5 Ways To Keep Marketing Tech and Creative Agency Clients Longer
Mike: We introduced the model where instead of just going straight for a Facebook app or working from someone new we start from the comprehensive marketing audit and brought in the strategy. We cover what we’re going to do, what assets are needed, what is the implementation schedule, what are the expectations and the possible outcomes and then we have a more advanced strategy when we check if we are meeting those outcomes on a week by week basis and so client always knows what they want to, what to expect, and then they know that we followed the plan we have outlined at the beginning of us working together and not just you know figuring stuff on the go.
It gives us much better clarity on what we want and need to do and it gives a much better clarity to the client on whatthey can expect from us and they feel more safe about this and they feel more safe about working with us and overall communication is much improved by that fact
Aleks: You’ve also now have proof of concept for the new type of client. So, you’ve implemented how to find better clients. You still take on the lower end clients but now you’re taking also higher end clients at a higher price point perhaps, so but you choose them very very carefully and it’s a long-term relationship you’re developing, right? So you closed your first sale and then how much was the value of the sale?
Mike:Yeah so I’m going to tell you right to right but one thing I want to mention is I really think that if you compare a client that is a long-term client and can pay you high fees to let’s say five grand a month to the client that can pay you two grand a month and will stay with you three months,this higher end client is not just worth the extra revenue you’re going to make.
He’s worth much more like 10 or 20 times more because you will not only make more money but you will spend less energy on delivering results and that’s just an invaluable thing in business. So I really think that you know like a good client is like 10 to 20 times more valuable to me than a bad client, like not so good client even though maybe the revenue difference is not that high at the beginning. I closed a client that, where big numbers played a role.
You want to turn six figures budget, like a low six figures budget into a seven figure outcome in a matter of three months or two months and so this lets us to really charge more so that we can actually deliver what they need and in this case their retainer week loads was seven grand a month.
Aleks: Awesome, so seven grand a month and you’ve locked them down for three months at least, right? Yeah and this is all in the benefit, what is the benefit for the client for doing this?
Why should they pay you more and why shouldn’t they go work with someone for a 2.5 or a three or for on a month-to-month basis and then review the data month to month? Why should they lock down in three months?
Mike: Well it’s super simple. It’s a number game, right? Like if a client comes to you and tells you, “Hey you know what? “I have a, “I don’t know, “a 100 K budget and I want to make one million,” why would they currently pay you 20 grand or whatever? Like why would they care, right? If you come to them and tell them, “Okay so actually “let’s make it a 60 grand advertising budget “and you pay us 20 grand. “You still save 20 K “and you make your one million,” that’s a good deal for them, right?
You’re always going to win on this because they have more confidence in you delivering results and you can actually deliver better results. You can get better contractors. You can get a project manager, buy better software and all this stuff.
Aleks: Do you still take on the smaller clients that are not seven, six thousand dollars a month? Why do you take on the smaller clients if you can get these bigger ones?
Mike: Because I still think you need to have a good portfolio of clients for security, right? Like I don’t think one ever wants to go below five to seven clients a month no matter how much you’re making off each individual client.
Aleks: So you basically have your funnel, this being the funnel, and then you have a bunch of kind of question mark clients which will do okay. And all of them are exceptional and then those you funnel into higher ticket offers and you want to work with them longer term more thoroughly.
So you’re basically, you have like a funnel where you’re screening clients like an investor and then you’re funneling them into long collaborations that are high end but you’re able to help these people go from let’s say seven figures to eight figures because they have real budgets and they want to work on the full process with you not just ads or not just funnels. Is that correct?
Mike: Yeah this is correct, exactly. Like for this client for example we delivered Facebook marketing, YouTube marketing and human marketing you know including all the management for that. So it gives us much more chances or you know like opportunity to really make it like a very successful project.