So you want to start a social media marketing agency… Well, you’ve come to the right place. In 2017, my business partner and I registered a company. We already knew the business model worked well because we had 2 clients before we incorporated the company paying us roughly £1,000 per month. Fortunately, we were both still at University so we didn’t need to worry about paying rent or bills as the government had that covered.
I had started coding a few years prior because I wanted to know how to make a website for my company. I knew I wanted to start a business so it was inevitable that I was going to have to make a website one day, and I didn’t want it to be crappy, which it was – you can find the entire code for that website here.
Coding led me to learn more about how I can make money online, and one thing led to another. I ended up purchasing this course, which has now been thoroughly revised and updated for 2020. It was a refreshing reminder that you don’t get anywhere in business without putting in serious work.
The concepts taught in the course are still relevant today. It’s not perfect because there are so many nuances to running your own business, however, it did a good job at helping me understand the fundamentals.
I have decided to go through some of the key things I’ve learnt during my journey as a Director that I were not taught in the course. Although the course did a fantastic job at teaching me the fundamentals of running a social media marketing agency (I certainly would not be in the position I am in today without it), I still think there could have been some more information. Here is what the course was missing:
Do outbound sales first, inbound later
It is essential that you make enough money to survive when starting a social media marketing agency, and the only way to do that is by getting the money rolling in from the get go. Don’t worry, I will cover how you do that in the next takeaway.
The best way to get business is in person. If you can present yourself as an expert by showing up well-dressed and confident, then you’re likely going to be seen as someone the business owner can trust with their money. Asking people to pay you upwards of £500 per month over the phone, email or even video chat is challenging in our experience.
The second best way to get business is through referrals, but when you’re starting out you won’t have any previous work to show which reduces your chances of getting business via referral. So you’re relying on a friend or colleague to do all the persuasion about why the business owner should tryst you with their money at that point.
Figure out what service you want to provide and start learning how to provide it
There are a multitude of services that a social media marketing agency can provide on a day-to-day basis. The services that make up the bulk of our pay cheque are: generating content, website development, social media posts and post-production.
However, we also provide our clientele with social media advertising, pixel installation, Google review removal, email marketing, and tons of other stuff. More or less anything digital, we can do it. But having too many services complicates things. You should specialise in one service and get really good at that.
One of the best ways to keep your customer retention rate high is by ensuring that you’re getting a return on investment, which leads to my next point.
Tracking your Return on Investment (ROI) for your clients
This begs the question, how do you get a return on investment for your clients?! There are a few things I need to point out here:
- Picking a service that makes it easy to track your clients sales – most likely Facebook ads
- Choosing clients from a niche such as e-commerce brands that sell cheap clothing
With Facebook ads, you can clearly show the customer sales and return on ad spend in analytics.
Also, you’re able to practice a winning advertising strategy by risking small amounts of money to test and learn. That’s the benefit of having cheap clothing – the amount of money you need to spend to get a sale is minimal – so you can keep tweaking the ad until you find a winner – you can even do split tests with £200 – £400.
Having a way of being able to represent the return on investment to your is crucial, because they simply won’t keep paying you if you’re not making them more money than they’re spending. It’s that simple. In the next point I will explain how you can lock a client in by using the correct phrasing.
Price your services correctly. The way you phrase their ‘investment’ is important.
I write about this in my free ebook but I’ll go into some detail here for you. The way a price is presented to a prospect could be the make or break of your business. If you say you’re going to charge them £500 per month for your services, and that they need an advertising budget of £1,000 per month for Facebook ads, then they’re going to think this is an indefinite contract and will almost instantly see it as too risky and you won’t get the business.
If you can phrase it in a way that makes them feel safe and secure, then they’re more likely to work with you. Don’t get me wrong, you want them as a lifelong client. But you first need to get in the door and prove that you’ve got what it takes. Phrase it as a 6-month investment broken down into monthly payments. Say something like: “I would like to suggest a monthly ad budget of £1,000 per month, so you’ll be investing a total of £6,000 for advertising and £3,000 for our services over the next 6 months. You will pay us in monthly instalments of £1,500 and we will set up a direct debit now for you.”
Get your client set up on a direct debit with GoCardless – more about that here!
It’s crucial that you get your clients set up on a Direct Debit. Businesses are notorious for paying marketing agencies last (unless you’re making them tons of money). If you send an invoice with a 30 day payment term you can expect it will be paid in 31 days. Get your clients on a Direct Debit so you know exactly when you’re going to get paid so you can pay yourself on time!
Without these key takeaways, I would certainly not be in the position I am in today. I am living comfortably in West London and I work from home almost every day unless I’m networking, attending events, visiting clients or looking for new business – all of which are currently not possible due to Coronavirus. I thank Tai Lopez for creating the Social Media Marketing Agency course and for being the mentor he has been. I love this entrepreneur journey and it’s only just getting started!