With Agencies
Here is the reality—most marketing agencies that target small businesses aren’t worth hiring. I know all these factors to be true; I’ve experienced them with my agency.
If you’re considering hiring an agency, here are some red flags:
They’re expensive. Let me give you a quick primer on how agencies make money. If an agency targets small businesses, they don’t make much money on any given client. A good marketing consultant should make $150/hour. So, if you’re paying $300/month to the agency, you should expect to get two hours of their time. Right? Wrong. Most agencies will give you the two hours but from lesser skilled employees, some right out of school, and they’ll pocket the difference. You’ll be paying for experts but getting novices.
They don’t know your business. Most agencies market themselves to small or mid-sized companies in any industry. It’s been my contention that an agency should know as much or more than you do about your business. That’s hard to do unless they specialize. And, if you happen to find one that specializes, they probably won’t be in the same locale.
They’re not good at everything. Marketing is changing very quickly, and so are the channels, tools, and techniques. As a result, most agencies are learning on the fly (and at your expense). Many agencies struggle to overcome these challenges. Most are good at only a few things and subcontract the rest. Why pay more when you can do the subcontracting yourself?
Analytics is a universal weakness. Many marketers got into the field so they wouldn’t have to learn the numbers. Now, to derive the best ROI from your marketing, analytic skills are a must. Testing, measuring, and refining your marketing are critical components of my Lean Marketing approach. And they require analytics.
Targeting and direct response skills are lacking. Most small business marketing is focused on getting a response, and not in developing your brand. Finding the right segments to target can be challenging even for sophisticated agencies. The idea of small and iterative tests is foreign to most agencies; They’re stuck in the campaign mentality.
So, what should you choose: DIY or hiring an agency? Most marketing skills you can learn on your own and you can sub-contract the ones where you don’t have the time or skills. My recommendation is that you do it yourself.
Mistake #21
Not Hiring Experts
It may seem like I’m speaking out of both sides of my mouth, but I also think small business owners need the help of experts. In the last mistake, I explained why using a marketing agency isn’t right for most small businesses. Instead, you can assemble your team of subcontractors to do the marketing at much less cost and with more success.
Most smaller companies and startups don’t have the resources to be experts in all things. When they try to do it all, they stretch themselves, and bad things generally happen.
My rule for outsourcing:
Never outsource your strategy. You, the owner of the business, know more about your company and industry than any supplier or agency. An age-old rule in strategic planning, never outsource a strength, is also true in marketing.
Outsourcing for Small Businesses
There are tasks where outsourcing makes sense. Here is my philosophy for when to do this:
When you need specific skills or expertise. Outsourcing skills that you don’t have makes sense when you don’t need them on a full-time basis. As you grow, you can decide when and if to bring this expertise in-house.
Outsource a weakness. We can’t be good at everything. Look at those tasks you aren’t good at or don’t like, and find some key suppliers.
Time-wasting activities. You even may be good at some marketing activities, but it doesn’t mean you should waste your time on them. Outsource any task that has little client impact.
Cutting costs. Outsourcing is an excellent way to cut costs – as long as you’re not diminishing the strength of your company. Sometimes DIY marketing is even more expensive than agencies if you have an under-utilized in-house team.
Marketing Activities to Outsource
It’s easier to outsource some marketing activities more than others. I’ve listed the ones I use the most often. However, this list is meant only as a guideline. If you have specific strengths in these areas, or don’t need this particular skill, you can omit the activity.
SEO (search engine optimization). Keywords and search phrases are crucial. Hiring an expert for some in-depth keyword research can have a huge payback.
Logo design/branding. A skilled designer can create a brand that will last a long time. Your logo will be on everything, so don’t go cheap and hire your cousin or uncle to get the job done.
Website design. It’s possible to create your website using platforms like Wix or Weebly. Your website is the hub of your marketing; a DIY site may make the wrong impression. I outsourced mine on 13Upwork.com to a developer in Sri Lanka. It didn’t cost much, and it looks professionally done.
Content marketing. It takes a lot of time to create eBooks, blogs, whitepapers, etc. 75 percent of marketers are outsourcing content in some fashion. You can start by hiring a freelance writer.
You may not find a key supplier on your first attempt. Test different suppliers until you’re happy with the results.
Mistake #22
Blowing Your Budget On One Thing
Entrepreneurs are risk-takers by their very nature. Often, they blow their marketing budget on one thing trying to hit the proverbial home run. It’s the antithesis of what I prescribe in Lean Marketing. My direct marketing background taught me that a series of small, iterative tests is much more efficient than massive campaigns (see mistake #52 for more on testing).
The one trait I see in most small business owners is the desire to grow faster. However, blowing your budget on one thing trying to grow faster is not a good idea. It’s mainly a problem for startups when they have obtained their initial funding and think a big splash will help them get out of the gate.
Single Campaigns Increase Risk
In today’s marketing world, the key to success is frequency and patience. Placing a single ad campaign may help, but it won’t produce any miracles. A better idea is to choose three or four marketing tactics and then test them.
The Magic Number is three. Test three different marketing channels and see which one works. Three channels provide enough diversity without being overwhelming for you on the implementation.
Work on the three channels for about three months and get a good feel for the numbers. Make sure your evaluation is based on the results and return on investment.
Hit Singles – Not Home Runs
In major league baseball, the current strategy is to swing for the fences. It may work in baseball, but it’s not a good idea for marketing. The problem is when you try for a home run
