a company came to me that was starting out and they're like, hey, we're going to… We want to develop this little, this book and this little elf that sits on the shelf. And, uh, and I was like, no, that's a dumb idea. And then every Christmas I've been doing it. Will: [00:08:10] Yeah. Elf, exactly. You, you… the strangest things can unexpectedly take off. Uh, so it's an interesting business to be in launches because you do see, you see some products you think a slam dunks face some really big objections and vice versa. So it's all about, it's all about what the data's telling us. Uh, and that's what the system focuses on. Jason: [00:08:32] Exactly. Well, let's switch focus a little bit. Um, how have you been able to build a lean team and keep scaling the agency? Will: [00:08:41] Yeah, that was a particular goal of mine in the last couple of years. This year more so. You know, over the… I think most agency owners will they'll grow. And the solution to growing is okay, I need to hire more, bring in more team members. So we got to eight or nine and of last year, middle of last year. And I was having spending more time in meetings and check-ins, and I, then I, then I wanted to frankly, and, and, and what I'm… How I'm looking to live ,y life is a key guide of the business. So I didn't want to live my life in meetings with, with the team. And so I said, okay, no more hiring. What are we going to do this year to grow without hiring? And that, I think a lot of the answers aren't surprising to people when we talk about productizing your services and making everything as systematic as possible. Uh, we talk about, uh, avoiding scope creep by really understanding and allocating kind of time allowances or bandwidth allowances for each, each role in the business and which role in the system. Uh, we talk about… Having a great lead pipeline so you can pick and choose the higher value leads that come in. But as essentially too, I think you, you really set that goal hiring is such an easy solution to increasing revenue. And so while you might know, you know, the key, the key ways to avoid that and to grow while staying lean. When you actually force yourself to enact it, and you really start seeing the details and specificities for your business rather than the generic kind of best practices of doing so. Jason: [00:10:31] I hit my mute button. Will: [00:10:32] Yeah. Do you know… I listened to, I listened to Seth Godin's… the podcast you did with him a while back. I listened that recently before this show and he said something that I felt really tied into our philosophy around that. And he said, the goal should not be more, the goal should be better. And he was speaking about that with regards to the type of people you work with I think, the clients. But I think that applies to pretty much everything. You know what, whether it's the, how many hours we're working a week or the value we're providing. It's not necessarily always do more, do more, do more, but it's how can we do it better? And that's a good, uh, philosophy to work off of when we scaling, uh, leaning too. Jason: [00:11:17] Well, it's also doing it better and then doing it your way, right? I talk to so many agencies that they have goals of going, you know, like a lot of agencies on our mastermind. They go I want to go from 3 million to over eight figures. I'm like, well, why? And a lot of them have issues with saying that they just go, I don't, it's just a number. It's, it's a goal. Like, well, what if your goal was to do it better, to do it more efficiently where you actually can create more time for yourself, right? Like in the pre-show we were talking about how you work maybe 20 hours, and then you spend a lot of work on your nonprofit and it's about how can you create the right systems, have the right people- because you have to have people, um, in this business in order to be able to pick and choose and do the things that you love. Like, you know… In this business, you know, the, you have to figure out what is like Dean Jackson says, like you're the cow, all you do is produce the milk. So what is the milk? I don't need to produce the cheese. I don't need to sell the cheese. Those that's what other people can actually do. Will: [00:12:34] Yeah, absolutely. That does saying I think applies to, uh, being a generalist versus a specialist, a lot of agencies early, early on, myself included, try to do a lot of things and quickly realize you can't do that well. So focus on a couple of things that we do really well. And that is limiting when you have people coming to you saying, well, we need SEO help. Uh, we've got a lot of money to spend on SEO. I mean a lot of money sounds, sounds good in the sense that it gives me safety net protection. But we don't do SEO. So, so, and we've got to stick with that and we want to be the best that the launch system we do have. And so, yeah, I completely agree with that. Jason: [00:13:19] And I look at it as kind of, when you start out, you have to try everything and you have to figure out what are you really good at? It's kind of like, you know, in sports, you know, you got to try basketball and football and soccer and tennis, swimming, whatever it is. And then by the time you get toward the end of your high school and you're wanting to go to college, well, you have your sport. Um, that's kind of how it was with me. That's kinda how it's going with our kids. It's like try everything and then see what you really like, what you're good at, what you don't like. Do more of the good stuff. Will: [00:13:55] Yeah. And from an agency standpoint, I do remember early on one of the... The key things I was looking for is what, what marketing can, uh, or what service offering can quickly show results. Because there's especially early on, if you have no credibility and no case studies, you can have a hard time with sales. So SEO is a long-term game. It might be a long time before we have that evidence. But paid ads, which are a big piece of our launch system, I can get results tomorrow and I can have a case study tomorrow that shows that results. So that was a big piece of it. You know, what can we do to build that foundation of credibility as quickly as possible, so that did direct or choose of services. Jason: [00:14:37] Awesome. Well, cool. Well, this, this has all been amazing. Is there anything I didn't ask you that you think would benefit the audience? Will: [00:14:45] No, I guess the, the main thing I often like to leave people with is, is just to focus on the validation… Is kind of what you pointed out, Jason, why, you know. A lot of people come to me and I'm sure a lot of folks are coming to your listeners with, with ideas, with things to pursue. Uh, but understanding the why and, and validating that is the right thing to pursue saves a lot of heartache money and time in the end. And it's been a well worthwhile focus for us. So it's always something I lean on others to consider. Jason: [00:15:18] Awesome. And what's agency website people can go and check you out? Will: [00:15:22] Sure. russellmarketing.co, russellmarketing.co. Jason: [00:15:26] Awesome. Well, everyone go check that out. Russell,uh, Will, thank you for so much for coming on. And, uh, if you guys want to be surrounded by amazing agency owners that can really see the things that you're not able to see and be able to open your eyes to things you may not have heard of. So you can grow and scale faster and really get to the point where you can pick and choose to do the things you love while your agency's scaling, which is really pretty cool. I'd love to invite all of you to go to the digitalagencyelite.com. It's our exclusive mastermind for really experienced agency owners that want to be transparent and share what's working Go there now and, uh, and meet the, meet the other members there. There's a great video where the, you can check out the members, but go to digital agencyelite.com. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How an Agency Grew Fast to Over $4 Million and Sold Quick

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Oct 13, 2021 20:33


Hollis Carter is an entrepreneur and avid skier who, after founding many companies in his career, recently became the co-founder of the Baby Bathwater Institute, a membership-based community of entrepreneurs with a focus on cultivating natural, mutually beneficial relationships. Since his business relied on many in-person events, it was quite affected by the Covid 19 pandemic and subsequent restrictions. During this time of cancellations and being stuck at home, Hollis thought of a way to add value to the members during this new situation and started to offer a series of services with a performance-based model. This model quickly grew and he ended up selling it before actually having to fully build an agency. In this interview, he talked about the process of building and growing an agency to over $4 million and then selling it, all during a pandemic. 3 Golden Nuggets Growing an agency during Covid. Before the pandemic, Hollis was organizing many in-person events. Once they were canceled because of this new situation, he realized he had a perfect opportunity to offer a new service that would offer value to members of his mastermind. There was already a business relationship and he knew their products and believed in them. So he got ready to work under a performance-based model. “It was really very simple,” he says. The offer included podcast interviews, email lists, and content sites. He spent on setting up all the automation and tracking and found someone to handle that. And of course, under this model he was working with clients, not for them. Simplifying the offer. How can you make things simpler for you? First of all, don't just take a good deal. This agency had the advantage of having a group of companies whose product they trusted. Even then, our guest says, they took people who were so product-focused that we were going to get the content and the angles they needed. People who knew they needed to be told how to market this product. They also let clients use the work they were creating and focused on the 10% that drove revenue. However, there are some things they would do differently a second time around: setting a flat fee and, instead of complicated spreadsheets just telling the client “here's the number that came in, this is our cut,” would save a lot of time. Finally, figuring out how to set expectations of timeline, having a written document with a timeline that the client can reread instead of emailing you questions. Pulling from other industries. Hollis believes in taking knowledge from other industries into your own. He makes sure to have participants from different types of businesses in his masterminds and sustains there's always nuggets that you can pull from other industry practices that might not exist in a niche that you're opening, like what he has learned about hiring from the hotel space. He encourages others to give themselves a chance step outside what they know and learn something new that they can implement in their business from an unexpected source. Sponsors and Resources Ninja Cat: Today's episode is sponsored by Ninja Cat, a digital marketing performance management platform where you can unify your data, create beautiful, insightful reports and presentations that will help you grow your business. Head over to ninjacat.io/masterclass to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Growing an Agency Fast to Over $4 Million and Selling Quick Jason: [00:00:00] What's up, agency owners? Jason Swenk here. I have another amazing show guest. We're going to talk about how when COVID hit, they formed an agency and ramped it up to over $4 million and sold it, during COVID. So it's a really cool episode and you're going to enjoy my guest. So let's go ahead and get into it. Hey, Hollis. Welcome to the show. Hollis: [00:00:29] Hey, man. Thanks for having me. Jason: [00:00:30] Pleasure to have you on. So for the people that have not heard of you or met you at one of your cool events, tell us who you are and what do you guys do? Hollis: [00:00:39] Yeah. My name is Hollis Carter. Living in Boulder, Colorado, but originally from Georgia, where I kind of got my first start in internet marketing stuff. I was like early in college and built a couple of online businesses and luckily had one that did pretty well and sold that. And then I moved to Colorado and did this skiing thing for a while and, uh, living in the mountains and it was great, but I could only talk about skiing and snowboarding and mountain biking with people. So, I'm now a front ranger living in Boulder and enjoy it and got back in the mix of things. Our main business is called the Baby Bathwater Institute. You've come out to one of our events that we had at out mountain. And, uh, I started, my other businesses based on the thing that I use to learn… Like no one was really teaching relevant stuff in the late nineties, early two thousands. So to do it, I thought let's sit at the bar and a lobby at a conference and got most of my nuggets. And so when we had some free time, me and my now business partner who were lobby con buddies for like a decade… We started hosting these events and the whole idea was curating nice people who are in the grow and scale phase and the actual founders of their business. And in a lot of different industries that we could draw knowledge from different places, less of a kind of echo chamber mastermind of people doing the same thing. Cause there's a lot of value in those, but it's very linear. This was more of organic group meetings to have fun and, um, draw things from other industries and stuff. But we have agency people, we've got guys from hotels, we've got guys from e comm businesses… I guess I say people, not guys, cause we have plenty of girls too. We've been doing it for about eight years and I love it. Compared to the businesses I've done before, it's probably the dumbest business model. Cause it's overhead-intensive, time-intensive, relationship intensive. But I actually like it. So we're doing it for years and we'll probably do it for a very long time and really enjoy it. Jason: [00:02:37] Very cool. And COVID hit you guys really hard because your whole thing is about live experiences and that kind of stuff, uh, which are a lot of fun. And so tell us about like… cause we were talking a couple of weeks ago, you were like, man, I couldn't do these live events and that's really what the membership was for. So we gave all this money back to the members because we couldn't do live events. But I started an agency kind of by accident and it quickly grew. So talk about how did you grow the agency so quick? What did you do? Because a lot of people are looking at going, and I've seen a lot of growth in agencies over during COVID, but yours was really pretty, pretty good. So tell us a little bit more about that. Hollis: [00:03:18] I think it was, it was different because much of it was born out just starting that momentum sort of grew versus sitting with a very particular plan. Where Baby Bathwater came less out of need more out of want, this came out of need. And so there… Also, we are locked in our house and I could stay focused on, cause I wasn't doing… Going to conferences or traveling or doing things. But I think the main frame was okay, just postpone slash canceled, who knows a handful of events. We basically lost about two and a half million bucks in that decision. Which happened before people in the states even believed that this COVID thing was gonna affect us because our president was in Italy. And so we saw it a little early. We knew we didn't want to let people go. There was no PPP stuff yet. And me and my partner, Michael, we always knew we could always fall back on our marketing skills, which is kind of what got us to a place to even know what people wanted from a mastermind. So our personal interests has been in the health and wellness sort of space. We see lots of stuff that's crap. And we see lots of stuff that's good. And we happened to know a few people who have amazing products that are members. But they're product guys, they're not marketing people at all. And so we kind of went in with the thesis of how do we enhance the people who are already members value and we can't do anything for 'em, but also don't run any risk of screwing up the relationship if we get in bed with them and do something different than what we already have a good relationship with. So, I mean, it basically started with four products. I knew we had people in the group who had platforms. That love the products, cause they give them out at events. They love them. And I know they have a lot of traffic and I knew these people have great products. Didn't even know what I'm talking about. Like you should just set up this campaign and get them on the podcast and set up an email. You can track it with affiliate links… And all like, can you just do that for me? Kind of thing. So, I mean, it was actually super, super simple. Essentially, out of a network license for post affiliate pro so that we could track all of the clicks and conversions and build it very slowly, not a lot of overhead. It costed maybe like five grand or something we spent getting set up and all that automation and tracking. We did have a really hard time finding someone to help us run that once it worked. We ended up finding the guy who made the tutorial videos for the original version of it and tracked him down. And it was the first hire because it was complicated and how he set up the company structure. But the basics of it was we had people get podcast, email lists and content sites. I mean, people have great products that had a unique hook. It couldn't just be like, like we did have a CBD, which is a crowded market with a bunch of people at all look the same. But this had clinical trials, some studies, so I could go get functional medicine doctors to say something unique about it and they could write a real piece of content. So really we just took the friction out of the middle, which was, it's hard for the product owners to focus on these things that are ancillary. Then buy an ad that are not doing very diligent tasks that can scale these like one-off promotions and managing people is hectic. Like if I had a brand, I wouldn't want to do stuff we were doing because I know the costliness of managing all these relationships and getting it on the calendar and getting all the stuff they need. But in our unique situation, we had time. We… the money. We wanted to serve the people who we wanted to have back when things came back online. And so it made sense to keep calling them chatting and working it out and figuring it out. So our deal is that we took... it's very minimal, it's just an average, about 10% of the revenue for 12 months of the customer. And we would do a, you know, a multi-tiered campaign where, you know, perhaps the person to get on a podcast and do an interview about the product that was very educational and content-heavy. So it didn't just come out of the blue of this promotion. It was like ease into with good questions and then we'd do an article. And then eventually kind of like an email with a special offer and a landing page just for that person. And like something I've been back in early on was when one big person promotes the rest. So we usually just go for, you know, one or two people we have a good relationship that have a big audience and then their affiliates would see it happen. And we'd get a few more of those. But we did, because it was so hands-on, mess around with people who could send, you know, thousands and thousands and thousands of clicks and had an audience that already trusted them. So very boutique, very niche, but where it worked, very effective. I'd say the biggest bottleneck was calendars. You could lock in a deal and they might not have three months so they could do it. But we hit a point where we were going to have to start hiring more people, we had a tech guy, an administrative helper in an industry that me and Michael were putting together. Then we hired someone to go start recruiting more promoters, and then we need to start hiring writers and creatives. At that point, we actually ended up selling the business so that we didn't have to build an agency. The hard part of building an agency, managing the creatives, training, we never really hit that point. Although it looks like I'll go back to the trough and do it again. But I mean, really it was about that simple. It was like performance-based so we couldn't mess up relationships. And also we didn't want anyone to ever tell us, hey, you have to do this for me. Uh, it usually mostly came from the merchants with the products. They'd be like, hey, where are the traffic? And we're like, hey, we don't, we don't work for you. We're not on a retainer, but it's coming, it's coming. Then we'll get paid. Well, we only get paid when we make sales. So that helped us not get stress out. Jason: [00:09:32] Do you feel like you have to comb through mountains of data, jumping between multiple platforms to spreadsheets, to slide decks and backing in, in order to create performance reports for your clients? It's a constant drain on your agency's time and resources. And that's where our friends at Ninja Cat can help. Ninja Cat is a digital marketing performance management platform that really unifies your marketing data and empowers your agency to automate insightful, beautiful client reports that scale. Now Ninja Cat cat keeps your marketing performance and presentation tools in one place, freeing you up from manual data wrangling. And it really gives your team more time to focus on strategy and growing your business. And for a limited time, my smart agency podcast listeners will receive $500 ninja credit. When you go to ninjacat.io/masterclass to claim your offer and schedule a demo. That's ninjacat.io/masterclass. Yeah, I see a lot of people going the performance route. You know, one of our mastermind members, David, he was always constantly under the million mark and just trying to figure out how to get over it. And he switched to this model and got a million dollars last year during COVID, just from one client for the performance deal. Kind of like what you guys are doing, or you guys did or about to do again. I guess we can talk about that. But I liked how, when you're the performance model, they can't tell you what you can and can't do, or a timeline. You're just like, I'm putting a campaign together on our own dime, our own resources. This is what you're agreed to pay. I really like that. But I also like too, that, you know, this is a home run. Like it's a good product. I want people to not kind of overlook that and just don't go up to anybody and go give me 10% of all your sales. And plus too, you guys had relationships with them so you knew you could trust them. Because it gets really tricky sometimes when you're like, yeah, give me 10% of sales and they could the books however they want. Hollis: [00:11:54] Yes. So that was an interesting piece of... The one thing that I guess is there is we did have these relationships we've built over almost 20 years now. Which, if you just do it on the street, we couldn't start from scratch with that. So that was like our one… competitively used to do something here, but the book side of things, we actually knew how bad that can get. So we control that this was a bottleneck and business model, as far as administration and just workload. I kept everything clean, but we were starting to get super risky. So we invoiced the merchant for the payments and wrote to the affiliates. We did everything. So we essentially became a bank taking the money, moving the money versus paying out of their own affiliate program. It started to get pretty hectic. You get one monthly payment. We're trying to keep the relationships paying on time. We never ran into any issues, but you could see it coming as things got more complex. Jason: [00:12:52] Well, I'm sure the IRS probably set up red flags of all the money moving around. Hollis: [00:12:57] Oh, it was crazy that was passing through and yeah… And so like in hindsight, if we do this again, won't do the complicated equation where we have 12 months tail customer. We also calculated a refund risk thing. You know, now it's going to be one time upfront with a small fee for us that continues, but like the calculating the refund piece to try to mitigate risks. Like I think we went into it wanting to be like a no-brainer where it's like, hey, we've taken all the risks where X, Y, and Z, that you won't have to do anything for. Our contract is like the nicest thing in the world. If this was the only thing we were doing, and we were focused on it that thing would have sort of bit us in the ass, as it started to grow. But it worked well. It was boutique small. And we only did this from March to October. So it was like a significant period of time, but you can see all the forethought we didn't put into it with, oh man, the amount of time to calculate these things if I would've... There's a bunch of things we do if we really want to scale it simpler. If we do this again, you know. Jason: [00:14:05] What are some of the other things that you do simpler. Because most people listening here, this is their full-time gig. They weren't just looking at like, well, let's just try this project out, which that's really pretty cool that you guys are able to do that. Hollis: [00:14:19] Yeah. I think, you know… fed the horse because we had all the relationships and we knew this I'd stayed up drinking wine with every person in the thing all night. I knew we could do well with good products, which you highlighted, is like products that kind of sell themselves. And then the owner of those products, I think this is the simplest thing is don't just take a good deal. We only took people who were so product-focused that we were going to get the content and the angles we needed. All they cared about is being the best. But they didn't care about was telling us how to market it, that they actually wanted us to tell them. They would use the campaigns to inform all of the rest of their staff. One thing we did do well and make it easy was, hey, use the work we're creating. We don't need any cut of it. You can take our landing pages, reuse them. If you get your own affiliates, you can run them through your program. You know, just do that. Cause we only focused on that 10% that drove our revenue. The things we probably would have done different or not such a complicated calculation of the things. I remember when I first started in some of the affiliate stuff, people would hold back a percentage for refunds. There was like a whole equation. But we made everything else so simple for them. We didn't need to go, that… We could have just said here's a flat fee. Here's a number. Honestly, it would have saved one employee 40 hours a month in weird stuff. And in places where ambiguity… where also the customer on both sides has to read a spreadsheet that's complicated versus like here's the number that came in and here is the cut… over. I think simplicity would have helped a lot in that sense. And then other simplicity things, I think just figuring out how to set expectations of timeline. Even though we didn't work for those people, said it on the phone, in the conversations of like, hey, we might get a campaign locked in that's going to be out this far. But then they get in their own world. Like, where's the stuff? And I'm like, no, we already told you this. And so, one outline. Here's how this works, one the phone. Before you email me any questions, reread this. This is the rules of engagement and how it works. But that I would say once it worked and had momentum, changing the relationships from I work for you to we work together changed the whole dynamic of it versus, you know, just collecting a flat fee. Jason: [00:16:49] Yeah. I love that of like we work together rather than you're the dog barking orders to me. And even if you don't do a performance model. Hollis: [00:16:58] Yeah. It feels like you kind of got to do that sometimes. Cause I feel like that's how we like learned. If you worked in a restaurant going up or we… Whatever, like that's how it was. When you're getting paid, you just got to say yes, please, and as you wish. Which honestly doesn't even serve the client that well. Sometimes you're doing shit that they don't even need to get done. They just wanted to show that they tell you to do something. But we're only going to focus on brings in dollars. It doesn't bog down either of our teams. And that's why we switched the contract that you can leave whenever you want. You know, the psychology there was great because it was like, we're paying equally versus that, you know, walked into some long retainer and some big set up fees and things like that. Obviously you have to have some results for that to be worth it, um, for the relationship to stay. But if you know you can deliver on it, then it's probably better to be in a, a mutual relationship where either party can leave in 30 days notice versus trying to lock in really long-term deals. Jason: [00:17:58] Yeah, exactly. Well, awesome. Well, this is amazing, Hollis. Is there anything I didn't ask you that you think would benefit the audience listening in? Hollis: [00:18:05] Listen, I mean, it's funny just because it's a friend of mine that just got off a call with one of our members who, who set them up on like a little dinner in the same town. And I forget the book references basically it's about taking knowledge from other industries and bringing them into your own. So what I saw was great was a lot of the product companies who were here like some of them were in retail and other things. They just didn't know how to pull stuff from other areas. There's always like these levers that you can pull from other industry practices that might not exist in a niche that you're opening that you're trying to mark it as that in. And so I was really, all we did was just start reaching into other tools that there's no way they're ever going to get to this. So obviously we can take over this part for them and we're not also dealing with the dynamics. So there's someone in the house already being paid to do this or anything like that. It's pretty clean that way. But I think we just learned that from sitting in these events from people like, you know, we have some hiring stuff we've learned from guys in the hotel space, which I never would have thought to learn that until I sat into that at one of these events or whatever. So I've never seen through blinders. Like it's good to be focused and linear, but I think there's just so many cool nuggets in different industries you can pull and bring in that we all just kind of forget to take a glance at. Jason: [00:19:30] Awesome. Well, cool. Well, what's a website people go and check you guys out? Hollis: [00:19:35] Just babybathwater.com. Jason: [00:19:37] Awesome. Well, thanks so much for coming on the show. If you guys enjoyed this episode, make sure you go to their website. They have really cool events. I went to the one in, in Utah. And it was really pretty amazing. And if you guys want to really grow and scale your agency faster, what got you here is not going to get you to the next level and you need to do a number of different things. Because probably what got you to this level is from referrals and word of mouth, or maybe you selling, or maybe one salesperson. The biggest thing that you need is systems in place in order to grow and scale faster and get to the point where you can pick and choose. If you want to do that, I want you guys to check out our agency playbook. Go to jasonswenk.com/playbook and check it out. And it might just be the thing that will get you to the next level. So go do that now. And until next time, have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
How to Land a Major Brand Client and Kick Start Your Agency Growth

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Oct 10, 2021 23:36


Do you want to know how to land major brands? Bill Durrant had been working for a big agency for years when he decided to leave and work freelance for a while. That's when opportunity knocked and old Nestle client asked him to work on his new account, Clif Bar. This is the client that really started his agency Ex Verus, which helps brands develop a paid media strategy that drives visible sales growth and merchandise those results to leadership. In today's episode, he sits down with Jason to talk about how good timing has as much to do as being good, what is it like to work with major brands like Coca-Cola, why it is so important for him to develop a relationship with clients, and 3 Golden Nuggets How to get in with the major brands? For Bill, getting a major brand's attention was all about timing and also making a good impression. He had been working at a big agency and worked on the Nestle account. He eventually decided to leave and start working freelance when an old Nestle client called him to handle the marketing for his new account, Clif Bar. What tells people who want to land a major client is that within these same organizations there are many brand managers in charge of growth stage brands that need creative input and are willing to work with smaller agencies that can bring some new and interesting input. Work on your relationship with clients. When his agency got their first client, they set the goal to start building relationships with as many people within the organization as possible. They also started getting introduced to people from other departments and other products, with the possibility of working with them too. Also, the same people that he worked with during those years eventually went on to other companies and called them to start growing those brands. Good clients will take you everywhere they go. This is why Bill values his relationship with them and even makes it a point to fly out every once in a while and touch base with his most valuable clients. The three-tier approach. With client relationships being such a core element of business, you have to make sure that clients build this relationship with the agency more so than with a key member of the team. Team members will leave sometimes for different reasons, and the client shouldn't feel like their communication with the agency will change for the worst because of it. This is why Bill has established a three-tier approach where there's a senior leadership level, junior planners, and associate planners. In case someone in one of those levels leaves, there's still two other points of contact that have developed a relationship with the client. Gusto: Today's episode is sponsored by Gusto, an all-in-one people platform for payroll, benefits, HR where you can unify your data. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Head over to gusto.com/agency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Landing Major Brands and How Good Clients Will Take You Everywhere Jason: [00:00:00] What's up, everybody? Jason Swenk here. I am excited I have another amazing guest on the show. We're going to talk about the landing big well-known brands. Because a lot of you have been reaching out, how do we get these big brands? Like Coca-Cola, Pepsi, and all these major brands? Well, on today's episode, we're going to talk about that with this amazing guest. So let's go ahead and get it. Hey, Bill. Welcome to the show. Bill: [00:00:34] Hey, thanks so much for having me, Jason. Jason: [00:00:36] Yeah, man. I'm excited to have you on. So for the ones that have not heard of you yet tell us who you are and what do you do? Bill: [00:00:47] Alright, I am Bill Durrant and I'm the president and founder of Ex Verus Media. We're based out in Los Angeles and we are a paid media agency focused in that space, uh, really designed to create culture, creating growth-stage brands. Um, to work with those brands, to build them, to grow them from a media standpoint. Uh, and not just their brands, but also immediate demand as well. So the performance side of the world as well. Jason: [00:01:12] Awesome. Well, tell us, how, how did you get into this space? I'm always curious and like, what was your first project or deal? Bill: [00:01:20] Yeah. You know, I think our origin story is a little… You know, it's a little funny. It shows you how important it is to be a lucky and good, not just good. Um, I had worked for a number of years at a big agency and worked on, uh, the Nestle accounts. I worked with a number of grants from Nestle and, uh, I had decided to leave, um, just start doing some freelance work. And while I was doing that, I got a phone call from a former Nestle client who said, hey, I'm running a part of the marketing organization at Clif Bar now. And we'd love to know if, uh, you might be able to be a one-person media agency, um, for us. And of course I had no idea how to do that. But found myself saying yes. And, uh, that turned into an incredible and a very long run with Clif Bar, um, which started the agency. So from very small projects, um, to consolidating all of their media and advertising across the organization and using that as the launchpad for what we are today. Jason: [00:02:24] Well, shit, dude. You went and straight to the, a huge brand. Um, yes, that was, uh, that was good timing and, uh… I don't know, luck, but I think that was just good timing. Bill: [00:02:39] Yeah. You know, I, I think so. And, and I think, you know, like I said, it shows you it's important to be good. It's important to be ready when opportunities come up. But it's also important, you know, at that point in time, Clif Bar was not investing very much money into paid media. So it wasn't a stretch for me to do the work and to bring on one or two team members. Um, the real stretch was I think, in people's imaginations when they understood like wait Clif Bar, I mean, that they've got to be a billion-dollar brand. And, you know, taking advantage of, you know, essentially the credibility that that gave us. I didn't have to tell anyone, you know, hey, they're not necessarily spending $10 million a year in media. Um, they're not a massive account, at least right now. And being able to do that and to leverage that credibility, um, is ultimately what started to land us our next relationships. Jason: [00:03:31] Yeah. And I, and I think really kind of… Talk a little bit about, cause a lot of times people think these big brands are so intimidating. Like they get so nervous and I'm like, they're just people like you and me. They just got, but they got to get a thousand different approvals and they make decisions on committees, you know, and all that kind of stuff. But like, talk a little bit about that. Like I remember when we landed our first big one, I was just naive. And I didn't even, I didn't even know they were big. Like I remember, and I even lost it a really big account cause I didn't even know who they were. Which I always tell on the show Berkshire Hathaway. I was like, who are you guys? Bill: [00:04:16] Yeah. It's um, I can't believe you told Warren Buffett to screw off, but that's a, um, that's definitely a story. I, you know, I think you're absolutely right. These are people who put their pants on one leg at a time, just like the rest of us. And particularly if you're a creative agency or an agency where, you know, everything isn't continuously trying to be consolidated, like it is on the media side. Um, there's a lot of opportunity for them to, you know, really want to stand out and break through just within their organization, let alone to consumers. So, you know, there are folks that are going to be more willing within those organizations to work with an agency of any size, uh, if it brings them the right, the right kind of breakthrough work. And what we also found is that within those organizations, these large organizations, there's a Coca-Cola and sure everybody would want to work with Coca-Cola or with Sprite, or, you know, even with minute maid or some of the larger brands. But from our standpoint, you know, working with Coca-Cola doesn't necessarily mean working with those massive brands and trying to take on the largest agencies in the world. Um, there are folks that are brand managers on really interesting growth stage brands. They really need our help and creative thinking. Um, and there's huge opportunities to not only do great work with brands like that, and then have the benefit of saying, you know, I get to work with, with a fortune 100 company. Um, but to actually get work out of that, that then becomes part of your calling card to future opportunity. Jason: [00:05:49] Yeah. Yeah. I remember I did an interview, our Four interview. So if you guys want to go check it out, it's jasonswenk.com/four. The number four, it's a pretty long URL. And I interviewed, uh, Del Ross of IHG International Hotel Group. And at the time he was director of... He's not there. So don't hit Del up anymore. And, uh, I asked him, I said, how can smaller agencies that haven't worked with bigger brands get into bed with bigger brands? And he was like, look, just like what you said, be innovative, call me up and tell me something that is new. That's changing. Don't just say, hey, I take you out to golf or send me a stupid, you know, puzzle that I have to solve in order to get, get his attention. And he's like, look, just say, hey, I was wondering like… And this was as example when Facebook was coming out with his pay-per-click and saying, hey, have you heard of power editor? And the remarketing possibility that you can do in the hospitality space? I'd love to do a test project for you. And that's, that's what we did with Lotus Cars. And that's what we did with Hitachi Power Tools and a number of different, bigger brands. And once you got in there, I want you to tell us about this too, about, especially with Clif… You know, uh, the Clif Bar. There are so many different side businesses or divisions in those. So how did you start building relationships in order to grow that account? Bill: [00:07:18] Well, I think the point that you just made is a really important one. And, uh, you know, I think our success is a testament to this strategy and the strategic approach, because it, it really is a win-win for everyone. And when you can show that client how they're, they're winning by doing something or learning something that they wouldn't have experienced or been exposed to before, um, your business is going to grow, right? And I think with Clif Bar, you know, we were kind of… It's funny, I came from Nestle where, you know, there's typically one agency group that runs all Nestle brands regardless of where they are in the country. And so portfolio management was very important. And so we came into the Clif Bar relationship really saying, you know, this is going to be about portfolio management. Even if there's one or two brands that spend the most. And this is going to be about building relationships with as many people within the organization as possible. Now, an organization like Clif makes that really easy, just great people, uh, all the way through. And what we found was that not only were we, you know, picking up and, and working with additional brands within Clif, which, which ultimately I think helps the bottom line. Um, what we also found was that those folks would then progress in their careers and move outside of the walls of Clif and move to other organizations. And in fact, that's, that's exactly what happened and we've kind of evolved our relationship. We now work with, uh, Premier Protein and PowerBar and Supreme Protein, which is literally down the street. But as people progressed in their careers and moved to other organizations, um, we then had new startup brands and new opportunities to work with. So it raised the tide of the boat and it helps us diversify as well away from one kind of main client comprising the bulk of our revenue. And so we saw that strategy paying off, not just right away. Um, hey, could you introduce me to such and such at such and such brand we'd love to chat with them. You know, you're already an insider, so you've already got trust and a reason to be there. Um, so you're not just a cold call, uh, when you're asking for introductions to the other brand managers. But even when you're not necessarily getting work from them today, you may be getting work from them tomorrow. It's still important to continue to build those relationships Jason: [00:09:47] Taking care of your employees has never been more important than right now. And while paydays are great, running payroll is a major pain, calculating taxes, deductions, compliance. None of it it's easy. Unless of course you have Gusto. Gusto is a simple online payroll and benefits built for your small business. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Plus, with Gusto's help, you can offer benefits like 401k's health insurance, workers' comp, and a lot more. And because you're a smart agency masterclass listener, you're going to get three months free once you run your first payroll. Go to gusto.com/agency that's gusto.com/agency for three free months. Yeah, one of our mastermind members, um, does a lot of work with Facebook and some of the key people at Facebook. She was telling us this and some of the other members are like, oh, that means you're going to lose Facebook? And she was like no, no, no. And I was, I knew it was coming. I was like, I'm getting new business from all these other companies. And it was like, you build relationships with these people, you know, they take you everywhere. We saw that as well, but it's about building that relationship, not just being transactional. And I think so many, like one of our other mastermind members, we always have a digital agency experience in Colorado. And I remember I'm already talking about we always make it one of the things in the first month we have to go physically, this is pre-COVID… Go visit them and just build rapport and help them out. And always, rather than just sending stupid reports, like, why do agencies just send reports? Like, you know what happens to your report? It just… They look at it first month. They might ask the question and then all the other ones it goes in the garbage. And then they forget about you. Bill: [00:11:58] Oh my goodness. That's exactly right. And you're right to talk about how to differentiate yourself and creating that personal communication is, is, is really one of the top ways to do it. We still have a very limited client base, uh, here in Los Angeles. We still only had one or two clients over the last six years that we could actually drive to. And we made it a point to fly and to be in person with people. So I've had status with Southwest Airlines for 10 years Because of that, because it's so easy to fly from, from Burbank to Oakland and to be there in person and to continue to cultivate those relationships. And, and to do that with people that I genuinely like and genuinely consider friends now Jason: [00:12:52] What, um…? Switching focus just a little bit, because you have about 30 people that you were telling me in the pre-show, your people will leave sometimes. They build relationships with your clients. Um, I know one of the hard things that people have an agency, let's say you have a project manager, account manager leading like a major account, and that person decides to leave. How do you maintain that relationship going forward with that client as a key person left? Bill: [00:13:26] That's a great question. You know, I think what we do is we try to make it like a three-tiered approach. So you've got folks that are at a senior leadership level. You know, we've got 30 people and, you know, maybe four or five people kind of fit that, fit that descriptor. And that's even a growth from where we were just six months ago. Uh, so we've got a senior leadership level. We've got, you know, uh, an associate director manager kind of media planner core team. And then you've got your kind of junior planners and associate planners, and that's kind of how our structure works from a client relationship standpoint. We're I think continuously thinking about where's the relationship at all three levels. So that if a person who's core, especially this day where there's been so much turnover just in general across the industry. You know, there's still going to be someone at the other two levels with whom the client has a strong relationship. And then we know that mission one, once we get a new person in to replace who's left, is for them to build that relationship with the clients. That's just as important as it is for them to build a relationship with the folks internally as well. Um, we take that very seriously. So the first thing we do is we look at what are these three levels? How can we always have two strong points of contact at different levels? Uh, regardless of who's left, um, because you'll find that sometimes clients just really love a particular associate planner or someone who's at a more entry-level role, because that's the person that's getting them, the information that they're asking for on a daily basis and doing a great job. And not just showing up every week or every month, um, for other things. Uh, the other thing that we like to do from a relationship standpoint is, again, to prioritize those relationships. And to understand that this really is a relationship business uh, first and foremost, and a results business as a very close second. Um, we always have to be mindful of results and the innovation that we're bringing to clients. But we know that we don't have a business long-term if we're not cultivating relationships and keeping those strong. So it's very important to us as an organization to hire properly. We're not just going to hire someone who's got the particular skillset that our client is looking for. We're also going to hire someone that we think that they're going to blend well with and to work well with and to enjoy on a personal level. Um, and somebody who's articulated enough to maintain that level of relationship with them and not just a technical expert. So that's the other big piece that's so important and foundational to everything is that if you're hiring correctly, you're really setting yourself up to be successful in that. Uh, without even necessarily having to have a strategic approach after that. Jason: [00:16:21] Yeah. I mean, we're in a people relationship business, both hiring, like you were saying, and, and managing those relationships. I love that. And I love that the three points of contact and always having two points. It's kind of like climbing a mountain. You never want just one point of contact. I mean, you know, I watched that free solo in my hand still… you know clam up when I'm thinking of him just holding on with one hand. I'm like at least two points and you, you're, you're going to make it. Uh, well, depending on which mountain you choose, I guess. Bill: [00:16:56] That's the perfect analogy I'm going to steal that analogy. Yeah, exactly. Jason: [00:17:00] Well, we, we love mountains here, right? So that's why I live in the mountains. Well, this has all been amazing. Um, tell us a little bit about the book called Digital Stone Age. Bill: [00:17:11] Yeah. So Digital Stone Age was a book that was designed to, uh, essentially have a conversation, um, at more of the readers pace that we found ourselves increasingly having with brands over the last couple of years. And that conversation was really around this idea of… Uh, you know, I'm a growing brand, I may have a decent media budget. Uh, I may not, I may, you know, be kind of bootstrapping, uh, with a smaller budget, at least compared to my peer set. And as a result, everything that I do has to be digital. And we found a lot of brand managers coming in with this mindset or everything that I do has to be social. And, you know, they weren't necessarily wrong in wanting to be in those places and to utilize those tactics. But what we found is that they weren't being neutral about it, and they weren't truly understanding what is going to truly grow my brand based on where consumers are now. And, you know, essentially the thesis of the book is you have to take care of generating that immediate demand. But you also have to take care of building a brand simultaneously. And as important and critical as digital tactics have been, you know, tactics that were kind of native to the digital space. Uh, what we also found was that people are still watching TV. People are still viewing… Now post-COVID, hopefully, post-COVID doesn't even make sense. But people are still viewing, um, out-of-home advertising. So we're seeing that grow again in 2021 and then beyond, um, people are still utilizing tactics that might feel old-fashioned to a very modern digital marketer, and they're using them very successfully. Um, simultaneously you've got folks who are doing the same thing of, uh, you know, I I've always been in TV. I've always been on a radio. I've always been an outdoor. And I would like to just continue with what's worked and we know that that's not what works best either. There truly is a synergistic effect by taking different kinds of media channels and different approaches, um, and using them simultaneously than trying to double down on one particular approach or tactic. So writing a book about that and essentially laying out the evidence that proves that over studies that have been done by people far more, far more intelligent than I… Over thousands of brands and over the last 10 years, it's really powerful and exciting to see that and to know… Hey, I now have a blueprint or a path forward and a strategic framework on how to be successful in growing a brand in this modern era where even if a particular channel isn't a digital channel. It's still becoming more and more digitized. And being able to lean into those trends and be modern, but also simultaneously driving, uh, results with your budgets. Uh, that's a very powerful thing to be able to say you can do as a marketer. Jason: [00:20:15] Well, I lied. Last question. Has the book gotten you a lot of business with some of the brands that you want? Bill: [00:20:22] You know, I think what it does is two things. Um, number one is it immediately drives credibility that we know what we're talking about. Um, so we don't use it as a lead magnet per se. We use it as a compliment to, uh, our introduction process and our proposal process, um, with clients. And so it's a little bit harder to quantify. But we know that, um, the book and some of the work that we've done as extensions of that from a PR standpoint, just getting our message out to the press, um, have generated interest and inbound leads. And have generated clients for us. That's, I think, the most satisfying thing to know is we were able to obtain a client by doing things the right way and leaning in on thought leadership. Not just having to rely on referrals of course, which are important, but you can't just rely on them, uh, or other channels or tactics that might've felt less, um, true to who we are. Jason: [00:21:23] Well, I, you know, we have a lot of mastermind members that have written books and what they'll do is they literally send it out to their top 100 list. And they'll actually have like a bookmark and a special note on the page they want them to read. And it's customized to them, right? And then they get this book. If they like reading, then it's gold. If they're like me and they're like, ah, kryptonite throw it away, right? So you got to make sure you know your audience. Um, but, uh, yeah, some mastermind members crush it on that. So if you're not doing it, try that part out. Bill: [00:21:58] I love that. I love that idea. Uh, the idea of shipping out a hundred packages is a little scary. But the, I, the idea of physically getting something into their hands is so powerful. Love it. Yeah. Jason: [00:22:09] Awesome. Well, cool. Um, what's the website for the agency? And then obviously, you know, the Digital Stone Age, I think you can get on an Amazon Barnes and noble all over. So congrats on that. But what's the website address people will go and check the agency out? Bill: [00:22:25] Yep. exverus.com. It's just E X V E R U S means from the truth in Latin. Jason: [00:22:31] Awesome. Glad you spelled that out because I bet a lot of people would have messed that up. But thanks so much for coming on the show, uh, loved having you. Um, and if you guys liked this episode, you'll make sure you get subscribe. Uh, however you're listening to it. And if you want to be around other amazing agency owners that can really elevate you faster. And these are experienced agency owners that are pushing you and they're growing at a rapid pace. I'd love to have you guys go to digitalagencyelite.com and go apply. Um, we make everyone go through an application process, interview process just to make sure help you out. And that you're right for the group, but these are the best of the best agency owners sharing what's working and be able to see the things that you might not be able to see. So go do that now. And until next time, have a Swenk day. Related: https://jasonswenk.com/work-with-big-brands/

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Can You Use NFTs To Create More Engagement For Your Digital Agency?

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Oct 6, 2021 19:20


Are you thinking about the ways you could use NFTs for your digital agency? After working in nine agencies, Kent Lewis decided to start Anvil Media in 2000, which is nowadays one of the oldest search engine marketing agencies in the Pacific Northwest that specializes in analytics, SEO, paid media, and organic social media strategy. Last year, during the NFT boom, Kent wrote a not so serious press release about this phenomenon and got the attention of companies wanted to learn how to use these one-of-a-kind digital assets. Just like that, he got into the NFT world and is developing some projects around them. Today he joins Jason to talk about what are NFTs, how some companies started using them, the possibilities to further develop their potential, and how can digital agencies get in on the action too. 3 Golden Nuggets What are NFTs? There's been a lot of talk about non-fungible tokens since their boom last year. In essence, it is is a unit of data stored on a blockchain that certifies a digital asset to be unique and therefore not interchangeable. We've seen sold for hundreds of thousands, but how can companies use them? Some early adopters saw success from selling digital items to create brand awareness (Pizza Hut selling digital pizzas, Pringles selling a golden chip). But there's still much room to continue innovating. How brands are using them. If the first step was brand engagement the future of NFTs for companies includes brand engagement and brand perception management. In this post-pandemic world of much more remote work and remote communication, it makes sense to add digital products to your offerings. The future of NFTs includes its gamification, meaning tokens, rewards, exclusive access, and more. How can agencies get in on the action? As we've seen, agencies can help their clients jump on the NFT trend to create brand awareness and engagement. But some agencies are themselves starting to use NFTs. Access to exclusive rewards is a good way to create interest in your brand. Some agencies are starting to do this by the tokenization of their time. For example, someone that gets a good deal on one of your agency's tokens could get a good deal for an hour of your time. Kent also recommends paying close attention to how Gary Vaynerchuk is innovating with NFTs. Sponsors and Resources Wix: Today's episode is sponsored by the Wix Partner Program. Being a Wix Partner is ideal for freelancers and digital agencies that design and develop websites for their clients. Check out Wix.com/Partners to learn more and become a member of the community for free. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Using NFTs Like Gary Vee To Create Brand Engagement Jason: [00:00:00] Hey, what's up, agency owners? Jason Swenk here and have another amazing guest for you. We're going to talk about how your agency can use NFTs. That's right. And we're going to tell his story and so you can do that. So let's go ahead and jump into the episode. Hey, Ken. Welcome to the show. Kent: [00:00:25] Pleasure to be here. Thanks for having me. Jason: [00:00:27] Yeah, man. I'm excited to have you on. So tell us who are you and what do you do? Kent: [00:00:32] So my name is Kent Lewis. I am based in Portland, Oregon since 95, you know, marketing PR background. But in 96, I got involved in the internet, started optimizing websites before Google was a thing. And I've been a part of nine agencies, founded two, co-founded two. But when I was fired the second time from an agency that I was a key manager in, I decided I'm probably unemployable. Better do my own thing. So started out in 2000 with Anvil Media, as a consultancy and started bringing in employees in 03. And have been active and keeping it a relatively boutique-sized digital marketing agency since then. And when I'm not doing the agency thing, you know, I'm trying to get outside. That's the great thing about Portland, we're an hour and a half from the ocean, from the mountains from rivers, you name it. Jason: [00:01:20] Awesome, so are you a fly fisherman? Kent: [00:01:23] My first ever fly fishing experience was on the Deschutes River in Central Oregon, about three months ago. Gal, one of my friends, she gave me the rod and said Kent, and one just keep throwing it. And I caught a least solid three and a half-inch steelhead. So I didn't eat it. It was probably good for a pizza. And I guess you could say I was maybe hooked. So I think I might try more of that later, but I'm mostly like bike cycling, snowboarding, skiing, kind of guy. Jason: [00:01:50] Very cool. We'll get along very well. That's, that's all me. That's why I live in the mountains. But, um, we're not here to talk about the mountains. Let's talk about… I'm curious, because I've been fired from almost every job. Why were you fired from that one agency? Kent: [00:02:05] Well, so the first time I was fired was an agency I co-founded in 99. And by fall of 2000 we had a disagreement about equity and our role. There were two junior folks. I was like 25, 26 at the time. And there was the founder who used his 401k to fund it and we helped grow it to three and a half million, 35 people in less than two years. But, you know, we had gone in… much as I should ran of myself, my other young partner who ran the PR side and I ran the internet side. She was like I'm going in to get more equity. Are you in? I was like, I guess, yeah, because I helped build this thing. And he was offended by that and instead of firing just her he fired both of us. And by the next week, uh, October, 2000, I created Anvil as a, as a placeholder. Interestingly, the name Anvil Media comes from an easy I'd been running for four years. I thought I'll just sell the easy for a million dollars and retire. It's still archived at @anvil-media.com, but I haven't touched it since 06. Not worth a dime now, but that team that I left in late 2000 was acquired by another agency. And then my boss, who was my mentor and, you know, it was tragic to me that we had a falling out. He died of a massive heart attack at 42. So they needed somebody to run my own team. So this old school agency asked me to take my team back over and I tripled revenue. Then, in the end, my girlfriend decided the Creative Director was more interesting than I was, even though he was married. And since he was on the board and had been there 20 years, he had a little more juice than I did and canned my ass. And then I decided I better do my own thing. So it was about a girl the second time. Actually, it was about a girl both times. The other was my business partner and she was very amazing and also made a lot of bag mistakes. And I got lumped in when she and I united. So there's a whole book there somewhere when I have the time, but it was never about my performance. It was never about my abilities. It was always about bad judgment. I'm not innocent in it so much as I picked the wrong horses. Jason: [00:03:56] Yeah, gotcha. I do want to get to how you tripled revenue later on, but I do want to get into the NFTs. So explain for some people that have… I mean, if you've been living under a rock, what an NFT is and then how can agencies use NFTs to really benefit their agency? Kent: [00:04:15] Yeah. So it's actually a great story, but I'll just answer your question directly. If we have time, I'll go into the backstory because it exemplifies the timing in my career. Um, I'm not that smart. I'm just tall male with a short name and I'm not unattractive. And I think that's been as much of my success as hard work and smarts. So NFTs. So I'd been reading about, you know, what Pizza Hut and Pringles and all these brands were messing around doing these little PR stunts, basically. Creating these little non-fungible tokens, being their little digital assets that you can own. And, you know, buy, sell, trade. And because they're probably of blockchain, you can have a whole history of that item. So brand we'll get into, you know, why it matters to marketers. But to back then, we're talking March, 2021. I was like, this seems like second life. You remember second life, the virtual world. I was consulting with HP on that like however many, 14 years ago. And I realized for the first time in career, I could be one word ahead or one sentence ahead in the book. I didn't have to write the book. I didn't have to write the chapter, I just needed to spend a little more time on it and think about it just another 30 minutes longer than my client, and then help guide them through how to create a second life experience. Same thing with, uh, it's all over again, right? The world repeats. It's a spiral and a circle, historically speaking, even in tech. I read about these non fungible tokens. You create this asset, like these virtual tacos or virtual pizzas, like Pizza Hut or these Pringle gold chips. And then people get excited because you're an early adopter, even if there's a fairly worthless asset. But it wasn't because people were reselling these on the secondary market. They got them for free and they were selling them for 10, 20, $30,000. And I was like, this sounds a lot like Bitcoin for brands. And so I wrote a press release April 1st, as I've been doing the last 15, 18 years. I write a fake press release on April every year, and this one was about NFTs and, you know, NFTs, you might know as most famous things, digital watches from Jacobson and Company or digital sneakers. And so I took the idea of a digital sneaker because we're in the backyard of Adidas America and of course, Nike and I said that these other agencies are building digital sneakers. We're 10 steps ahead where building virtual shoe boxes to story of virtual sneakers to put in a virtual closet and a virtual house that we build you just to store your digital sneakers. Just totally full of it, right? Totally riffing off of a core concept. And low and behold, a very large social media platform with a blue logo reached out to me and said, hey, we need help. We've got… We're getting a virtual sneaker build for one of their communities. And we can, would, they could tell that we're very serious about it by reading that press release. So they didn't read the press release that closely, bless their hearts. And that led to another conversation. So basically what I did is I would hopped back a second and I was like, shoot, if they're serious, then I'm serious. So I read up on it. I wrote an article that's on a website called thinknorthwest.org. It's a big ad networks for the West Coast, Portland, San Francisco. Uh, about what is NFT and why does it matter? And we can talk more about that in a second, but in the end I've been talking to three large brands, including a sneaker brand about how to use NFTs. Including one of the brands that's a big technology company with a black and white logo that basically is trying to use it for B2B. How do you get into the tech community? And can we use NFTs to incentivize behaviors for deep tech clientele. Even the OEM channel reseller channel, very complicated, convoluted, not theoretically as sexy. And I love the challenge. So I'm talking with them in an hour, then try and see if we can finalize a project. So long story short, we took this, what was a press release joke into a reality of an offering to clients. And we're having these multiple discussions with larger brands. So in the past, I've evangelized mobile marketing, video marketing, podcasting, voice search, Amazon marketing. And I evangelize it as a, with my PR background, speak about it, write about it, and then develop through my articles, a concept or a structure for a service, and then sell that service. I've done that for most of my career. And the NFT happened to start out as a joke, skeptical, healthy skepticism, that it was really something. As I did the research, I realized it's extremely powerful. Because it solves… NFTs, non-fungible tokens, unlike Bitcoin, where if there's equal value, one Bitcoin equals one bitcoin. I own one, you own one. It's the same value. And a non-fungible is a one-off item that you can pay me for with Bitcoin, but it's non-replicable. Non-scalable. And so the idea is you're, you're owning an asset for something. And that's why you can say that's 30 grand to own this. Or the meme of the fire girl, the little girl with the blazing fire out of her house. And she's staring at the camera and they sold… That gal, now that she's going into college, sold it for half a million dollars and helped fund college and gave some to charity. Just for some rich person to own the digital rights to that, right? Beeple's $69 million collage. Um, he's arguably not a good artist, but he's a first-mover developed a lot of credibility in the space and had enough of a following that some very wealthy art collector, using the term loosely, decided to get a bidding war and spend crazy money. But how does that relate to brands? So there's a couple things to keep in mind for NFTs. And that is there's, because it's blockchain, it's trackable, defensible. There's no fraud, theft, or manipulation possible with an NFT, you can create as many copies as you want. You can sell them, you can give them away. But it allows… In the end, it allows for a few different things for brands. One is just general awareness. So the things that you've seen in the, in the press related to these predominantly quick-service restaurants or manufacturers and retail, lifestyle brands, Pringles, Taco Bell, Pizza Hut… Charmin has an NFT-P as in "TP." So they're just creating brand awareness. And if you like the brand, you might love them for that, if you're technologically savvy. But what I think is the next phase, because that's really what's happening in the last year. What's happening in the next year is brand engagement brand perception management. So luxury brands are getting into it. Hoochie, Jacob & Co., like I said, Jacobs & Co. are obviously a very expensive watch brand and sold an NFT watch for $100,000. Again, fairly worthless other than to the buyer, right? So brand engagement. Uh, what I think is really the secret sauce is, and this is where it gets into the B2B world, where it can apply is in the engagement for the customer. And customer retention is using it for gamification and incentives. So tokens, loyalty reward programs, earn certain tokens. Those tokens can be exchanged for things, art, music, whatever. And so it's just a clever way to up your ante and see, be seen as a forward-looking brand or an agency that creates this stuff for clients. Because a lot of like the top shot, NBA, virtual trading cards of the top 10, most expensive trading cards of all time up there with Honus Wagner is the Dallas Maverick, right? And his car traded for almost $3 million and it's a digital card. But in my backyard, Damian Lillard with the Portland trailblazers, he's added special access to groups, discussion groups, VIP access to certain events, or just access to him. So you're getting, you're paying a premium, but you're getting something that's very exclusive. That's really what NFTs are about right now, or now is exclusivity. I think also that the next phase, which will be one plus years out would be the product extensions. Agencies helping brands create products that are natural extension of their current offerings, especially in a post pandemic world. There's a lot more of this remote work, remote communication. So creating products that are more digital and interactive, it's particularly interesting right now. And then the last component would be the tokenization of time. So as an agency, you could tokenize your time where it can be bought and sold on the secondary market. Why people might do that? Hard to say. But, uh, there's a Reuben Bramanathan who's with IDEO CoLab Ventures. He's tokenized his time. And one token is equal to one hour of his time and the guy might trade his time. He might, I might have to pay him 500 or a thousand dollars. But if I get a good deal on a token, I might save a ton of money more than likely to pay right now, paying more for a token than it's worth. And then relate to that is just creating that digital ecosystem. So when I mentioned second life, there's a new version of that. And that is, there are many of them actually, but one of them is popular. It's called Superworld, where you can own the Taj Mahal, the Eiffel tower in a virtual recreation of the world, the planet. Using satellite imagery, you could add things into that world. You can develop things like second life, but mainly if you want to say I own the Eiffel tower, you can go in Superworld and buy it. If it's not already been purchased since I last looked. The Great Wall, Taj Mahal, etcetera. Those are just some of the ways a brands are using it today. One that I glossed over that's product extension. A good example is gaming. So you've got Ubisoft has a game called Rabbits. F1 has Delta time. So what, what F1 has done well with their reality show on I think Netflix. And then this, uh, F1, uh, Delta time NFT assets related to kind of gamification of F1 is they're extending out what is a very elite wealthy following. Most people don't fly to Monaco to watch the race from a yacht, but there are other ways to interact with the brand. And F1 has mastered that. Uh, and then even Microsoft has a fairly ghetto Minecraft-like game called Azure Space Mystery. That is, um, kind of remedial, but it has, it's in the NFT world. So, um, how that relates is Fortnight, if it stays relevant for another year or two, or other games like it, you could buy and sell armor and weapons and other customizations. That's one way you can buy, sell, and trade your gear within the games would be through NFTs because of the trackability that you need to do the anti-fraud protection. And then brands can obviously create assets and then know that they've protected that asset through NFT. Jason: [00:14:41] When you're an agency partner with Wix, you unlock an entire digital ecosystem for creating, managing, and growing your agency. Get the full coding and design freedom to create anything your clients need, along with the tools to manage and collaborate with your team seamlessly from anywhere. And when it comes to growing your agency, you can get matched with new leads every day and earn revenue share for every website you guys create. They're backed by the Wix industry, leading security and site performance. You'll also have a dedicated account manager on standby 24/7. So you can reach your goals and start setting new. See for yourself, head over to wix.com/partners. And re-imagine what your agency can accomplish. Now my head's spinning, which I… with ideas. And I mean, it's just to comprehend all of this is a, a little overwhelming figuring out. But that's, it's really pretty fascinating that's where a lot of the world is actually going. And, uh, those are some great examples, you know, from F1, Microsoft, and even how some of the agencies are selling their time for NFTs. It's crazy. Kent: [00:16:02] Yeah. For now it is and it will settle down. It's, it's more profound, you know, Gary Vaynerchuk has doubled down. So if you want to figure out how does an agency monetize NFTs just look at what Gary Vaynerchuk has done with NFTs. And I've had the luxury to seen him speak twice. And I thought he was just a grade-A douche bag and nothing better. And he's far more than. In fact, I firmly believed that it's, his, his character his act and he really has a huge heart and does a lot of good things. You just wouldn't know it because he has a potty mouth, which I have no problem with. And, uh, just the way he kind of yells and preaches at people. But he has a lot of good things. I never disagree that he's a smart guy and he's on point, but he's doubling down on NFTs in ways that make me look like a troglodyte. Like I'm, you know, like, I don't get it. And he's built a whole marketplace and a bunch of assets and that's cool. Cause he can do that. Cause you know, he shouldn't even be working anymore, but he's never going to stop. So look at what he's done. If you want to see what a true agency pioneer that started out just as a small wine dealer has done, it's pretty remarkable. Jason: [00:17:00] Give us one example of what you really liked that he's doing in his agency using NFTs. Kent: [00:17:06] Well, I like that he's giving back. So with his NFT agency and I, we're going to apply cause we're doing an NFT mural fundraiser here in Portland, in September. But we can apply once we build the NFT and what do you call mint it, then we can apply. If we put it on the right, uh, marketplace and use the right technology, he can use some of the proceeds and resources he's developed with his NFT company. You know, like it basically an NFT agency to help you build something better, especially if it is for a nonprofit or cause-driven social responsibility sort of thing. And, and you can get some horsepower. So he's already built giving back into his model, which I really appreciate and admire. Look at what he's doing there. So he's not just riding the money train, he's pivoting that to provide opportunities to do social good in the process. Jason: [00:17:55] Awesome. Well, this is been very educational and, uh, and really pretty cool to listen to. What's the website people can go and, uh, check the agency out? Kent: [00:18:04] Uh, you can go to anvilmediainc.com or just Google Anvil Media. You'll find me with Anvil, Portland, anvil, Kent Lewis, whatever. And then if you just Google Kent, Kent Lewis NFT, or just go to thinknorthwest.org and their blog, you'll find my article, NFT Marketing: How brands can use NFTs to engage consumers and generate revenue. I think that's a great read. And then just also look at what Gary Vaynerchuk and NFTs looked that up and news and, um, Google search generally, and you'll find a lot of great information. Jason: [00:18:36] awesome logo. Everyone go check that out and thanks so much, Kent, for coming on the show. If you guys liked this episode, make sure you guys subscribe. Also, if you want to be around other agency owners who are on the cutting edge and they're sharing the stuff that's working and be able to see the things that you might not be able to see. I'd love to invite all of you to join our exclusive mastermind. It's called the digital agency elite. So go to digitalagencyelite.com and apply. And then if we feel that you're right for the community and the community is right for you. We'll have a conversation and see if it's, uh, uh, double-check that. And so make sure you go there now. And until next time have a Swenk day.

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies
Why an $80 Million Agency Owner Had to Recalibrate Ambition to Grow

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Play Episode Listen Later Oct 3, 2021 31:57


Are you wondering how to go beyond the six or seven-figure mark and continue your agency growth? After graduating college with a Liberal Arts degree and an interest in advertising, Ben Wiener jumped at the opportunity to work at Wongdoody, an advertising agency that specializes in UX, as well as customers experience and employee experience. He continued to work there for 28 years and is now the CEO of the recently sold agency. He sat down to talk with Jason about the importance of the pipeline to keep your agency going beyond the million-dollar mark, how he goes about building the leadership at his agency, how to recalibrate your ambition to keep going after reaching eight figures, and his current role at the company. 3 Golden Nuggets Beyond the million. Many agency owners that reach the million-dollar mark have a hard time going beyond that level. In Ben's experience, this entails a mind shift. It's a point where you will need your new clients to be as big as your biggest client. Making the decision to stop taking small clients may be difficult and requires a lot of confidence on your next step, but you need to recognize that small clients take as much time as big clients and keep you from reaching that next level. This pipeline piece is key and you need to have a clear vision of what you want your client roster to look like. Building leaders. Hiring is one of the most important things agency owners do once their agency starts to see a certain level of growth. Once you've hired people t start doing the things you used to do you will need to start hiring people that do things you can't do? How can you ensure they really know what they're doing? Our guest believes sourcing talent from companies that are ahead of him in the growth curve is the best way to go about it. It provides credibility and, at the very least, they will be well trained. After you hire your leadership and empower them to make decisions, your job will become clearing the path for them to be able to focus on their jobs. Recalibrating your ambition. Getting to seven figures is the number one goal for many agency owners, and it might be so overwhelming to get there that you just think “I can't believe I got here”. Ben argues that continuing your growth will require recalibrating your ambition, thinking how do I use eight figures as a platform to get to 10 figures? And what are the next set of changes that we are going to make? Of course, not everyone has eight or nine-figure ambitions and that's ok. The things you love about your agency at $5 million will definitely not be there at $50 million. You have to be very clear on what you want going forward. YOUTUBE AUDIO LINK Gusto: Today's episode is sponsored by Gusto, an all-in-one people platform for payroll, benefits, HR where you can unify your data. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Head over to gusto.com/agency to enjoy an exclusive offer for podcast listeners. Subscribe Apple | Spotify | iHeart Radio | Stitcher | Radio FM Building Leaders and Recalibrating Your Ambition Will Help You Continue Your Growth Jason: [00:00:00] What's up, agency owners? Jason Swenk here, and I have an amazing guest on today's show. We're going to talk about what is the milestones that you'd go through in order to build an over $80 million agency. Yes, $80 million. I want you to sink that in because a lot of you are trying to get to the eight-figure mark or the nine-figure mark. So we're going to talk about the milestones that you go through. And I have an amazing guest who's been in the industry and been with Wongdoody for over 27 years. So let's go ahead and get into the episode. Hey, Ben. Welcome to the show. Ben: [00:00:45] Hi, how are you? Jason: [00:00:47] I'm excited to have you on, so tell us who you are and what do you do? Ben: [00:00:52] I am Ben Wiener. I am the CEO of Wongdoody, which is, as you pointed out a 28-year-old at this point, um, former advertising agency that has evolved into a global experience design company. Jason: [00:01:09] That's incredible. And so we were talking in the pre-show that you were employee number four. So talk about the progression and you know, how did Wongdoody get started? And first off, just tell people how you guys came up with the name. Uh, cause I'm sure people, you know, I was very interested before. Ben: [00:01:31] Um, it's a really funny name. It's a really boring story. Um, Wongdoody was founded by two people. Mr. Wong and Mr. Doody, otherwise, why would you ever call a company that? And for the most part, you know, we've survived the credibility problem that we start with. But there's still a couple of clients that we've had over the years that have said, you know, there's no way our board of directors is hiring Wongdoody. Can we just call you WD? And we're like, sure. Whatever it takes for you to get Ben Wiener from Wongdoody employed. Jason: [00:02:09] That's just so great. Um, well tell us, uh, when you were employee number four, like how did you start? And kind of walk us through your progression through the agency. And then we can jump into kind of the different milestones that you've seen over the years. Ben: [00:02:25] Uh, in college, I was a big fan of the show Melrose Place. Which dates me and dates anyone who gets that reference. Jason: [00:02:31] Oh, I loved that. Yeah. I think we're the same age. Ben: [00:02:33] I graduated from… I graduated from college with a useless Liberal Arts degree and a short attention span. Um, advertising seemed like a really fun, interesting thing to do. And yeah, through a friend of a friend of a woman who was in book club with my girlfriend's mother, which is how all good things happen. Uh, I happened to get introduced to this guy, Pat Doody, who had just started this agency. We had lunch, we hit it off and he offered me this amazing opportunity to come work for him for free. So I, I took him up on that. Um, and, uh, you know, 15 years later or so I became CEO of Wongdoody and then three years ago we sold the company. But it was a pretty interesting evolution from, uh, Pat, Tracy, and two other people and me in one room to over a thousand people. Um, and I guess the biggest evolution is going from doing kind of every job in the agency, which you do as an intern, to having no clue what half of the things we, we do today are. Um, yeah, which I guess is management. So it's really, how do you go from a business where your fingerprints are literally on everything to thinking more about structure, thinking more about strategy, to thinking about how you deploy resources. As opposed to how you just get everything done yourself. And that's probably the biggest evolution and continuing evolution of a company is it's a gradual process of figuring out what you can let go of. And more importantly, how you can find the people to let go to, because at a certain point you definitely come up against the limits of your own knowledge, intellect, and ability. Jason: [00:04:16] Yeah, let's talk about kind of the milestones, right? I find a lot of agencies can hit the million mark, but they really can't maintain that. Or they can't figure it out how can we get to the multiple million mark? And that's kind of the first milestone I look at. Um, what, what do you think, what, what's the shift in your mind? Because I really kind of think it's a mind shift, more than anything else to getting to the two, three, $4 million range. Ben: [00:04:52] It comes down to I think two things. One is pipeline and the other is people. And both of them require a leap of faith to get to where you want to be. When you're an entrepreneur and you are hustling and you were trying to make payroll and pay the rent every month, revenue is revenue and it's really hard… All revenue is good revenue. And at a certain point, what you want is more clients that are bigger than your biggest client. Not more clients that the size of your smallest client. What you start to recognize is that the small clients take as much time as the big clients. Um, and what's holding you back from focusing on big clients and bigger clients is confidence or a lack thereof. And so as entrepreneurs, when you were living with that nightmare of today's the day when my phone rings, all of our clients, fire us, and that never rings again, it's very, very hard to say, you know what? We're not going to talk to local businesses anymore, or we're not going to talk to regional businesses anymore. Or we're just going to say a hard no to any client below a certain revenue threshold. No matter how nice they are as people, or they don't have any money this year, but man, next year, next year, they're going to budget. There are all these stories we tell ourselves as agency people to rationalize, doing things that we know deep down, we shouldn't be doing. If we want to grow our business. Jason: [00:06:26] Or they say, give me a discount and I'll refer you to all my other businesses. Ben: [00:06:32] Who'll also expect a discount. Also don't have enough money to change your business. That's what you get. Absolutely. Absolutely. So these are, so, I mean, that's the pipeline piece. It's really, how do you have a clean vision for what you want your client roster to look like. And how are you actively making decisions that shape that roster and how are you making the painful decisions to not pursue things that don't fit that? Uh, so that, and the other thing that you have to recognize is that, you know, clients have aspirations as well. They look at the other clients on your roster and they say, do I want to be in that club or do I not want to be in that club? And so, you need aspirational clients to find aspirational clients. And by the same token, you know, of all if your clients are discount seeking small scrappy companies… They may be a blast to work for, but they're never going to provide you with the stability and the growth that you need to get to the second point, which is people. And at some point you got to make that transition from doing things yourself, to sort of doing things by delegating, to doing things by bringing in a next tier of leadership. And that's very, very different. Because I think the first step is you hire people who can do your work for you, or can do the things that you do, but more of it. And at a certain point, you've got to hire people who know things that you don't, who do things that you can't and need to be empowered to take some responsibility for the business. So it can't all sit on your shoulders for better or worse. Those people are excited. Those people are taking a leap of faith by joining you and those people are going to make you uncomfortable. But you're never ever going to scale your business until you can start to not just delegate, but assigned true leadership responsibilities that people who can build your organization. Jason: [00:08:28] So I think a lot of people struggle with, I can hire for someone to do my job because I can evaluate them if they can do it. So when you get to that point and you're building your leadership team and you're hiring people that know how to do things you don't, and you're kind of clueless on those. How do you evaluate and how do you make sure they're not blowing smoke up your ass? Uh, right? Like, I mean, I hear that all the time. Ben: [00:09:02] Um, it is hard. And, you know, as far as things that create discomfort. Absolutely. Because we've all been sold a bill of goods by people who claim expertise in the emerging realm that you have to be in. You know. We need a, who's going to own our influencer marketing strategy? I don't know that person's seemed to know what YouTube is, perhaps they can. Um, hiring is the hardest thing that we do. It's the most important thing that we do. There is, um, you know, to me, there's always a value in pedigree, you know, there's that saying no one ever got fired for hiring IBM. So generally if people have come from bigger, better places and have been there for a while, um, at the very least they'd been well-trained. So, you know, where are you sourcing your talent from? And, you know, we generally look to the places that we want to be, you know, for our talent. Places, you know, companies that are five years ahead of us on the journey that are a few hundred million dollars ahead of us on the growth curve. And so that gives you some element of credibility. Um, some of it's got… Look, I mean, we all get conned from time to time. But the longer you've done this, the longer you can separate the, okay, you just threw every single jargon word at me, but what have you actually done? And go, where is the work product and where are the references? And the other thing is, yeah, who have, who have people worked with that you can get to that you know and trust. Or that know and trust someone that, you know, that can give you a real reference. As opposed to the, uh, I fired this person and feeling guilty about it, reference that you'd get some times. You hear great things about a person that you're not sure about. Jason: [00:10:59] Oh yeah. Well, I, you mentioned one thing, your gut. Usually your gut's never wrong. Um, you know, because you, you feel it, whether you take on the wrong client and you're like, like my gut just told me to run, but I needed that money. Or, you know, you hired that amazing… I remember doing this. I, I got so close to hiring this amazing 3D artist. I mean like the most amazing 3D world I've ever seen, he built, but he was the biggest jackass. And my gut was like, do not hire that guy. And, and the rest of my team was like, man, there, he's amazing. Well, we'll put up with any shit. I'm like, no, we're not going to do it. Ben: [00:11:43] Yeah. So we spend a lot of time rationalizing decisions that go against our gut, whether it's clients or people. Um, part of that's also a mindset shift, you know, as I think we're all naturally optimistic. As entrepreneurs, you need to be, because the only way you can dust yourself off whenever you have a setback. So what I've found is people… You know, the assumption is every candidate's amazing and every client is perfect. Versus, yeah, why should we take this client? Why should we really be hiring this person? So if your default is always, they're great until proven otherwise, um, you know, your, your mind overrides your gut more often than it should. Jason: [00:12:28] Yeah. So let's talk about building leaders, right? Like we talked about, we got to build the right pipeline, so then we can pick and choose, right? And, and I think. You know, you've got to get to a point where, like, I think when we first start, we're building our business on referrals, really. And then, then it, you're building it on marketing. And then you have to build it on a machine that's producing two sales, and then you talked about your, the people. So how can we build better leaders? Because what I find is a lot of agencies I chat with, and I remember going through this in our phase as well. We can get to a certain point and then everything kept flowing through me like a tollbooth. And I'm like, no, no. Like we have to build a leadership, the right leaders in order to take over the stuff. And like my, my goal, and, I'd like… Answer this and then I got a question for you to follow up, to be like, what do you do every day, now that you have a thousand people and a big leadership team? I want people to know like, what, what that looks like too. Ben: [00:13:33] So, um… In the first phase of the agency, everything I did really boiled down to sales. It doesn't really matter what you're doing on any given day, your focus is driving revenue in the door. I never had sales in my title. I never had business development or new business in my title. But everything I was doing was in service of how do we get more clients and more revenue flowing in this place? Um, at a certain point that shifts and now I'd say everything I do is HR, which is not in my title. Another thing I've never really formally had a job in, and I've never been trained in. But I spend my day trying to get things out of the way of the leaders that we have hired to drive the business to the next level. So they can do… I want them to be able to do their jobs. So there are spear that I need to catch. There are obstacles that need to be eliminated. There are sources of confusion that require clarity, and it's really about clearing the path. So there's no glory in it. And some days you feel like you're doing absolutely nothing. Yet what you're doing is the most critical thing. Because it allows the people that you care about and the people that you empowered to drive your business, to do what they need to do to be successful for themselves and for you. And so all the most unpleasant tasks, uh, are the ones that fall to you and all the really good, fun business building stuff that you used to do falls to them. And that's a difficult but necessary adjustment. Jason: [00:15:19] Yeah. Taking care of your employees has never been more important than right now. And while paydays are great, running payroll is a major pain, calculating taxes, deductions. compliance. None of it's easy, unless of course you have Gusto. Gusto is a simple online payroll and benefits built for your small business. Gusto automatically applies your payroll taxes and directly deposits your team's paychecks, freeing you up to work on your business. Plus with Gustos help, you can offer benefits like 401k's health insurance, workers' comp, and a lot more. And because you're a smart agency masterclass listener, you're going to get three months free once you run your first payroll. Go to gusto.com/agency that's gusto.com/agency for three free months. So when I was, um, when we started really getting traction in the first agency, I started realizing there was kind of like four or five roles, right. One, setting the vision and communicating it to the team. Uh, coaching the leadership team. Understanding the financials, I hated spreadsheets, but I needed to understand like here are the KPIs that we're going after. You know, support sales. Um, and then, you know, be the face of the organization. Do you find that now, like have those roles changed? Because I bet you probably had those roles or do you still have some of those roles? I know, you know, like me, I'm always trying to like, like you, I'm trying to take away stuff so my guys can have a clear path. But do you find that those roles still fit what you do? Or does that change at a certain level? Ben: [00:17:26] You've summed it up pretty nicely. Um, what I've found is that the balance changes over the course of decades, but also on a day-to-day basis. Yeah, the financial piece is interesting because somewhere between you, you do sales and you do an HR. The other thing that I've discovered is half it's also accounting. Um, and it's not just, you know, because how do you recognize revenue? When do you want to recognize revenue? Where are you actually profitable versus where you… where you're earning revenue and where you're actually profitable are very, very different things. There's a whole understanding of the business that you need to have that goes beyond… Early days, is there money coming in to cover expenses? We got payroll and rent done, uh, is there enough left over that? I can take some money out of the business? Is there enough leftover that we can think about, you know, investing in more senior leadership who could theoretically help us grow the business? Now that's the basics. And then at a certain point you realize, okay, I'm not sweating the basics anymore. Now, what do I need to know about my business? Because I want to grow the profitable parts, not the unprofitable parts. I want to fix the unprofitable parts so I can grow them. And so it's not just about what's coming in and what's going out. It's where we really truly making the money? Where, where are the leaks in our business? And that's the other thing that people don't really understand, which is what's all the stuff that they're doing that's um, producing activity, but not results? So you got three or four lines of business. One of them is probably a great. One of them is probably a loser. The other two were in the middle. You know, if you can figure that fast and stop doing the stuff that's losing you money… flows right to the bottom line, finds your growth. But you need to have a level of insight into your numbers before you can start to look at it that way. Jason: [00:19:23] Yeah. So, I mean, basically you're just still a problem solver for your team. Uh, and, and just saying here's, here's the direction that we want to go. You guys figure out the, how. I'll support you however. You just tell me what you need, is that right? Ben: [00:19:41] Yeah. It's a lot of what, you know, figuring out what's missing. And also, um, just because you want to take the business in a certain direction, doesn't mean everybody wants to go with you. And so then you get faced with a far more difficult set of choices, you know. Um, how do you persuade the people that you need to come with you, that this is the right journey? I know that what we're doing and where we're going seems weird or sounds scary, or isn't what you signed up for, or it's not at all what you saw on Melrose Place. And that's okay. Um, because here's where we're going and why. And I have… come on board. Uh, it's finding people who, you know, can come in and understand that vision and help make it understood inside the organization. Uh, change is scary and difficult, and we've got people at Wongdoody have been there since 1994, 1995. Um, and so part of the balancing act is we have changed radically in that time. We've, we've reinvented ourselves multiple times and that's great. And then there are some fundamental things about the business that cannot, should not, and will never change. And those need to be protected. And that's, uh, figuring out what, figuring out what the real core of your businesses versus what's just sort of comfortable or habitual. That's another challenging thing because you want to, you want to know what's up for grabs and there should be more things that are up for grabs and you're probably comfortable with, but you can't sell your soul for anything. Jason: [00:21:19] Yeah, well, yeah, you have to, you have your beliefs and the beliefs of the company and, uh, that, that always stays true, I find. Even though your services, your solutions, who you target may change. Um, but, uh, talk a little bit about… Because you guys have been around, I mean, I started solar went out in 99, so you guys are, you know, a couple of years ahead of us. And we went through a lot of different changes. I mean, I remember going through the yellow pages going, you want a website? And they're like, what's the website? And I was like, I'll put it on Netscape composer. Um, so talk about how do you know when the company outgrows an employee that's been there for so long with you? And how do you… How do you get past that? Because I think people hold on to people too long as the agency outgrows that individual. Or how do you bring those individuals along? Um, you know, make them better. Ben: [00:22:28] Oh, I mean, these are hard, hard things, particularly when, you know… My goal has always been to have the agency changing faster than our clients so that, you know, changes never being dictated to us and that we're ahead of the market. And by that same token, I need people who can change as fast as the agency. And so when you realize that people have a fixed mindset or they are nostalgic for what the agency was. Um, or they can't contribute to the growth. It's a very, very difficult decision to help them find a place where they're going to be better off and happier, but ultimately they're going to be better off and happier. We've had people who came to us and said, we want no part of this digital thing. And we're like, that's great. Uh, I don't agree with you, but I value everything that you have brought to this company for the last X years. How do we find you a better place to be together? What's our plan? We have an obligation to the careers and the growth and the progression of the people that choose to work with us, whether or not that work happens in our company. And so our responsibility to mentor and find opportunities doesn't stop when people start getting a paycheck from us. So I think if you take that attitude of you want the right people in the right place, whether or not that's inside your organization. Then it becomes a different conversation than sorry, Suzy, you know, we're moving on and you're not. Jason: [00:24:11] Yeah, I liked, I liked that approach and I think that's the right approach. Um, because look, I always joke around. I've been fired from every single job. Uh, I've ever had other than two and my best friend owned the company, own the businesses. That was when I was little. But, um, but yeah, like at the end of the day, I, and I figured it out. I just never liked quitting. But when someone would come along and say, no, you need to go do this, I was like, oh man, thanks. That's very freeing. And the lesson I learned there, I was like, you know, when you have the people that are not the right fit, find them the right fit. And there'll be so much happier rather than thinking that their life is over. Um, and it's, it's a good mentality because like agency changes so many times it's gonna outgrow a lot of people, including owners. Um, it, I see that a lot at times happen and the owners have to stop out. So it's great. Um, last question, uh, before we wrap up, talk about what is it like, to like, how did you get from the eight figure mark to where you're at now? Like what… If you had to pick two things outside of people and the right clients, because we've already covered those. Is there anything else? Um, or is it just boom, boom, boom. Ben: [00:25:35] You have to recalibrate your ambition. Jason: [00:25:40] How so? Ben: [00:25:44] When you get to seven figures, you think, oh my God, you know, here I am at seven figures. And many people think I never thought I was going to get here. Wow. Isn't great? Versus, okay, how do I use eight figures as a platform to get to 10 figures? And what are the next set of changes that we are going to make? It's like a, you don't want to be George Bush on the battleship. You know, there's no, the mission never accomplished, which is not to say you can never step back and enjoy where you've gotten. But you need to be looking at all of it on a path to where you want to be. And not everybody has eight-figure nine-figure ambitions. We had a… Wongdoody was a great lifestyle business until we realized it was unsustainable and that we were not going to keep our good people challenged. We were not going to be able to attract and retain the best talent as a lifestyle business because ambitious people want growth. So massive amounts of growth… It's a choice. And you need to be ready for that choice and recognize that it's not the only valid choice. But if you want to get there, it's also believing that it's possible. You know, we would often look at bigger, better agencies and say, how can we be like them? And you go to, oh, we can't be like them. And they've got this and that and this and that and whatever. And you make this list of why it can't be you. That's another example of our ability to rationalize ourselves into bad decisions or no decisions, uh, or selling. So I don't want to be like an inspirational poster and be like it's 99% attitude is not, um, it's attitude is luck. It's hard work. It's being smart. All of those things in equal combination and don't discount luck. Um, you know, and you have to make sure that you want to get there because the other thing is a lot of what you love about running a $5 million business. Is not there when you're running a $50 million business, there are different things to love, but it's not the same job with more zeros at all. Jason: [00:28:02] I like that you said be careful what you wish for. Because you know, uh, and we're even going through that right now, for us, personally, in this consulting and education business of like, man, life is good. We're serving all these amazing people. And we're like, do we want to blow it up and, and take it to, you know, a gazillion dollars and, uh, you know, it's, it's a challenge. Um, and I think it just takes some time to think about, and I think you can kind of constantly change your mind. But I, I do believe what you said is like don't um, don't show shortcut yourself of what's possible. Just really kind of dream it and then just start figuring out who do you need to hire? What do we actually need to do in order to get there? And, uh, you know, once you get there, then, then you live in the bed that you made. Ben: [00:29:00] Well, I think the other thing is, you know, generally starting a company is a culmination of your career. I worked for a bunch of other people. I worked for a bunch of other people. I learned this, I learned that I saw all this stuff I could do better. I saw the opportunity my last boss was missing. I started the company and now I'm done. And I think that's also a dangerous attitude or thought. Because you don't stop growing and evolving, like you have the same obligation to yourself as you do to your employees, which is how do we keep getting better? How to keep getting smarter? How do I keep learning new things? And how do I keep challenging myself? And so whether, you know, you don't want to go blow up a business for the sake of blowing it up. But once again, if you're not continuously trying to reinvent yourself, you're going to get reinvented by the market, by your clients, by forces, beyond your control. And that's nowhere you ever want to be. Jason: [00:29:46] Yeah, I love it. Well, this has all been amazing, Ben. Is, is there anything I didn't ask you that you think would benefit the audience listening in? Ben: [00:29:57] that is not the conversation I was expecting. This is like, this was a people conversation and a leadership conversation. Much less a, you know, what is the future of UX and touchless retail experiences and, you know, what are you seeing about global trends? Which is great, um, because. Yeah, for better. The people are kind of why I show up every single day that the work is incidental. Pat and Tracy and I always said that we, whether we're running an agency or running a carwash, we would do it the same way. So thank you for letting me think about and focus on what really matters. Jason: [00:30:28] Yeah, definitely. Well, thanks so much for coming in. Uh, what's the website people can go and check you guys out? Ben: [00:30:35] Uh, www.wongdoody.com. Uh, and we have a zillion open roles. So any disgruntled employees from other agencies that are watching this, please go see if there's a fit for you here. Jason: [00:30:48] Awesome. And you date yourself by going www. No one does that anymore. Ben: [00:30:53] HTTP. Jason: [00:30:56] Uh, I love it. I love making fun of my friends that do that. Cause I used to do that until someone razzed me. I was like, oh my gosh, www. Ben: [00:31:05] I am, I will own that. Jason: [00:31:10] Well, awesome. Ben: [00:31:10] I got that going for me. Jason: [00:31:14] Well, awesome. Thanks so much for coming on the show. And if you guys enjoyed this episode, make sure you subscribe. Make sure you comment. And if you want to be around amazing agency owners who are constantly pushing you to be better and sharing what's working for you and are sharing what's working for them. So you can actually build on that foundation and grow and scale your agency faster and be around amazing people. I want to invite all of you to go check out digitalagencyelite.com. This is our exclusive mastermind that only a select few get in. So go there now. And until next time have a Swenk day.

Chat Marketing Podcast
Generating $250K by using personality in your Chatbot with Jason Swenk

Chat Marketing Podcast

Play Episode Listen Later Sep 22, 2020 28:08


Jason Swenk has literally written the book for growing an agency from nothing to two 8 figure agencies. He is one of the most sought out advisors to agencies in the World, by showing them an 8 system framework that worked for growing his agency, working with brands like AT&T, Hitachi, Lotus Cars, and eventually lead to selling his agency. Jason currently hosts the Smart Agency Master Class Podcast, the #1 Digital Marketing Agency Owner podcast for sharing the strategies and stories from real agency owners of what is working today in the agency world, and how they got to where they are now. All links: https://marketingpodcast.chat/session03/ Links and resources mentioned: Swenk.it Smart Agency Master Class Podcast The Chat Marketing Podcast is the #1 podcast to learn actionable strategies and tips that help you have more profitable conversations with your customers. The podcast interviews the best chat marketers from around the world to get the best tips, strategies and examples of what's working in the chat marketing industry. Website: https://marketingpodcast.chat/ All episodes: https://marketingpodcast.chat/episodes/ Spotify: https://open.spotify.com/show/16AZ39mfx1WyaFo1T30AEm iTunes: https://podcasts.apple.com/au/podcast/chat-marketing-podcast/id1529074842 Google: https://www.google.com/podcasts?feed=aHR0cHM6Ly9hbmNob3IuZm0vcy8zMmI1ODNmOC9wb2RjYXN0L3Jzcw%3D%3D Facebook: https://www.facebook.com/chatmarketingpodcast/ Instagram: https://www.instagram.com/chatmarketingpodcast/

The Morning Coffee Marketer
Episode 021: How to use Facebook to Grow Your Client Base, with Jason Swenk

The Morning Coffee Marketer

Play Episode Listen Later Oct 14, 2017 12:28


In this episode, Jason Swenk talks about how by posting every day on Facebook, he has set himself apart from his competitors and is building a stronger client base from it.  Key Takeaways!   Swenk has been posting every day in order to expand his business. He has been successful using this strategy because his posts are focused on what his audience is wanting to hear about. (4:00)   When he records his videos for the day, he doesn't pre-write what he is going to say. He simply hits record and just sees what comes to him. He makes sure though that every video has three key points: (7:39) He sets up the problem He discusses how to overcome that problem He talks about successes or the failures, or there is a call to action   Swenk has found that through doing this, he has set himself apart from other people on Facebook. He has gained many new customers from this because people will watch his videos and then they will want to work with him. (9:27)   To get in on free training to get 10,000 fans in 3 days or less, you can go to JasonSwenk.com/KWP. (11:07)   To find out more about Jason Swenk and his podcasts and videos, you can visit JasonSwenk.com. (11:32)   Resources Mentioned in this Episode Jason Swenk's Website: JasonSwenk.com Website: Morningcoffeemarketer.com How to get 10,000 Facebook fans in 3 days or less 3daysto10k.com   

Mindalia.com-Salud,Espiritualidad,Conocimiento
El agua es una puerta transpersonal, por Goio Iturregui y Alberto Pérez

Mindalia.com-Salud,Espiritualidad,Conocimiento

Play Episode Listen Later Jan 27, 2017 54:54


Puedes ver el video completo de esta conferencia en: http://television.mindalia.com/el-agua-es-una-puerta-transpersonal-por-goio-iturregui-y-alberto-perez/ El agua en la frontera de la naturalidad, por Alberto y Goio, que tuvo lugar durante el IV Congreso Ciencia y Espíritu, en Junio de 2010. El Agua en la frontera de la naturalidad consciente El Agua es una puerta a la ecología transpersonal. Un enfoque responsable de la ciencia nos está dando la posibilidad de comprender que somos uno con la Creación. El salto de una ciencia al servicio de la la enfermedad de la ambición a la del campo akáshico nos situa ante la gran oportunidad de comprender y sentir que somos co-creadores. Científicos como Tolle, Swenk, Godswani,Laszlo, Moncayo, Citro, Sagi,…están desde su naturalidad esclarecida al servicio de la Verdad. Con ellos podemos comprender la fascinante naturaleza de la Vida. Ante nosotros se abre la gran aventura de sentirnos conectados desde lo más profundo de nuestros anhelos a la energía de La Fuente. Hablaremos a modo de ejemplo de uno de los descubrimientos que pueden ser uno de los instrumentos de la medicina más relevantes del siglo XXI. El Método Moncayox. El doctor Moncayo ha descubierto que las enfermedades autoinmunes se manifiestan en una alteración de la geometría fractálica de los electrones. Por decir así ha descubierto, un nuevo mapa por el que comprender, el efecto que producen en la intimidad de la materia, nuestra ignorancia a la hora de vivir en lo cotidiano, nutrirnos, cuidarnos, amarnos,… Y lo que es más importante, ha descubierto la forma de restablecer en tiempo real los electrones de hidrógeno alterados a su órbita, por la aplicación de información coherente, en longitudes de onda específicas, utilizando como transporte Agua! Goio Iturregui y Alberto Pérez Formación autodidacta no reglada. Medalla de Oro en Comunicación Corporativa Nueva York 1993. Responsable de Comunicación de Deusto Consultores. Ex.vicepresidente de la Fundación Vicente Ferrer. Miembro de Watu Acción Indígena. Co.Fundador del Instituto para el Rescate de la Memoria del Agua. Participa con el corazón en Somosuno.es. Fotógrafo. Escritor y divulgador de los horizontes de la biofísica del Agua. Por una curación sorprendente de su madre con Agua Informada, su vida se aligera y viaja al encuentro de nuevas preguntas inspiradoras. Escribe un libro con Masaru Emoto acerca de los manantiales sanadores españoles. Colabora con Ervin Laszlo. Organiza los Encuentros internacionales de la Ecología del Agua. Impulsa investigaciones aplicadas. Actualmente dirige el nuevo Instituto de Investigación Europeo Moncayo. ——————————EVENTO ORGANIZADO POR—————————— Miguel Celades http://www.cienciayespiritu.com ————————————INFORMACION SOBRE MINDALIA—————————— Mindalia.com y Mindalia Televisión son una ONG SIN ANIMO DE LUCRO Si te ha gustado este video, APOYANOS CON UNA DONACION: https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=G58CS4AVKC6BU SUSCRIBETE AL CANAL DE YOUTUBE para no perderte ningún video: http://www.youtube.com/subscription_center?add_user=mindaliacom AYUDA A MINDALIA, SIN PAGAR NI UN SÓLO CÉNTIMO MÁS, CON TUS COMPRAS Y RESERVAS ONLINE: http://helpfree.ly/j20544 MILES DE VIDEOS de conferencias y entrevistas de interés en http://www.mindaliatelevision.com Participa en las CONFERENCIAS EN DIRECTO: http://television.mindalia.com/category/conferencias-en-directo/ -Puedes escuchar este y otros audios en Ivoox: http://mindaliacomradio.ivoox.com PIDE O ENVIA AYUDA http://www.mindalia.com – La Red Social de Ayuda a través del Pensamiento SIGUENOS EN REDES SOCIALES: -Youtube: http://www.youtube.com/mindaliacom -Facebook: https://www.facebook.com/mindalia.ayuda/ -Twitter: http://twitter.com/mindaliacom -Pinterest: https://es.pinterest.com/mindaliacom/ DESCARGATE LAS APLICACIONES MOVILES GRATUITAS: Mindalia Multimedia https://play.google.com/store/apps/details?id=es.app.mindalia_television Mindalia Red de Ayuda https://play.google.com/store/apps/details?id=es.app.mindalia_ayuda&hl=es CONTACTA CON NOSOTROS: http://television.mindalia.com/contacto/ -Skype: mindalia.com ¿Tienes un video que te gustaría que publicáramos? Envíanoslo!!

Mindalia.com-Salud,Espiritualidad,Conocimiento
El Agua en la frontera de la naturalidad consciente, por Goio Iturregui

Mindalia.com-Salud,Espiritualidad,Conocimiento

Play Episode Listen Later Jan 13, 2017 64:07


Puedes ver el video completo de esta conferencia en: http://television.mindalia.com/el-agua-en-la-frontera-de-la-naturalidad-consciente-por-goio-iturregui/ El Agua en la frontera de la naturalidad, por Goio Iturregui, que tuvo lugar durante el II Congreso Ciencia y Espíritu, en Noviembre de 2009. El Agua en la frontera de la naturalidad consciente El Agua es una puerta a la ecología transpersonal. Un enfoque responsable de la ciencia nos está dando la posibilidad de comprender que somos uno con la Creación. El salto de una ciencia al servicio de la la enfermedad de la ambición a la del campo akáshico nos situa ante la gran oportunidad de comprender y sentir que somos co-creadores. Científicos como Tolle, Swenk, Godswani,Laszlo, Moncayo, Citro, Sagi,…están desde su naturalidad esclarecida al servicio de la Verdad. Con ellos podemos comprender la fascinante naturaleza de la Vida. Ante nosotros se abre la gran aventura de sentirnos conectados desde lo más profundo de nuestros anhelos a la energía de La Fuente. Hablaremos a modo de ejemplo de uno de los descubrimientos que pueden ser uno de los instrumentos de la medicina más relevantes del siglo XXI. El Método Moncayox. El doctor Moncayo ha descubierto que las enfermedades autoinmunes se manifiestan en una alteración de la geometría fractálica de los electrones. Por decir así ha descubierto, un nuevo mapa por el que comprender, el efecto que producen en la intimidad de la materia, nuestra ignorancia a la hora de vivir en lo cotidiano, nutrirnos, cuidarnos, amarnos,… Y lo que es más importante, ha descubierto la forma de restablecer en tiempo real los electrones de hidrógeno alterados a su órbita, por la aplicación de información coherente, en longitudes de onda específicas, utilizando como transporte Agua! Goio Iturregui Formación autodidacta no reglada. Medalla de Oro en Comunicación Corporativa Nueva York 1993. Responsable de Comunicación de Deusto Consultores. Ex.vicepresidente de la Fundación Vicente Ferrer. Miembro de Watu Acción Indígena. Co.Fundador del Instituto para el Rescate de la Memoria del Agua. Participa con el corazón en Somosuno.es. Fotógrafo. Escritor y divulgador de los horizontes de la biofísica del Agua. Por una curación sorprendente de su madre con Agua Informada, su vida se aligera y viaja al encuentro de nuevas preguntas inspiradoras. Escribe un libro con Masaru Emoto acerca de los manantiales sanadores españoles. Colabora con Ervin Laszlo. Organiza los Encuentros internacionales de la Ecología del Agua. Impulsa investigaciones aplicadas. Actualmente dirige el nuevo Instituto de Investigación Europeo Moncayo. ——————————EVENTO ORGANIZADO POR—————————— Miguel Celades http://www.cienciayespiritu.com ————————————INFORMACION SOBRE MINDALIA—————————— Mindalia.com y Mindalia Televisión son una ONG SIN ANIMO DE LUCRO Si te ha gustado este video, APOYANOS CON UNA DONACION: https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=G58CS4AVKC6BU SUSCRIBETE AL CANAL DE YOUTUBE para no perderte ningún video: http://www.youtube.com/subscription_center?add_user=mindaliacom MILES DE VIDEOS de conferencias y entrevistas de interés en http://www.mindaliatelevision.com Participa en las CONFERENCIAS EN DIRECTO: http://television.mindalia.com/category/conferencias-en-directo/ -Puedes escuchar este y otros audios en Ivoox: http://mindaliacomradio.ivoox.com PIDE O ENVIA AYUDA http://www.mindalia.com – La Red Social de Ayuda a través del Pensamiento SIGUENOS EN REDES SOCIALES: -Youtube: http://www.youtube.com/mindaliacom -Facebook: https://www.facebook.com/mindalia.ayuda/ -Twitter: http://twitter.com/mindaliacom -Pinterest: https://es.pinterest.com/mindaliacom/ DESCARGATE LAS APLICACIONES MOVILES GRATUITAS: Mindalia Multimedia https://play.google.com/store/apps/details?id=es.app.mindalia_television Mindalia Red de Ayuda https://play.google.com/store/apps/details?id=es.app.mindalia_ayuda&hl=es CONTACTA CON NOSOTROS: http://television.mindalia.com/contacto/ -Skype: mindalia.com ¿Tienes un video que te gustaría que publicáramos? Envíanoslo!!