Setting up digital marketing procurement business – advice required

[Matt Evans]

Hi everyone, my name is Matt Evans I currently work at a really successful digital marketing agency in Leicester. One of the things that I do is venture out to big events and Trade shows and precure work for my agency. It went so well that I brought in just over 40k revenue over nine events!

I’m looking to venture out and start a business as a freelance worker and wondered if there was anyone that could give me advice on day rates.

I’m not entirely sure what to be charging, but it should be something substantial as I worked out on average each event that I went to yielded £2500 worth of work!

If there’s anyone who is in management right now within a digital marketing agency that wouldn’t mind giving me some advice or having a chat with me I’d be very grateful!

 

[fantheflames]

Hi @Matt Evans, welcome to UKBF!

As a digital marketing agency owner, in the early days I just went for it. I had the opportunity to move away from employee and become the 'employer' by starting my own business. It wasn't easy in the beginning but as you can imagine I'm very happy I did it.

So I think you're onto something really exciting here for yourself, Matt! Do you have the means to start your own business? If you can, start small - so you can get your business going sooner rather than later.

Although, make sure you're not breaching your contract with your current employer. Some might not allow you to have a second job or start a business, but not really sure - there's some great experts on the forum here on employment issues.

I find the longer you sit on an idea to start a business, the harder it is, to, actually start it! I think starting a consultancy service based agency based on procurement might be a brilliant move.

You clearly have a knack for it, and there's always demand for marketing and sales that can deliver. I'd suggest aiming high when it comes to day rates. Perhaps £600-1,000 per day or event.

You could always adjust based on the market response, or the size of their business or what returns they're looking for. For small businesses looking for that extra support, you could offer a hybrid model, a lower base dat rate plus percentage of revenue generated?

Something to remember here is that you're not just selling you time, you're also selling your expertise and proven ability to generate substantial returns. Make sure you have a marketing plan before you get going and you can adjust it as you go when needed.

 

[Sean Lee-Amies]

As another agency owner, consider this: If you're pitching your services to other agencies, bear in mind that 99% of us are bombarded, nearly daily, with people in your shoes promising us "great leads!" and "thousands of pounds worth of sales!".

Rarely are such claims ever delivered and it's common to waste thousands, even tens of thousands on such services with nothing to show for it.

It's an unfathomably over-used pitch that'll get little to no reaction from people needing what you offer. Especially if you're unknown, have no online presence, social proof, (professional) website, case studies etc etc.

All these factors will reduce the amount people are willing to spend with you, unless you already have a strong relationship with said individual.

It's for these reasons many consider a revenue share model when they're starting out - to overcome their inability to inspire confidence.

Put simply - if you find you're struggling, but you know you can get results, you'll potentially sell more, faster, if you go in with a lower up-front cost and take e.g. 25% of whatever business you generate.

Path 1: Higher up-front cost
£750

Path 2: Expenses + revenue
£350 + 25% of revenue generated (£650) = £950

This calculation was made using your figures of average yield per event (£2,500).

Just a few things to consider!

 

[ethical PR]

Hi everyone, my name is Matt Evans I currently work at a really successful digital marketing agency in Leicester. One of the things that I do is venture out to big events and Trade shows and precure work for my agency. It went so well that I brought in just over 40k revenue over nine events!

I’m looking to venture out and start a business as a freelance worker and wondered if there was anyone that could give me advice on day rates.

I’m not entirely sure what to be charging, but it should be something substantial as I worked out on average each event that I went to yielded £2500 worth of work!

If there’s anyone who is in management right now within a digital marketing agency that wouldn’t mind giving me some advice or having a chat with me I’d be very grateful!

I would say as someone in the marketing field that generating £2500 per event is a very low return . What were the costs involved in sending you/other staff to the events?

Do your market research to identify what you can offer that others can't.? Put together a business plan and budget to help you identify day rates /commission for your business model .

 

[Paul Kelly ICHYB]

One of the things that I do is venture out to big events and Trade shows and precure work for my agency.

Are you taking a space at these events or just turning up and selling?