Dan Posner, VP of Sales for Leadgenix, can give you three reasons why an agency would outsource digital marketing. One reason why an agency, a marketing firm, or any kind of SEO firm might want to outsource that work is expertise. A lot of times in the ad agency world, the agency is an expert at a particular skill set–and whether it’s direct TV-type mailings–or whatever it is that their the expert at, that’s their bread and butter, and they’re not really comfortable selling other things. And in that kind of situation, it works out beautifully to work with a company like Big Leap, where Big Leap can come in as the digital marketing expert and kind of hold their hand through that process and do ninety percent of the work. And so one reason why an ad agency might outsource that work is that it’s not their area of expertise.
Reason number two, or another reason why somebody would outsource that work, um, let’s call it “headache.” If you ever owned a small business or owned an agency, or have been in a management role at an agency, you know that your biggest assets are your employees. But that also can leave you with your biggest frustrations. If you have an employee who is your SEO expert, or is a pay-per-click or paid search expert, as we know all too well in the agency world, it’s precarious that, Monday they’re happy, Wednesday they get an offer from the agency down the street for an extra five-thousand dollars a year, and Friday they’re gone. And so your expert who is managing your whole portfolio of that service all of a sudden, from Monday to Friday, is gone. And so you have to have the stress of knowing you always have to have that person there at the office, and if they’re gone… you’re up a creek! So that’s another reason why an agency might want to outsource work is just the actual employees, not having that expert.
Another reason is expense. Often times companies think it’s going to be less expensive to have a service like that in-house. And by the time you add in, let’s just for number’s sake say, a sixty-thousand dollar employee, well, that employee doesn’t cost you sixty thousand dollars. That employee costs you sixty thousand dollars, and fifteen thousand dollars in healthcare, and three thousand dollars in IT, and seven thousand dollars in PTO, and six thousand dollars in this, and a cell phone and a laptop… And that sixty thousand dollar employee, all of a sudden, instead of costing sixty thousand dollars, costs eighty-five or ninety thousand dollars. Whereas if you’re outsourcing digital marketing work to someone who’s competent and capable, well great, let’s say you’re bringing in five-hundred thousand dollars worth of business over the course of that year, well you’re probably giving away sixty percent of that or whatever it is, to a Big Leap or someone to do the work, but then you’re just making the override, you’re making that profit margin, and it’s not so dependent on having to staff with your own people.
So there’s three reasons why somebody at an agency or group would potentially outsource that work. If you’d like to learn more about white label digital marketing fulfillment, contact Big Leap here or give us a call at 801-805-2532.