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What You Should Do (And Shouldn't Do) When Selling Digital Agency

In episode thirty four of #AskSwenk, I discuss what you should do (and shouldn't do) when selling digital agency, plus how to compensate referral agencies and how to follow-up when a prospect goes dark.

{1:08} Amy asked: "I'm in negotiations to sell my marketing agency. What should I be aware of? Pitfalls to avoid?"

You need to determine why is the other agency or business interested in buying your agency?

  • Revenue?
  • Location?

It's important to figure this out for the leverage of your agency and make sure to ask them the same questions they ask about your business to evaluate if they can afford you. You should also keep the fact you are considering selling confidential to avoid potentially losing clients.

{5:57} Scott asked: "What are your thoughts on paid referrals or partnerships between agencies? For example, your agency refers me work I pay you x% commission. "

This can be done a couple of different ways but depends on how big projects or retainers are. For a good strategic partnership to work, it should work both ways when it comes to referrals with a sliding scale for commission percentages.

{7:38} Stuart asked: "We are walking our clients through the proposals, in person, as per your advice. However, we still find that once we have done this, the client then goes quiet on us (never a good sign). How do we persistently, yet politely, follow up to expedite this last stage of the sale and to find out if we are their preferred supplier?"

A client going silent is a bad sign but you can probably trace it back to the first conversation you had with the client.

  • Do they have the budget for the project?
  • Do they have the authority to make decisions for the project?
  • Do they have realistic timing?

This will help you with your follow up strategy by following the three I's: Issue, Impact and In meeting scheduling.

Check out Ask Swenk Episode forty three for more related questions!

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