Last BFCM, we made a brand $135,499 from email marketing.
42% of revenue.
We were paid 15% ($20,324.85) π€
Sounds great, right?
Wrong.
The month after this invoice was paid, they took things in-house.
It sucked, but here's what I learned to never have this happen again π§΅
42% of revenue.
We were paid 15% ($20,324.85) π€
Sounds great, right?
Wrong.
The month after this invoice was paid, they took things in-house.
It sucked, but here's what I learned to never have this happen again π§΅
1. LTV > Anything else.
At this time, it was only my 2nd BFCM while owning an agency.
Needless to say, I valued the short-term payment over the long-term relationship with a client.
There was never any bad blood.
At this time, it was only my 2nd BFCM while owning an agency.
Needless to say, I valued the short-term payment over the long-term relationship with a client.
There was never any bad blood.
But instead of restructuring our deal to prolong our relationship, I was dead set on us being paid the percentage we had agreed upon.
At the time, we almost felt untouchable (stupid), and the thought of losing this client after performing so well wasn't even on our radar.
At the time, we almost felt untouchable (stupid), and the thought of losing this client after performing so well wasn't even on our radar.
Well, boy, was I wrong.
At any moment, you can be replaced.
Even if that is a lesser replacement.
No matter how much money you make a brand, everyone gets a little tense when paying commission like this.
At any moment, you can be replaced.
Even if that is a lesser replacement.
No matter how much money you make a brand, everyone gets a little tense when paying commission like this.
2. Shared Vision.
Like I said before, my inexperience caused this L.
One thing we always ensure to build with our clients now is a shared vision. (ideally, we are a part of that vision for a long time)
Like I said before, my inexperience caused this L.
One thing we always ensure to build with our clients now is a shared vision. (ideally, we are a part of that vision for a long time)
In this situation, not only was there a lack of communication about a shared vision.
But there was a lack of communication overall.
Instead of understanding the client's financials to the best of our ability.
But there was a lack of communication overall.
Instead of understanding the client's financials to the best of our ability.
We glazed over this, which was an error on both sides.
Agreeing to 15% revenue for this brand was a real killer with margins close to 30%.
NOW, a part of this shared vision is understanding where we can fit within the brand's finances and still maximize profit for our agency.
Agreeing to 15% revenue for this brand was a real killer with margins close to 30%.
NOW, a part of this shared vision is understanding where we can fit within the brand's finances and still maximize profit for our agency.
3. Avoiding this.
In the agency space, this is a never-ending cycle.
Unfortunately, no matter how good you are.
You're not avoiding this.
Clients will leave.
But what you can do is focus on bringing synergy to your partnerships to minimize this.
In the agency space, this is a never-ending cycle.
Unfortunately, no matter how good you are.
You're not avoiding this.
Clients will leave.
But what you can do is focus on bringing synergy to your partnerships to minimize this.
Whether it's being paid less upfront to prolong the LTV of a relationship. (and eventually make more money)
Or whether it's negotiating better-structured deals for that shared vision. You can only focus on what you can control to avoid these types of situations.
Or whether it's negotiating better-structured deals for that shared vision. You can only focus on what you can control to avoid these types of situations.
Luckily for you, you can learn from my mistake.
Be proactive in these situations.
It goes a long way when YOU reach out to a client to renegotiate a better deal on their behalf to prolong your relationship together.
Be proactive in these situations.
It goes a long way when YOU reach out to a client to renegotiate a better deal on their behalf to prolong your relationship together.
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At my agency weβre EXPERTS in all things paid traffic & email/sms marketing.
Our Credentials:
- Trusted by 50+ e-commerce brands
- Average client partnership is 12/mo+
Letβs schedule a call and see if weβre a great fit to help you scale! π
calendly.com
Our Credentials:
- Trusted by 50+ e-commerce brands
- Average client partnership is 12/mo+
Letβs schedule a call and see if weβre a great fit to help you scale! π
calendly.com
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