As detailed in The Marketing Agency Blueprint, billable hours are contingent on the producer’s efficiency, creating what we believe to be a flawed pricing model.
A project that may take one person three hours to complete could take another at the same level five hours. The underlying cause will vary—distractions, lack of training, misunderstanding of the project, etc.—but the end result is the same. In the latter scenario, the client pays more, but receives no additional value.
But it doesn’t stop there. Agency professionals are typically evaluated based on the number of billable hours they track. There are no incentives to be efficient, but rather motivators to be inefficient.Read More
Earlier this month, I sat in on the Optifiy webinar, How to Price Your Digital Marketing Services. Rob Eleveid (@RobertEleveid), CEO of Optiify, and Jon C. Stone III (@jcstone3), CEO of Revenue Architects, presented.
This post highlights some of webinar’s key takeaways. Before we start though, keep in mind that your pricing will evolve with your business, and it should be continually refreshed based on changing market factors, service offerings and historical data.Read More
Through integrated campaigns that combine search, social, content and PR, inbound marketing agencies are driving leads and loyalty for their clients, and themselves. They understand that today’s consumers are in the drivers’ seats, shutting out interruption-based communications, and dictating when and how they interact with brands.
As a result, they’ve seen tremendous client success and strong business growth. Need proof?
HubSpot’s Shannon Johnson (@shannopop) recently released a storybook, Transforming into an Inbound Marketing Agency: Stories and Advice from 6 Execs that details six companies that transitioned to inbound marketing, including the results they’ve seen.Read More
People ask us all the time how to measure the financial success of their agency. When we respond, many seem disappointed. "That's it?" they ask. "Those are the numbers you track?" The truth is, the agency business is a pretty simple business. In this post, we provide our ideas of the most important metrics for agencies.Read More
Diversified revenue streams are one way to better manage incoming revenue and gain more predictability. Because your eggs aren’t all in one basket, alternate revenue streams can help compensate when you have a low service month, and lessen the blow on your bottom line. There are three main opportunities to diversify agency revenue, which we outline in this post.Read More
Bob Ruffolo (@BobRuffolo) is the founder and CEO of IMPACT Branding & Design, an inbound marketing agency in Wallingford, CT. Bob has more than 10 years experience in online marketing and strategy development. Since founding IMPACT in 2009, he has overseen its growth and development to a thriving 10-person firm. Marketing Agency Insider spoke with Bob about his agency’s services, pricing, technologies, hiring strategies and more.Read More
Integrated agencies are few and far to come by, yet highly demanded. Today’s clients are no longer looking for one-off service offerings. Consumer buying habits, available technology and client expectations now require agencies to expand their suite of marketing services.
That said, 60% of chief marketing officers are unable to find an integrated firm to meet their needs for hybrid services, according to a study by The Horn Group and Kelton Research. So how can your agency prepare for this shift, and deliver on the demand for digital and integration? Check out these eight tips to get you started.Read More
Clients (at least the smart ones) look for a good fit with a marketing agency, including goals, skill sets, expertise, personalities and reputation. Traditionally, the process of “fitting” took several live or telephone meetings in which the parties discussed goals and expectations, deliverables and, eventually, pricing. In this guest post, John McTigue, executive vice president and co-owner of Kuno Creative, explains what's changed in recent years and why publishing presales information and pricing on your website can help you pre-qualify and close leads faster.Read More
In this edition of the Insider Series, we had the opportunity to talk with Joe Olsen, co-founder and CEO of Phenomblue, about his growing agency, why he chose to pursue private venture funding and how technology is shaping the industry.
Phenomblue is an interactive brand experience agency focused on developing creative solutions that harness the power of technology to tell a consistent story across all interactive consumer touch points.Read More
The billable-hour model is a flawed, archaic, agency-centric system that wrongly ties agency performance to outputs, not outcomes. Alternatively, set prices enable agencies to bundle services into packages designed to fit specific market segments, and dramatically reduce time spent building new business and account development proposals. Plus, they make make marketing agency services more affordable and effective to the under serviced market of small businesses.Read More