Why Small Marketing Agencies Fail

In the sales world, it’s common for agencies to fall out and in many cases, the blame game often goes something like this: The agency faults the customer for expecting too much a return or for not providing enough time for the agency to make things happen. Both sides have valid points and often a simple chat with the customer can resolve these issues quickly and without the need for an argument. However, sometimes there’s a stubborn client that won’t budge no matter how many times you try to talk him down. And it’s at times like this that the best option is to start searching for a news agency. Here are 4 reasons why agencies fail and how to avoid them.


One of the main reasons that most marketing agencies fail is that their client base leaves them struggling so much. Most marketing agencies rely on a small group of highly targeted leads who may not be worth very much money per lead. These leads will most likely not convert to clients. This is because most clients are after-the-market type people who buy once and don’t want to be sold again. Most marketing agencies only focus on this one audience and end up with unprofitable campaigns that cost more than they earn.


Bad campaigns:

Marketing agencies also tend to spend a lot of money on badly executed campaigns. They hire people who don’t know the market well and don’t know what kind of campaigns work. They also tend to use less-than-optimal methods that yield minimal results. Many campaigns go months without being worked on which leads to eventually give up. If you want to run an effective campaign, do it yourself.

Marketing/Advertising Agencies:

One thing that all ad agencies have in common is that they are dependent on clients to promote their products. There is very little room for creativity or innovation in the advertising agencies’ business goals. Clients want to see a return on their advertising investments. The sales goals are based strictly on making as much money as possible.


If your marketing strategy

relies on selling the same old product to a new set of buyers, you aren’t likely to make many sales. The big names in the industry are all about constantly changing and innovating, but advertising agencies have a very boring and stale way of doing business. They use outdated tools and techniques that don’t spark much enthusiasm from clients. These agencies try to sell the same old product to the same old clients. While this is a viable model for big companies that can afford to make expensive mistakes, agencies in this business are usually too small and lack the resources to be able to take risks on untested theories.


Look For Creativity

When Selecting an Advertising Agency: Marketing agencies should try to be more creative and proactive in how they do business. Even if an agency has a good idea, it may not be financially sound. A marketing agency should try to pitch an idea to a client that can be executed with a small up-front investment. It is the agencies’ job to create an atmosphere that is attractive to new clients, while also maintaining a strong financial base. Many agencies will take a risk on relatively unknown artists if they feel that they have a great chance of turning that artist into a major label artist.

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