Why You Should Never Hire a Marketing Agency

What’s up guys, Los here.

So, today, I’m gonna talk to you guys about why agencies suck.

Now, listen, if you have an agency, maybe you don’t suck. Odds are you might suck.

One of my best friends called me, and he was like, “hey dude, I kinda feel like my Facebook’s not scaling. We’re just kinda stuck, we’ve been spending less money.”

We spend hundreds and thousands of dollars a month, if not millions, on our own brands every month.

So, we know a lot about media buying. Like, real deal media buying, right? Not like, we spend some money on ads and we do some trash drop shipping and build nothing in return.

Like, real deal brand building stuff. So, I looked at it. I looked at it with Malby, and it was trash.

Nothing was going on right.

The relevancy scores were garbage. Everything was in one account. They didn’t have retargeting. Their copy was just spread out to multiple different ads. They weren’t refreshing their creative.

So with that being said, meet Malby. My #1 media buyer here at SVG Media. He has a couple of pointers to give you based off of the audit I gave my buddy.

What’s up guys. I am Malby and today I’m going to be doing an agency account audit.

I personally love going out and auditing somebody’s agency account. And, really determining if they’re doing something good, or if they’re just doing nothing at all.

So, if you have an agency that’s running your accounts and you feel like they’re just doing something screwy, reach out to me!

I’ll check that thing out, and I’ll let you know, in probably twenty minutes, if they’re playing you and they’re just keeping you around for your monthly retainer, or if they’re actually trying to scale and grow your business.

Because, the reality of the situation is that many agencies simply keep you on for maybe a three month commitment to kinda “test the water.”, and then, in that time, you realize that they’re terrible and you fire them, but it doesn’t matter to them, because it’s a revolving door and they already have more people that are lined up ready to take your place.

Now, of course, that isn’t the case for all agencies. But, 99% of them are like this. Especially now, where people are just making agencies completely randomly with no idea of how to actually do any kind of marketing, and they’re just bullshitting their way into getting clients.

This is a prevalent issue that I’m seeing more and more and more. And, now, with this account specifically, I’m not going to go into crazy detail and tell you the offer in the niche and all that kinda stuff, because, it’s someone’s personal account.

This is one of Los’s friends that recently came to him, and the guy was like, hey I’ve been using this company for a couple years now to run my ads, and things kinda seem to be dwindling. The performance really isn’t there. Can you guys go in and check it out?

So, of course, we were more than delighted to go and check this out. And, what I found was startling and disgusting. Not even at best. It just gets worse from there.

The first thing I want you to notice is that this account total has spent $3. almost seven million. That’s awesome. The money that they got back from that, according to Facebook, was $733,000. That’s terrible.

Okay, so, I know that this is a webinar funnel, and they were going primarily for leads. I think the goal was to get $15 leads. So, some months they were there, some months they weren’t.

But, overall, at the end of this webinar, after you put your lead and your email in, then you’re expected to buy. And so, if overall, they’re spending $3.6 million and getting back $700,000… Now, this is, I guarantee you this is off, because they have a phone team that’s actually closing people and stuff like that.

So, it’s not this drastic, but, I guarantee you, this account lost upwards to a million dollars or a couple hundred thousand in its lifetime and it’s all just from shoddy advertising.

I didn’t even notice this before, what I’m gonna show you now, but I just saw it and it’s even more disgusting.

So, $73,000 was spent on engagement, alright. $3.1 million– $3.2 was spent on conversions. Alright. This is the scary part: $133,000 was spent on traffic. That is disgusting. I guarantee you, if they took that $133,000 and put it towards conversions, they would’ve actually made some freakin’ money on it.

This is a big thing that I see agencies and people that don’t know what they’re doing do all the time, is they just run traffic to websites so it looks like you’re getting views and all this stuff, but, you’re not converting ’cause Facebook is just finding traffic people. It’s finding people that just like to click on stuff, and that’s all they’re really good for. So, this was a complete waste of money.

That’s a nice car right there, or a house payment. But, instead it went into some clicks.

Let’s get into the account and see how much worse it gets.

The funny thing, the real funny thing, is, let’s go– I’ll just do active. Is they got us on a call yesterday to kind of run through the account and ask all these weird questions.

Why the relevance on the ads are two to fours? Why no one’s using post IDs? Why everything is just thrown into one campaign? The retargeting structure is almost nonexistent.

After the call, we told them it needed to have retargeting, so, they actually launched this last night, or this morning. This is a new campaign. But, they literally were just running this one campaign for months.

They’ve spent $300,000 on this one campaign that’s CBO doing $1,390 a day. I’ve never seen someone just run one campaign and throw everything in there, and just hope that it does something.

The funny part is, when I asked them about this on the call, they said that their Facebook rep had told them that this was the best way to do things now, because CBOs. That’s complete bullshit!

I had to tell them, on the call, that you can never listen to reps. They are outsourced, third-party people from a random tech company that don’t even know how to run Facebook ads, and are simply reading off a sheet what “You should do,”, what is “best for your brand and for your accounts.”, when they actually have no real knowledge of how any of this shit works.

So, that is one of the funniest things I have seen in a while. There may be one retargeting campaign or ad set in here, but it’s just a nightmare. I’m not even gonna go into that.

The real funny part here is that, let’s see, lifetime, let’s go back to last month, because it looked better for this demonstration.

So, this is the kinda the metric we are going for, or basing everything off of. Last month, they spent $50k. And, they were saying that they had a five times return. We see our purchase for turn on ad spend here.

And, that’s the over all, including the offline events. Let’s take a look at that.

So, over here, in the offline purchases, it’s showing that they had 156 offline purchases. And, those offline purchases accounted for $128,000. That’s bullshit. It’s completely wrong.

We brought it up on the call, and in reality, for the entire month for this section of the company for this webinar and everything, it totaled, I think like $66k? That’s with the call teams that are closing people, e-mails and all that stuff.

So, there’s a really good chance that this account’s spent $50k and only brought back $16.3 in return. But, at the same time, they were preaching that this campaign had a 3.3 return. The account had a 5.7, when in reality, they had a .37. And this company is clearly doing very well. They’re doing so well to the point that they simply didn’t notice this slippage, because they trusted the agency that was running their stuff, because they’ve been running their accounts for years.

From the person who owns the account’s side, they’re like, oh, so-and-so’s been running this for years, they’re not gonna screw me over. Where on the agency’s side, just looking at this, I know that they’re like, oh, this guy’s been paying us for years, he’s not gonna stop now.

Let’s just make sure that we get the leads somewhere around where they need to be and just call it a day. And, that’s exactly what’s been happening.

This is the first account that I’ve seen in a while that has spent so much and had such low relevance. All the ads are, they’re pretty terrible. They’re just stock footage with some text thrown on them. Like, I get that.

But, the copy on them is what really gets me. The copy on them is all identical. It’s all super clickbaity. It’s like, “Do you want the number one secret that nobody “else in your industry knows about? Click here to find out!” And, then you go and click on it and it’s an hour long webinar.

I watched it yesterday, and it takes 40-something minutes into the webinar to really understand what the webinar is about. So, instead of taking the time to presell the person on the ads they know what they’re getting into.

It’s just some clickbait garbage that’s trying to get them to click and go through and then get that lead. Oh, also, to top it off, the call team apparently has been vocalizing how terrible the leads are for months. So, they can’t do their job, because these ads are bringing in low-quality leads, because the ads themselves just suck.

Alright, now you see how insanely crazy that was, right? And if you do have an agency, I’m gonna put your feet to the fire, because we’re gonna keep calling these people out.

The big thing with agencies, guys, you have to understand their business model, right? Their business model is to bring in people and kinda run their advertising.

Specifically, I’m talking about advertising companies like that. There’s a few that are great, but the big problem is, you have all these people making courses on how John, Jo, and Jake can go out and build an agency and scale clients.

Well, John, Jo, and Jake don’t know anything about Instagram, or Adwords, or Facebook, or media buying. So, you get all these Tom, Dick, and Harry’s trying to build a business that they don’t know anything about. And, guess what? It goes on to you and your results suck.

Now, we don’t have an agency. We run and control all of our brands. What we do have is an accelerator, because we only care about building brands and building teams internally so you can actually grow your business.

Also, seriously, if you own a company, why are you outsourcing one of the most important things in the world? Why are you outsourcing your marketing? You know, I’m just gonna go give this to somebody else.

What are you going to do then? Like, come on. Build your team. One of the things I will say, if you have a media buying team, you can hire an agency to try to beat your team, because then you can learn what’s happening, or you can see that your team is actually doing a good job, because we do that all the time.

We hire agencies, then we smoke ’em. And, then, we realize that they’re not that good. See, what you should do is build your team internally. Like I said, we do that.

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