Agencies that struggle to grow face many of the same problems; no time, limited resources, inadequate tools, inconsistent effort, no pipeline, lack of focus, too many misses. It is frustrating because your current clients love you and appreciate the hard work and extra effort you put into their success. If only you could find more great clients like these. If only you could diversify and spread your income across more great relationships. You can with a little help along the way.
If you struggle with business development, there are legitimate choices to help. You can hire a business development person or team to focus exclusively on growth, or you can realign staff to take on the role. You can pay for lead generation services by the lead, by the month or on commission, and work those leads yourself. Or you can outsource the entire process and not get involved until the time comes to close that new client. Each option depends in part on you, your staff and your agency’s bandwidth. I have broadly generalized the services of each and am certain there are hybrids and even a few alternatives I haven’t mention as well.
A dedicated in-house BD team
Statistics show that about 39% of agencies have a dedicated BD person or team and 44% rely on the owner or president. You can read my survey results; How do other advertising agencies do it. The percentages shift from small to large agencies. In my experience, agencies will be most successful when they have a dedicated BD team but not all agencies can, depending on their business situation and maturity. If you and your team can’t clearly articulate your difference and your value, you will be better served by a consultant like me who can help you be specific in both what you offer and who will most likely value what you do.
If you can answer Yes to these statements, you are probably ready to handle your business development in-house
- I have a good sense of my agency positioning, differentiation, and expertise
- I am confident I know how to articulate the value I offer to marketers
- My staff and leadership are eager to support new opportunities
- I am satisfied with how my agency handles the entire prospect journey
- I know who to go after and where to find them
- My win rate is 25% or more
Outsourced lead generation
Many agencies have told me about unsatisfactory experiences with lead generation firms. Like any business, some are better than others. Usually, the problem is not the vendor but a lack of clear direction by the agency. The more detailed you can be about your ideal prospect the better the leads will be. The more specific you can be about who you want and who you don’t, the better the results will be. If you can’t be specific, you will be better served by a consultant like me who can help you be specific in both what you offer and who will most likely value what you do. Don’t expect consistent results immediately. It will take time and a bit of trial and error for your resource to hone in on the best results.
If you can answer Yes to these statements, you may benefit from outsourced lead generation.
- I have a good sense of my agency positioning, differentiation, and expertise
- I am confident I know how to articulate the value I offer to marketers
- My staff and leadership are eager to support new opportunities
- I am a good closer
- I know who to go after but struggle to find leads
- I don’t have time to research and vet potential prospects
- I end up chasing too many opportunities that don’t pan out or aren’t a good fit
- My win rate is less than 20%
Outsourced business development
You should be certain your resource will spend time shaping your agency positioning and focusing your prospect universe before going after leads. If you and your team can’t clearly articulate your difference and your value, you will be better served by a consultant like me who can help with both. Some resources promise to do it all but are nothing more than lead generation shops so do your homework before selecting.
If you can answer Yes to these statements, you are probably a good candidate for outsourced business development.
- I question my positioning and difference
- I don’t know why I lose to other agencies that I pitch against
- I’m not sure what verticals to go after
- My staff and leadership are hesitant to support new opportunities
- I don’t know what tools and technology I should use
- I don’t know how to get a prospect’s attention
- My win rate is embarrassing
There is not a one size fits all solution. Even though most agencies share common challenges, each is unique regarding its needs and resources. And those needs and resources change over time. In my opinion, the ideal scenario is to start or restart a focused business development initiative with a consultant first. He or she can develop an approach and process that is customized to your agency, refine it and then train and hand off a proven program to an in-house person or team. Once it is up and running with a pipeline to manage, a new BD person can take over without interrupting the flow of new opportunities or future prospects in your pipeline.
Obviously, this is only the tip of the new business iceberg. If you want additional insights about which option is right for your agency, email me or spend some time on my website www.jheenan.com to get more tips on agency growth. If you liked this post and want more new business advice delivered to your inbox sign up for my monthly newsletter. #LetsGrow!
Photo by Caleb George on Unsplash
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