Get ready for some amazing insight from Seth Godin, the father of permission marketing. He dives deep into branding your agency, determining value, niching down, and so much more! There’s a ton of value here to help you grow, scale, and enjoy your marketing agency.
In this episode, we’ll cover:
The future of marketing agencies. How to stand apart from agency competition. What’s the difference between a logo and a brand? 2 steps for agencies to determine value. Why agencies need to select a niche. What clients really want from agencies. How to leverage your strengths to win clients. It is my distinct honor and privilege to interview Seth Godin on the show. Like so many in the industry, I’m a huge fan of everything Seth had written and I’m so inspired by his wisdom. I think just about everyone knows him, but in case you’re the one person who doesn’t… :) Seth Godin is an author, speaker, entrepreneur and most of all, a teacher. He has written 18 best-selling books, including This is Marketing and Purple Cow. Seth has also founded two companies, Squidoo and Yoyodyne (acquired by Yahoo!). He’s motivated and inspired entrepreneurs and marketers around the world.
What’s the Future of Marketing Agencies? There’s an old school definition of an agency where they bought the ads for brands and created the ads they’d place. These agencies earned a percentage of the ad spend and charge a fee for the creative elements. But, Seth says, twenty years ago that agency model started to shift.
At the early stages of the internet boom, brands no longer needed agencies to buy ads or create them. Beginning then and even truer today, Seth believes agencies need to be advisors to brands. Clients need you to help make their products or services better.
Agencies have the ear of the CEO. Therefore, the future of agencies lies in building that relationship and being the liaison between the CEO, the other departments of the business - like engineers and other creators, and the consumers themselves.
Related: The Future Outlook for Marketing Agencies in 2019
Using Pricing As A Differentiating Factor A lot of agencies tell me they watch their competition and then charge slightly less, and that’s their strategy for staying ahead of the competition. My advice is always: don’t make lower prices be your differentiating quality.
Seth agrees and shared a story about his 1995 business venture “Get Rich Click.” While Yahoo! was selling clicks for $2.00, Seth was selling them for 50-cents. He says he knew he was only going to be successful until someone else started selling them for 49-cents. You know what happened? Yahoo! bought them and eliminated the competition.
Friends, you cannot grow your agency if you’re racing to the bottom!
What’s the Difference Between a Logo and a Brand? Are you building a brand, or is your agency just a logo? Seth talked about the difference between a brand and a logo using his example of Nike and Hyatt. He asked if Nike started a hotel chain, could you envision it? Yes, of course. But if the inverse were true, and Hyatt created an athletic shoe, could you envision it? Not so much.
The difference is, Nike has built a brand. Consumers know what they stand for and believe in. So anything and everything Nike does, their customers know what to expect. Hyatt has built a chain of hotels, but their name and logo may as well be interchangeable with others in the industry. They don’t represent or stand for anything specific.
So - while growing your agency, be clear on what you stand for and convey that message to your audience. This is what will build your brand and help your agency stand out.
2 Steps for Agencies to Determine Value Seth says we have to get away from the “more and better” mentality. Meaning, stop thinking about getting more clients as your way of being better than the competi