Why change my marketing agency’s business model

This post was written based on the lecture given at social media week held in são paulo. In 2018.

If you entered this post. You probably have a marketing agency or work in one and you already know that the agency market is moving.

For a long time. The business model of a digital agency can be summarized in: offering various digital marketing services to other companies that want to position themselves in the online market.

However. This type of solution has always placed agencies as an outsourced service and. As a result. Most of their revenue depends directly on third parties.

With the increase in demand for online courses . Agency owners realized that this was a new market to explore. For that. It was enough to adapt their knowledge to a new reality and start investing efforts in a business that can be truly profitable.

Want to understand more about this reality?

From now on. We will show you how it is possible to change the business model of a marketing agency and enter the distance learning market once and for all.

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what is the reality of marketing agencies today?
As we said. Digital marketing agencies are Estonia Phone Numbers responsible for placing third-party companies on the online market that do not have this type of service in their businesses.

The solutions offered range from creating and managing social networks to analyzing competition and data to understand the actions that are having an effect and propose new strategies.

Basically. Another company hires the agency. Which provides this type of service for a determined period of time and for an agreed amount even before deliveries begin.

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The truth is. If you have your own business . You know it’s not safe to leave all your profits in the hands of other people. You need to take ownership of where your business is and where you want it to go.

Not to mention that always relying on contracts with third parties is very risky and not very scalable. After all. The contract has time to end and it may be that. At some point. You end up with no customers at all.

In addition. There are 5 very common mistakes that we can observe when analyzing various communication companies:

this type of communication solution is an invasive model. That is. Very aggressive for the consumer.

Much of the communication suggested by some agencies is done without context and does not generate the engagement that these days demand.

Today’s consumers don’t want to be bombarded by ads that don’t speak to their current moments. Empathy is necessary on the part of those who are creating the communication to understand the audience and talk to them at the right time and with the right subject.

However. If you are not fully immersed in the business for which you are creating the communication pieces. It can be difficult to clearly understand the audience you want to reach.

2. Remuneration for already established business models

you may have heard of the traditional fee . This is the most common way that advertising agencies use to generate revenue.

Basically. Those who hire those services pay a fixed monthly fee for a certain time to the agency or pay an initial planning fee plus that monthly fee.

Regardless. The important thing here is to understand that the amount charged is fixed. And why is this an error?

Today. Most entrepreneurs have already realized that it is necessary to work with a variable remuneration model. To increase profits and have a scalable business. But most agencies are still based on the old model.

This is mainly because many brands and companies research competitors that work with this compensation model even before hiring a marketing agency. As a result. Agencies that want to innovate need to adapt and use the old model so as not to lose clients.

This type of pay makes everything a bit of a cast and doesn’t allow you to try something new.

3. Think of communication as an intermediary
this is the logic of a marketing agency that works with television media.

For this type of communication. There are already very well-established business models regarding the commission. The bonus for the volume of work delivered. That is. The agency  the media.

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