Fear and Loathing When Hiring a Marketing Agency: Information You Need To Know To Make A Wise Decision

We at DeWinter Communications, Inc. are known for being a bunch of straight shooters, and we call it like we see it. We are creative and resourceful. But we’re also solid Midwesterners, and we sometimes have to roll our eyes at the things agencies say just to get your business.

So here -- for the record -- are some of the claims we have heard over the years, and our perspective on what it all really means. Hopefully, these insights will help you wade through the “marketing speak,” assess what’s right and true, and make a good decision on which agency truly is best for your company.

Claim No. 1: “We will get you great press because we personally know the media.”
This one really makes us sigh. You see, Courtney DeWinter, the company president, has a journalism degree and has worked as a reporter, staff editor, and managing editor. Simply put, this claim is bunk. Why? No reporter out there will cover a story just because they know the PR person. Their reputation is on the line every time a story appears with their name on it. The only thing that might happen is that a reporter might actually take your call, or return your call because they know you. They will NOT write a story out of personal friendship. Furthermore, reporters usually are assigned to “beats,” or specific topic areas. You have your real estate reporters. Your finance reporters. Your political correspondents, and so on. And while there are plenty of reporters and editors who cover the same topic area for years, there are just as many who change beats frequently and even change publications. So as marketing folks are claiming they know a reporter in your industry or topic area, it’s quite possible that that media contact person has just been transferred to a new beat.
The Question(s) To Ask: When was the last time a reporter wrote a story for you out of personal friendship? And how often do you re-verify your media lists to account for changes in staff and beats?

Claim No. 2: “The agency principal really knows your industry.”
Guess what? Unless you can afford to pay the $200/$250-per-hour rates (or more) of the agency principal at a traditional marketing or PR agency, your work will be funneled to a more affordable account executive. The smaller your budget, the more junior-level the person who will be assigned to handle the work.
The Question(s) To Ask: Who will really be doing the work on my account on a daily basis? And how many years of experience do they have?

Claim No. 3: “We can do this job for you.”
No question, there are plenty of agencies with top-level expertise and a depth of experience. And there are just as many more “consultants” who don’t have experience in the work they are planning to do for you. So here’s our question: how can a consultant do a quality job of directing a project if they don’t have any experience in that particular area? You would be surprised how many “consultants” take on the work for which they have no experience, imply that they can and will do the work, and then subcontract the work out to someone you will never see, meet, or know about. (And then they mark it up, to boot.)
The Question(s) To Ask: Do you actually have experience in this? Please give me some examples and references. And will you actually be the person doing this work? If not, who will actually be doing the work for us?

Claim No. 4: “This won’t cost much at all.”
The typical scenario we see happening is that agencies hungry for work (to feed all that overhead of big offices and full-time staffs) will offer you a really low price for a job, just to get you in the door. But remember this: if it sounds to good to be true, it usually is. And if they are going to charge below market rate for a specific job, it’s because they really need the work NOW and they intend to make it up over time. That first low-cost job is what we call a “loss-leader.” They are willing to lose money on the job to get the business long-term, and eventually, the money they lost will be billed back to you on other jobs. Alas, nothing in this life is free.
The Question(s) To Ask: What’s the billing rate for this project? And what would the billing rate be for future projects? How can you afford to bill this project at 50% lower prices than the other bidders?

Claim No. 5: “We have special software that will make it really cheap to work with us.”
Ha! We love this one. The bottom line is that good marketing and public relations are part science, part experience, and part intuition. There’s no software in the world that will do all this. The only way this claim really holds any water is when a marketing company buys some software that integrates tasks like media list building, and media distribution. But again, the real art and strategy comes with how to craft a story, NOT building media lists and distributing press releases. And guess what? The premier software for media lists and distribution costs $10,000 per year, with a “cheaper” version with less functionality that costs $7,000 a year. You will be absorbing those costs; the question is how much of that will you be absorbing? Sometimes it is a better deal to just build the lists and send out releases as you need to do so. Again, nothing in this life is free, and no agency out there is going to buy software for $10,000 and not bill you for it.
The Question(s) To Ask: What specifically is this special software? What does it do? Is it off-the-shelf software or a custom application? What’s the real value of this software and how will it lower the budget?

Well, that’s it for now. We’ve probably made a few people mad by pulling the lid off these claims and shining the light of day on them. But that’s ok. We personally don’t think the business model of the traditional marketing agency serves anyone except the agency principals. It certainly doesn’t serve their client companies, especially in these economically challenged times when every dollar counts.

If you like our straight shooting here, then give us a call. At a minimum, you’ll probably walk away refreshed at such plain speaking.