Should your startup hire a growth marketer or use an external agency?
Some thoughts from our $1 billion journey at SmartAsset:
Some thoughts from our $1 billion journey at SmartAsset:
The dilemma:
Most founders aren't marketers & struggle to find someone to jumpstart their growth.
Hiring a growth marketer is scary: anyone can call themselves a growth marketer.
Hiring an agency is scary: they charge 10-15% of ad spend and have minimums.
What to do?
Most founders aren't marketers & struggle to find someone to jumpstart their growth.
Hiring a growth marketer is scary: anyone can call themselves a growth marketer.
Hiring an agency is scary: they charge 10-15% of ad spend and have minimums.
What to do?
Ask yourself: does marketing need to be a core competency?
If yes, then you need growth marketers.
Your marketing machine will become part of your moat over time.
The last thing you want is to over rely on external expertise.
If yes, then you need growth marketers.
Your marketing machine will become part of your moat over time.
The last thing you want is to over rely on external expertise.
So you'll need internal expertise.
Cool. But what type of expertise to start?
Ideally you will have a notion of what channel expertise you might want first:
- DTC brand => social
- Lead gen => Google Ads
- B2B=> LinkedIn, Google Ads
- Mobile App=> Apple Search, Google Ads, FB
Cool. But what type of expertise to start?
Ideally you will have a notion of what channel expertise you might want first:
- DTC brand => social
- Lead gen => Google Ads
- B2B=> LinkedIn, Google Ads
- Mobile App=> Apple Search, Google Ads, FB
What happens next is that your growth marketer will start generating growth.
But how do you know they're any good?
At some point you'll want to benchmark your internal performance and see if someone can beat it.
That's where external agencies come in.
But how do you know they're any good?
At some point you'll want to benchmark your internal performance and see if someone can beat it.
That's where external agencies come in.
Agency rule of thumb: most agencies are bad.
- Senior employees sell the work
- Junior employees do the work
- High turnover because they're all overworked and hate their jobs
- Senior employees sell the work
- Junior employees do the work
- High turnover because they're all overworked and hate their jobs
How to find a great performance marketing agency:
The best agencies often get clients via word of mouth.
Founder networks can point you in the right direction.
They often look like @ampush or @GrowthTactics
(caveat: I haven't worked with either but they are highly regarded)
The best agencies often get clients via word of mouth.
Founder networks can point you in the right direction.
They often look like @ampush or @GrowthTactics
(caveat: I haven't worked with either but they are highly regarded)
Pro tip:
You can usually gauge an agency's sophistication by their content marketing.
If their blog/twitter/CEO etc. regurgitate grade school level tactics...run.
In the absence of referrals, the best tactical content usually leads to competent practitioners.
You can usually gauge an agency's sophistication by their content marketing.
If their blog/twitter/CEO etc. regurgitate grade school level tactics...run.
In the absence of referrals, the best tactical content usually leads to competent practitioners.
Agency Pro #1: domain expertise in marketing platforms
Agencies typically run a ton of ad spend through their channels of choice
Because of this, they often have deeper insights into a channel's mechanics than a sole practitioner, or a single-vertical company.
Agencies typically run a ton of ad spend through their channels of choice
Because of this, they often have deeper insights into a channel's mechanics than a sole practitioner, or a single-vertical company.
While platform knowledge is becoming less of a differentiator on highly automated platforms like FB, some channels are so legacy even account reps aren't aware of all functionality, targeting features, etc.
Every edge counts.
Every edge counts.
Agency Pro #2: systems to iterate quickly
A great creative can 2-3x your ROI, but it's almost impossible to predict performance.
Creative iteration is a real edge these days, and good agencies usually have a wider pool of creative resources.
A great creative can 2-3x your ROI, but it's almost impossible to predict performance.
Creative iteration is a real edge these days, and good agencies usually have a wider pool of creative resources.
Agencies will also have insights into tactics that work in other verticals that may be applicable to yours.
You will need a steady flow of new concepts to find new winners as ads fatigue.
You will need a steady flow of new concepts to find new winners as ads fatigue.
Agency Pro #3: mitigate key man risk
As you grow, your internal team should grow.
Using an agency in parallel can fill short-term slack if an employee moves on.
As you grow, your internal team should grow.
Using an agency in parallel can fill short-term slack if an employee moves on.
When's the right time to bring on an agency?
step 1: use your internal hire(s) to validate a few channels for growth
step 2: When you hit your stride or plateau, hire an external agency to see if they can improve on what you're already doing
step 1: use your internal hire(s) to validate a few channels for growth
step 2: When you hit your stride or plateau, hire an external agency to see if they can improve on what you're already doing
Potential outcomes:
a) Agency can't beat your team's performance:
High five - your team is awesome.
b) Agency finds a more effective strategy:
Your internal team applies it to new channels and you accelerate growth further.
Win or Win.
a) Agency can't beat your team's performance:
High five - your team is awesome.
b) Agency finds a more effective strategy:
Your internal team applies it to new channels and you accelerate growth further.
Win or Win.
Thanks for reading.
If you found this helpful please retweet so others can benefit.
I publish 1-2 threads/week on marketing, startups and human behavior. Follow me at @bbourque if that's your thing.
If you found this helpful please retweet so others can benefit.
I publish 1-2 threads/week on marketing, startups and human behavior. Follow me at @bbourque if that's your thing.
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