- Outlier Growth
- Posts
- How to choose an agency
How to choose an agency
Metrics to look at + how to compare
Read time: 1 min, 58 secs
Hey there - it's Brian 👋
This week, we signed THREE contracts.
➟ Cold email
➟ Twitter lead gen
➟ International payroll
So today I’ll share a few tips I wish I knew when I started comparing contractors.
How do you know who’s good? Who’s bad? Should you even use an agency?
We compared 7 agencies and we believe these email + Twitter lead generation agencies will add-on an extra $40k / month.
So it’s worth it if you get it right.
Today I’ll help you choose the right agency to grow your business.
Let’s make your business an outlier: 👇
Agencies are awesome. If… you choose correctly
There’s one MAJOR problem with agencies…
Anyone can start one.
So most suck.
But the top 5% are incredible.
To filter out the bad ones you’ll need to interview ~5 agencies before you sign.
These agencies will tell you their stats. Write them down in a doc to compare across agencies. I’ll share more on that in a sec.
If you’re starting a new marketing channel, always start with an agency.
You’ll move FAST. You’ll learn what works/what doesn’t.
Then eventually you can take those learnings in-house.
I offshore the marketers. But I’m biased because I have an offshore talent agency so we get good marketing talent.
🧔🏻♂️ Brian’s nerdy side rant:
My agency friends are paying $60,000 / year for 1 account manager.
I’m paying $16,800.
This means I can ALSO hire a tech developer and a ghostwriter for the same amount.
The work quality is amazing.
And for LatAm marketers?
Compared to Colombian companies:
One of my closest friends DOUBLED her pay by working for a US company (for $1,400 / month).
It’s a win-win.
I mean, this is our account manager. Our clients love her:
Okay back to evaluating agencies 👇
What metrics should you look for when evaluating agencies?
So for us different agencies tried to impress us with big numbers.
➟ Email sent
➟ Deliverability rates
➟ Show rates from meetings
➟ Expected meetings booked
But all we care about is getting quality customers. That’s it.
So we booked calls with 5 other agencies and kept all these benchmarks in a Google doc.
It made it 1,000x easier to compare who’s good.
So we’d convert the math to CAC (customer acquisition cost).
One agency charged us up to $1,000 per customer. Another down to $350.
How did we estimate CAC?
We estimate a 50% close rate. So how many meetings can they get us per month? Assume half those meetings turn into a sale.
Take your total spend with that agency that month (say it’s $2.5k) / your total number of customers expected for the month (let’s say 3 customers) = $833 CAC.
Write everything down. You’ll quickly forget which agencies have which benchmarks.
So let’s build
If the marketing agency is within your target CAC range, amazing.
But please have 3 - 5 vendor conversations.
It’ll make your life 1,000x easier when you start comparing benchmarks across agencies.
See you next Thursday 👋
P.S. Whenever you’re ready, reply “staffing” if you want offshore talent too.
Or grab time here. Whichever is easier. I’m here to help.
🙋 Vote: How did we do?
What did you think of today's edition? |