In part 4 of the 6 Core Things That an Agency Needs, Joe discusses the importance of creating a package that will provide immediate results and the long-term ROI clients seek. Joe will also walk you through how to stage out fulfillment that ensures your margins and avoids the potential points of indifference with your clients.
Yin and Yang Method
#1 reason why a business stops working with an agency
Staging out fulfillment
Joe Troyer 0:49
Alright, so next up is packaging. How many of you guys are selling a package that isn't multiple services, like you're selling a package that is Google ads, or you're selling a package that is leads, or you're selling a package that is local SEO, or you're selling a package that is reputation? Alright, so when it comes into packaging, my thought process here and the filter that I use is what's going to get the most immediate results for the client. Okay, so what matters the most when you kickoff the relationship? This does good communication. That's all given a good pleasant onboarding experience, but they want to see that you're worth a damn. Right, show me some type of results. So what happens when you sell SEO and Google My Business as a package as an example, you don't get to the client immediate results. So what happens there frantically even when you say it's gonna take three to six months to get your results? They're knocking on your door at month, two and a half going? Hey, Joe, how's it going? They're frantic, right? What do I do? Is it working? Right? What am I going to get my return? Why is that happening sooner? Are we okay? Do I need to fire you what happens next? You guys have all been there. The next thing? Well, let's let's talk about this. So when you sell local SEO or something that takes three or six months, we just talked about the ramifications of that very uneasy clients. The thing that happens though, when you sell let's say pay per click clients is the opposite. There, okay, at the beginning, great job you're bringing in leads, then in month three or four, they're like, Hey, are the costs and the ROI are the costs is going to keep going down and his ROI is going to keep going up. And some of you guys may not be getting that messaging, some of you guys is like, Man, I'm just not getting the return that I want, or I want to cancel. But when you really dig deep, it's that their return on investment isn't what they think it should be. And it could be that they're getting a two extra 3x return on adspend or even more. But that's not their expectation. And even if you sell against what their expectation should be, and you get them to believe that you're still going to end up with kind of buyer's remorse at the three to six month mark, depending on how good you are. Right? Where they're starting to feel like there's gotta be a better solution out there. You've been there, you've experienced this. So my first question when I think about packaging is what's going to get immediate results for the client. My second question is what's going to get the best and most capitalized best here, ROI for the client? So when I'm thinking about packaging, what we're going to have to trademark this, I'm thinking about the Yin, the Yang, and I'm thinking about the yen, right? What's going to get the best immediate results for the client and what's going to get the long term ROI for the client. Because I want the customers sticking around long term. Okay, I don't want the customer coming to me at six months in or four months in and wanting to cancel, even if I can save the deal. I don't want that happening. Does that make sense? So I want to plan for that. I want to build a package that prevents that from ever happening. In fact, folks, I stage out quite literally as staged out 12 months of fulfillment and client updates for my packaging. Do you guys know the number one reason why someone leaves an agency? Why a business owner stops working with an agency. What's the number one reason number one reason folks is simple, indifferent? This is them asking what is Joe done for me lately? Yeah, I know that he helped me right out of the gate. He frickin crushed it. Or, hey, it was a little slow to start, but then the SEO kicked in. And now we're getting a great return. But hey, like, you know, I'm not really seeing that ramp up. I'm not really seeing anything happening. You know, my communication from Joe. Isn't that great? What's he doing for me lately? Right? Is he on the bleeding edge? Does he really have my best interests at mind? Like, why haven't I heard from him? Why is he not doing anything new. I never want that to happen with a customer.
Joe Troyer 5:36
And at the end of the day, it happens quite literally every single day in a business owners mind is that point of indifference with an agency. So I believe that if you really think through your packaging, like I have, right, and you stage out, and you set out 12 months of fulfillment, and client updates that are pre canned and ready to go, you can avoid most of those points of indifference. What this also does, is helps you ensure that your margin stays good. So in this exercise with packaging, I will quite literally write out this is what we're doing. This is who's going to do it and an internal member or somebody else, an outsourced sorcerer, somebody that I'm out tasking to it could be Fiverr, it could be local citation services.com, it could be bright, local, it could be whatever. And I'm writing out line by line, what I'm doing in what week and what time line, right, who's doing it, and then the cost. And I may be able to look at month one, here's my profit margin month two, here's my profit margin. And I'm able to ensure that my profit margin is at least 75%. And your profit margin should be two. And if they're not at least 75%, it's because you haven't done the things that we've already talked about. It's because you haven't picked a niche. It's because you keep jumping from niche to niche. So the world keeps changing, right? It's because you haven't filtered down and gotten really tight on your criteria. It's because you haven't went through and staged out 12 months of fulfillment, your client updates in your deliverables, right. So you just need to sit down and think through it and stop winging it each and every month. So when it comes to packaging, this is it. Okay, my minimum, my minimum to get started in terms of packaging is $1,000 a month. And when I sell it $1,000 A month, when I sell my first two or three clients, I'm not going to get my big time goal. So this is this is short term to build case studies. And it's not just to build case studies, but the goal of these customers are like these should never leave you. These are the people that understand that ultimately, your goal is that you are going after three to $5,000 a month customers long term. And that they're never going to have to pay that. And so they'll never leave. So don't hide the fact that you're a newbie in an industry. Right? When you're making a sales pitch and you're like I'm brand new, just say that you're brand new, right? But share that with them your plan, there's no reason to hide it. You don't have to feel like you're pulling the wool over somebody's eyes. But this is where you should be long term. So for me, it's all about pulling on three to four clients at $1,000 a month, right? And then after that, right using those to leverage into packaging at three to five grand a month, again, with a 75% profit margin. So typically, folks, I am doing like lots of different services, but I'm not doing those services all at once. It's not like they come on month one and it's like hey, we need Google ads we need remarketing or retargeting. We need SEO. We need a Google Local my business build out we need citations. We need reputation. We need a bot. We need this that the other we need a website redesign. Like no, it's all staged out again. And right now I'm at 12 months.