Sabri Suby says agencies beat in-house teams for businesses under $5 million in revenue because you get copywriters, media buyers, and techs for one retainer without payroll headaches. Once you hit $5M, building your own team makes more sense.
Hey guys. This week on hey Su. I'm answering ha memes question on how to convince the client that a marketing agency is better than having an in house marketing team. This is a great question. Look, the short answer is it's not always right, it's not always best to go with an agency than it is to build an internal team. The way that I look at it is marketing agents is a phenomenal tool to use when your kind of business is doing anything probably under around $5 million a year. And the reason for that is basically if you think about if you're just one or two people in the beginning and you're trying to go out there and grow the business and you think about all the different mediums and all the different channels that you can advertise. If you're trying to hire a position to do that, for instance, right. Let's just say that you want to start running Facebook ads. Like just running Facebook ads isn't enough because then you need somebody that can write copy and that can build funnels and can do all the media buying for you and the reporting and the analytics and all of those kind of things. Right. And finding those unicorn positions. One, if they're a jack of all trades, they're gonna be a master in none. So then if you think about, okay, cool, that's just like literally just Facebook. And then if you think about Google Ads and that's a whole nother beast, and then there's the copywriting and the funnels, then you need to know Infusionsoft or HubSpot or ActiveCampaign or click Funnels and all of the things off the back of that, like if you try to think about what it's gonna cost you to kind of build a marketing team in that environment, you're gonna need to have at least three to four positions. And if you're looking at three to four positions and if you think about the salaries for those, you know you're going to be looking at a couple of hundred grand over the course of the year. Right. And for most businesses, especially the ones that don't have a huge, huge revenue when they're just getting started, that's not going to be something that's going to be affordable for them to do. Right. And it's not the best use of their money in the beginning. You want to go with an agency that you can hire for three, four, five grand a month and then they've got a four team that can do all of those things. So you just come to them with the problem, I need more customers. They prescribe the solution, and then you get the people, you get all the copywriters, and you get the ad guys, and you get the techs that can set up all the tag managers and make sure the pixels are firing all correctly and everything makes sense. So when you're kind of speaking with a prospective client about hiring you, and there's a debate around building out a team, there's pros and cons on both sides of it. If you look at, from a digital marketing agency standpoint, you basically pay the one retainer and you get access to everybody, right? And they have to solve all the complexities, they have to hire people, they have to pay the holiday staff and the payroll tax and everything that's involved with that. And if someone leaves that agency, that intellectual property of your business and how you get leads and how you get customers, it stays within the agency, and. And that just gets passed on to the next person that's gonna be looking after that account, right? Where if you're building an internal team and you're hiring that one unicorn person that's gonna do a few, or you're hiring a few people, people leave, right? And when they leave and they're in house, that's like all the intellectual property runs out the door with them. And then people are sick, and then there's a whole lot of different complexities with it. So it only makes sense when you've got, I say, 5 million plus in revenue, because then you can justify building out an internal team. Okay, this makes sense financially for us right now. So that's the conversation that you want to have directly with your client. And just say, like, look, there are pros and cons, because there is, right? And these are the advantages that we offer, and this is how we can help you solve the problem. And we can just take this paying sick leave and all annual leave and all, everything that's in payroll tax that's involved, and we can just do all of that for you. And we've got a full team of guys here that can basically just do everything that you need. All the copywriting, all the ad buying, the SEO, the websites, the tech stuff, and you don't need to worry about that, and you can focus on growing your business. So that's how I would handle that question. Hey, guys, if you enjoyed this video, make sure that you click the like button and subscribe. We're dropping a video on YouTube every other day, and if you've got any questions about any of the content that I covered in this video just basically leave a comment with heysubri in the comment section. And every week we're also trying to go through all those questions and get them answered. So go ahead, click subscribe, and we'll see you in the next video. It.
