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Reasons Why Most Marketing Agencies Fail

by Michael George September 11, 2020
written by Michael George September 11, 2020

Starting a digital marketing agency just as with any other kind of business requires hard work and commitment. There are no shortcuts to success and you have to put in the work in order to achieve your goals. A lot of people will be attracted to the low barrier to entry and the lucrativeness of the business. There are thousands of other people with the same mentality and it can be hard to stand out when there is fierce competition. In order to run a successful marketing agency, you need to be aware of some of the common pitfalls so that you’re not making the same mistakes.

Lack of Product Knowledge

It will be hard to sell a product or service that you’re not knowledgeable about. When it comes to digital marketing, you need to be conversant with the ins and outs if you’re to convince a client to start working with you. You can borrow a leaf from a company like Brandbliss that has a thorough understanding of the services that they provide when it comes to digital marketing. If you’re just starting, the goal should be learning everything there is to know about digital marketing. There are both free and paid courses that you can use to your advantage. If you’ll be offering SEO services, you’ll need a portfolio to be able to convince potential clients to start working with you. What better way than to rank your own websites?

Poor Management

Even if you’re a one-man show, it is still important that you’re managing time and resources properly. If you’re consistent with the efforts, it will reach a time when the agency starts to grow and it will be easy to manage the company even as it scales. Leadership is all about making management decisions and it is something that you’d want to master early on so that there are no issues when the agency is growing at exponential rates. Poor management will not only affect the morale of the employees but can also hamper the creative process.

Lack of Financial Management

This is a problem that you’re likely to experience when the company is growing fast. Since there could be a lot of money coming in, it is easy to be overwhelmed. Most businesses are usually a decision away from bankruptcy and you don’t want money issues to be the downfall of the digital agency. To avoid such a trap, make sure that you’re working with a professional accountant. It doesn’t matter how small or big your company is, you’ll still need the service of an accountant to ensure that your business is healthy financially.

Lack of Business Plan

You don’t want to be starting a business without a solid plan in place. While there is a chance that you might succeed, the majority of such businesses will end up in failure. The business plan will include information on what the competitors are doing and the things that you can do to stand out. One of the main reasons why a lot of businesses fail is because of underpricing. You don’t want to be offering cheaper services than your competitors so that you can score business. Labor costs will need to be taken into consideration when pricing the services that you’ll be offering as a digital marketing agency.

Lack of Sales Experience

You might have the best team in the world but still lack business because of a lack of sales experience. One of the ways you can make your work easier is by building lasting relationships with clients. It is a lot easier to retain a client than to get a new one. If you’re the owner, you’ll need to get out of your comfort zone and start networking. You’ll have to make a few cold calls in the process of getting new leads. There should be sustained efforts in making sure that the company is growing.

Not Focusing on Tasks That Generate Revenue

As much as you might love everything to do with digital marketing, you’ll be running a business at the end of the day. It will be hard to remain operational if there is no revenue coming in. You should be conscious of the workload. Don’t work more than necessary when the pay isn’t justifiable. You need to focus on the avenues that have the biggest revenue potential.

Running a digital agency can be a rewarding and challenging experience at the same time. It is important that you’re aware of the common mistakes so that you’re not making them when you’re just starting.

 

 

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