Episode Details

Do you know how to ensure you are guaranteeing leads for your business? If you are struggling with this as well as growing your team or how to prevent time lost to bad clients, this episode of Ask Swenk is the one you need.

In this video, I'll cover:

• What to do when a prospect wants you to guarantee leads.
• My #1 struggle in growing my agency team and 3 ways we overcame it.
• How to fire a terrible client so you can quit wasting time.

Lawrence asks: "A prospect is asking for us to guarantee the number of sales leads our digital marketing will create -- which is impossible and could change over time. How would you go about putting this into the proposal?"

Don't shy away from guaranteeing performance! Take pride and back your work.

I have NO issue with guaranteeing leads... DO IT! But, you cannot guarantee sales. Lead generation in your control, converting leads and the sales process is not.

3 steps to guaranteeing leads:

1. Determine a very specific criteria for qualified leads. Be very definitive on what a quality lead looks like.
2. Look at similar, past clients as a benchmark for your past performance.
3. Establish compensation at both a fixed level and performance level. For example, you get paid "X" rate for deliver "X" fixed amount of leads, and an additional "Y" rate for every lead thereafter.

Here's an interview with an agency owner who runs his business totally on a performance-based pricing model. He has over a 50% margin and a 95% close rate. Talk about qualifying leads!

Christina asked: "What were your biggest pain points in growing your agency from a just few people to more and how did you overcome them?"

The biggest struggle I had with growing my team was worrying about being able to afford them. Cash flow and making payroll was my #1 concern.

3 things that helped us overcome cash flow worries:

1. Project receivables. We looked for holes to forecast where cash flow would be an issue and then we could be proactive instead of reactive. We use these "holes" as deadlines to motivate the sales and leadership teams.

2. Change payment terms. We made recurring revenue (retainers) due upfront with incentives for prepayment for the entire contract period. Project payment terms changed to: 50% upfront, 25% due on a specific date or at a specific point in the project (whichever comes first), and 25% due upon completion or at a specific point in the project (whichever comes first).

3. Increase pricing. We increased our prices for both our existing and new clients. Once you make the decision on what agency you want to be, make the moves to act and charge like it.

Glenn says: "We need to get rid of a terrible client. They're not taking the hint, so I need to formally drop them. A lot of thought went into this decision and they must go. How would you go about it?"

Congratulations! I'm so proud that you've realized it time to get rid of this client.

I have a motto: There's no such thing as a BAD agency client - just a bad prospect or bad process. It's OK that your process let a bad prospect sneak it and it's awesome that you're ready to get rid of them. Here's what you need to do:

1. Check the language in your contract to see how much lead to time you need in order to end the relationship. Abide by the contract at all costs.

2. Listen Now