Should Your Business Expand Your Service Offerings?
Should Your Business Expand Your Service Offerings? As a marketing agency owner, I often struggle to find new forms of revenue. We would go through peaks and valleys as client projects would wrap up. Yes, they would come back when they needed something. There was a struggle to keep the sales pipeline stocked full of new work and deliver a great looking product. Revenue was from month to month was hard to forecast. This volatility hindered growth.
As we continued to grow, we expanded our services. We introduced ongoing marketing services. This was a smart move. It was hard moving from a project-based service to ongoing monthly retainers, but it was worth it.
Four Marketing Services Your Marketing Agency Should Offer
The biggest problem I ran into as a marketing agency owner was the fact that cash flow was unpredictable. When your cash flow varies from month to month, it is hard to pay the bills and budget for projects.
To fix this problem, I decided to focus on adding services that have monthly recurring revenue. It is hard to turn a website build into a retainer, but you might be able to add some add-on services to streamline your revenue.
It seems like most marketing agencies will build a website. Websites help us flex that creative muscle and showcase our work. The problem is once we hit the publish button the project is over. We now have to start looking for the next source of revenue.
If you build the website, you are the expert and should be offering a monthly maintenance fee to keep things up-to-date. This could include updating the WordPress plugins, changing out small fixes in copy, or handling phone calls. Most marketing managers do not handle these task, they are happy to have a trusted party doing this.
The great thing here is that this work is super easy and adds a monthly source of revenue. In my past, I would charge $100 per month to cover these small updates. I have even seen entire companies formed around this service.
Inbound marketing is the process of attracting and nurturing clients from the website to become customers. Every business wants to get value from their website. They want a return on investment from that redesign.
Inbound marketing is a service that is critical once the website is complete. In fact, if you start to offer inbound marketing you might change the way you create your website. The term growth-driven website a great marketing buzzword out there.
Offering inbound marketing services is a great way for your marketing agency to increase revenue. This also adds value to the end customer. This is a win, win for both of you.
Sales & Marketing Alignment
Sales and marketing alignment is not an easy task and many companies fail to gain alignment. I mean who wants to be in charge of getting sales and marketing to align with a direction. Yes, this can be a daunting task, but once sales and marketing align, great things happen.
Think if marketing was sending over qualified leads and sales were able to close faster. The entire organization would benefit. Sales and marketing alignment can help an organization become more effective. This will increase ROI in the long-run.
This is something that you should offer because it could lead to more projects. Once you understand the sales and marketing department, you become a very trustworthy business partner.
Installing a CRM is more than a way to track customers interactions. It becomes the backbone of communication with the customer. Most CRM software systems are not out of the box solutions and take an expert to install. There is a process to get the most out of a CRM. Your marketing agency should be able to help customer install a solid CRM strategy.
How to Get Started Offering Additional Marketing Services
Yes, we are all about generating more revenue for our company. We are all trying to stay in business and grow. That is why we started out agencies in the first place. Let’s discuss a couple of ways your agency can get started adding extra services to your service offering.
This is the easiest, cleanest way to get started offering new marketing services. Find a couple of good, reliable marketing agencies that you can set up as referral partners. This is how I got started expanding service offering.
To make this work, both parties need to agree to a finder’s fee or some set of compensation. I was always willing to pay 15% of the total contract for any referrals given to my agency.
Referral partners are great because you are able to make the introduction and walk away. Oh yeah, you also get paid every month from the referring agency. This works great for the branding agency and website development agency.
Do you want a little more control? Well, find an agency that will produce the work for your agency under your brand. There is more red tape here, but this works great for the marketing agency that has on-going needs an is not ready to make a full investment into a particular area of marketing.
All the invoicing goes through your business. You add a markup and let the other agency fulfill the projects. There is going to be project management and admin work, but this approach can help you increase monthly recurring revenue.
There are companies out there that specialize in this type of service. They excel in the ability to produce high volume, quality work.
I used this approach for a lot of our copywriters. We wanted to offer our clients inbound marketing but did not have the want to hire a copywriting department to produce blog posts. We liked the SEO, marketing automation, and social media management.
Build A Division
If you are going to expand your product offerings and become that full-service marketing agency, you are going to have to build division. There is no getting around it. Building divisions or departments are the most cost-effective, but also come with the most overhead and headaches.
Going through the hiring process and getting the right people in pace can be difficult, especially when you are trying to give that boutique, intimate feel that many businesses are looking for.
The ability to scale and keep people working can be difficult. This is the past approach you are going to take. But when you are ready to take the next step in your agency, this might work for you.
Expanding Your Services
For me, the goal was to get to a reliable monthly revenue goal. This is why I decided to expand my service offerings. For you, it might be to attract a wider range of customers. Whatever the reasons, make sure that you are going to be able to give the best service and add value to your customer.
Expanding your marketing services is something that you as a marketing agency should look into. You are already doing the heavy lifting, business development, you might as well find new ways to drive revenue for your business.