Eric Deeran says marketing agencies chase leads and followers without understanding your P&L, so they're not incentivized to drive actual sales. He recommends allocating 20-25% of your total P&L to marketing and managing campaigns from that financial perspective, which agencies typically ignore.
And agencies will send you reports like, this is how many leads we're getting, how many followers we're getting, what our engagement is, when at the end of the day they also don't understand your P&L like you do. And so they're just trying to get you leads and calls and they're not incentivized to actually get you more sales, right? Because they can't see the whole process. They can't see your P&L like you do. And so you understand from a P&L perspective, hey, we can spend this much on marketing. And typically what we recommend is you can spend up to 20 to 25% on marketing as a total part of your P&L, right? But these agencies don't understand that and they're not looking at that to optimize your campaigns like you do.
