Author Archive

Navigating The Seven-Year Chokepoint (Time to Review New Business Options)

Written by ChuckMeyst2015 on . Posted in Blog Posts, Marketing Consultancy

Guest Author – Blair Enns, Win Without Pitching

Agency business development has evolved over the years as technologies and media alternatives have evolved.  Most agency “business development” employees have little-to-no formal sales training, so imagine their frustration as they face many things “new” each and every day. To that, now add the seven-year chokepoint as Blair explains … Ed

In running a creative firm, everything appears to change around the seven-year mark. There’s a chokepoint at about that time that requires a change in strategy to get through. Some make it and some don’t.

The seven-year chokepoint was perhaps the first pattern I spotted soon after launching Win Without Pitching in 2002 (as a consulting practice, initially). So many of my new clients had been in business for seven years that at some point in my initial conversations I would venture, “Let me guess, you started the firm seven years ago?” I was correct far greater than chance would have predicted, and that pattern has held for 15 years. Even today, my guess is that more than 25% of the firms in our training program came to us somewhere around their seventh birthday. There seems to be something about being in business for seven years that precipitates the need for help in the new business department. But let’s back up.

In The Beginning
It’s likely that you started your career as an employee, working for someone else and thinking, “If it were my firm, I would do things differently.” Then in a moment that The E-Myth author Michael Gerber refers to as an entrepreneurial spasm, you went out on your own. There’s a good chance your first client was one you took with you from your employer, or perhaps it was your old employer, who used you as an overflow valve or chose to purchase your more specialized offering instead of staffing it in-house.

Level 1: Validation
Things went well and time flew by. One client led to another and another. You added people and capabilities, making it all look easy if a little harried. New clients kept coming in. And then they didn’t. Somewhere around the seven-year mark, your network just seemed to tap out, and everything slowed right down. This spawns an introspective moment for many firm principals. Where am I? How did I get here?

If you were to look back on your seven-year journey, you would see your path leading from your starting point to where you stand now. Along the way, you would see binary switches, like railroad switches, each representing an opportunity that came your way. They’re all switched to “On,” or “Yes,” leading to where you are now.

Those opportunities were random, arising from your reach or network. Some came to you easily and some you had to hustle for, but by saying yes to all of them, you ended up in a random place dictated by those random opportunities. That’s okay because along the way you learned a lot, including the confidence that you can be successful in business. Validation. But right here, usually at about the seven-year mark, the wild randomness that was the hallmark of the first level of your business needs to be replaced. That first type of success is not coming back, nor would you want it to come back. It’s time now for level 2.

Level 2: Life-Changing Success
Beyond the chokepoint at which your business quits growing organically, the journey, if it is to continue, must be more deliberate. From here on out you must set your course to a specific destination. That requires a visioning exercise of not only where you want the business to be at a set point in the future—perhaps another seven years out—but what you want the business to be.

Positioning the firm for this journey is vital. Positioning is the word we in the creative professions use for strategy, and strategy, according to Michael Porter, the Bishop William Lawrence University Professor at Harvard Business School, is the answer to the question, “How are we going to become, and remain, unique?”

Think of the primary components of your positioning as the answers to the questions, “What will we do?” and “For whom will we do it?” While keeping Porter’s definition in mind, the answers to those questions posed today should paint a picture of a global leadership position in seven years. My personal belief is that if you’re not aiming for global leadership then what’s the point? You and your firm can be anything in seven years, so why would you aim for anything other than the very best of something? If you cannot imagine being a global leader in this new area, then you must narrow either the discipline (what you will do) or the market (for whom you will do it) until you can imagine it.

Once you have your vision of global leadership, it’s time to pursue it steadfastly. The traits or tools of the first level of success are hard work and saying yes to everything. But these admirable traits are not the tools that enable the second level of success. Worse, once hardened into habits these traits work against you, because the tools required to get to the next level are saying no, and innovation, which I define as a combination of creativity and risk.

From Yes to No
“The difference between successful people and really successful people is that really successful people say no to almost everything.” -Warren Buffett

Saying yes to everything ensured your survival at level 1. It put money in the bank at a time when any dollar was a good one. But now you must view every new engagement as a strategic decision that will take you one step closer to your strategic vision.

Think back to your journey. Standing in the present, turn your attention away from the starting point 180 degrees to your new destination seven years ahead of you. You will get from here to there one step at a time, with each new client representing one of those steps. So how many steps do you think it takes to get from here to that future version of your specialized global leader firm? The answer is no more than 28.

For reasons I have covered elsewhere, your new business goals should be framed around managing a healthy churn of clients at a rate of about one new one per quarter. Every three months, on average, an old client fades away and, if your new business machine is working, a new, better one comes on board. Whether you like it or not, each client will take you one step closer to, or further from, that strategic vision of a global leader. So you must choose your new clients wisely. Seven years equals 28 quarters, 28 new clients, 28 steps away from where you are now. If you were to say yes to the next 28 clients that came along, where would that get you? The answer is somewhere that looks a lot like here. But few get to stay here, at the seven-year chokepoint, for long. They either figure out the next level, or they go out of business. There are exceptions—lots of them—that stay in this purgatory for years, decades even, but nobody wants to be stuck here, past the point of validation but well short of life-changing success. The first key is discernment: saying no to engagements that do not further your vision.

You must also bring the same level of discernment to your role. What functions does it make sense for you to hold onto, and which ones should you shed? And it doesn’t stop there. This ruthlessness of delegating, cutting loose, or otherwise saying no to things and people that do not advance the firm to its strategic target of global leadership needs to become the new habit, replacing the one where you would say, with a smile on your face, “Yes, we can!” Just because you can, doesn’t mean you should. And increasingly, in level 2, you shouldn’t.

From Hard Work to Innovation
My wife will occasionally observe that someone “is very successful. She must work very hard.” Recalling Peter Drucker’s observation on the source of all profit, I respond like a robot, “No, she must take a lot of risks.”

That is the second shift required for level-2 success—to no longer equate success with your own hard work, but with innovation, which I define as a combination of creativity (the ability to see an opportunity) and risk (the willingness to make large bets). Don’t misread that to think you should never work hard or that working hard is not a desirable attribute. As the principal, working harder may have been the answer to the question in the first seven years of your business, but it rarely is afterward.

The hard work habit becomes ingrained, though. Boxer was the noble ploughhorse in Orwell’s Animal Farm whose solution to every problem was “I will work harder,” even when the escalating crisis increasingly called for creative problem-solving or risk. The problem with hard work is it is consuming, and creativity—the ability to see new opportunities for your firm and clients—requires waste in the form of time to think. That’s why every firm that pursues efficiencies must trade some level of innovation to do so.

Entrepreneurship Is Risk
The propensity for risk is a highly personal thing, varying from person to person, but it is the one characteristic that defines entrepreneurs. They are always making bets. The size or frequency of those bets can puzzle or even terrify non-entrepreneurs. I need a certain amount of risk to make my life on earth meaningful to me, but I notice that the entrepreneurs I admire most tend to take more risk more easily than I do. I wish I could match them, but alas, if I want to sleep at night, I cannot.

We all find the risk-reward tradeoff that’s right for us, but some of us tend to settle into too comfortable a zone, and as a result, quit growing. Your firm needs to grow its way through this chokepoint. It’s delusional to think you will do so without taking more risk.

When creative firm principals at that seven-year chokepoint consider a new positioning to take them to the next level, some of them want guarantees. “How can I be certain this (the new positioning they are considering) is the right one,” they ask? “You can’t,” is the answer. There has to be some risk in the decision. Those seeking certainty before making the shift will likely find that game-changing success will always elude them. Their challenge is to push their own capacity for risk, which brings them closer to failure as well as success.

One Level at a Time
Business is a game with hidden levels. By succeeding at one level, you get invited to play the next. The common mistake is to bring those first-level tools to the next level. Not only do they not work here, but they also work against you. Many of the habits you learned you will now have to unlearn. Accepting this inevitable obsolescence of tools is the key to obtaining all the advanced levels of success.

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PRICING, NOT PRICE, AS A COMPETITIVE ADVANTAGE

Written by ChuckMeyst2015 on . Posted in Blog Posts, Marketing Consultancy

By Guest Author Tim Williams, Ignition Consulting Group

Tim Williams has consistently looked at the agency world and the agency model as needing change. Today’s media alternatives demand agencies find new ways to explain and sell, and Tim makes some good points about both. When the time comes for a client to search a new agency, our AgencyFinder.com model still prevails.

The way to win more business is not to offer the best price, but rather the best pricing approach.

Many firms will argue their clients are “price shoppers,” and it’s true undiscriminating buyers can be found in every market. But most smart clients understand you get what you pay for. The reason some of them seem prone to “buy on price” is much more about how we sell than how they buy.

Based on the hourly rate system, what most agencies sell is their costs (buckets of hours), so it’s no wonder their clients are focused on costs. But what would happen if agencies decided to sell their services in a different way?

Are you creative or aren’t you?

To stand out in a competitive pitch, inject as much creativity into your compensation proposal as you do in your proposed concepts and recommendations Give your prospect multiple ways to buy your services, not just a take-it-or-leave-it total of your estimated hours.

Car washes demonstrate more creativity in pricing than agencies do. They offer multiple options (silver, gold, platinum), various versions of car wash packages, premium add-ons, monthly or annual memberships, and more. Honestly, is adding up your estimated costs the best you can do?

You can’t really claim to be “a different kind of agency” without taking a different approach to the economic foundation of your success. Ron Gibori, co-founder of agency start-up BGO (Blinding Glimpse of the Obvious), puts it this way “There are no new models, just more talk, without a new approach to the money.” Ron’s partner Mark Beeching elaborates:

“We embrace shared risk and reward with clients in a variety of ways — from pinning significant fees to agreed performance criteria through to joint ventures with clients and shared or even full-risk ownership and funding of new IP by BGO. We’d rather apply our inventive business brains to new win-wins with clients than endless wrangling over budgets and billable hours …”

Changing your pricing changes the dialogue

At a minimum, decide you’re going to join the rest of the business world in selling outputs instead of inputs. (Can you imagine paying for a new laptop based on the number of hours it took to build it?) Then commit to replacing your standardized rate card with a spectrum of pricing approaches designed around customer value instead of agency cost. This can range from fixed price options to licensed programs; from royalties to outcome-based agreements; from dynamic pricing to usage of IP (the way Hollywood makes money).

Not only does a creative approach to pricing help you stand out from the firms creaking under the outmoded hourly rate system, it changes the dialogue you have with your clients when in comes to compensation. Would you rather be talking about something clients want to minimize (costs) or something they want to maximize (value in its many forms)?

From treadmill to virtuous circle

If you need some extra motivation, consider that transforming your pricing strategies is really the only way you’ll be able to create and sustain the “virtuous circle” that is the basis of every extraordinarily successful firm:

The elements of this cycle are interdependent. You can’t expect “effective work” to sustain your success if you don’t also have an effective way to get paid for it. In fact, without a pricing strategy that produces healthy margins, you’ll forever be swimming against the currents. As the late great Stephen Covey preached, “No margin, no mission.

ADVERTISING AGENCY SEARCH – SIMPLIFIED

Written by ChuckMeyst2015 on . Posted in Agency Search Tips, Blog Posts

Note: Marketing firms call themselves everything under the sun. Truth is the “handle” or “descriptor” is not important, but what IS important is their experience, the services they provide, their “personality” and the likelihood for great chemistry, then location, years in business and this list goes on. However you searched for an advertising agency, digital agency. Marketing partner, PR firm so that’s our topic.

But oh the drama and angst of searching, finding, evaluating and then hiring a new advertising agency, digital agency. Marketing partner, PR firm. Some say it compares to finding and hiring a new C-Suite executive. But it doesn’t have to be that way! Follow these simple suggestions below and you’ll enjoy a pleasant and educational process that you might later tell your associates – was fun!

Step # 1, Rule #1– You will never find a winning partner among a pack of losers. Lesson #1 – The most important and critical stage of your review is the identification of candidates. The first temptation is a Google search. Google’s first assumption, like it is for a fast-food lookup is that you want your agency nearby, so they perform a local search. If that’s your desire, fine. But if you already know who’s in your market, then that’s of little help. Same for Bing and Yahoo. All steer you to websites where navigating and comparing can be a nightmare. Another revelation – there is no set standard for agency websites (thank goodness) but that means you’re in for lots of variety and confusion as you  page your way, or scroll your way through dissimilar agency websites. I do promise you will be entertained if you are easily amused.

Let’s find your candidates. Don’t try to identify candidates one at a time, look for a service or search consultant that will help. Try search terms like “Ad Agency Search Service,” “Ad Agency Database,” “Digital Agencies,” “Find PR Firms,” “Agency Search Consultant,” or other variants. If you want assistance a search consultant is your ticket, but they come at a price. One free search consulting service that’s been around for some time is AgencyFinder.com. Check them out. Once you’ve found what you want there or elsewhere, define what it is you need.

What do you need in location or locations, size (employee count), Capitalized Billings (aggregate spend), Years in business? Then more specifically:

·        Fields served (vertical market experience)

·        Services offered

·        Market Specialization

·        Membership in Professional Organizations

·        Compensation options

·        Media experience

·        Primary Business (ad agency, digital, etc.)

·        Other

Step #2 Identify 20 or more agencies (yes 20) and then spend time on their websites. Build a spreadsheet to manage your work. Look for reasons to remove some, not to invite them. Narrow your list to 12-15. Put together your invitational package (an outline of what you seek from the agency) but not an RFP – that’s premature. Prepare an invitation that can be sent by email, fax or overnight carrier. Don’t interview anyone until they have your invitation in-hand and have come forward. Instruct those with interest to send an email to schedule a day and time for a telephone interview. You invite 15; 10 may respond and wish to continue.

Step #3 Hold your due-diligence telephone interviews. The “format” is free-flowing but an opportunity to get to know each other, learn what they do and how they do it, probe to discover to what extent they have experience in and understand your industry. Note what questions they ask you. Determine if they are interested in becoming your agency. If YES, ask them to send you a “Pitch package” – a collection of relevant samples of similar work, then an open-format letter describing how and why they want your business. You or they eliminated 3. You are down to 7.

Step #4 Examine those agency materials and share what they sent with colleagues. Decide who to cut and who to keep. Notify both with pleasant, professional messages – email or phone. Those who are cut will invariably want to know why; try to be honest but gentle. DO NOT fail to notify those you have cut. You cut 2, down to 5.

Step #5 For those still in contention, let them know and if your budget warrants, schedule a visit to those agencies. Plan for an “Agency Tour,” an opportunity to see their facility, meet various employees, see finished and work-in-progress. Look as well for work lying around that isn’t in your wheelhouse, but something you might have admired. Form your opinion and make judicious notes. After visiting 5 semi-finalists your top 2-3 should be evident.

Step #6 Invite the Top 2-3 to come to your headquarters and make final presentations. Give them adequate time to prepare. You identify the assignment and provide the facility. Voila!!! Discover your new agency!

Now it’s Your Turn                                             SEARCH NOW

7 WAYS TO CREATE NEW REVENUE STREAMS

Written by ChuckMeyst2015 on . Posted in Blog Posts, Business Development

Guest Author: Tim Williams, Ignition Consulting Group

Tim’s contributions are “spot-on” and we’re happy to share them when available. His content is significant and if you read carefully, it suggests that running an agency is clearly a full-time job (for those who missed that class).  The same goes for everything you find necessary for new business development.  With today’s litany of business development options, it make sense to bring in someone with special skills to teach and train your people. Many of the skills required today are not “self-taught.” And if not special people with special skills, engage a service that delivers “opportunities.” Is your answer to Tim’s first question “Yes?”

Would you like to earn money while you sleep? Most of your clients do. 

While most product and service companies have diverse ways of generating revenues, agencies and other professional firms generally don’t make money unless they’re recording hours on a timesheet. “Work a million hours, make a million dollars,” as the saying goes.

This is why the agency business is not really scalable. As long as your product line consists of “billable hours,” the only way you can scale your company is to add more people. And with the current pricing pressures on the time-based compensation system, this makes agencies perpetually high-volume, low-margin businesses.

But it doesn’t have to be this way. An emerging crop of innovative firms across the globe are successfully cultivating new revenue streams, diversifying their sources of income, and yes, even making money while they sleep.

How do they do it? Here are seven ways you can accomplish this in your own business.

1. Diversification
Purposefully diversify your compensation approaches with clients

Your personal investment portfolio (the money you’re saving for retirement) is diversified for a very good reason: you’ll get a much better rate of return. The same logic holds for your firm’s compensation portfolio. If your revenue streams are generated in a variety of different ways, you dramatically improve the chances of earning an above-average year-end profit.

2. Non-Standardization
Replace a standard rate card with an array of revenue options (a “pricing stack”)

Besides being remarkably uncreative, a standard list of hourly rates is a wildly suboptimal way to capture the value you create for your clients. When asked by a prospective client to supply your “rate card,” respond instead with your version of a “pricing stack” — an assortment of different ways your firm pricing its services. These can include such approaches as:

FIXED PRICE OPTIONS 

REVENUE SHARING

USAGE

DYNAMIC PRICING

SUBSCRIPTION-BASED

LICENSING

ROYALTDIES

3. Risk Management
Bet on your own success by injecting elements of risk in selected opportunities

Not every prospective client is a candidate for an outcome-based compensation agreement, but some are. When you sense an opportunity to get paid for marketplace outcomes instead of agency inputs, seize it. You’ll learn from it and get better as you go.

4. Productization
Turn selected solutions into programs and products

As stated earlier, labor-based services on their own are not very scalable. But programs and products are. By packaging up selected services into programs and products, you enhance the perceived value of your offerings and create the potential for new ways to charge for what you do.

5. IP Ownership
Package your intellectual property in ways that can generate recurring revenues

Most firms have a wealth of valuable intellectual property scattered across their file servers. This can be “productized” and licensed to clients.  Look for opportunities to license existing IP (software code, analytics dashboards) instead of approaching every assignment as “work for hire” in which the client automatically owns the IP. Why should your clients buy everything you do for them when they can rent some of it for much less?

6. Unmet Needs
Move beyond widely available services to develop solutions for the unmet needs of clients

The profit problems at most firms can be correlated directly with a service offering that the business strategist Clayton Christensen calls “overdeveloped services.” Good luck charging a premium price for something clients perceive they can get down the street at half the price. Instead, turn your energies to the “underdeveloped services” designed to meet the unmet needs of the marketers you serve.

7. Experimentation
Adopt a “test and learn” approach to generating revenue streams

The most profitable agencies we have ever worked with have the attitude that every new assignment is an opportunity to craft a new compensation approach they’ve never used before — the equivalent of a pricing “test kitchen.” They expect varying levels of success, but that’s the point. They learn from their experiences and get better and better at developing more creative, more effective ways of capturing the value they create for their clients.

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Propulsion is written by Tim Williams of Ignition Consulting Group, a U.S.-based consultancy devoted to helping agencies and other professional firms create and capture more value.

The Agency Tour is Your New Business Secret Weapon

Written by ChuckMeyst2015 on . Posted in Flash Reports

CONTENTS: 

  1. The Agency Tour is Your New Business Secret Weapon
  2. Sit In the New Business Hot Seat? You Should Sit at the Team Tab
  3. Invitation and Fee-Paid Go Hand-In-Hand
  4. What Did You Call Your Firm When You Enrolled (It Matters)
  5. See Which Clients Have Already Checked You Out
  6. New Business is for Active Profiles; Is Yours?

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THE AGENCY TOUR IS YOUR NEW BUSINESS SECRET WEAPON

When offered, would you rather meet the prospect for the first time at their business or your agency? Anyone who has tried both will tell you the agency visit coupled with an agency tour is the killer. For that reason, each and every client using our service is repeatedly encouraged to embrace the virtues of conducting agency site visits and tours as part of the process to identify their finalists. Don’t be bashful about making the pitch yourself. On a recent food service win, the winning agency fought hard to convince the client to visit their shop. To hear it told, apparently the client was expecting a more traditional agency layout, only to be pleasantly surprised and a bit overwhelmed to discover this agency had audio, video and print production facilities above and beyond the norm. Although not needed for initial steps in the relationship, the presence of those facilities bode well going forward and influencing the award decision.

Here are some tour tips. Your tour is best orchestrated to move from station to station as much as possible like a job moves through your agency. Many of our agency students have built a tour outline that suggests a route that follows the production of a magazine ad. Begin your tour where the ideas begin; then move forward to whatever constitutes the next step. It’s only natural to introduce the players at each station and a perfect environment in which to discuss that technology or agency strength. If you’re actually using a mock ad and having it unfold as you progress, you have a perfect opportunity to seek input from your visitors. What they say and how they answer will reveal decision-makers among the visitors and preferences you can use to your advantage later when you really start pitching!

Save your conference room for last; let that serve to field last-minute questions, re-affirmations, and your chance to ask closing questions. Make sure to learn what the client sees as next steps. And be certain YOUR AGENCY is involved in those next steps!

SIT IN THE NEW BUSINESS HOT SEAT? YOU SHOULD SIT AT THE TEAM TAB

Most agency websites, in recognition of the fact that chemistry is a critical element in agency selection, see the wisdom in an agency “Team” tab.  There you’ll find the smiling faces (photo or illustration) of the key players – at least that’s how they are presented. For a first-time visitor, they may care about your management, but if they want to reach out to hire an agency, they want to identify the new business contact. If that’s you and you aren’t posted yet, show this to your boss and ask it be done. It needs your photo and a pleasing bio!

INVITATIONS AND FEE-PAID GO HAND-IN-HAND

AgencyFinder is an annual membership opportunity. Pay up-front and you’re fee-paid for 12-months.  That means all the client invitations you can handle for no additional charge. In a way it’s the e-Harmony or Match.com of the advertising industry, at least from the standpoint that our fees, like theirs, pay for “opportunity introductions.” Our affordable Manager Plan $500 Registration entitles you to be found in a review, invited and introduced to a client, then hold your “due-diligence” phone interview. All that for just $500! Contender Fees extra.

Special Attention: For the remainder of September and all October, and for less than what many agencies are paying monthly just for phone calls, the EVP Annual Business Plan @ $2,995 saves you $2,505 over the Director Plan and you’re fee-paid for 12-months. Upgrade or Enroll Now.

WHAT DID YOU CALL YOUR FIRM WHEN YOU ENROLLED? (IT MATTERS)

Each of you had to decide how to classify your firm, and we gave you these choices:

* Advertising Agency (SIC 7311)

* Direct Marketing Firm (SIC 7331)

* Integrated Marketing Communications Firm (Not yet classified)

* Media Buying Firm (SIC 7319-9902)

* Digital and Interactive Media Firm (Not yet classified)

* Public Relations Firm (SIC 8743)

* Sales Promotion Firm (SIC 8743-9904)

* and Minority owned and operated

Over the years we’ve learned something we want to share with you. Truth is, when a client enrolls and builds their profile, they seldom come with any predisposition as to “type.” They don’t tend to linger; just a quick swipe at ad agency or “integrated.” If you selected anything else, come back and change your Primary business to one of those, then be more precise with your Secondary choice. It WILL MAKE A DIFFERENCE in your traffic volume.

SEE WHICH CLIENTS HAVE ALREADY CHECKED YOU OUT

It’s happening right under your nose! It doesn’t sound a ringer or blow a horn, but our system does note and document when any client search brought your firm to the surface. I can’t offer a clickable link, but it’s easy to get there. Login to your account as you would always do. You land on Registered Agency – Record Maintenance. Click at #15 – Agency Search Activity Detail and there you are. That report shows date, budget, Fields served, and client location. That’s the traffic your profile is generating.

NEW BUSINESS IS FOR ACTIVE PROFILES; IS YOURS?

Some agencies quit our registration process prematurely and don’t realize they did so. When you begin, you are walked through 2 or 3 pages. But that’s just the tip of the iceberg. A complete profile lets you describe your firm using more than 500 data fields; then 7 short essays you write, same for case histories and confidential client list. When that’s finished, you click at Item #13 – Set Your Record Active. When you log back in you’re greeted with “Welcome Back “Agency Name.” If you didn’t get that far and you still need to finish, you’re greeted with just “Welcome to AgencyFinder.com.” We assume you enrolled to get new clients. Please finish things up so we can do that for you!

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The Technology Sector’s Negative Influence on Creative Firms

Written by ChuckMeyst2015 on . Posted in Blog Posts, Marketing Consultancy

Guest Author – Blair Enns, Win Without Pitching (He’s on a roll)

No, this isn’t a rant about how things were better before everything was digital. Rather, it’s an observation on how principals of creative firms have borrowed some of the wrong things from the cultures of technology businesses and startups, in particular.

First, The Good
The buzz of innovation and deal flow coming out of Silicon Valley and other technology startup hubs is infectious. There’s so much that’s good about it and, in recent years, creative firms have borrowed some good things from tech:

1. They’re more open to exploring alternative business models
2. Some firms are launching their own start-ups or spinning off some of their internal innovations into other businesses
3. Principals are lifting their eyes to the horizon, being more tuned in to what’s likely to happen next, well before it starts to happen
4. Firms are fostering culture as a means of recruiting and retaining good people
5. Some firms have their own labs or R&D divisions
6. All great stuff. But I also see problems created by the wholesale adoption of some practices and viewpoints from the tech startup world in the culture of creative firms. There are two in particular that I think have been the most damaging.

Then the Bad

1. A Tendency Toward Productizing
Look at a few websites of firms that do some form of technology marketing. Many are taking too many cues from the SaaS companies whose marketing automation products they’ve aligned their businesses to. Specifically, they’re productizing their services in a bid for scale without stopping to consider the myriad of other implications of such a strategy. I’m a fan of Hubspot–the company and the technology–but I can’t discuss this topic without pointing out that the ecosystem of Hubspot partners firms is an egregious example of unnecessarily productizing what should usually (not always) remain a customized service: marketing.

Hubspot has served their partners well by providing so many resources to them to help them build their businesses, but the price seems to be that Hubspot has attracted firms that really want the model of success to be told or handed to them rather than those willing to innovate their own way forward in the quasi-paranoid, quasi-isolated way that is typical of an entrepreneur.  Hubspot partners, and other firms like them who resell other software, package and price their services like software companies, not recognizing that theirs is a dramatically different type of business requiring different pricing and business models.

The trade-offs between these business types are many. You can watch my talk at Hubspot’s Inbound Conference last year where I discussed it at length.

2. A Focus on The Exit
Is there anything more ridiculous than someone you’ve just met asking you, “What’s your exit strategy?”

As I’ve previously written, my exit plan is death, and I think yours should be, too. I can be talked into seeing the merits of a technology company spinning up and then selling so that their own little technology becomes a small part of some larger technology that takes over the world and makes all the players rich. But in truth, I think most (certainly not all) of those sales and stories are vacuous nonsense. Regardless, in an independently-owned, knowledge-based business, having one eye on the exit is about the best way to neuter your business. Watching a creative firm principal ease into retirement while the firm slides into irrelevance has always been one of the most painful things to witness. But now the young owners have this disease too, except their exit is a short-term sale.

Again, maybe if yours is a technology company developing a real proprietary technology, a short-term sale is something to shoot for. But if you’re still in the service or expertise business then a sale is unlikely. Build a great firm that allows you to go deep into your client’s problems on a customized basis and reap the rewards of such a business along the way. Having one eye on the exit in this business is the wrong thing to do, no matter what your age.

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“As a next step, I’d like you to come back with some concepts on what this campaign might look like.”

Written by ChuckMeyst2015 on . Posted in Blog Posts, Business Development

Guest Author – Blair Enns, Win Without Pitching

The client was politely but firmly taking charge, proposing what he clearly saw as a logical next step. Even though he was still a prospect at this point and not a paying client, he seemed to be conditioned to believe that our firm doing work for free made sense for all. I didn’t see it that way. Matching both his politeness and assuredness, I replied without skipping a beat, “We never pitch.” It was a lie. We pitched all the time but I was getting tired of it. I’d seen this film before and I knew how it ended. I wanted to try to change the ending, even if I didn’t know what should come after my small act of defiance. What made this particular exchange interesting though was that my boss, the president of the firm, was seated next to me and he replied to the client at exactly the same moment I did. “That sounds good,” he said. Cue the awkward silence.

It’s so long ago now that I don’t recall what happened next. I think I remember the three of us exchanging glances, Mexican standoff-like, but I don’t remember what language my boss or I spun to extricate ourselves with minimal embarrassment before we retreated to work on the pitch. I do know the client never hired us. I don’t think he hired anybody. It was the classic example of an overeager salesperson (me) mistaking interest for intent, and then an agency CEO, who had flown in for a meeting that never should have been, wanting to salvage something from the trip. Neither do I remember the details of the conversation with my boss that followed. I vaguely recall there was no real friction between us. I think he appreciated my alternative approach but would have liked to have known in advance what the play was going to be. The problem was that I myself didn’t know. I just sensed another client who was about to put us to work, for free, and not hire us.

If we list the things that went wrong on this opportunity, we find: 

1.     The client had not yet formed any intent to solve his problem, therefore, in all likelihood, the meeting never should have happened. At the very least it was poorly qualified beforehand. Wasting your boss’s time and money by having him fly in for a poorly-qualified meeting is a major no-no. In all likelihood, he was probably coming to town anyway and asked me to line up some new business meetings. (Again, the details elude me.) Such a request is perfectly legitimate but also enough pressure to cause a salesperson to set up meetings that shouldn’t be. I don’t remember anything about the dialogue that led to the meeting, but I’ll bet it was me pushing for it and not the client. In such a context the dynamics become clear, with the client thinking, “these people really want my business. Of course, they’ll bring me some free ideas!”

2.     We let the client lead in the meeting and then we agreed to follow even though the place he was leading us to wasn’t in our best interest, or at least I didn’t see it as such.

3.     We, my boss and I, were not operating from the same playbook. I had contradicted him in front of the client. If I had told him in advance how I wanted to handle such a request, I think he would have agreed to play it my way. He was a great that way. But it wasn’t part of any predetermined plan of mine either.

All the errors seem silly to me now, but back then I just didn’t know. I was a new business person. It’s not like there was anything that resembled training for this role. You copied what was done by those around you and those that went before you, based on the stories and the decks. And you improvised.

In the many years since this incident I’ve seen that this lack of cohesion on business development topics is common–perhaps even the norm–even if most examples don’t manifest themselves in a subordinate putting his boss in an awkward position the way I did. Just today I heard from an executive at a medium-to-large independent firm frustrated at the firm’s leadership team’s inability to get on the same page. “We have rules we’ve agreed to about when we will pitch and when we won’t but we break those rules all the time, and we always lose.”

There are so many different challenges that can affect a firm’s new business success, but not having everyone agree on some basic policies and procedures has got to be one of the most common and most significant.

If you’re trying to extricate your firm from a new business rut, a good place to start would be to get all the key players together (I mean ALL. Don’t let the chief transgressors skip this.) and agree on some basic new business rules, such as:

What do we require from the client before we will incur any expense?
What information do we need before we agree to a meeting?
Under what conditions will we respond to an RFP?
What is the smallest engagement it makes sense to take on?

Of course, agreeing on the rules and enforcing them are two different things. I suggest that once you lay out the rules, commit to a brief postmortem on each late stage opportunity (any opportunity that proceeds to a win or a loss) and, rule by rule, ask yourselves how you did. After a few such reviews, the patterns of transgressing and enabling will become clear. Then you need to decide what to do about  that . You can cross that bridge when you come to it. For now, commit to getting everybody on the same page by setting up the rules and reviewing every won or lost opportunity against them

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A Logistics & Marketing Challenge – Client Wants Agency to Recommend, Create and Manage Consistent Message Across Various Forms of Media

Written by ChuckMeyst2015 on . Posted in Pitchcast, USA/North America

Client offers residential, commercial, and municipal solid waste collection service. The website shows their Texas service area. The service area is mostly rural, but does include some larger cities. They are also currently growing in the Houston market. They want an agency that can recommend, create and manage a consistent message across various forms of media and help redevelop their website. They have no preconceived notion as to which one or how many media alternatives should be used, but have had some experience with direct mail. Open to hearing any and all thoughts for marketing and increasing the size, awareness, recognition, penetration and success of our company! Budget indicated: $100,001 – $250,000 

Invitation Deliverability

Written by ChuckMeyst2015 on . Posted in Flash Reports

CONTENTS:

  1. Invitation Deliverability
  2. Leads, Leads, Leads, What’s a Lead?
  3. You Don’t Have to be a Pit Bull
  4. Virginia International University Search
  5. L’Oréal Search
  6. Widex Search
  7. Lonza Search
  8. Your Unfinished Profile
  9. What’s New? Check Out PitchCast

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INVITATION DELIVERABILITY

Client wants to interview your agency. What’s Step One?  Getting you the invitation. Sounds simple enough but in today’s world of over populated media alternatives (we consider phone, fax, email, FedEx, USPS as media) it ain’t so simple anymore. We’ve tried everything but our most successful has been 1. Email notification of pending invite 2. Fax or email invitation 3. Telephone follow-up to confirm & explain. This works when 1. Your profile is current 2. The right folks are at Primary and alternate NB contacts 3. We have correct emails 4. You have white-listed us as the sender. chuck@agencyfinder.com bpi@agencyfinder.com  Any suggestions to the contrary?

LEADS, LEADS, LEADS, WHAT’S A LEAD?

What’s that up in the sky? Are those birds? Is that Superman? No those are lead vendors and they are everywhere! We got this email recently: “I ran across agencyfinder.com this afternoon in my search for lead generation options for our agency. Employing an outside lead generation option is a new concept for us so I was hoping you could point me in the right direction.”

We responded: “We don’t deliver leads, rather invitations from clients who are serious about finding and hiring a new marketing partner and doing so now. They’ve also used our service to generate a Request for Dialogue that in most cases allows for the elimination of the infamous RFP. A veteran “new business kinda guy” once described a “lead” this way …  Imagine you are sitting at a 2-top in McDonalds adjacent to a noisy group of four, discussing dissatisfaction with their current agency – and a commitment to find someone new. You note the name of the agency and after lunch, rush to call your friend who owns an agency. You share the story and agency identification. That’s a “lead.” Make sense?”

YOU DON’T HAVE TO BE A PIT BULL

Most agency people are artists of some sort or degree; they aren’t natural-born sales-dogs. So it’s a mistake to expect or try to train your New Business Pro to bite and snap like a Pit Bull (as a pit bull owner I hate that often-used analogy). Pity the poor prospect receptionist that’s bombarded by pit bulls demanding to speak with the CMO or equivalent. In your back pocket place the following key to the front door – “I need some assistance; could you help please?

WIDEX SEARCH

Location: Hauppauge NJ & Denmark Budget:  $2.5MM – $5.0MM public relations & public affairs Client-Category: Medical Ads & Devices Awarded to: Advance, Denmark Contenders: MarketSmith, NY, gyro, NY

LONZA SEARCH

Location: Alpharetta, GA Budget: $100K – $250K (fees & production) Client-Category: Chemicals, Cleaning agents, Waste & Water Treatment Awarded to: Scout, Atlanta Contender: Point b, Atlanta, GA

VIRGINIA INTERNATIONAL SEARCH

Location: Fairfax, VA Budget: $100,001 – $250,000 (fees, production & media) Client-Category: Education, Schools, colleges & universities Awarded to: Sparkroom, Paramus, NJ Contenders: ndp, Richmond, VA, Charles Ryan Associates, Richmond, VA.

L’OREAL SEARCH

Location: Montreal, Canada Budget: $100K – $250K (fees & production) Client-Category: Cosmetics, toiletries, feminine hygiene products Awarded to in-house marketing department. Contenders: The Mars Agency, Toronto, CA, Shikatani Lacroix, Toronto, CN

YOUR UNFINISHED PROFILE

Check to see if your profile is Active & Ready for Client Invitations. Maybe you didn’t realize we give you over 500 data fields to select from. Login with the information above. On the landing page, click #13 – View Your Report (Confidential Version). You should see Iridium, Director’s Club or RefNet | Approved | Paid or Unpaid.  If you see Iridium | Not Yet Approved | then finish up. Iridium is the initial no-fee level; But unless you are Approved you can’t be found or invited.

WHAT’S NEW? CHECK OUT PITCHCAST

Buncha good stuff going on – check it out. Let us know if you see a fit.

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High-Tech West Coast Company Developed and Owns Patents on High-Volume Consumer Product. You have an Opportunity to Tell the World

Written by ChuckMeyst2015 on . Posted in Pitchcast, USA/North America

Can’t share too much publicly, but we want a technical ad agency that has prior experience working with engineering/technical firms and is research and data driven. We want help with market research and help finding potential applications for our unique battery chemistry. We would like an agency able to write technical articles on our behalf and provide the research necessary to help us find other applications for our batteries. Budget $100,001 – $250,000 for now

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