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How do I draft contracts to make a profit in Advertising for my Marketing Agency?

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Sevan B.

20+ years in web development, design & business

Tying your compensation to your performance can not only increase your revenue stream, but also your chances of closing new deals. Instead of replacing your pricing model, you can keep your current monthly rate, but add one or more of the pricing models discussed below. This should not endanger the closing of a deal, since the performance-based portion of the price not only conveys confidence and honesty while limiting the client's financial exposure, but also makes the fixed (e.g. monthly rate) portion look like a good deal because it gets viewed as only a portion of the total cost. Furthermore, doing so will encourage you to keep offering more value, since more value (not just more work) will translate to more revenue. Over the years, I have dealt with many advertising agencies as well as providers of advertising tools. Some typical pricing models from my experience are listed below. Not all apply to every situation: some are good for e-commerce and other advertising campaigns that are directly tied to revenue, others are more suitable for advertising efforts less directly connected to revenue, e.g. publicity campaigns, some social media work, etc. I have tried to detail them here, but if you have any questions, I am happy to discuss them on a call, or in this thread. GROSS PROFIT SHARE: The agency takes a share of their gross profit, which means that it would pay attention to advertising products and services with higher margin, and allocate advertising funds accordingly. This can be tracked by asking the client to assign a gross profit margin to each product/service that the agency helps advertise; then the agency takes a set percentage of that profit. Essentially is like a revenue share agreement, but a variable commission, based on profitability of each product or service for the client, as follows: Formula: Item revenue x item profit margin x agency's rate = agency income For example, the agency shifts spending to campaigns for product A and those like it, because: Product A: $1000 x 50% x 15% = $1000 x .5 x .15 = $75 Product B: $1000 x 10% x 15% = $1000 x .1 x .15 = $15 With larger accounts, it is possible to have a profit share that goes beyond just gross profit, but that is a dangerous territory for an agency, unless its relationship with the client is well established, since even more things that are out of the agency's control can reduce the amount of such profits. REVENUE SHARE: This works just as a profit share agreement does, but is much more common, and certainly easier to track. Since the agency only takes a percentage of the revenue that its advertising produces, regardless of what the profit margin is. PAY PER ACTION/LEAD/ETC.: The agency sets a price that it collects per conversion, which it should track using web, call and other analytic software. The further down the pipeline the conversion, the higher the agency can charge for it. For example the price of a regular website form lead, can be far higher if the provided phone number is answered when called back. Some advertising services make tracking this easier than others, e.g. Google AdWords Call Tracking https://support.google.com/adwords/answer/6100664?hl=en. BONUS FOR MILESTONES: It is possible for an agency to set arbitrary or rational milestones for receiving bonus payments, e.g. certain level of revenue generated for the client, or certain level of social media clout/followers/etc. achieved. COST PERCENTAGE: By far my least favourite, some large providers that offer tools to centralize advertising campaigns, as well as some advertising agencies, charge a percentage of the advertising expenditure (Ad Spend). From a client's perspective, the more they spend on advertising campaigns, the more they must pay the agency, regardless of the level of success achieved by those campaigns.

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Dan De

Growth Advisor/CRO in Ecom, Travel, Crypto markets

I have worked with some success on upwork.com. I would suggest to lower the budget but pay them in time right after they send you the project and you have properly tested it.

Lee von

Unique Insights, Creative Solutions

Don't worry, everyone starts off 'drawing what they see' (basically copying). You do that for a while before being able to create your own original work. You'll feel better after reading the New York Times Bestseller, "Steal Like an Artist". From a neuroscience perspective: After some time, the brain circuits that have formed from you copying things (i.e. taking in sensory input, and outputting your attempted accurate version of it) will start allowing you to start putting your own twist on things. This is because 1) the circuits are being influenced by all the different things you've copied, and 2) the circuits are never perfect. Thereafter, when you see new things your brain will put its own twist on it, and your 'original output' will start coming out. It will be, like your brain circuits that produce it, influenced by a combination of 1) all the things you've seen and copied in the past (i.e. the things that have influenced you), and 2) have some unique twists put on it due to your unique and personal brain circuits. That's what original work is.

Sharique Nisar

Strategy Consultant | Marketing | BI | Analytics

Create an investor list who have a history of investing in similar lines. It may lead to deep research. Reach out to them via mails/calls for an introductory call. I am sure someone might be interested in your product but patience is the key. I helped a similar client in the past with some back ground research. If interested, I can help you too.. Good luck.

James Haft

Startup, M&A and Business Strategy Advice

Yo are talking apples and oranges. Capital gains are related to your basis not the form of payment. If you are a cash basis taxpayer, you pay taxes when you receive cash beyond your basis. We can help you with structure.

Ryan Draving

I Grow B2B SaaS. Clients: Hubspot, QuickBooks...

You need a transitional CMO that brings people in and allows your results to close the sale. If these are typically $500+ creative projects, seek someone with B2B experience. Otherwise someone with ecommerce experience is still ideal.

Ethan Hunt

Let me consult you on your dreams.

One of the best incentives for employees is recognition, reward them by communicating face-to-face about how great of a job they are doing. They will continue trying to please you. Another great incentive is to give them flexible hours. Other incentives that worked were giving employees prime parking, pizza parties, flip flop/jeans day, day off work pass and new office chair. Just be creative how you reward your employees and they will work hard. An incentive I don't recommend is cold hard cash.

Jaime Nacach

Bloominari's Founder & Online Marketing Strategist

I own a digital marketing agency and I LOVE helping people with technology solutions! There are soooo many different inexpensive/free tools and technology solutions out there that can really benefit your business! Some of the ones we use are Facebook's Power Editor, https://www.leadpages.net/, and Rebrandly. If you'd like some more suggestions, please reach out to me! You can also look at our awesome blog, which has lots of info: http://www.bloominari.com/blog

Shaun Nestor

Content Marketing Advisor & Agency Consultant

There is a tremendous amount of buzz surrounding content marketing and its need within a brand’s overall marketing strategy. Doing content marketing is much more than publishing on your blog occasionally and posting your thoughts on social media. “Do stuff and maybe it will work” is not a strategy, it is a gamble. A risky and expensive one, at that. Even so, many brands have yet to create an effective content marketing strategy. What does such a strategy look like? Where are the examples of brands doing it well? What is Content Marketing: Content marketing’s purpose is to attract and retain customers by consistently creating and curating relevant and valuable content with the intention of changing or enhancing consumer behavior. It is an ongoing process that is best integrated into your overall marketing strategy, and it focuses on owning media, not renting it. This generation of customers are taking drastic steps to avoid marketing messages. As consumers, we use DVRs to skip television ads, pay internet radio subscription fees to avoid commercials, mentally block out — or use plug-ins to avoid — internet click ads, and gloss over road-side billboards, rendering them useless and ineffective. So how are marketers supposed to combat this shift? Education. Consumers are still buying and making purchases, but the way they go about making a decision has changed. With all of the world’s information at their finger tips, savvy consumers are doing enormous amounts of learning and self-education before stepping into a showroom or talking to a salesperson. Knowing this is a huge opportunity for brands. If you know consumers are looking for information, be the source of that information. Not with sales-y content that puts your priorities before theirs, but information that the buyer really wants and needs. The Marketing and Sales Departments must align to create a buying path for this new era of consumers that provides authentic and transparent information about a product or service (the mission of Marketing) and closing the sale (the mission of Sales). Content marketing closes this gap by using brand-created educational content to satisfy the prospective buyer while helping the sales team convert anonymous visitors into buyers. Thought leaders and marketing experts from around the world, including the likes of Seth Godin and hundreds of the leading thinkers in marketing have concluded that content marketing isn’t just the future, it’s the present (see the video below on the history of content marketing). The key ingredient to using content to attract new customers is in the advanced planning. The strategy. What is a Content Marketing Strategy: A content marketing strategy is a roadmap; a “User’s Guide” to how your brand will do the following: - Meet the customer at their specific point within their buying cycle - Align the customer’s needs with your knowledge and expertise - Use your brand’s assets to meet these objectives Business-to-Business marketers who have a documented content marketing strategy are 66% more likely to consider themselves effective compared to only 11% of those without a documented strategy. A content marketing plan helps you see the end-game before you have even started. Further, it gives a clear, articulable vision for your entire team and keeps you on track throughout the campaign. Just like New Years resolutions often fade into a foggy memory, our intentions are good – but we allow resolutions to fail. To be successful in any strategy, we need to be intentional. For proper sales and marketing alignment, and for the success of your bottom line, you must have a plan in place. How to Start Your Content Strategy: The framework of a content marketing strategy is fairly straight forward: - Who are you targeting? What are their needs? - How are you going to reach them? (Attract new and nurture existing) - What content do you have now to get started? - What is your plan to develop and share more - How will you measure your efforts 1. Personas Take some time to consider who you are targeting. Are they male or female? Does it matter? Do they have a career? Children? Are they affluent? Coupon cutters? What are their goals? What happens if they do not reach them? Is their a monetary penalty for them? Will meeting this goal further their career? Will it make them happy? Clearly defining your targeted personas will save you a lot of time, energy, and money as you continue your business. With this person in mind, your content marketing strategy will begin to fall into place and you will feel that you are having a conversation with this “person”, rather than blindly throwing stuff out there. 2. Outreach Content marketing and social media are often used synonymously. This is a mistake. Content marketing is a broad method of marketing whereas social media is a tool that complements getting your content seen. Imagine your website as your online hub, where all of your brand-controlled content resides, your social media profiles are spokes that lead back to your home base. Social media has the power to reach incredible numbers of potential customers, influencers, existing customers, and even the opportunity to convert customers from competitors. Social media, in and of itself, is not content marketing. It is one of your outreach tools. 3. Available Content Next, take stock of materials you have on hand already. Many of us sit in offices filled with brochures, flyers, handouts, manuals, and documents loaded with helpful information, but we do little to extend that information to potential customers on the web. Make a list of the content available to you immediately and start identifying which persona is most aligned, where they are within their sales process, and what pain point they are currently facing. Getting started, you can use what you have on hand. But I recommend expecting this low-hanging fruit to run out. You should plan on developing your own, unique content. For a number of reasons, search engines reward fresh, unique content. Further, your prospective customers will be looking for information that is not available everywhere. Your unique perspective and “voice” (the tone in which you talk, the way you communicate, and what you share) may be the first experience a prospective customer has with you. This is the beginning of a long business relationship. 4. Schedule and Share Your Content After you have compiled your educational materials, grab a calendar. I recommend looking out 3-4 months to start. Mark holidays, special events, and milestones. Working backwards, prepare your marketing message for these campaigns. For example, one client of ours hosts 4-5 annual sales. They all surround major US holidays (New Years, President’s Day, Memorial Day, Labor Day, and Thanksgiving/Black Friday). By knowing this, it is easy for us to prepare everything from banner ads, Pinterest images, blog posts, Facebook Status, videos, and even newspaper ads (don’t shoot the messenger). Once you have those events marked, consider a “theme” of the week for those 3-4 months. With that theme, and your personas in mind, write out the following for each week: - 2 Blog Posts - 8-10 Facebook updates - 20-30 Twitter updates - 4-5 product photos for Pinterest - 3-4 Instagram ideas - 1 Video By no means is this list all-inclusive. It is a starting point to get you thinking about how to plan content. To get a specific content marketing plan designed for your brand, I need to interview you and understand your goals, personas, and timeline. 5. Analytics Finally, how are you going to measure your work? Remember when we set up our goals earlier? Were you specific in identifying how many leads you want to generate? “Get more leads” is a horrible strategy, better is “Gain 50 new leads by September 1st” or “increase from 6% conversion rate to 12% conversion rate” These types of goals are easily measured and tracked. Do you have a mechanism in place to measure, monitor, and gauge your efforts? Further, do you have the right people on your team to help you know what is working and what is not? Can you explain why certain marketing dollars are generating a return on your investment while others fall flat? Final Thoughts Just like runners know the course of the race before they start, your brand should know the route you will take to your finish line. Having a strong content marketing strategy in place will ensure your team is setup for success. Using content is a great way to use search engines to bring people to your website/blog. Then use that content to share on social media where your ideal reader is hanging out. If you'd like help, please drop me a note here. All the best, -Shaun

Kayla McDonald

Social Marketing Strategist & Copywriter

Hey! The first thing that you should consider when trying to rebrand is identify your market's most common objections. Why are consumers hesitant to purchase second hand clothing? Once you've identified these problem factors, you can start developing a strong marketing strategy. For example, second hand clothing often triggers thoughts of "old", "worn out", or even "out of style." None of these are very appealing, and will force consumers to look the other way. Consider how you can effectively combat these thoughts. A possible solution may be how you're marketing your products. If you're selling products piece by piece, you could try marketing entire outfits. By showcasing the second hand pieces as an entire outfit, you can show consumers that the items are very much in style. As someone who has always struggled with being stylish, buying second hand clothes can be very intimidating. This is especially true for people who don't feel they have the fashion sense to accurately pair unique items and create a great outfit. By selling the pieces as entire outfits, you take the guesswork out of the styling process and make it easy for these people to buy. I hope this begins to spark some creative ideas for you as you rebrand your marketplace. I'd love to speak with you about this some more, and develop a strong strategy together. Please feel free to give me a call!

Abhilekh Verma

Management Faculty and Management Consultant

www.internshala.com

Dan De

Growth Advisor/CRO in Ecom, Travel, Crypto markets

According to Sensor Tower volumes Snapchat has no signs of desperation. Rebranding usually has nothing to do with desperation or failing products, more likely with a different market positioning. Snapchat could be sold tomorrow for around 15 billions with just 330 employees. To me this looks pretty successful !

Nick Custenborder

Clarity Expert

You need to do two things to get calls. First, optimize your profile so it is clean and professional. Make sure you have a picture of yourself and images to go with each expertise offering. Complete all parts of your profile so potential callers aren't turned away by an incomplete, haphazard appearance. After all, without any reviews, your profile content and images are all they have to go on. Read up on copywriting to understand how to make what you are presenting compelling. Second, spread the word and get your name out there. Answers questions on here for topics you can help people with. Add a link back to your Clarity profile on anywhere you have a presence such as Facebook, Twitter, your website, email signature, etc. Also mention your Clarity profile when you help them with something too so they can follow-up and book a call. If you need help with any of this, I'd be glad to chat further, just shoot me a message.

David C

I help you buy, sell, plan, value a business

Hi, this is an issue faced by many entrepreneurs. I've sold two businesses and have been a business broker where I helped to sell over 35 others and I've learned from my own experiences and from observing others. Here's what you need to ask yourself: 1. Is there another project I wish to take on right away? 2. Could I use a rest? Employees are better able to forget the workplace once they leave the office. 3. Do I have a sense of duty to the employees to ensure the transition has a solid foundation? Even though you're no longer the owner you may still care deeply about the business and wish to see it succeed. Deciding to stay is not a 'forever' decision. Keeping active and earning while truly enjoying weekends and vacation can give you a rest while leaving your finger in the pulse to identify your next opportunity. Me, I left. In one case I was too excited for the next thing. In the next, there was no place for me. Cheers, Arrange a call if you'd like to chat. Dave

Shaun Nestor

Content Marketing Advisor & Agency Consultant

There are a number of blog writing / content creation & management resources: Zery's, ion, Ceros, Kapost, for example. However, your best bet is to handle this process in-house on behalf of your clients. Use LinkedIn to connect with freelance writers. Your best results will come when you can partner with a freelance writer who has a basic understanding of the topics you are looking to have covered. Let me know if you need any more guidance. I've operated an agency for 15+ years and now consult on the topic of running an agency (specifically outsourcing such tasks). -Shaun

Jason Kanigan

Business Strategist & Conversion Expert

Use Wordpress if you're familiar with Office tools like Word. Watch some videos on Youtube to learn about it. Advantage: you own the domain. If you're not, there are plenty of drag-and-drop builders available out there. Disadvantage: you don't own the domain; it's a subdomain of the host eg. yoursite.wix.com

Steve Willson

A+ Strategy - Qualitative/Collaborative frameworks

Having worked in this area, both as a client and as a consultant, customer understanding is a key to differentiating yourself from your competition. First a personal belief: surveys are the worst tool to uncover any insights. They are best used to quantify how many do X. There are a couple of ways we look for insights into customer behavior, and they are both related by fact that you learn by observation. First is to have your customer demonstrate how they use your product/service, or the product you want to replace, in their normal situation. Ideally you let them run through once just observing what they are doing while taking notes. Then ask them to go through it again where you ask them open-ended questions as they go along. No judgement, just watch and learn. The second way is to engage them in a serious game, something like the ones we use from Conteneo.co. These are frameworks designed to have the customer create things like the Product Box which encapsulates the key features, benefits, etc. that they are looking for in an ideal product/service like your. The reason these techniques work well is that the customer is comfortable, they are not being interrogated, and you are cast in the role of the observer, so you're not selling! Let us know if there's something we can do to help you with this, because it's an important question.

Parker Woodward

Referral Marketing Automation for B2B Sales

Do the opposite. Think about it from their point of view. They get requests like these all the time and most of the time the request comes from random people they don't know. That would be kind of annoying right? You get an email from someone you don't know but they want you to do something for them? You'd delete that email too. Best way to get their attention...get a referral from someone they know and trust. Get someone else they know and trust to introduce you (this is the whole reason I built my business www.reverralriver.com). Referrals work the best. Second best way...develop a relationship with them before asking for anything. Don't email and ask for something right away. You wouldn't ask someone to marry you on a first date would you? Develop the relationship slowly. Give them value before ever asking for anything in return. Over just a few short weeks you could easily establish a relationship to the point where you could actually mention an "ask" which should be very open-ended and create absolutely zero work/friction for the person you are asking. One of my favorite techniques to warm-up a relationship...just email and tell them you appreciated (insert an article they wrote or service they provide, whatever, just stroke their ego). Tell them you're a fan and often point people their way. Then go way above and beyond and find their physical mailing address (it's not that hard to do) and send them a small gift or hand-written postcard in the mail just to say thanks. Then email them once you know they got it and just say thanks again. Then start emailing them various articles or things they might think are valuable, I'd say no more than once every 4 days. Connect on LinkedIN and message them funny pictures or GIF's. Show them you're human. Make them laugh and smile and just say "Hey I appreciate all you've done so just wanted to return the favor and make you smile (insert funny GIF here)". Then, once they know who you are, don't ask them directly to partner...ask them if they know anyone who would be interested in partnering. Below is a template I've used with great success...and the beauty is that they will often ask for more info and get interested themselves, but usually only if you have offered them some sort of value to stand out amongst the crowd. --- Hey (prospect first name), Hope you laughed at the last GIF I sent. I was just wondering if you knew anyone that would be interested in a partnership/affiliate opportunity… Real quick summary… I’m building a SaaS that automates the process of asking for referrals…it uses artificial intelligence to find potential leads in your existing customers network and makes it super simple for your customers to make the referral (one click of a button). If you know anyone that has an audience of people that would benefit from something like this I'd be grateful for an intro. I won't let you down I promise if you can make an intro. I’ll draft up all the marketing material and do all of the work, so all they would have to do is say “ok”, hit copy, paste, and send and I’d be happy to pay them 25% commission for life (or if there is another payment structure in mind I’m happy to talk about it) So what do you think? Can you help me out? Thanks, Parker ---- If you found this useful please upvote. Book a call with me if you want to know more or if I can help further.

Ignacio Schindler

Clarity Expert

Hello. I hope you are doing well! Are you trying to get your products into the EU through Croatia? Are you producing anything or only trading? Based on the information you provided, I would try contacting the local authorities or customs, you will have different fares depending on the direction of the shipment. Hope my answer was helpful, kind regards, Ignacio.

Humberto Valle

Get Advice On Growing Your Real Estate Business

I know a few, send me your details and I'll see what I can do to connect you with them.

Karnati Kiran

Love Coach: Transform your relationship today! 

To speak I do not have contacts in the Industry. Saying this I would have a suggestion The subject of Revenue Valuations has five main principles Through having a very imminent finances to overcome debt. Then trying to find a solution to just capable ways of under following through preparatory subjects. I have a very knowledge through the related study. Then to trying to propose a solution I need to understand your key parameters to include an overwhelming process of deep justification to report the entered agreements. The given subsidy to evaporate the gathering info related to predetermined aspects related to funding and then approaching the veteran leaders of natural tendency The evaluation generally coincides with the negotiated matters of degree at which the main components of valuation are needed The approach is to find the details and then ask a negotiating financial advisor on your behalf to overcome the tendencies of natural inclination to prepare the differentiated models Saying these I request you to contact me if you are interested in another opinion not directly related to the subject but try to analyse the situation through elements and concepts related to building net worth individuals of highly regarded mentions. Thank You Karnati Kiran https://clarity.fm/karnatikiran

David C

I help you buy, sell, plan, value a business

There are many consultants, brokers, appraisers and other experts who value businesses and cash flows. I do Most Probable Selling Price evaluations for my clients in most of the Western World. The problem with a pre-revenue enterprise is that you'd be relying on projections. Anyone who wants to buy a business is doing so because they wish to make money. This comes in one of two forms; cash flow from the subject business or savings because the subject business helps the acquirer save money. Acquirers sometimes also consider synergies. For example: how much money could they make if they offered your product/service to their existing customer base. The difficulty in the valuation process is deciding upon the reliability of the projections or trying to guess/estimate the savings or synergistic value to a potential acquirer who may not be known. If you did want to hire a valuation specialist to create an opinion, it would likely have a stern warning to readers about the subjective nature of the input data. Please arrange a call if you'd like to discuss your scenario and why you're looking for this type of expert. David Barnett

Humberto Valle

Get Advice On Growing Your Real Estate Business

Great question! I love questions like this ones. First off forget about Silicon Valley. If you are not here with that sort of relationship you will spend a lot of resources before you make something sustainable here. Second, you mention you've had some success - ok, why aren't you simply making that effort that has worked more efficient and thus grow that effort scale to in return scale up your success rate? Emails are for long term nurturing not for quick generation. What I would suggest is first never show up empty handed, when you do make contact with one agency, know what they do and who for, offer directly related solutions for 1 client only. If you do a good job there they might build the relationship on their end. With that said, don't pitch for long term pitch for an opportunity to save money or time or etc once. Sorry but I gotta go, short reply. If you have any further questions let me know :)

David C

I help you buy, sell, plan, value a business

What I've done is write a book... Eventually there were 4 books and other special reports. I sell them on Amazon but often give them away to prospective clients. There is no greater pleasure than to submit a proposal to a prospect which includes the words...' I am an expert in this area and the author of the 2014 Best-Selling book on the topic... The second step is to implement a social media strategy based on groups. Set up a call with me if you'd like to know what else I've done. Cheers Dave

Humberto Valle

Get Advice On Growing Your Real Estate Business

Technically. Zero. Is just an image source change. If you're hiring someone then whatever they charge per hour x 1 hour lol. Good luck

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