Page 143 - Duct Tape Marketing

127Chapter 9: Hiring Help for Your Marketing Program

Markups: When the agency makes a purchase from a supplier who doesn’t
offer a commission, the agency generally marks up the expense instead. To
make the math work, though, the agency marks the charge up not by 15 per-
cent, as you’d guess, but by 17.65 percent in order to arrive at the same level
of compensation. Following is an example for an $850 printing job.

Printing charge to agency $850
Plus 17.65% agency markup +$150
Printing charge to client $1,000

When reviewing contracts or approving estimates, ask agencies and freelancers
to define their markup structures so that you’re clear on the percentages being
charged and in a position to negotiate if the numbers seem too high.

Working with your agency

The best advice for building a great client-agency relationship is to give clear
instructions and then trust your agency — share your marketing plan, your
budget, and your hopes. In everyday terms, building a great relationship
means that you do the following:

ߜ Provide your agency with all the information it needs to do the job right
the first time around.

ߜ Boil down your input. Don’t make your agency read encyclopedia-length
documents to figure out your marketing plan, advertising strategy, or
positioning statement.

ߜ Be frank about your budget. Don’t act like a high roller (money is always
an object). At the same time, don’t withhold funds for fear the agency
will spend it all unnecessarily.

ߜ Spend your time questioning project estimates rather than arguing after-
the-fact over the bills.

ߜ Hold up your end of the bargain by providing information and approvals
when you said you would.

ߜ Set a time for regular status calls or meetings.

ߜ Pay on time.

ߜ Pay for your changes. If you change your mind when you see the final
proof of your marketing materials, expect to take responsibility for the
last-minute additional expenses and extra hours involved.

ߜ Be open to ideas.