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The Agency Network Effect
how and why to outsource your
 client work to other agencies.
Spencer
                POWELL
                @spowell24


             Fantasy Football
             Name: Royal Flush




#inbound12
Agenda

       1.    Why Outsource?
       2.    What Are Your Goals?
       3.    Agency Lifecycle
       4.    Selecting a Partner Agency
       5.    Executing a Partnership




#inbound12
1
             WHY
             OUTSOURCE?
             leverage outsourcing and
             grow




#inbound12
stack
             revenue.

#inbound12
Sell 1 Retainer per Month
                     Year 1    Year 2     Year 3     Year 4
        Jan          $500      $6,500     $12,500    $18,500
        Feb          $1,000    $7,000     $13,000    $19,000
        Mar          $1,500    $7,500     $13,500    $19,500
        Apr          $2,000    $8,000     $14,000    $20,000
        May          $2,500    $8,500     $14,500    $20,500
        Jun          $3,000    $9,000     $15,000    $21,000
        …            …         …          …          …
        Dec          $6,000    $12,000    $18,000    $24,000
        Annualized   $72,000   $144,000   $216,000   $288,000

#inbound12
LEVERAGE
             “It is much easier to
             put existing resources
             to better use, than to
             develop resources
             where they do not
             exist.” ― George
             Soros.
#inbound12
minimize
                 risk.

#inbound12
Ladder Effect (without outsourcing)




                                      New Hires
                      Profit Zones

#inbound12
Ladder Effect (with outsourcing)




                                        New Hires

                       Profit Zone
#inbound12
2
             GOALS
             you gotta know where you’re
             going




#inbound12
Goals
       • Scale a 1 person business
       • Grow a small team
       • Grow a large team




#inbound12
scale
 as one.

#inbound12
grow a
             small team.

#inbound12
grow a
 large
 team.

#inbound12
3
             THE AGENCY
             LIFECYCLE
             where is your agency today?




#inbound12
THE AGENCY LIFECYCLE
Infant       Toddler    Child    Teen     Adult     Senior
     1          2-3        4-6     7-10     11-15      16+   Team Size

     ?           ?          ?       ?         ?         ?    Revenue



     ?           ?          ?       ?         ?         ?    Amount to
                                                             Outsource




#inbound12
Infant Stage
             •   1 Person
             •   $150K in revenue
             •   Outsourcing 75-100%




#inbound12
Toddler Stage

  •    2-3 people
  •    $300K - $450K in revenue
  •    Outsourcing 30-75%




#inbound12
Child Stage

             •   4-6 People
             •   $600K - $900K in revenue
             •   Outsourcing 20-30%




#inbound12
Teen Stage
  •    7-10 people
  •    $1M - $1.5M in revenue
  •    Outsourcing 10-20%




#inbound12
Adult Stage

             •   11-15 People
             •   $1.7M - $2.2M in revenue
             •   Outsourcing 5-10%




#inbound12
Senior Stage

  •    16+ people
  •    $2.4M + in revenue
  •    Outsourcing 0-5%




#inbound12
THE AGENCY LIFECYCLE
Infant       Toddler    Child     Teen     Adult     Senior
1            2-3        4-6       7-10     11-15     16+      Team Size

$150K        $300K -    $600K -   $1M -    $1.7M -   $2.4M+   Revenue
             $450K      $900K     $1.5M    $2.2M              (avg.
                                                              $150K/
                                                              head)
75-100%      30-75%     20-30%    10-20%   5-10%     0-5%     Amount to
                                                              Outsource
                                                              (workload)




#inbound12
Selecting a Partner Agency




#inbound12
Partner Agency Checklist
             info.tmrdirect.com/checklist




#inbound12
How to Execute a Partnership




#inbound12
Conclusion
  Why Outsource?
  1. Stack Revenue
  2. Gain Leverage
  3. Minimize Risk
  4. Achieve Your Goals

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How to Outsource Your Inbound Marketing Services to Other Agencies

  • 1. The Agency Network Effect how and why to outsource your client work to other agencies.
  • 2. Spencer POWELL @spowell24 Fantasy Football Name: Royal Flush #inbound12
  • 3. Agenda 1. Why Outsource? 2. What Are Your Goals? 3. Agency Lifecycle 4. Selecting a Partner Agency 5. Executing a Partnership #inbound12
  • 4. 1 WHY OUTSOURCE? leverage outsourcing and grow #inbound12
  • 5. stack revenue. #inbound12
  • 6. Sell 1 Retainer per Month Year 1 Year 2 Year 3 Year 4 Jan $500 $6,500 $12,500 $18,500 Feb $1,000 $7,000 $13,000 $19,000 Mar $1,500 $7,500 $13,500 $19,500 Apr $2,000 $8,000 $14,000 $20,000 May $2,500 $8,500 $14,500 $20,500 Jun $3,000 $9,000 $15,000 $21,000 … … … … … Dec $6,000 $12,000 $18,000 $24,000 Annualized $72,000 $144,000 $216,000 $288,000 #inbound12
  • 7. LEVERAGE “It is much easier to put existing resources to better use, than to develop resources where they do not exist.” ― George Soros. #inbound12
  • 8. minimize risk. #inbound12
  • 9. Ladder Effect (without outsourcing) New Hires Profit Zones #inbound12
  • 10. Ladder Effect (with outsourcing) New Hires Profit Zone #inbound12
  • 11. 2 GOALS you gotta know where you’re going #inbound12
  • 12. Goals • Scale a 1 person business • Grow a small team • Grow a large team #inbound12
  • 14. grow a small team. #inbound12
  • 15. grow a large team. #inbound12
  • 16. 3 THE AGENCY LIFECYCLE where is your agency today? #inbound12
  • 17. THE AGENCY LIFECYCLE Infant Toddler Child Teen Adult Senior 1 2-3 4-6 7-10 11-15 16+ Team Size ? ? ? ? ? ? Revenue ? ? ? ? ? ? Amount to Outsource #inbound12
  • 18. Infant Stage • 1 Person • $150K in revenue • Outsourcing 75-100% #inbound12
  • 19. Toddler Stage • 2-3 people • $300K - $450K in revenue • Outsourcing 30-75% #inbound12
  • 20. Child Stage • 4-6 People • $600K - $900K in revenue • Outsourcing 20-30% #inbound12
  • 21. Teen Stage • 7-10 people • $1M - $1.5M in revenue • Outsourcing 10-20% #inbound12
  • 22. Adult Stage • 11-15 People • $1.7M - $2.2M in revenue • Outsourcing 5-10% #inbound12
  • 23. Senior Stage • 16+ people • $2.4M + in revenue • Outsourcing 0-5% #inbound12
  • 24. THE AGENCY LIFECYCLE Infant Toddler Child Teen Adult Senior 1 2-3 4-6 7-10 11-15 16+ Team Size $150K $300K - $600K - $1M - $1.7M - $2.4M+ Revenue $450K $900K $1.5M $2.2M (avg. $150K/ head) 75-100% 30-75% 20-30% 10-20% 5-10% 0-5% Amount to Outsource (workload) #inbound12
  • 25. Selecting a Partner Agency #inbound12
  • 26. Partner Agency Checklist info.tmrdirect.com/checklist #inbound12
  • 27. How to Execute a Partnership #inbound12
  • 28. Conclusion Why Outsource? 1. Stack Revenue 2. Gain Leverage 3. Minimize Risk 4. Achieve Your Goals

Editor's Notes

  1. “HubSpot Keynote” will be replaced with the name of your track
  2. TMR-been in business for 40 years-Hubspot VAR for 2 years-Agency Partnerships and Outsourcing has always been a part of our strategy – we’ve worked with many, many agencies over the years both outsourcing to agencies and being a resource for agenciesSince becoming a VAR, we’ve been developing and perfecting our inbound marketing service offering so that we can help other inbound agencies and marketing professionals grow
  3. Image Source: http://www.gadgetgrid.com/2008/11/14/dado-stacking-cubes-the-blues/
  4. Image Source: http://www.saskatoonlibrary.ca/node/626/
  5. Image Source: http://www.pensionriskmatters.com/articles/insurance/
  6. Image Source: http://thenewpioneers.biz/2010/08/26/qualitative-growth-wanted/
  7. Image Source: http://geektyrant.com/news/2012/1/3/geek-art-tiny-team-fortress-2.html
  8. Image Source: http://commons.wikimedia.org/wiki/File:Full_Spectrum_Team_Waving.jpg
  9. Image Source: http://www.toonvectors.com/clip-art/cartoon-baby-superhero/3729
  10. Image Source: http://www.childcostumes.com/child_robin_costume.html
  11. Image Source: http://www.childcostumes.com/child-superman-costume.html
  12. Image Source: http://www.costumediscounters.com/teen-costumes/super-heroes.html
  13. Image Source: http://barbaricpoetries.blogspot.com/2011_10_01_archive.html
  14. Image Source: http://www.trendhunter.com/slideshow/quirky-superhero-re-imaginations
  15. Image Source: http://www.maurilioamorim.com/2012/01/how-to-form-a-great-partnership/