Why You Can’t Sign Any SMMA Clients (and how to fix it)
Summary
TLDRThis video script highlights the competitive nature of the agency space and turns it into an opportunity for standing out. It emphasizes the power of guarantees in making offers irresistible and building trust with clients. The speaker introduces four types of guarantees: money back, guarantee minus difference, work to result, and performance-only deals, each tailored for different agency stages and risk tolerance. The script also shares a success story to illustrate the effectiveness of these strategies, encouraging viewers to implement guarantees to enhance client relationships and agency reputation.
Takeaways
- 🚀 Competitive markets offer opportunities for agencies to stand out through the use of guarantees.
- 🏆 Guarantees can transform an offer into a no-brainer for clients, as they bear no risk if the promised result is not achieved.
- 📝 A guarantee is a promise to a prospect before they become a client, with the agency bearing the consequence if the result is not achieved.
- 🛒 Examples of guarantees in consumer products, like TVs and mattresses, illustrate how risk transfer can influence purchasing decisions.
- 💰 The money-back guarantee is a common approach but can be risky for agencies, as it involves refunding the full amount if the result is not met.
- 🔄 Guarantee Minus Difference (GMD) is a lower-risk alternative to the money-back guarantee, where clients are refunded only for the shortfall in results.
- 🕒 The work-to-result guarantee offers extra time to deliver on the promise without additional payment, aligning with clients' focus on results rather than strict timelines.
- 💼 Performance-only deals, such as pay-per-appointment, transfer all risk to the agency but can be very effective in closing deals and ensuring client satisfaction.
- 💹 Understanding the client's business and margins is crucial when offering performance-based deals to manage risk and ensure fair compensation.
- 📈 The choice of guarantee should reflect the agency's level of experience and confidence in delivering results, with beginners often better suited to lower-risk guarantees.
- 🌟 Implementing the right guarantee can elevate an agency from being just another competitor to a reliable, well-known, and trustworthy service provider.
Q & A
What is the main argument presented in the video script about the competitive agency space?
-The main argument is that increased competition in the agency space is an opportunity rather than a threat, as it enhances the ability to stand out and succeed by using guarantees effectively.
Why does the speaker suggest that guarantees are a key to standing out in the agency world?
-The speaker suggests that guarantees make an offer a no-brainer for clients, as they transfer risk from the client to the agency, creating a win-win situation where clients have nothing to lose.
What is the definition of a 'guarantee' as presented in the script?
-A guarantee is defined as a promise made to a prospect before they become a client, based on a particular result. If the result is not achieved, the agency bears the consequence, essentially transferring risk.
How does the speaker use the example of purchasing a television to illustrate the importance of a guarantee?
-The speaker uses the television example to show that without a money-back guarantee, customers are less likely to make a purchase due to the risk involved. A guarantee makes the offer more appealing by reducing this risk.
Can you explain the 'Guarantee Minus Difference' (GMD) and how it works?
-The 'Guarantee Minus Difference' (GMD) is a type of guarantee where the agency refunds the client only for the leads or results that were not achieved, rather than the full amount. It places a value on each lead and refunds the client for the shortfall, protecting both parties.
What is the 'Work to Result' guarantee and how does it benefit the client?
-The 'Work to Result' guarantee is a commitment to deliver the promised result regardless of the time it takes. If the agency fails to meet the promised number of leads or results within the contract period, they continue to work for free until the result is achieved, ensuring the client is not at a disadvantage.
What are the potential risks associated with offering a 'Money Back' guarantee?
-The 'Money Back' guarantee carries the risk of negative cash flow and potential damage to client relationships if the agency fails to deliver the promised results, as clients may receive services for free.
How does the 'Pay Per Appointment' or performance-only deal work, and what are its benefits?
-The 'Pay Per Appointment' or performance-only deal means the client pays only when results are achieved, such as when an appointment is made or an ad campaign generates revenue. This structure benefits the client by ensuring they only pay for successful outcomes.
What is the speaker's opinion on using a 'Pay Per Appointment' model for beginners in the agency business?
-The speaker advises against using a 'Pay Per Appointment' model for beginners due to the high risk and potential cash flow issues. It requires a deep understanding of the client's business and strong internal structures to manage the risk.
What are the considerations for an agency when offering a performance-based deal?
-When offering a performance-based deal, an agency must consider factors such as the client's gross margins, the cost of advertising, and the overall business function to ensure they can deliver on the promised results without incurring losses.
How does the speaker suggest an agency can transition from being just another agency to a reliable and trustworthy one?
-The speaker suggests that by implementing the right guarantees, an agency can build better relationships with clients, sign more deals, and over time, develop a reputation that makes them a reliable and trustworthy entity in the industry.
Outlines
🚀 Embracing Competition with Guarantees
The speaker introduces the competitive nature of the agency space and posits it as an opportunity rather than a threat. They argue that competition can enhance visibility if leveraged correctly. The key to standing out is the strategic use of guarantees, which can transform an offer into an irresistible one. The speaker promises to share four proven guarantees that can be implemented immediately after watching the video. These guarantees are part of a larger set taught in the 'Agency Accelerator' program, which has yielded significant results for students, as exemplified by Armando, who scaled his agency's revenue significantly in a short period. The speaker emphasizes the importance of guarantees as a risk transfer tool, making clients feel they have everything to gain and nothing to lose.
🛡️ Types of Guarantees for Client Relations and Business Protection
This paragraph delves into the different types of guarantees that can be used to secure client relationships and protect the business. The first is the traditional money-back guarantee, which involves refunding clients if the promised result is not achieved. However, the speaker expresses reservations about this model due to its potential to strain client relationships and incentivize underperformance. The second type, Guarantee Minus Difference (GMD), offers a more balanced approach by refunding only the value of unmet promises, thus maintaining a fair exchange. The third is the work-to-result guarantee, which extends service time to fulfill the promise without additional cost. Lastly, a performance-based payment structure is introduced, where clients pay only for results, which, while attractive, may lead to cash flow issues and requires a deep understanding of the client's business model. The speaker advises caution and a tailored approach based on the agency's experience level.
🌟 Implementing Guarantees to Elevate Your Agency's Reputation
The final paragraph emphasizes the importance of implementing the right guarantees to enhance an agency's reputation and ease the client acquisition process. By offering strong guarantees, agencies can build trust and reliability, setting themselves apart in a competitive market. The speaker encourages the audience to take action, apply the discussed guarantees, and transform their relationships with clients. The goal is to evolve from being just another agency to becoming a well-known and trustworthy entity. The speaker concludes by motivating the audience to take the necessary steps to achieve this transition, expressing support and confidence in their success.
Mindmap
Keywords
💡Competitive Space
💡Guarantee
💡Risk Transfer
💡Money Back Guarantee
💡Guarantee Minus Difference (GMD)
💡Work to Result Guarantee
💡Pay per Appointment
💡Performance-Based Deals
💡Return on Ad Spend (ROAS)
💡Gross Margins
💡Tire Kickers
Highlights
The competitive nature of the agency space can be viewed as an opportunity rather than a threat.
The ability to stand out increases in a competitive space, as exemplified by sports.
Using guarantees effectively can make an agency's offer irresistible and distinguish it from competitors.
A guarantee is a promise of a particular result, transferring risk from the client to the agency.
Guarantees can make clients feel they have everything to gain and nothing to lose.
Examples of guarantees include money-back guarantees and guarantees minus the difference.
Guarantee minus difference (GMD) provides a refund for unfulfilled leads at their value, reducing risk.
Work to result guarantee offers extra time to achieve promised results without additional payment.
Pay per appointment or performance-only deals transfer all risk to the agency and can be easy sales.
Performance-only deals can lead to cash flow issues and require robust internal structures.
Understanding the client's business is crucial when operating on a performance-only model.
Choosing the right guarantee model depends on the agency's level of expertise and confidence in results.
Beginner agencies might prefer the low-risk guarantee minus difference model.
Advanced agencies can offer bolder guarantees like money back or pay per results for easier deal closures.
Implementing the right guarantees can improve client relationships and agency reputation.
The speaker shares personal experience and strategies from running an agency for many years.
Transcripts
ladies and gentlemen the agency space is
competitive that is a fact and many of
you might see that as a bad thing well
what if I told you that this is an
opportunity not a threat to your success
would you believe me you see when a
space becomes more competitive your
ability to stand out also increases I'll
give you an example let's say with all
due respect in the World of Sports it's
kind of hard to stand out if you're
playing curling listen even though it's
a fun sport to watch when people are
playing in the Olympics I bet you
couldn't name a single curling player
but in more competitive sports like
football basketball Formula 1 getting
there might be a bit harder but if you
get it right you can stand out locally
and even internationally and if we take
this back to the agency world one of the
best ways to stand out from other
agencies is by using guarantees
correctly by using the correct guarantee
your offer becomes a no-brainer and when
you have a good guarantee you totally
set yourself apart from the competition
now the best thing about this this is
something you can put in place straight
after watching this video here's the
thing the key is to have the right
guarantee in place a guarantee that is
good for your client but a guarantee
that doesn't hurt your business in the
process and in this video I'm going to
give you four proven guarantees that you
can use to stand out from other agencies
give your clients a better service and
ultimately get paid for that accordingly
now bear in mind that the guarantees
that I'm going to share in today's video
are just some of the guarantees this
about onethird of the guarantees that
I've taught thousands of agency owners
inside of my paid program agency
accelerator and these guarantees are
working incredible for students inside
the program I mean just look at Armando
Armando used one of the guarantees that
I will teach you here today to scale his
agency to over $30,000 per month in less
than 6 months so if you want your agency
to stand out and become trustworthy in
the process this video is for you
because guarantees are the best way to
do exactly this so on that note let's
get into it what is a guarantee because
before I get into the different type of
guarantees it is essential that you
understand what a guarantee actually is
a guarantee is simply a promise you make
to a prospect before they become a
client now the promise is based on a
particular result if the result is not
achieved you bear the consequence as the
agency owner it is simply a transfer of
risk and why is this so important well
to be honest it's quite simple this way
the client has nothing to lose and this
makes your offer a no- I mean who would
say no to an offer when you have
everything to gain and nothing to lose
now let's use a very practical example
let's say you were about to purchase a
television and there was no money back
guarantee in place well it would be very
unlikely that you would buy it you
wouldn't risk getting home plugging it
in television not working on the other
hand if you were to purchase a TV and
they had a guarantee that if anything
happened to a TV the store would take
care of it and it wouldn't cost you a
cent I mean which one would you choose
another really good example of this is
mattresses I mean yeah you could go to
the store and kind of like lay on a
mattress but that's not the same as like
sleeping on it for multiple days or
multiple weeks so that's why a lot of
the most successful mattress companies
especially the e-commerce ones the ones
without a physical location they have
these amazing guarantees where you can
literally buy the mattress it gets sent
to you you can sleep on it for 30 days
and if for whatever reason you don't
like it you can ship it back that is a
very very strong guarantee well anyways
listen the same holds true for agency
Services giving clients a guarantee that
your services will come with a desired
result makes the sale go through like
butter so now do you understand what the
guarantee is and the role it plays let's
talk about the four types of guarantees
that you can use now as always I've gone
ahead and left a free resource below to
really help you visualize these
guarantees using real examples now the
first guarantee is the money back
guarantee and I'm sure you've heard of
it because it's the most commonly used
guarantee I mean it's not rocket science
as the name suggests this guarantee
involves paying back the money your
clients paid if you do not achieve the
promised result so an example of this
would be let's say you run a lead
generation agency and you prom 20 leads
for $1,000 if you don't get those 20
leads you refund the full $1,000 now
there is no doubt that this guarantee
works but it's also risky because you
need to be sure that you can get the
full result now full transparency here
despite many of our students inside of
agency accelerator using this guarantee
and getting incredible results this
wouldn't be a guarantee that I would
personally recommend especially to
beginners I mean listen despite the risk
there's an element that I personally
don't agree with with it doesn't sit
right with me let's use the lead
generation example I previously
mentioned let's say you're nearing the
end of the month and you are sitting on
18 out of 20 promise leads you really
hope to get those two remaining leads to
fulfill on your promise and secure your
$1,000 retainer for the month your
client on the other hand they might see
this thing as a positive because if they
get 18 or even 19 leads by the end of
the month well then they get their
$1,000 back but they get all of those
leads for free and at the end of the day
it's you who's incentivizing them to
make as much as possible so you don't
get to fulfill your promise they get a
good chunk of work and they don't pay
you so this guarantee is great for
getting deals over the line but it can
really negatively impact your
relationship with the client longterm
the next guarantee which I call GMD
which basically means guarantee minus
difference or I also sometimes call it
pay trial will it solves this problem
because the guarantee minus difference
in a sense allows you to put a cost on
every lead you bring a client now let me
explain using the same lead generation
example if you promise 20 leads for
$1,000 well then each lead is worth $50
now this guarantee states that you will
refund the clan on every lead you fall
short so if you were to end the month on
18 leads you have fallen short by two
leads and each lead has a value of 50
bucks so instead of refunding the full
,000 like you would have with the money
back guarantee you're only refunding the
two leads that you fell short on in this
case $100 remember you don't get extra
money per lead above the promised 20
this means that the client is going to
want you to hit the promised 20 and more
every month so this guarantee protects
you and the client and it protects the
relationship that you actually have with
your clients it is the perfect guarantee
for beginners because there's minimal
risk for all parties now let's talk
about the third guarantee I'm going to
mention in today's video and that is the
work to result guarantee now this
doesn't involve you paying any money
back you pay the client back with extra
time you need to understand that for
most businesses their main concern is
getting the promised result the timeline
as long as it isn't super excessive
you're not taking the piss that matters
much less to them so the work to result
guarantees the promised result result
regardless of the time it takes to get
there the way this guarantee would work
in the lead genen example discussed is
as follows every month you promise 20
leads and let's say that your minimum
contract with them is 3 months that
means that by the end of the contract
you have guaranteed 60 leads so the work
to result guarantee states that if you
were to provide under 60 leads you will
continue to work for free until you hit
the promised lead number of 60 listen
most clients won't care if it takes you
a 100 days rather than 90 days to acheve
the promised number they just don't want
to get screwed they want to know that
when you say something you mean it so if
you deliver on the result that you
promised without taking more money even
if it takes some extra days the client
is still protected now the final
guarantee I want to talk about in
today's video is kind of more A
variation in the payment structure
rather than a guarantee itself that
being said it still does what a
guarantee needs to do which is transfer
risk from the client to you and this is
by offering a pay per appointment
structure or pretty much any performance
only deal where they only pay when they
see results so again the client is
protected here and this is generally a
very easy sale as well so before the
client signs on they're going to view
this as a no-brainer because they have
nothing to lose now as great as this
sounds once again I have to warn you
here it is very easy to run into cash
flow issues because you only get paid on
results so this means that your internal
structures need to be topnotch when
offering services using this model for
many many years in my agency this was
the model that we worked off of which is
Hardcore performance deals now I will
say we would always charge clients a
small retainer because for me it was
just I didn't want any Tire kickers like
if you offer just performance only yeah
of course you're going to get people
lining up but for me I wanted clients
that could still Throw Down 2 Grand 2500
3500 and then the main majority of our
money came from performance but as
mentioned this is a lot more risky than
just making all the money from the
retainer so please bear this in mind
when you're working off performance only
so let's say you're doing lead
generation usually that'll be you know
pay per appointment or pay per show up
if you're doing ads then obviously
that'll usually be a percentage of
Revenue or more specifically return on
ad spend so Revenue minus ad spend and
usually the way that you figure out that
percentage you also have to factor in
their margin because obviously if you're
spending $1 and producing $2 but they
only have 50% gross margins well then
they spend a dollar on Advertising a
dollar on the product they've spent $2
to make $2 back so these are all things
that you have to factor in and that's
why if you look back and I have years
and years I have half a decade of me
running an agency recorded on YouTube if
you go back and you watch my videos
you'll see and I mentioned this many
times I would have a notebook and a pen
and I would just be writing these things
down I'd be writing down their gross
margins I'd be trying to understand
their business and really just trying to
get a clear perspective outside of
advertising how does their business
function because really when you're
doing a performance Mall you have all
the risk as an agency so you really need
to understand their business so I would
definitely wouldn't recommend that model
to beginners but if you know what you're
doing I mean it's very very fruitful and
it also makes the sale very very easy so
as I said I've mentioned four of many
many more guarante models that I teach
inside the program now it's great to
know your options when it comes to
guarantees but which one actually suits
you really this is all about
understanding what level you are as I
mentioned when you're a beginner in my
opinion the best guarantee is the
guarantee minus difference because this
is a lowrisk guarantee that simply works
but also allows you to learn now if
you're more advanced you're going to
have a clearer idea of the results you
can promise which means you can take
more risk and higher risk guarantees
make for Bolder offers a guarantee like
money back or pay per results structure
this is going to help you close way more
deals in fact it's going to make closing
deals almost effortless so now you know
the best guarantees for your agency and
which one suits you the most go ahead
Implement them in your business and make
your life a hell of a lot easier when
signing clients this way you're not only
going to sign more clients but you're
also just going to have a better
relationship with them and these things
with some time and some reputation will
make you go from one more agency just
another agency to a reliable well-known
and trustworthy agency in this space now
the ball is in your court and what
separates you from this goal is just a
bit of work so let's get to it and as
always I'm watching from afar and I'm
rooting for you
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