10 Things You Pay for From Traditional Marketing Agencies

In today’s business world, it’s no longer the big fish that eats the small fish; it’s the fast fish that eats the slow fish.

In the same way the information revolution has changed how customers and market share are won, it has also reshaped the old systems that once governed how companies operate and how people work. The future of business is more flexible, faster, leaner and smarter.

This is not just about adopting a telecommuting policy or forgoing the purchase of that expensive copier. It’s about changing how business is done, both in philosophy and in execution.

The penalty of clinging to old business practices is losing clients that no longer can justify bills with unneeded overhead baked into them. As leaner and smarter companies emerge, the old juggernauts who are slow to change are quickly dying.

Marketing agencies

At the top of the scale of corporate bloat are marketing and advertising agencies. While not all industries can shed their physical offices and adopt a virtual model, the dominance of digital marketing coupled with the very nature of marketing’s day-to-day business operations afford these agencies a clear-cut path to modern efficiency.

However, in reality, few have changed. The majority of marketing firms hang on to these old systems of operations, passing on the burden of their expenses to their clients.

The traditional marketing firm still maintains an expensive posture to attract its clients.Why? Most find changing their methods of operations to be just as hard as adapting to today’s Web culture and the new rules of doing business. Too much has changed too quickly. In clinging to old methods – even those of its own self-promotion – the traditional marketing firm still maintains an expensive posture to attract its clients with their lavish offices and costly travel. These companies force work into physical locations, perpetuating the punching of clocks and shuffling of paper, while carrying years of old business operations in the form of debt, all of which must ultimately be paid for by the client.

There’s a reason why marketing companies are dying left and right, beyond becoming irrelevant in the digital age. Today's clients no longer accept invoices inflated by bloated operations, particularly when virtual companies can do more at a fraction of the cost.

The rise of the virtual company

It took time for companies like Amazon, Netflix and Apple to revolutionize and overtake industries that were once based in bricks and mortar. Replacing the physical form was a challenge in reconditioning the mind of the consumer and in reshaping traditional systems, such as fulfillment, customer service and exception handling.

2010 will see the emergence of the virtual company in full force.These initial obstacles were quickly overcome as consumers realized the advantage of lower prices by way of lower overhead, mutually beneficial partnerships and geographical barriers being torn down and giving way to an expanded market. Today, that same virtual model that started strong in the retail sector is being adopted throughout all applicable industries. As a result, virtual companies are growing at record pace.

2010 will see the emergence of the virtual company in full force. The convergence of technology, communication, new service-based companies and systems that meet the demands of companies that no longer carry the burden of bloated operations will allow more companies to work smarter, faster and from anywhere.

As virtual companies continue to refine their systems and clients continue to realize the value in receiving better service for less money, the virtual company will gain strength and overtake the outmoded traditional business models. This not only improves efficiencies but tears down geographical barriers to markets and talent.

As we enter the age of the virtual company, let’s review ten things you pay for from traditional marketing agencies:

1. Facilities

Office space is typically the largest expense on the books for marketing agencies. These obligations range from rented space in a shared office park to owning (and owing for) real estate, freestanding buildings and parking facilities.

Virtual marketing companies shed this expense because the nature of the business simply doesn’t require it anymore. Marketing is digital, and print is dying. All the infrastructure that was once housed in a physical location is now replaced by a range of new digital services. Communication is conducted through e-mail, mobile devices, video conferencing and client dashboards rather than on-site meetings and client lunches, the costs of which are ultimately passed back to the client.

The marketplace demands geographic barriers be removed to hire, collaborate and partner with the best talent in the industry. The virtual company’s employees work remotely within a virtual space that accomplishes anything that a physical location provides and more. They are mobile and available at a moment’s notice to meet with clients. Even remote offices, meeting spaces and presentation rooms can be rented by the day or hour, as needed, so as not to waste money on a fixed building that sits there to house all the bloated systems and conventions the traditional marketing company clings to.

2. On-site employees and physical work systems

For many office-based companies, the days of having people gathered in a building to work is gone. For these businesses, the act of keeping people around was just another form of time card punching, rooted in old systems founded on the demand for people to be present and available to coworkers and customers from 9 to 5.

Happy employees do better work, particularly the ones responsible for great creative work.Virtual companies don’t operate according to fixed 9-to-5 schedules. Instead, their systems and employees are faster, more flexible, working within tighter deadlines and using new, more robust project management conventions.

Telecommuting is more prevalent today than ever, for reasons that go beyond avoiding the cost of expensive office space. Happy employees are ones that are not trapped in cubicles, hustling through traffic, burning 30-40 hours and hundreds of dollars a month in commuting to a fixed place to do work that can be done anywhere. The fact is, happy employees do better work, particularly the ones responsible for great creative work.

Moreover, work systems based on having everyone in a centralized office all day are terribly inefficient. To see this, you have to look beyond hard costs and expenditures and consider the man hours wasted on meetings, scheduling, water cooler talk, Web surfing – the list goes on and on.

Replacing the physical office environment are proven virtual office management and collaboration systems like Basecamp, video conferencing, cloud computing and mobile Internet connectivity. Most importantly, the philosophy behind the work is based on maximizing project development efficiencies rather than filling up a 40-hour work week simply for the sake of adhering to convention.

3. Utilities

From security systems, electricity, heating and A/C to cleaning and facility repairs, the auxiliary costs of maintaining a facility can be extraordinary. This is an expense that virtual companies leave behind and don’t pass on to their clients.

4. Landline phone systems

In an age where business is a 24-hour, anywhere and everywhere proposition, corporate phone systems are an enormous waste. Everyone has a cell phone, and most working professionals carry smartphones. For many, the superfluous office phone collects dust, and voicemail systems are rarely used. In a time when most households are shedding the costs of landlines in favor of more flexible and leaner mobile options, many businesses still lag behind.

Agencies that continue to operate from a physical facility must pay to maintain and upgrade expensive landline systems, adding yet more extraneous dollars per hour to their clients’ bills.

5. Office furnishings

Expensive offices, conference room tables, desks, chairs, bathrooms, kitchens, interior decoration and even trophy cases displaying purchased accolades are omitted from the overhead costs of all virtual companies.

6. Computing infrastructure and LANs

So many companies still keep gobs of file and printer servers along with data backup systems, server redundancies, uninterrupted power supplies, routers, switches, cabling, internal e-mail systems – the list goes on.

For virtual companies, the idea of a LAN (local area network) has been replaced by cloud computing, with Web-based service providers, project management, collaboration systems, and applications. These systems are accessible from anywhere in the world, offer true collaboration with anyone and are always backed up and protected.

What’s more, project management in the virtual space allows for new and innovative work habits that promote speed, efficiency and flexibility in ways old companies employing old work systems simply cannot keep pace with.

7. Paper

So many of the slow, dying companies we see today still live in an office with paper circulating all the time. Believe it or not, nowhere is this more true than at your local marketing agency. Also included in this paper-filled world are printers, copiers, fax machines, shredders and a never-ending variety of supplies, all in support of paper trails that lead from the office to the client and back again before ending in nicely climate-controlled filing cabinets.

Virtual companies exist in a paperless world, and the best work circles around those that stay in a paper-driven office. The benefits of going (and staying) completely digital are immense. Digital documents are searchable, sharable, versioned, more secure and viewable on nearly any device. The more files that are kept, used and cataloged in digital format, the more efficiencies will increase overall.

8. Support staff and personnel

When agencies pay for an office, furnishings, phone systems, computing infrastructure and everything in between, they also require additional personnel, time and resources to support those systems, including office managers, receptionists, IT staff, cleaning crews, landscapers and security, to name a few. Thus, these already excessive expenses are further exacerbated and passed on to the client.

9. Restricted geographical barriers

If there’s one thing the Internet has brought to the economy, it’s the expanded marketplace. The business systems of virtual companies are not only set up to take on clients without most of the additional expenses suffered by traditional companies but to hire the best talent available anywhere.

Truth is, many marketing agencies are restricted to their local markets. While these firms would in theory jump on a plane to take on a client nearly anywhere, most find in practice that only local clients are cost-effective given the traditional systems still employed.

10. Debt

The result of all of this expense in a world that is quickly shifting to leaner and smarter operations is that this much of the excess is carried forward in debt that comes at a premium paid to a bank in interest. That ongoing obligation is passed to clients along with the cost of all other inefficiencies.

Virtual companies that start fresh, using smart, lean and flexible systems of operation don’t carry years of bad investments in outmoded, expensive systems on their backs. In fact, as traditional marketing agencies continue to lose clients and market share to these more adept modern firms, the additional debt taken on to stay alive will eventually lead to the extinction of the slow, bloated traditional marketing company as we know it.

photos: Flickr: Christ0ff, chrisdlugosz

Tricks of the Trade: 7 Secrets to Conquer Your Next Trade Show

Ah, yes, the trade show circuit. If you're a small- to medium-sized business just breaking into the scene, it may feel as though you have quite a steep learning curve ahead. But it’s one that’s well worth your while, as few events can compete with trade shows in the sheer volume of exposure and opportunities for networking with clients, prospects and industry leaders that they offer. And with careful planning and strategic execution, your company can be well positioned to go head-to-head with even the most formidable Goliaths in your field.

But wait, you say, how can I hope to compete when they have far more money and resources to spare? Here’s the secret: what really gives the big firms their advantage isn’t necessarily their gargantuan budgets; it’s their experience. They’ve been in the game long enough to know what works and what doesn't, which allows them to sharpen their focus and avoid potential pitfalls.

To help level the playing field, here are the insider secrets that you need to know to conquer your next trade show without blowing your budget.

Secret #1: Bring plenty of firepower.

By firepower, I mean people. You can't just park a couple of employees in your booth and hope for the best.

Of course, you should man your booth at all times, but it takes more than that if you want to play ball with the big boys.

First of all, you need the right people at the booth. Not everyone can talk with potential customers, understand their issues and respond with helpful solutions on the spot. You must call on your most experienced, most personable front-line employees to fill these slots.

Second, you need another team of people circulating the trade show. It’s up to you to seek out and create opportunities, not sit back and wait for them to come to you. So make sure you have another string of well-spoken, outgoing employees working the floor for you.

Secret #2: Attend alternate events.

Most trade shows include alternate events either on- or off-site. Always make sure your company is being represented at as many of these events as possible.

The trade show floor has its own tone and formality, but when you can get in front of potential customers – and competitors – in a less rigid corporate setting, you can often strike up casual conversation that plant the seeds for valuable long-term relationships.

Many trade shows also offer classes and workshops. Even if you don't need the information being presented, show up and meet people. See who’s there asking questions and follow up with them afterward. These kinds of conversations are critical for building relationships, and they're never going to happen spontaneously at your booth.

Secret #3: Corner your customers at their booths.

Another way to open the door to new sales opportunities is to go to meet prospective customers at their own booths.

It takes a special finesse to pull this off well. Companies attend trade shows to make sales, not to be sold to.

The key is to carefully select which prospects you should approach prior to walking the floor. Then be mindful of your timing. If your potential customer has a small crowd around their booth, it’s not the time to jump into the fray. But if they're sitting around and the crickets are chirping, then that’s your cue to walk up and introduce yourself.

Keep in mind, too, that as the trade show winds down, activity dwindles. This can be an excellent time to make the rounds to the prospects you've scouted out. You don't want to interrupt folks if they're breaking down their booths, so be considerate. If you have lots of customers you want to network with, save your coldest leads for the end of the trade show so that you don’t risk missing an important connection.

Secret #4: Collect contact information.

Always obtain information from your new contacts in any and every way you can – whether it’s by gathering business cards or just jotting down handwritten notes on the fly. It's not enough to collect the information, though. You need to have a plan.

Make sure you take notes as you go, for example. Develop a keyword system so you can move quickly while still providing useful cues to help you remember important details of your conversation.

Purchase a business card scanner that will scan and automatically populate the information from a card into your contacts system. Anytime you get a break during the day, scan your cards and augment each one with all of the details that you can remember from your encounter. When the day is over, it's going to be hard to remember which card belongs to the man you met at 8:30 a.m. who asked you to call him on Monday morning because he is highly interested in your services.

Secret #5: Garner intelligence on competitors.

While you’ll want to maximize the time you spend with customers and prospects, it’s also worth your while to make time to research your competitors. After all, how often do you get direct access to potentially senior-level sales staff in your competitors' companies?

Be ethical, but don't be afraid to hide your badge, either. You may only get a few brochures with their latest product details, but with a few well-placed questions, you could also uncover other critical information that could have a far-reaching impact on your business.

Secret #6: Don't skimp on printed materials.

Can you imagine the embarrassment and frustration of having a juicy prospect right in the palm of your hand only to have nothing to offer him as a take-away?

That’s why you never, ever want to run out of brochures, business cards and other printed materials. Have more than you need on-hand. Be sensible, but it's better to over-estimate than to run out.

Be very aware of your supplies, especially if you have multiple trade shows on the horizon. If you're getting low, now’s the time to order more – not when you’re trying to pack and ship everything to your booth.

Secret #7: Communicate with the event coordinators.

The most important people you can know before you arrive are the event coordination staff for both the event and the location. Often this may be the same person, but always find out for sure. The trade show itself sometimes has its own staff to help coordinate logistics and other details while the venue where the trade show is hosted may have a separate group. If something goes wrong, you need to have these people on speed dial (and, more importantly, you need them to know who you are when they answer the phone)!

Don't wait until a few days before the event to introduce yourself; be the early bird that gets the worm. Yes, these event coordinators may hear from hundreds or thousands of attendees, but reaching out never hurts. These folks can save your entire trade show because they know all the tricks and where to find things if something of yours is missing or needs to be replaced at the last minute.

Bonus secrets

Finally, here are a few more tricks you should have up your sleeve to help grease the gears at your show:

• Run a contest or drawing for a prize that people actually want.
• Offer coffee and snacks for those who stop by your booth.
• Arrange your booth in an open floor plan.
• Make eye contact with those walking by and greet them with a smile.

While these small details won’t necessarily make or break a sale, they all contribute to making your booth a place that feels welcoming and approachable to prospects. Remember, at the end of the day, we’re all just human, and sometimes a simple smile can be all that’s needed to disarm a passer-by and open the door to a great conversation.

Don't let a moment of your next (or first!) trade show event go to waste. Use these secret strategies to make the most of every opportunity it affords. With a solid plan of action and plenty of preparation, you’ll return to the office with a proud feeling of accomplishment and a large stack of valuable contacts that will make all of your planning and strategizing well worth your while.