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As your business grows, you can hire an agency: a public relations agency, a branding agency, or a sales training agency. For many entrepreneurs, this is new territory. You may find it difficult to distinguish between your choices, and even after you’ve confidently hired the right group of experts for you, you may wonder how to get the most bang for your buck.
I’ve been in your shoes. I’ve hired agencies, worked with almost every type of agency, and been an agency founder twice. At every stage, pre-screening, selection and implementation, these are my top recommendations for achieving a successful agency relationship.
Before you even start your search
It might surprise you to know that some of the most important work begins before you’ve even contacted the first group of agencies.
Be prepared to identify a few things internally, including your budget, end goals, and ability to work with an agency. Also identify your internal KPIs. You may not know how a particular agency will report, but if you can share your metrics, it’s an important step toward success.
I usually hear people say they don’t want to share their budget. We always get it on the first call because you might waste time with agencies that are out of your budget; I think this is an important discussion. If you don’t know how much an agency costs, a quick Google search can help you. If you really feel like your budget is so big that you fear sharing it will cost you more than you would have to spend by making it public, then one way around that is to share your mid-level budget.
Your end goals might include business goals and agency goals. It’s important to share Why you’re hiring an agency, because it really helps an agency plan whether they will be an effective partner; Agencies also don’t want to fail.
Also, create a list of questions to ask. Personally I think a lot of people focus on the wrong questions and everyone asks the same ones, so the answers are easy.
Instead, dig deeper with questions like “What challenges do you think we will have achieved our goals with an agency?” “What are the characteristics of your favorite customers?” and “How much do your average customers pay?” This last question about the average agency client is important for an easily overlooked reason: you don’t want to have the smallest budget at an agency. Ideally, your budget is at least in the top twenty percentile or better of the average customer; the best customers get the best team talent and the best service.
You’ll have others, like team composition, past successes and the like, but think about probing deeper right away on the first call. It will really help you narrow down your choices. You should also identify how you will evaluate your top three agencies. What are the three main characteristics based on which you will make your choice? This will inform your selection matrix.
Choosing your agency: combining intelligence and instinct
As you narrow your search to the top three agencies, you will find yourself trying to determine the differences. First I recommend all members of the selection team to create a 3x3x3 selection matrix.
In column A, list three main considerations of your choice. In the top row of the BD columns are the names of your agencies. Here’s where it gets interesting. Each person on the selection committee will weigh each of these considerations, with 3 being the most important to them and 1 being the least important to them. For example, the CEO might rate the highest budget as a three, but the person who will work with the agency the most might rate the cultural fit as a three.
When you give each agency a score of one to three in each category, you’ll use the multiple of each category multiplied by the score, then add each score together and you’ll have a clear winner.
You can rely on your instincts a little. Don’t ignore it. The signals you collect may show how you will work with the agency, and this is perhaps the signal you should give the most weight to.
Three questions that keep the agency relationship high
Now that you have selected the experts who will help you on your journey, remember: everyone wants a successful engagement. Your agency is on your side. Each group is learning to work together, especially at the beginning. The initial stages of the collaboration will set the tone. Assuming there is no reason to think otherwise, consider your agency the expert.
You may not be familiar with the latest data or trends that drive an agency’s recommendations. So if something doesn’t feel right or you don’t understand a recommendation, you should definitely ask for context rather than asking to change it. Instead of saying “Please change this to…”, change the question to “Please explain this choice to me.” This question gives both of you the opportunity to learn from each other.
When a deliverable is near completion, especially after much back and forth, the last question before closing should be, “In your professional opinion, what else should we change?” Of course, your agency has always provided its best professional advice, but sometimes, when there are a series of exchanges and requests for change on your part, the client, to satisfy you during a collaboration, may have chosen their battles . This question opens the door to the final finishing touch that could distinguish between excellent and remarkable.
If there’s a problem, whether it’s work or a change in conditions that requires a breakthrough, my best advice is to consider your agency as your solution partner. People who work at agencies are drawn there because they love making a difference. They Want to make you happy. They thrive on this. You can trigger this instinct to work for you by taking a collaborative approach. Even if you are frustrated with the agency, asking your agency how they have addressed the situation in the past and what steps each team needs to take to bring that solution to fruition will lead to a productive outcome.
Hiring an agency is a huge commitment, regardless of your budget and what you hope to achieve with it. Interagency partnerships are often better when they are collaborative. Small steps can make a relationship even more productive and the results more impactful than expected.