How to Outsource Inbound Marketing Services to Other Agencies

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1 How to Outsource Inbound Marketing Services to Other Agencies Written by Spencer Powell of TMR Direct

2 Table of Contents Why Outsource? Sustainable MRR No developing systems and best practices No need to hire employees Quality service and results What are your Goals? Grow a business that is scalable for 1 person Build a small internal team Specialize in only a few inbound marketing activities How to Select a Partner Agency Are they invested in Hubspot and their methodology? (Gold VAR) o Do they have experience? o Will they be around in 5-10 years? Can they provide references/case studies? Are they responsive? How to Execute a Partnership Developing a relationship Do a deal together Have an agreement that works for both you and the partner agency

3 Why Outsource? There are several reasons to outsource your inbound marketing activities. Maybe you're just getting started and want to learn from another company without damaging your reputation (by trying to figure everything out while you help your first client or two). Maybe you don't want to specialize in all the areas of inbound marketing. Maybe you have no interest in hiring employees. Maybe you like having the support of someone who has "been there" and "done that". It could be any number of reasons, but let's look at a few that we hear frequently. Sustainable MRR Let's be honest. One of the reasons for outsourcing your activities should be to increase your profitability by decreasing the time you spend in house on different actions, tasks, or activities. And the ultimate goal is to increase your monthly recurring revenue (or MRR). This is how you will scale, so let's look at quick example. Let's say you can outsource an inbound marketing service package for $2,500 per month. You have a few options. One option is to do all the work yourself, which means communicating with the client, writing blogs, participating in social media, creating website content, developing landing pages, designing CTA (call to action) buttons, managing PPC (pay-per-click) campaigns and doing keyword research and optimization work.

4 Option two is to outsource all your activities. If you can outsource everything for $2,500 then maybe you can sell the retainer for $3,500 or $4,000 per month. However, let's say you can only manage to get $3,000 for the package. This leaves you with $500 coming in each month with no work on your part. Do you think you could sell ONE inbound marketing service retainer per month? At the end of a year, you'd be pulling in $6,000 per month and wouldn't be responsible for delivering the service! Option three is to outsource some of your activities. We'll address this later in the ebook when we discuss what your goals are for your agency. Your course of action will depend on if you want to hire employees and how many. The great thing about MRR is that every time you make a sale, you start stacking your revenue. It's not like selling a product where if you sell 100 widgets in 2011, you have to sell 120 widgets in 2012 to increase revenue 20%. If you sold 12 retainers with $500 in margin in 2011, that would be $6,000 per month. However, by the end of 2012, you'd be at $12,000 per month (double!). BUT, you didn't have to increase your sales effort. You still brought in one deal per month. Since you are selling an on-going service, you can improve your financial position drastically over time. This is where client retention is key. No Developing Systems and Best Practices So, now that we've covered the financial piece, let's look at systems, processes and best practices. If you're delivering services, you need to know what you're doing. You need to know what works and how to create systems for getting things done. If you aren't efficient, you won't be able to scale your agency as you start bringing on employees.

5 Systems can be time consuming to establish and implement. You need a system for how you bring on a new client, how you post a blog, how you create a landing page, how you communicate with clients, how you participate in social media, how you...the list goes on and on. Systems and processes can be looked at in two pieces. First, you have to establish what your services actually look like. What do you do? How do you perform them and why do you perform them that way? Results are the driving factor, so you're going through a discovery process to see what works. Once you've discovered what works, you need to create an efficient way to execute your services, which is the second piece. If you like creating systems and feel like hiring employees is the way to go, you may not want to outsource your entire package. No Need to Hire Employees One of the advantages to outsourcing anything at all is that you save on employee costs. Granted, if you are able to hire employees to accomplish certain activities, that can often increase your profit margin. However, it also increases your risk. Outsourcing can significantly decrease the risk to you and your company. Let's say you land two big clients and need to hire someone. You bring the new employee on, start training them, and then disaster strikes. Two clients end up canceling your services for different reasons. Now you're stuck with a new employee, but not enough revenue to support him or her. Growing a business is always tough, but outsourcing can take away some of the potential pain.

6 In addition, hiring employees brings along extra work for you. You have to train them to ensure you're delivering top notch results. You have to pay them enough so that they stay happy and engaged with their work. You have to make sure they get their work done on time and it's up to par. There are HR fees and any benefits you may provide. There are a lot of extra costs in both time and money besides an employee's salary. On the flipside, you DO have to make sure the company you outsource to is a reputable company and is going to deliver the same results. However, if you select a company that has goals similar to yours, many of those issues are taken care of automatically. When you're dealing with another business, they are often trying to grow, and it is in their best interest to keep you happy. Businesses think like you, the business owner. Employees often don't. Quality Service and Results As a business owner and entrepreneur, you are most likely trying to provide the best service and the best results for your clients so that you can grow your business. By selecting an experienced company to outsource to, you can ensure you'll be getting both great service and great results. Make sure you interview the agency to whom you'll be outsourcing your marketing activities. You'll want to ask for several references. Call the references and ask various questions: How responsive is the company in getting problems resolved? Are they quick to answer s or return phone calls? Do they do what they say they will do? On a scale of 1-10, how would you rate the quality of their service?

7 What have the results been like? Would you recommend this company to a friend? These questions are important and will help you decide if you've found a reputable company: one that will help you in a pinch and one that is results oriented. What Are Your Goals? It's extremely important to figure out what you're trying to accomplish before you go looking to outsource to a marketing agency. Obviously, everyone has their own objectives, their own goals, and their own direction in which they are trying to head. However, here are a few that we usually run into when talking with other agencies: Grow a Business that is Scalable for 1 Person You may not have any interest in bringing on any employees at all. However, one person businesses often get stuck once they have filled their work week. As an example, maybe 4 retainer clients fills hours per week and the remainder of the time is spent on accounting, marketing and sales. You could easily get to hours per week and now all you've really got is a job working for yourself and by yourself. As a one person business, you want to have enough revenue coming in, but also a certain amount of flexibility in your schedule to do the things you want to in life. There's a lot of value in working for yourself, but only if you can take time off when you want, achieve the type of work environment you want, and achieve any financials goals you have.

8 Partnering with an established agency that will give you a monthly agreement (See the MRR section at the beginning of this ebook), allows you to scale quickly and easily, while taking away much of the workload. You can transform your work week to mostly selling and communicating with your agency. As you continue to stack revenue, you could be working very little or not at all on a week to week basis. Build a Small Internal Team/Specialize in Only a Few Inbound Marketing Activities Maybe you're not interested in growing a large agency, but are willing to grow a small internal team. However, it can still be difficult to get started. By hiring a generalist (someone who understands the entire inbound marketing process, but maybe isn't an expert at PPC, blogging or social media), you can maximize the value of an internal team. This allows you to outsource pieces of your inbound marketing service offering to other agencies that have expertise in those areas. This allows you to hire someone that is great with customers and great with pulling all the pieces together. As you layer on customers, you're going to want someone that doesn't lose track of things when they are under a time crunch and can keep things moving forward. As you start to think about hiring again, you can look at selecting someone with a specific skill set. Even with a small team, there are going to be some activities that you don't feel comfortable performing. In these situations, it's best to outsource to an expert and keep the client happy (even if you have to dig into your margins a little). Customer retention is everything in this business. If you want to scale, you need to provide results. If you don't, you'll send up spinning your wheels trying to sell as fast as you can because you're losing clients on the other end.

9 How to Select a Partner Agency When you're selecting an agency to partner with, there are definitely some questions you'll want to ask. You want to do you due diligence and find a company that has similar goals and is going to help you achieve yours. You want them to be responsive. They should be able to show results and provide references or case studies. Are they Invested in Hubspot and their Methodology? Here at TMR Direct, we believe in Hubspot and their methodology. Because of this, we became a Gold VAR in less than a year and a half as we established our own system based on the software that Hubspot provides. We didn't try to recreate the wheel every time we added a new client. Because of that, we have 100% client retention (meaning that clients don't leave us because they are happy with our efforts). Look for a company that has a system. If the system isn't there, your results will be inconsistent and...your clients will go away. Ask a few more questions when you're interviewing potential agencies: How much experience do you have in the field of inbound marketing? How long has your company been in business? Can the agency provide references or case studies? Are they responsive? Revisit the questions from the earlier section that talks about references. Don't skip this step! Look for a company that is going to be around for a while and has hopefully already been in existence for many years. Longevity says a lot about a company considering 70% of businesses don't last their first 10 years.

10 Don't forget to ask the references about responsiveness. When you get in a pinch with your client, you'll want to make sure your partner agency is right there when you need them. How to Execute a Partnership Once you've selected an agency, what's next? You don't necessarily need an agreement before your first deal, but you'll want to get to know your contact at the agency and build the relationship. Discuss how deals will be made. If you're going to send a proposal off to a prospect, you'll want to have the agency look at it first to ensure they will do the activities for a price that works with your proposal. Transparency is a crucial element when forming these partnerships. If your agency needs a minimum of $2,500 to perform certain activities, then make sure you factor that in. You don't want to end up squeezing the margins on your partner. This will cause a lot of extra stress on the relationship and the agency won't be as willing to do any future deals. However, after you've come to some sort of written or verbal agreement of how things will work, you really just have to do a deal together. Bring a deal to the table and discuss all the details with your agency. You may even want them to help you on the sales calls for the first few deals. Once you've worked out the kinks and inked an agreement with the new client, you'll start the engagement. You'll be able to learn a lot from this first deal about how you work together, logistics, and client communication. Having an open line of communication with your agency is a key to your future success. Don't be afraid to speak up if something isn't happening as previously discussed. Hold each other accountable.

11 At the end of the day, the partnership should benefit both parties and move you and the agency forward, together. About TMR Direct TMR Direct is a Gold VAR for Hubspot. They specialize in helping companies with their inbound marketing efforts and work with other Hubspot partners to help them grow. If you'd like to discuss a potential partnership with TMR Direct, contact Spencer Powell directly. We'd love to help you scale your agency! Contact Information Spencer Powell Inbound Marketing Director TMR Direct (cell phone) x 129

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