Over the past few months, there has been a noticeable trend in the Search industry: many agencies are facing significant challenges. Reports from industry colleagues indicate a loss of clients and difficulties in acquiring new ones. While this could be attributed to economic factors or other influences, the root cause remains speculative. Regardless, it is evident that numerous agencies are struggling. Here are some insights, strategies, and recommendations to navigate these tough times.
Background and Expertise
Having worked in SEO since the late 1990s, I’ve seen the evolution of search engines from AltaVista and Excite to the giants we know today. My career spans roles as a webmaster, SEO specialist, co-founder of the Dallas/Fort Worth Search Engine Marketing Association (now State of Search), and agency leader. Since founding my own consulting business in 2016, I’ve observed fluctuations in the digital marketing industry. Agencies have faced similar challenges before, with periods of struggle leading to layoffs, mergers, or even closures. Currently, it appears we are entering another such phase.
Strategies for Agencies
1. Focus on Current Clients: Evaluate the success of current clients and prioritize what works. If SEO is underperforming but PPC is thriving, reallocate resources accordingly. Cross-train employees to handle multiple facets of digital marketing, ensuring a versatile team that can adapt to shifting client needs. Scaling successful strategies for existing clients can help stabilize revenue.
2. Reduce Reporting Overhead: Agencies often spend excessive time creating detailed reports at the expense of producing results. Communicate with clients about reducing the frequency of reports, focusing instead on tangible outcomes like increased sales, leads, and traffic. This shift can free up valuable time for account managers to engage in more impactful marketing activities.
3. Treat Your Agency as a Client: Invest time in your own agency’s marketing. Assign a dedicated team to produce content, optimize the agency website, and engage in public relations. By enhancing your agency’s online presence, you can attract new clients and strengthen your market position.
4. Develop Agency-Owned Websites: Consider creating niche-specific websites if you have clients concentrated in certain industries. For instance, if you serve many travel or legal clients, develop content-rich websites in these areas. These sites can become valuable assets, offering promotional opportunities for clients and generating additional revenue.
5. Form Strategic Partnerships: Collaborate with other agencies that specialize in complementary services. If your agency excels in SEO but not PPC, partner with a PPC-focused agency. Similar partnerships can be formed with social media, web design, and PR firms, broadening your service offerings and client base.
6. Engage in Networking: Attend local business events, such as those hosted by the BBB or Chamber of Commerce. Networking can help build relationships and attract new clients. This old-fashioned approach remains effective in expanding your agency’s reach.
7. Offer One-Time Services: While long-term contracts provide stable revenue, offering one-time services can generate quick cash flow. Services like SEO audits, content audits, social media audits, and website migration assistance can attract clients who may later commit to ongoing services.
8. Adjust Employee Compensation: Consider transitioning full-time employees to independent contractors (1099). This allows for flexible, hourly-based work while maintaining employment. Employees can also take on additional work elsewhere, providing them with stability and your agency with necessary labor.
9. Explore Mergers and Acquisitions: Merging with another agency can be mutually beneficial, especially if both are struggling. Agencies with complementary strengths can combine resources and expertise. Alternatively, selling your agency to a growing firm can provide an exit strategy and ensure continuity for your clients.
10. Stay Adaptable: The digital marketing landscape is ever-changing. Being willing to pivot your strategy and adapt to new market conditions is crucial. Whether it involves shifting your service offerings or exploring new business models, flexibility can help you navigate challenging times.
Currently, many agencies, including freelancers, are experiencing difficulties. However, the search industry still offers ample opportunities. By implementing these strategies and remaining adaptable, agencies can continue to thrive despite economic uncertainties. The dynamic nature of digital marketing ensures that there is always room for innovation and growth. Want some more specific details? See Bill Hartzer’s latest blog post:
10 Options When Your Digital Marketing Agency is Struggling
https://www.billhartzer.com/search-engine-marketing-firms/10-options-when-your-digital-marketing-agency-is-struggling/