Challenges of Internet Marketing Agencies

Turning everything over to an Internet marketing or search engine marketing agency might sound like the best solution. Let others micromanage paid listings for you, right? As you may have guessed, this isn't always an affordable option. Nor is it the right option for companies with the capability or desire to proactively direct their own strategies.

Cost-Prohibitive for Small Businesses

The concept of Internet agencies working on a CPA basis must sound like a dream come true. What's the catch? Well, there are two.

First of all, agencies that consider CPA deals are looking for a high sales volume and hefty commission per sale. Companies with strong brand names and a history of solid online sales are good matches for CPA agencies. Entrepreneurs are out of luck.

Second, CPA models can be more expensive than others. For one client account I managed while at a direct response television (DRTV) agency, $800 in search engine fees yielded nearly $40,000 in sales in one month. At the time, search engine advertising was a free program to the clients ; they paid their own search engine fees. A 20 ‚ 30% CPA fee, for example, paid to another agency or affiliates , would have equaled $8,000 to $12,000 in commission fees instead of the $800 in search engine fees. That's a pretty big incentive to manage your campaigns in-house and keep the extra profits, yes?

Flat fee or media commission-based agencies aren't affordable for all small business owners either. Reputable search engine firms require several thousand dollars per month as a contract minimum, with six-month or one-year commitments required.

Thankfully, small business marketers can access a variety of free resources on this topic (see the Resources section in this book). In addition, plenty of tools (and seminars ) now exist to help them execute cost-effective campaigns with greater ease and knowledge. Many of the tools are mentioned in this book. Microsoft bCentral offers a suite of online marketing tools including search engine marketing, web analytics, email marketing, and banner ads for less than $500 a year. This isn't a "hands-free" option, but it can help you ramp up your business to meet your revenue goals as well as attract the interest of agencies.

Tip

Changing paid listing tools is a hassle. Therefore, ask agency representatives what'll happen if you decide to manage your own campaigns, or switch agencies. Are the tools and search engine accounts in your company's name ? Or does all of the work disappear if you terminate a relationship with an agency? Prepare yourself for this option before you need it.

Minimal Control Over Strategies, Tools, and Industry Contacts

Agencies bring their own resources to the table. These serve as the platform for the agencies' expertise and current procedures. This is a double-edged sword. Agencies' toolsets give them their marketing strength, but therefore, their clients are generally locked into their system. This isn't true of all agencies. But before you forge a relationship with an interactive agency, learn about their strategies and tools because their solution is likely to become yours.

Want a Yahoo! directory editor's phone number? How about the contact information for the opt-in mailing lists your agency is using? No way. Media sales representatives and search engine techies are protected celebrities to a great many agencies. Those relationships took years to build. Once again, you're committing to the agency's network, and if you leave, all of the resources used for your campaigns usually remain in their secret vault.

To continue to grow your own expertise in-house, refer to the Resources section in the back of this book. You'll find informational hubs that I and other search engine marketers turn to in continuing our education in this evolving industry.

Last in Line

Although agency clients are given a team of marketers to work on their campaigns, it's not on an exclusive basis. Agency representatives are responsible for multiple clients whose campaigns are in prelaunch, launch, tracking, or refinement mode. Large corporate accounts typically receive greater attention because they have numerous campaigns running. Agency clients, large or small, can occasionally feel neglected.

Help your account receive continued excellent service by reviewing agencies' reports and scheduling routine conference calls. A web agency I worked for frequently scored new accounts because these clients had received outstanding initial service from their previous agency, but then it declined as the company grew, or new clients came aboard. If weeks or months go by without contact from your agency, touch base with your account manager if you feel forgotten.