Why an Agency's Best Customer Might Be Another Agency — Transcript

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1. 0:00Let's talk about experiential marketing.
2. 0:02You're doing 13 million top line, 15
3. 0:04million 50 million is the goal.
4. 0:06And the thing that is holding you back
5. 0:08is marketing, ironically.
6. 0:12>> [laughter]
7. 0:14>> So, um
8. 0:15>> Yeah, this is good.
9. 0:17Got it.
10. 0:17>> Helpful?
11. 0:18>> Very helpful.
12. 0:19>> Okay, cool. So, um
13. 0:21What do you do to get customers?
14. 0:23>> Uh
15. 0:24right now, we're waiting for the phone
16. 0:26to ring
17. 0:27and we're doing paid search.
18. 0:30>> Okay.
19. 0:30>> Spending about $13,000
20. 0:33a
21. 0:34month, I believe.
22. 0:35>> Okay, just on keyword?
23. 0:36>> Uh to be honest, I don't know because I
24. 0:38don't have any metrics.
25. 0:39>> Okay.
26. 0:40>> So, we're posting and praying. And and
27. 0:42we are doing we're doing a ton of
28. 0:43posting on social.
29. 0:44>> Okay.
30. 0:45>> We finally got to a point where we know
31. 0:46how to create social.
32. 0:47>> Okay.
33. 0:47>> But nobody's looking at the result.
34. 0:49>> Okay.
35. 0:50>> And so, I mean, through the past day and
36. 0:53two or two, I've kind of figured out
37. 0:55what we need to do.
38. 0:56>> Okay.
39. 0:56>> And we need to I think we have to go
40. 0:58back and put some metrics together and
41. 1:02really measure what it is that we're
42. 1:04doing and and figure out
43. 1:06how to do better.
44. 1:07>> How many customers do you have right
45. 1:08now?
46. 1:09>> Uh we do about 20 to 25 a year.
47. 1:11>> New?
48. 1:13>> Uh I would say probably about 80% are
49. 1:15new, 85% are new.
50. 1:17>> Okay, so is it 80% churn? Is it a
51. 1:19one-time thing?
52. 1:20>> A lot of our stuff is one-time.
53. 1:21>> When you say experiential, is this like
54. 1:23booth set events and things like that?
55. 1:24>> Yeah, we do big mobile tours for like
56. 1:26eBay. We're doing eBay live right now
57. 1:28for them.
58. 1:28>> Mhm.
59. 1:29Um
60. 1:31Okay.
61. 1:32So,
62. 1:34Yeah, I mean, for sure we need we need
63. 1:36to measure this. Like cuz the first
64. 1:37question be like, "Why can't we do more
65. 1:38of what we're currently doing?" You're
66. 1:39like, "I don't know what we're currently
67. 1:40doing." So, it's like, "All right."
68. 1:41>> We also have a bunch of mobile podcast
69. 1:43studios if you ever need them.
70. 1:45You can use them. I'll let you let you
71. 1:47use them for free. I wouldn't charge
72. 1:48you.
73. 1:48>> [laughter]
74. 1:49>> Free of charge.
75. 1:50>> Thank you. Yeah, right.
76. 1:51Um
77. 1:53Okay, so, uh 13 million a year, you got
78. 1:5520 to 25 customers, 80% of the new so
79. 1:58called 20 are new. Um so you're selling
80. 2:00like two customers a month call it
81. 2:01roughly. That's a little bit over but
82. 2:02something in there. So every every two
83. 2:04weeks you have a sale. How many
84. 2:06conversations does it take you to get a
85. 2:07sale?
86. 2:07>> Again, I I don't have the metrics.
87. 2:09>> Word. Okay.
88. 2:10>> And another thing And another thing
89. 2:11that's a little difficult for us is a
90. 2:13lot of our customers are agencies,
91. 2:15marketing agencies. They come up with
92. 2:16the idea. Some of them don't even have
93. 2:17the job yet.
94. 2:18>> Mhm.
95. 2:19>> So we're waiting on them to close the
96. 2:20deal. Once they close the deal, they
97. 2:21come to us and we produce it for them.
98. 2:23>> Mhm.
99. 2:24So they include you as a part of their
100. 2:26package?
101. 2:27>> Yeah, sometimes white labeled and
102. 2:29sometimes they bring us to the table.
103. 2:31>> Got it. Got it.
104. 2:33So I'll give you a frame of a different
105. 2:36way to think about the business that
106. 2:37might be higher leverage.
107. 2:38>> Okay.
108. 2:39>> So I would instead of thinking about
109. 2:41acquiring the customers because you do
110. 2:42have somewhat I'll call it episodic
111. 2:44work.
112. 2:45I would chunk up a level to thinking
113. 2:47about the number of agencies that you
114. 2:50onboard.
115. 2:52And then thinking of them as a
116. 2:53distribution layer.
117. 2:55And so the idea would be, okay, I know
118. 2:56that this particular type of agency or
119. 2:59style of agency
120. 3:00should be able to net me
121. 3:02five, 10 customers a year, whatever the
122. 3:03number is, right? Um and so then what we
123. 3:06have is
124. 3:07the cost of acquiring a node of
125. 3:10distribution.
126. 3:11And so if that agency, so it might be
127. 3:14that your strategy should be outreach to
128. 3:15agency owners and then showing them how
129. 3:18much more money they make when they
130. 3:20bundle your thing into their services.
131. 3:22Um and then as a result they're going to
132. 3:26they'll sell they'll be your
133. 3:27distribution layer for you. But where
134. 3:29the issue that the business at least in
135. 3:31my opinion, one of the things that
136. 3:32frightens me about the business and
137. 3:33maybe keeps you up at night is that 80
138. 3:35you have to sell 80% of the customers
139. 3:36every single year just to you know, just
140. 3:39to get to where you were last year,
141. 3:40right? And then you have 20% that renew
142. 3:41and then you have you have to grow from
143. 3:42there.
144. 3:43I I hate that, right? Um and so I'd
145. 3:46rather think like, can I get
146. 3:48every month one new agency that's going
147. 3:51to send me one new customer a month. And
148. 3:53so even though the logos are different
149. 3:54at the at the customer level, at the
150. 3:56distributor level, it stays the same.
151. 3:58And so they become my true real new
152. 4:00customer. And so I create my customer
153. 4:02journey around them making their lives
154. 4:04easier. And then I just let them go
155. 4:06bring the customers to me. And then that
156. 4:08gives you another level of leverage,
157. 4:09too. Because if I acquire, you know,
158. 4:11let's simple math, let's say each one of
159. 4:13these agencies bring me one customer a
160. 4:14month. If I can get one agency a month,
161. 4:16by the end of the year I have 12 new
162. 4:17customers per month,
163. 4:19that I'm just doing some sort of some
164. 4:20sort of deal with them on. And then next
165. 4:22month I'm at 13 and then 14. And so that
166. 4:24stacks. Now, obviously part of that's
167. 4:26going to be how do we activate them?
168. 4:27What is the affiliate journey or the
169. 4:29distributor journey? Do we have a
170. 4:30distributor churn?
171. 4:32Um but just like a customer, if we can
172. 4:33get 80% of them activated and still
173. 4:35referring us business next year, that
174. 4:37creates a stackable compounding business
175. 4:40that makes the business valuable even
176. 4:42though the nature of the work itself is
177. 4:44one time.
178. 4:46There's only one issue with that. Sure.
179. 4:47>> Is that
180. 4:48>> Let me let me go through the whole
181. 4:49thing.
182. 4:50>> Switch. [laughter]
183. 4:51It is is No, no. I You said some
184. 4:54interesting things that I'm going to
185. 4:55think about. Um
186. 4:57The agency since COVID now um are
187. 5:01distributed all over the country.
188. 5:02>> Yeah.
189. 5:03>> And really our true customer is the
190. 5:05producer for the agency.
191. 5:07Right? So the producer just got a job
192. 5:09for Coca-Cola and need somebody to
193. 5:10produce it for them. That's when they
194. 5:12call us. So a lot of those people aren't
195. 5:15full-time and a lot of a lot of my
196. 5:17relationships really aren't with the
197. 5:18agency. It's with producer or the
198. 5:20account team.
199. 5:21>> I think it works the exact same way. You
200. 5:22just swap agency for producer, but
201. 5:24>> Okay. Same same. Yeah. Cool. Thanks.
202. 5:26>> Yeah. You bet. If you're not getting as
203. 5:28many leads as you want and your business
204. 5:29is demand constrained, [music] meaning
205. 5:31you could service more customers than
206. 5:32you currently have, then this is for
207. 5:34you. So marketing is changing [music]
208. 5:36and I think ACQ tends to be on the
209. 5:37bleeding edge of this stuff. We
210. 5:38certainly spend the money
211. 5:40to do it, but we also build custom
212. 5:42software and we pay amazing vendors and
213. 5:44very expensive people to figure out the
214. 5:45system that we have right now and I want
215. 5:46to share it with you, kind of open
216. 5:47kimono style. If you're not getting as
217. 5:49many leads as you want,
218. 5:50boy, do I have the thing for you. Click
219. 5:51below, book call, and uh
220. 5:53hopefully I see you in Vegas.