There have been a lot of marketing agencies available for sale for the last few years. This doesn’t necessarily mean that these agencies are doomed to bankruptcy. In fact, the owner may just be moving on to another industry and simply wants to have a fresh take in business. Nevertheless, this is your chance to obtain a business that can help boost your business in the long run. Know the essentials first before you decide to sign on the dotted line.
Considerations in Choosing the Right Marketing Agency
Because there are so many businesses to choose from, you need to set parameters to help narrow down your choices. Here’s what you should keep in mind when buying a marketing agency:
1. Business Needs
Does your team need more creative people to boost your ads? How about a system in place to make the entire work process easier for everyone? For starters, don’t buy a marketing agency if you are new to the industry and don’t know what you’re doing.. If they don’t have much to offer to you at the time, wave them on and look elsewhere.
How much are you willing to shell out given the circumstances? Decide on a maximum amount to spend without suffering from bankruptcy. Also include assets and profits as you make the computation to help set your budget realistically. At the same time, scour the marketplace and compare prices of each agency that you come across. This way, you’ll have an idea of how much you should spend on the type of marketing agency that you want to buy.
3. Willingness to Provide Information
Consider it a red flag if an agency is unwilling or hesitant to disclose even the simplest of information. Even the lack of information on the key people to contact or how to get in touch with them can be considered a problem. If you searched thoroughly and still can’t find some leads, move on to the next agency and forget the first one. You’ll most likely waste your time and money if you consider transacting with them.
4. Opportunities to Increase Profits
This is especially important if you’re planning to expand your business on a large scale. Check the profit margins. It should be a good balance between being high enough to sustain the company and still having profit for future growth.
5. Client Base
Check the types of clients that they cater to. Repeat clients are especially good because it implies that they enjoy the service that they receive from the agency. Also, examine the percentage of profits that each client brings to the business. If one or more clients provide a large chunk of the profits, consider this as a red flag. Once these clients decide to back off for some reason, it would be difficult for the company to make up for the lost profit.
Qualities to Look for in a Marketing Agency
Most of the time, it’s not pure dedication that can make a marketing agency stand out. This shouldn’t be your only criterion as well. You can be dedicated to your craft but if it’s not geared towards the right direction or any direction at all, the business is doomed to fail. Here are some qualities to look for so the selection process will be easier for you:
1. Excellent Online and Offline Reputation
To get started, just look up the business name on the web and see what you come up with. Don’t forget to fact-check while you’re at it. Based on your gathered information, determine which of them is true and which is not. You may even ask the marketing agency about your findings and see how they react to the revelation. Depending on what they do with the information you gathered, decide to move on to the next marketing agency or proceed to the next phase.
2. Strong Business Credibility
Don’t simply rely on the client feedback and the testimonials that they post on their website. For all you know, those may be fabricated. Instead, search for the marketing agency using other reliable websites that rate them. Some of these websites include Trustpilot and Clutch.
If you want to go the extra mile, contact their former and current clients, and see how they liked the services that they received. Carefully weigh both the positive and the negative feedback that you hear from them.
3. Quality of Transactions with Clients and Target Audience
While the number of sales is important, consider how smoothly they transacted with each person in the past. Did they acknowledge feedback and work to improve? Were they satisfied with the service that they received?
Keep in mind that even if the transaction ended poorly, it doesn’t necessarily mean that the company is doomed as a whole. This just means that they also experience slip-ups from time to time. What’s more important to know is how they dealt with the unfavorable situation during that time. Check their problem-solving process and how they attempted to appease the customer or client.
4. Online Tools and Processes
Are the tools too difficult to use even for the experienced employees? Is the process calibrated for everyone? The tools and processes should be efficient to ensure that the process will run smoothly even if you’re not micromanaging everything. At the same time, it should be easy enough to learn so your own employees will not have a hard time learning once the transfer is completed.
5. Business Personality and Culture
As a business owner, you’ll likely want to avoid more workload if you can. You’ll prefer to have people around you who have similar interests in mind. In short, you’ll want to look for a marketing agency with a light and fun atmosphere while still being aligned with your culture and work values.
Considering all the phases involved in the transfer, it would take around three to nine months to complete everything. The time involved depends on the extent of how quickly both parties deliberate the details of the transaction. During this process, it’s best to have at least a financial advisor and a lawyer available for each party should any questions arise.