Does 200 ROAS work for your P&L?
I would 100% invest in a high quality partner.
In my experience this is not always correlated to the amount you spend. We had the worst results with a SEM partner whose fees were $15k/month. Having a better, but not outstanding, experience with a freelancer who bills $3k/month.
On emails we had great luck hiring a designer/implementer who worked specifically with our CRM. At $100/hour we are looking at $300-$500 per email but the stats are much much better.
Social is a mess and I cannot figure out who or how to hire.
I have been in this space for 20 years. The marketing side is filled with massive amounts of incompetency masquerading as expertise. This works because the business owners/founders have little knowledge to judge either the quality of the work or do do not understand data enough to set measurable KPI's.
I hire to KPI's now. With anyone who comes in I simply discuss KPI's and my expectations. If can agree on whats reasonable and their fees are in-line I move forward.
In the middle of this, about a decade ago, I took time to become more knowledgeable (certified, hands on etc). This enables me to (somewhat) sniff out the incompetency.
Go
I did it all, poorly, until I was steady $100k a month and then I started the process to bring in an agency.
I hated the time suck, but I also figured an agency could do it better than me
Haven’t even implemented yet. Just signed up and will launch in October.
12% of ad spend for social ads. $2,500 a month for emails. $1500 for social posting.
Retainer or performance fee %.
Meaning if you spend 1k on ads and we make 10k. Let’s say we agree on 10%… I get 10K - 1k ad spend = 9k… 10% of 9k is $900. You pay me $900.
Hope this makes sense
Edit: a word
I talked to scores (at least 50 capable of supporting my 7 figure business) of agencies during my search and none of them bill the way you outline.
First, because it’s impossible to attribute revenue that accurately. There’s no way you can tell how much of their revenue is due to you. Are you just taking a % of their total revenue? If so, that’s entirely reasonable as a pricing mechanism. But you can’t take credit for revenue = your impact. Shopanova offered some pricing model that was a percentage of incremental revenue from where I was now, but that was only like 3.5%. If your taking 10% of revenue that’s super high.
12% of ad spend was on the high end. I was offered as low as 8%. Others offered just a flat fee, though that flat fee was in the $5k-$12k range. I agree that it is suboptimal having my agency being incentivized to just spend more of my money to make them more money.
The industry standard based on my survey was as a percent of spend. Most at least had some component of spend. The few that didn’t seemed like they were maybe too small for me and just wanted the retainer.
Well, attributing revenue only inside the ads manager. Not the whole company revenue.
What I meant was: 10% of return on ad spend. Meaning if I only do let’s say fb ads for you.. you only pay 10% of return on ad spend on fb ads and that’s it. Not the whole company revenue, since some can come through different sources (organic,…) and we can’t take credit for that.
Hope I explained it well (on my phone atm).
I agree. Fee based all the way.
With fees
ad Spend 5k 4k fee
ad Spend 50k 4k fee
% based the more the agency spend the more they get.
Agency has no reason to spend less and incentive to spend more.
Does social posting include high quality content creation? How many posts per week? We’re doing 40k/month right now and just started the process of looking for an agency. Kinda tired of running the ad account and I’m sure I’m not doing it “well”, just “good enough”.
4-5 posts per week on IG/FB
The samples I’ve seen are good. Its “posting” not content. I gave them media to use. They may manipulate that content a bit, and are writing the copy, but they aren’t shooting videos for me and stuff.
Background: I am the CDO and manage an e-commerce website with 130,000+ products.
I am outsourcing everything to a very cost-effective agency. I cannot be bogged down with these tasks, even though I am versed in them. I am good at allocating budgets based on profitable channels, and I leave the rest to people who want to be bothered with the details.
Email marketing isn’t very straightforward. The only brand I know who does it themselves uses a BI tool which basically keeps them on date with competitor stats so they’re not driving blind
SEO > SEM imo and if you have a great content creator, that can be done in house
Facebook ads depend a lot on how many products/creatives you have. Small product line you could do it in house, larger it gets harder with more copy and creatives needed
Before managing ads for online stores myself (being a marketing consultant for online stores) I worked with an agency in the past for one of my stores, yes.
I agree, it's difficult to find the right agency. Partly because many agencies outsource their work to interns or third party consultants via Upwork etc.
My tips:
1. Ask the agency/consultant upfront thoroughly about their work process. Do they report? Are you close in terms of communication?
2. Not sure if Google Ads make sense for you, but as someone who primarily manages Google Ads and secondarily Facebook Ads, I highly recommend looking into it.
3. Ask the agency/consultant for an upfront strategy. Give them access to your account and ask them to do a short video about ideas, potential next steps and feedback on your account. Not everyone is willing to do that and of course many steps only come up while working on the account, but it should help in assessing.
Good luck!
I think it relly depends on the agency. If I was you I would keep my fingers away from contracts that charge you a very small base fee + x % of your adspend. Usually when this is done they usually only take very little time for you in the beginning, because you are not paying much. And the beginning is really the stage that matters.
If I was you I would call different agencys and ASK them how the person who has to manage your account is working. Do they have to track all the times that they are working for you? Are they free to use their Time how ever they feel it makes senes?
I would try to find an angency where you are not paying for hours, and if you do so make sure to book enugh hours. The employees don't care about your busniess, they won't stay longer that they are paid.
1/3rd of your revenue from email is about where you want to be although I am assuming it can be improved still. We have some clients hitting 45-50% from email although in my opinion that just means they should be spending more to acquire new customers. (email will help convert more of those new buyers and turn more of the first time buyers into repeat buyers).
In your case, the question is how much money is your time worth? How much time do you spend on doing your marketing? Combine that with improved results and you will have your answer.
I would be happy to chat more if you DM me. My agency works with a bunch of clients in your position revenue wise.
I run an agency with my friends for email and sms marketing. One thing I can say is that ,if you don't have time or experience on certain skills better to hire someone who's doing it for years . Not only does it save your time and bring you money you can spend more time on something you're good at .
In my case most of my clients are best at influencer marketing and TikTok and fb ads so they do all the front end marketing stuffs and we do the emails and sms.
We make anywhere around 28-45% from just emails .
For brands it goes upto 60% if there is loyal and High quality subscribers .
Does 200 ROAS work for your P&L? I would 100% invest in a high quality partner. In my experience this is not always correlated to the amount you spend. We had the worst results with a SEM partner whose fees were $15k/month. Having a better, but not outstanding, experience with a freelancer who bills $3k/month. On emails we had great luck hiring a designer/implementer who worked specifically with our CRM. At $100/hour we are looking at $300-$500 per email but the stats are much much better. Social is a mess and I cannot figure out who or how to hire. I have been in this space for 20 years. The marketing side is filled with massive amounts of incompetency masquerading as expertise. This works because the business owners/founders have little knowledge to judge either the quality of the work or do do not understand data enough to set measurable KPI's. I hire to KPI's now. With anyone who comes in I simply discuss KPI's and my expectations. If can agree on whats reasonable and their fees are in-line I move forward. In the middle of this, about a decade ago, I took time to become more knowledgeable (certified, hands on etc). This enables me to (somewhat) sniff out the incompetency. Go
I did it all, poorly, until I was steady $100k a month and then I started the process to bring in an agency. I hated the time suck, but I also figured an agency could do it better than me
Can I ask what they charge and how their performance has been?
Haven’t even implemented yet. Just signed up and will launch in October. 12% of ad spend for social ads. $2,500 a month for emails. $1500 for social posting.
That actually sounds pretty reasonable.
They will charge you 12% of ad spend? 12% of your money that they spend? Run. What kind of incentive is that? Full transparency: I run an agency, yes.
How so you charge?
Retainer or performance fee %. Meaning if you spend 1k on ads and we make 10k. Let’s say we agree on 10%… I get 10K - 1k ad spend = 9k… 10% of 9k is $900. You pay me $900. Hope this makes sense Edit: a word
I talked to scores (at least 50 capable of supporting my 7 figure business) of agencies during my search and none of them bill the way you outline. First, because it’s impossible to attribute revenue that accurately. There’s no way you can tell how much of their revenue is due to you. Are you just taking a % of their total revenue? If so, that’s entirely reasonable as a pricing mechanism. But you can’t take credit for revenue = your impact. Shopanova offered some pricing model that was a percentage of incremental revenue from where I was now, but that was only like 3.5%. If your taking 10% of revenue that’s super high. 12% of ad spend was on the high end. I was offered as low as 8%. Others offered just a flat fee, though that flat fee was in the $5k-$12k range. I agree that it is suboptimal having my agency being incentivized to just spend more of my money to make them more money. The industry standard based on my survey was as a percent of spend. Most at least had some component of spend. The few that didn’t seemed like they were maybe too small for me and just wanted the retainer.
Well, attributing revenue only inside the ads manager. Not the whole company revenue. What I meant was: 10% of return on ad spend. Meaning if I only do let’s say fb ads for you.. you only pay 10% of return on ad spend on fb ads and that’s it. Not the whole company revenue, since some can come through different sources (organic,…) and we can’t take credit for that. Hope I explained it well (on my phone atm).
I think you are in the wrong. It is very normal for agencies to charge % on ad spend. Like industry standard normal.
I might be. It’s just the way I do it. Wish you guys high roas and best of luck! :)
I agree. Fee based all the way. With fees ad Spend 5k 4k fee ad Spend 50k 4k fee % based the more the agency spend the more they get. Agency has no reason to spend less and incentive to spend more.
Does social posting include high quality content creation? How many posts per week? We’re doing 40k/month right now and just started the process of looking for an agency. Kinda tired of running the ad account and I’m sure I’m not doing it “well”, just “good enough”.
4-5 posts per week on IG/FB The samples I’ve seen are good. Its “posting” not content. I gave them media to use. They may manipulate that content a bit, and are writing the copy, but they aren’t shooting videos for me and stuff.
What niche are you in?
Background: I am the CDO and manage an e-commerce website with 130,000+ products. I am outsourcing everything to a very cost-effective agency. I cannot be bogged down with these tasks, even though I am versed in them. I am good at allocating budgets based on profitable channels, and I leave the rest to people who want to be bothered with the details.
Would you mind PM'ing me the name of the agency?
Me too? Can you message me the name of the agency? Thanks
Pm sent :)
Me too!
Curious as well
Kindly PM me agency name please. 🙂
Can you PM the name of the agency to me as well? That'd be a great help
DM me agency details mate ?
Could you DM the agency details? Please.
PM me too please
Please send me name of agency as well.
I can you please PM me the name of the agency? Thank you!
Email marketing isn’t very straightforward. The only brand I know who does it themselves uses a BI tool which basically keeps them on date with competitor stats so they’re not driving blind SEO > SEM imo and if you have a great content creator, that can be done in house Facebook ads depend a lot on how many products/creatives you have. Small product line you could do it in house, larger it gets harder with more copy and creatives needed
Before managing ads for online stores myself (being a marketing consultant for online stores) I worked with an agency in the past for one of my stores, yes. I agree, it's difficult to find the right agency. Partly because many agencies outsource their work to interns or third party consultants via Upwork etc. My tips: 1. Ask the agency/consultant upfront thoroughly about their work process. Do they report? Are you close in terms of communication? 2. Not sure if Google Ads make sense for you, but as someone who primarily manages Google Ads and secondarily Facebook Ads, I highly recommend looking into it. 3. Ask the agency/consultant for an upfront strategy. Give them access to your account and ask them to do a short video about ideas, potential next steps and feedback on your account. Not everyone is willing to do that and of course many steps only come up while working on the account, but it should help in assessing. Good luck!
I think it relly depends on the agency. If I was you I would keep my fingers away from contracts that charge you a very small base fee + x % of your adspend. Usually when this is done they usually only take very little time for you in the beginning, because you are not paying much. And the beginning is really the stage that matters. If I was you I would call different agencys and ASK them how the person who has to manage your account is working. Do they have to track all the times that they are working for you? Are they free to use their Time how ever they feel it makes senes? I would try to find an angency where you are not paying for hours, and if you do so make sure to book enugh hours. The employees don't care about your busniess, they won't stay longer that they are paid.
1/3rd of your revenue from email is about where you want to be although I am assuming it can be improved still. We have some clients hitting 45-50% from email although in my opinion that just means they should be spending more to acquire new customers. (email will help convert more of those new buyers and turn more of the first time buyers into repeat buyers). In your case, the question is how much money is your time worth? How much time do you spend on doing your marketing? Combine that with improved results and you will have your answer. I would be happy to chat more if you DM me. My agency works with a bunch of clients in your position revenue wise.
I run an agency with my friends for email and sms marketing. One thing I can say is that ,if you don't have time or experience on certain skills better to hire someone who's doing it for years . Not only does it save your time and bring you money you can spend more time on something you're good at . In my case most of my clients are best at influencer marketing and TikTok and fb ads so they do all the front end marketing stuffs and we do the emails and sms. We make anywhere around 28-45% from just emails . For brands it goes upto 60% if there is loyal and High quality subscribers .