It's like asking how you can make more money by building/developing two more rooms on the first floor of your house. You know how you can make money, right? By renting out those rooms and having good tenants fill your pockets monthly. So, in a way, the development work did give you profits.
"Marketing agencies can make more money by incorporating DevOps functions on the website. DevOps is a joint system of customer support, revenue, sales, and all-in-one system." Says Sajeel Qureshi, VP of Operations, Computan.
Building a true DevOps function on the website to increase revenue is one example where you hire developers for work on your agency website. If you love their work, you can cut the deal and bring more web development projects for them. This, of course, would be on the side since your core service offerings are in marketing, but you are also selling the development work.
You can start by pitching particular development jobs, such as the RevOps systems. It is linked to marketing as well. If your client needs a RevOps system set up, they would also need development work done. You can then pitch the same developer and keep your commission.
What are some ways marketing agencies should interpret estimates from developers?
Receiving an estimate from web developers is like being a restaurant owner receiving a menu from a chef. Just as a chef provides a detailed menu with various dishes, the developer'sdeveloper's estimate outlines the tasks and deliverables needed for the project.
"The estimate should be detailed and should have descriptions of each requirement. A one-line estimate is of no help," says Minhaj Shamim, Finance Manager, Computan.
A restaurant owner would carefully review the menu to understand each dish. Just as a good menu breaks down each dish's ingredients and cooking process, developers often provide estimates with a breakdown of tasks. By understanding this breakdown, marketing agencies can assess the complexity and effort required for each task. This allows them to prioritize and plan their marketing initiatives accordingly.
Compare these estimated completion dates with your marketing campaign schedules. If there are discrepancies, communicate with the developer to determine if adjustments can be made or if alternative solutions can be explored.
Developers may mention technical complexities in their estimates. This information helps marketing agencies understand the level of expertise and resources needed for the project. If certain complexities are beyond your agency'sagency's capabilities, you may need to involve additional experts or consult the development team for guidance.
Consider any additional costs such as licenses, hosting, or ongoing maintenance. Evaluate the estimated cost against the value and impact the project will have on your marketing goals.
Ultimately, it's important to maintain open and clear communication with the developer. Regularly update each other on progress, challenges, and changes in requirements.
By interpreting the estimates effectively and collaborating closely with the development team, marketing agencies can ensure their projects are as successful as a well-run restaurant serving delightful dishes to satisfied customers.
Remember, estimates from developers are not fixed timelines or guarantees but educated predictions based on their expertise and understanding of the project requirements. By interpreting these estimates effectively and collaborating closely with the development team, marketing agencies can plan and execute projects successfully.
How can that interpretation affect profitability?
The interpretation of developers' estimates can significantly impact marketing agencies' profitability in several ways.
Accurately interpreting the estimates helps in managing costs effectively. Marketing agencies can assess the resources required and allocate a budget accordingly. This prevents underestimation or overestimation of costs, ensuring that profitability is maintained.
"The Marketing agency needs to be clear about the costs associated with the job and make sure if there is any major additional cost due to change of scope, it should be discussed with the customer before incurring it," says Minhaj Shamim, Finance Manager, Computan.
Marketing agencies can determine appropriate pricing for their services, ensuring that the agency'sagency's pricing aligns with the costs involved, allowing for profitable client relationships.
Understanding the estimated timeline and technical complexities helps allocate human resources and expertise. This ensures that the right team members are assigned to projects, reducing inefficiencies and maximizing profitability.
By aligning marketing campaigns and initiatives with the estimated timelines and deliverables, agencies can avoid delays, optimize workflows, and maintain profitability by delivering projects on time.
Careful interpretation of estimates helps in identifying and addressing potential risks or challenges. Marketing agencies can proactively plan and mitigate those risks, reducing the chances of costly delays or rework. This ensures that projects are executed smoothly, minimizing financial impact and maintaining profitability.
Client Expectations and Satisfaction
Properly interpreting estimates ensures that client expectations are managed effectively. Clear communication and understanding of the estimate enable marketing agencies to set realistic timelines and deliverables, avoiding disappointments or misunderstandings. Satisfied clients are more likely to provide repeat business and referrals, contributing to the agency'sagency's long-term profitability.
Effective interpretation helps agencies anticipate and manage scope, timeline, or cost changes. Marketing agencies can negotiate adjustments to project terms or budgets, minimizing the financial impact and maintaining profitability. According to Minhaj Shamim, Finance Manager, Computan, "A poorly drafted estimate will need to be revised multiple times, affecting the project'sproject's profitability due to cost changes."
How can agencies make money on development projects even if there is scope creep on the development side?
When faced with scope creep, the marketing agency must proactively initiate an open discussion with the client. It'sIt's important to communicate honestly and transparently, informing the client about the impact of the additional requests on the project timeline, resources, and, ultimately, the cost. While this conversation may be a bit uncomfortable, both parties must understand the implications of the changes.
Clients often know that walking away from the project at this stage could mean starting from scratch with a different agency, which involves significant time and resource investments. That realization often encourages them to find a mutually beneficial solution rather than abandoning the project altogether.
"One approach that can be adopted is to bill the initial scope of work at the originally quoted price. This ensures that the agency is compensated for the work completed within the agreed-upon boundaries." Says Minhaj Shamim, Finance Manager at Computan. However, a discounted rate regarding the additional work caused by scope creep can be considered. This discount acknowledges the existing relationship and fosters understanding between the agency and the client.
By offering a discounted rate for the additional work, the agency demonstrates its commitment to the client'sclient's success while protecting its profitability. It'sIt's a compromise that shows goodwill and maintains a cooperative atmosphere, which is vital for maintaining strong client relationships.
By approaching these situations with professionalism and open dialogue, marketing agencies can maintain profitability on development projects while fostering trust and collaboration with their clients.