Latest / The Empire of Wealth / I_ve Done _1B in Sales. Here_s Why I_d Fire Most Agencies

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I_ve Done _1B in Sales. Here_s Why I_d Fire Most Agencies · The Empire of Wealth

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  Speaker 1: If you're paying a marketing agency right now, hold off
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  Speaker 1: on the next invoice because in the next 15 or
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  Speaker 1: so minutes, I'm going to show you exactly why you
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  Speaker 1: should fire them. For those that don't know me, my
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  Speaker 1: name is Davey Fogarty and I've done over a billion
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  Speaker 1: dollars in e-commerce sales. I spent hundreds of millions of
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  Speaker 1: dollars through advertising platforms as well as hundreds of thousands
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  Speaker 1: of dollars to agencies. In this video, you're going to
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  Speaker 1: learn multiple things such as a quick five minute check
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  Speaker 1: to check if your agency is actually doing any work,
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  Speaker 1: as well as the clear mass that you need to
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  Speaker 1: understand before hiring an agency, as well as how to
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  Speaker 1: migrate from your agency for free and take control of
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  Speaker 1: your business. Now, quick disclaimer, I'm not completely against agencies
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  Speaker 1: in all situations, just probably 90% of the situations for
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  Speaker 1: most of the founders that I mentor. Some of the
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  Speaker 1: founders I've worked with work with great email or Google agencies,
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  Speaker 1: and that's simply because Google isn't the main driver, the
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  Speaker 1: main reason their business is growing. What I am against
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  Speaker 1: is this situation. The founder is completely reliant on Facebook.
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  Speaker 1: It's the main thing driving customers. And they hand it
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  Speaker 1: off to an agency and the agency then hands it
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  Speaker 1: off to a junior that they're training up and nobody
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  Speaker 1: is actually looking at the main driver of the business.
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  Speaker 1: You as a founder need to take control of these
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  Speaker 1: key things of your business and understand all of the
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  Speaker 1: inputs that are being done on a daily basis to
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  Speaker 1: drive the business forward through volume and and consistency. So
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  Speaker 1: first things first, how can you check if your agency
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  Speaker 1: is doing any work right now? You simply go to Facebook,
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  Speaker 1: select all of the campaigns here, then you simply click
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  Speaker 1: see history and you can see if your Facebook ad
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  Speaker 1: agency has actually done any work in the past few days. Realistically,
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  Speaker 1: they should be getting in and adjusting budgets at least
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  Speaker 1: every two days and probably uploading creatives every seven days
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  Speaker 1: if that's in your contract. The math. This can get
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  Speaker 1: a little bit complicated for the larger businesses out there. However,
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  Speaker 1: for most businesses out there spending $ 10, 000, $ 20, 000 on Facebook ads,
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  Speaker 1: there's a good chance your Facebook agency is costing you
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  Speaker 1: way too much relative to the amount that you're actually
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  Speaker 1: spending on the platform. For example, I recently posted a
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  Speaker 1: video where I was helping a brand called Snacket. Founder
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  Speaker 1: Carla was using a Facebook agency and the Facebook agency
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  Speaker 1: was costing about $ 3, 000 a month. Now the Facebook agency
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  Speaker 1: wasn't doing anything inherently wrong. The only problem was Carla
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  Speaker 1: was only spending about $ 6, 000 on ads every single month.
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  Speaker 1: That means that an extra 50% of your ad spend
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  Speaker 1: is being added on to just manage the ads. If
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  Speaker 1: we want to simplify the math, let's take a business
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  Speaker 1: that is needing a break-even ROAS of two, meaning for
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  Speaker 1: every single $ 1 that you put into Facebook, you need
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  Speaker 1: $ 2 back. Let's say they're spending about $ 3, 000 a month
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  Speaker 1: on the platform, and then they're paying an agency $ 3, 000
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  Speaker 1: a month. This takes the total ad cost to $ 6, 000
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  Speaker 1: a month. This then means we actually need a 4x
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  Speaker 1: return on ad spend in the platform, which drastically reduces
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  Speaker 1: our ability to spend to acquire customers. Whereas if we
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  Speaker 1: cut the agency out, now again, we only need the
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  Speaker 1: 2x to be profitable. As a rule of thumb for
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  Speaker 1: businesses around this size is your agency shouldn't be costing
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  Speaker 1: you more than 10, 20, 30% of your ad spend
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  Speaker 1: in the account. 10% of $ 3, 000 is obviously just $ 300
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  Speaker 1: and you're not going to get a good media buyer
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  Speaker 1: or good agency to run the account for $ 300. So
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  Speaker 1: you need to do it yourself. Now the business snacket
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  Speaker 1: that I mentioned before, the founder Carla, she took over
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  Speaker 1: the ads after we showed her exactly how to run it.
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  Speaker 1: She simplified the structure with what I'm going to show
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  Speaker 1: you later on in this video and it actually improved
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  Speaker 1: results drastically and she had her first ever profitable month
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  Speaker 1: the month after we did all of those changes. Now,
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  Speaker 1: Carla would probably tell you herself that she is non-technical,
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  Speaker 1: doesn't have any Facebook experience prior to this. However, she's
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  Speaker 1: incredibly confident now in the process after just spending a
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  Speaker 1: couple of weeks learning it. Now, it's worth noting here
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  Speaker 1: the changes in Facebook over time. When I was starting
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  Speaker 1: out my businesses and running all of my ads about five,
• 4:01
  Speaker 1: six years ago, I'm becoming a dinosaur. But I would
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  Speaker 1: have to create all of these complicated lookalike audiences and
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  Speaker 1: At one point, the main strategy actually in Facebook was
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  Speaker 1: to create hundreds and hundreds of campaigns, all very, very
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  Speaker 1: small budgets, because somehow just algorithmically that would perform better.
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  Speaker 1: But Facebook has pretty much one objective at the moment
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  Speaker 1: to make you spend more money, which is make it
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  Speaker 1: incredibly simple and accessible for any beginner to be able
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  Speaker 1: to run successful and profitable Facebook ads. Pair this with
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  Speaker 1: Facebook just getting smarter and smarter with its ability to
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  Speaker 1: target properly. Now, this is the massive problem with some
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  Speaker 1: Facebook agencies at the moment. They're charging you for that
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  Speaker 1: simple structure that will take you 10 minutes to learn.
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  Speaker 1: So let's say we don't want to use our agency anymore.
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  Speaker 1: The next steps is critical. There's multiple ways that you
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  Speaker 1: can stuff up the next steps and then draw the
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  Speaker 1: wrong conclusion that the agency was actually helping. The first
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  Speaker 1: is the ad account structure transition. Now, ideally, the agency
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  Speaker 1: was using the right ad account structure, which is just
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  Speaker 1: a broad-based Advantage Plus CBO campaign where you're introducing 5, 10,
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  Speaker 1: 20 creatives depending on your size every single week into
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  Speaker 1: new ad sets, but then letting Facebook do all of
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  Speaker 1: the heavy lifting. However, if they're not, there's a bit
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  Speaker 1: of a process that you need to go to. First
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  Speaker 1: of all, we're going to launch that broad-based structure. Secondly,
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  Speaker 1: we're not going to turn off all of the winning ads,
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  Speaker 1: all the winning campaigns that are already running. That's just
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  Speaker 1: going to stop momentum dead in the track and reset learning.
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  Speaker 1: We want to start using the better structure every single
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  Speaker 1: day going forward, trying to consolidate as many ads into
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  Speaker 1: ad sets as possible and then just leave them untouched.
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  Speaker 1: And then we want to slowly turn off, let's say
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  Speaker 1: something isn't spending for two to three weeks in their
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  Speaker 1: old ad account structure. We might turn that one off
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  Speaker 1: just so we can start shifting things across. Eventually, you
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  Speaker 1: may want to consider grabbing those old spenders that have
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  Speaker 1: stopped spending for some reason, maybe a month later, and
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  Speaker 1: dragging them across into your broad-based structure because maybe they'll
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  Speaker 1: become an integral part of that funnel. Where it does
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  Speaker 1: get a little bit more complicated is where the Facebook
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  Speaker 1: agency is actually creating creative for you as well. Because
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  Speaker 1: as I talked about before, the broad-based targeting, the complete
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  Speaker 1: freedom to Facebook about how to find your customers is
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  Speaker 1: kind of solved for you. But now the special source,
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  Speaker 1: the thing that you should be focused as a founder
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  Speaker 1: or investing in with an agency is the creative. However,
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  Speaker 1: what I found with a lot of the Facebook agencies
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  Speaker 1: at the moment is they're hiding behind. We're going to
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  Speaker 1: create you 10 creatives, but they're really basic, terribly created
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  Speaker 1: AI static images that take them 10 seconds to make.
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  Speaker 1: And more importantly, the founder doesn't know how to just
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  Speaker 1: go into the ad account and see that it's actually
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  Speaker 1: not that their creatives that the agency is making that
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  Speaker 1: is producing images. any of the revenue. The scariest example
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  Speaker 1: of this is I had a founder that was doing
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  Speaker 1: over $ 5 million and she's a smart founder and she
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  Speaker 1: had a personal brand. She was paying her agency a
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  Speaker 1: percentage of revenue. Over 3% of revenue was going straight
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  Speaker 1: to the agency and they were saying, we're creating all
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  Speaker 1: of these creatives for you. And then when logging into
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  Speaker 1: the account, we checked and it was just all of
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  Speaker 1: the social media posts that the person was already creating
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  Speaker 1: as a top performer, meaning that this person was paying
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  Speaker 1: tens of thousands of dollars for Facebook management when realistically
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  Speaker 1: the agency was doing nothing. The key here and how
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  Speaker 1: to solve it is using naming conventions in the ad account.
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  Speaker 1: Make sure that all of the creatives that the agency
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  Speaker 1: is making for you versus the creatives that you're making
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  Speaker 1: or even a creative agency is making is has proper
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  Speaker 1: naming conventions. It might be agency one and then your
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  Speaker 1: creatives has your name on it because you know you
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  Speaker 1: created it. Then all you need to do is connect
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  Speaker 1: into Facebook with any AI or even just produce reports
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  Speaker 1: in AI and say, how much return has this agency
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  Speaker 1: actually made me with these creatives based on the amount
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  Speaker 1: of revenue it's created and all of the retainers that
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  Speaker 1: have actually paid this agency. AI will go through, it'll
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  Speaker 1: look at the amount spent buying the ads, the total
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  Speaker 1: return on ad spend, the amount of revenue, and then
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  Speaker 1: it will also crunch the total amount of invoices that
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  Speaker 1: you've actually paid. And it will give you a pretty
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  Speaker 1: clear answer whether they're actually doing a good job. Now,
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  Speaker 1: if they're profitable, keep going ahead. If it's ambiguous, what
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  Speaker 1: I would say is you need to take charge of
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  Speaker 1: that department because creative is the single most important thing
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  Speaker 1: for most businesses at the moment. One creative can change
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  Speaker 1: your life. And what we're doing by taking control of
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  Speaker 1: that process between input, the thing that you do or
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  Speaker 1: thing that your team does and output, the result that
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  Speaker 1: happens within the business. The closer you can get within
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  Speaker 1: that feedback group as a founder will allow you to
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  Speaker 1: make actions quicker and understand the actual correlations between everything
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  Speaker 1: that you're doing within the business. And let's say your
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  Speaker 1: business is already profitable and doing quite well, but you're
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  Speaker 1: just unsure whether your agency is actually good and you
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  Speaker 1: don't want to disrupt the apple cart, as they say.
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  Speaker 1: What you can do is you can actually get another
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  Speaker 1: creative agency, for example, to you can spend two, three
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  Speaker 1: thousand dollars with them, get them to create a huge
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  Speaker 1: batch of creatives for you and see how they stack
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  Speaker 1: up against each other. Now, I've obviously been pretty harsh
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  Speaker 1: for agencies in this video. If your agency is doing
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  Speaker 1: tons of actions every single day, you're incredibly time poor.
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  Speaker 1: You can afford it and you've got the profit. They're
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  Speaker 1: helping you with creative and giving you some ideas there.
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  Speaker 1: Then maybe you should stick with them. But for 90%
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  Speaker 1: of businesses, it's not the right call.