Why You Can’t Sign Any SMMA Clients (and how to fix it)

Summary

This 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.