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Watch THIS Before Starting An Advertising Agency in 2020

Published on: December 3 2022 by Dylan Pondir

Watch THIS Before Starting An Advertising Agency in 2020

The above is a brief introduction to Watch THIS Before Starting An Advertising Agency in 2020.

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Watch THIS Before Starting An Advertising Agency in 2020

on today's coaching call with my
full-time econ students one of them
asked me a great question that's always
an amazing thing to happen when I'm
recording a video a nice $114 order
anyways one of them asked me a question
about one of the additional sources of
revenue and income that I have and many
of you probably know this by also run an
advertising agency aside from my three
ecommerce businesses I mark it for other
entrepreneurs selling whether it's
coaching products I advertise obviously
for e-commerce brands I advertise for
local businesses wanting to generate
leads anything that is essentially
already has a proven product and wants
direct response marketing I am open to
working with them i right now only have
two clients and I'll kind of dive into
why I only have two clients and why I
went from having seven clients to two so
we're gonna tok about that in the video
but first I want to break down how you
can actually use the skills that you're
building while going into e-commerce to
launch your own advertising agency
specifically to rents direct response
marketing so direct response marketing
is the process of marketing that drives
a conversion whether it's a lead whether
it's a sale whatever the conversion
event is that your client wants you need
to drive that through your marketing so
that is direct response marketing and
when you are learning marketing skills
and Facebook advertising for e-commerce
you are learning direct response
marketing that's why I place a huge
emphasis in a lot of my videos on
building funnels buyers psychology a lot
of different aspects of direct response
marketing because what I want to teach
you is not only how to build a
profitable ecommerce business but I'm
trying to teach you subliminally all of
the foundations you need to generate
every possible source of income from
direct response marketing one of the
main ones for me is my advertising
agency and the way that I work so
there's a lot of different agencies out
there that charge
retainer I completely void my retainer
I charge zero dollars for a retainer you
might be thinking that's crazy but let
me explain a little further I work off a
profit share model that's because I'm
that confident in the results I can
drive I start out at 10% profit share
zero to fifty thousand dollars in
revenue driven fifteen percent profit
share from fifty thousand to a hundred
thousand dollars in revenue driven
anything above a hundred thousand
dollars per month and this is all per
month anything above one hundred
thousand dollars that I Drive it's a
twenty percent profit share and this is
a win-win situation for both me and the
client so now let's cover the three
steps that you should take if you know
you feel you're ready to actually launch
this additional source of revenue in the
form of an advertising agency number one
you have to be honest with yourself and
come up with your revenue model I highly
recommend the profit share model it's a
win-win situation if you can't drive
results you don't have an unhappy
customer at the other end if you do
drive results the possibilities for
income are endless think about this
think about if you drive if you start
working with an established brand or a
brand with tons of potential and you
drive two hundred fifty thousand dollars
in revenue that first month I like
thirty five percent profit margins take
that number and then take twenty percent
of that that's for yourself off one
client so just just imagine numbers like
that there's really no end to the
potential whereas before you would only
been making like a thousand dollar
retainer fifteen hundred dollar retainer
you know up to $2,500 retainers so
profit share model you can make a lot
more money and once again it's a win-win
situation for both but you need to be
honest with yourself
can you drive results and if you if
you're not sure if you can first you
might want to rethink the advertising
agency for right now it's very important
to be very confident in your skills
because if you end up charging a
retainer and you lose more money in ad
spend let's say you charge a thousand
dollar retainer you spent $2,000 on
heads with no return that client just
lost $3,000 on you and they are not
going to be happy
and a big part of this business is
referrals that kind of leads me into the
next section so you have your pricing
model now it comes to clients personally
I can't really speak on like how to
obtain clients because all of my
clientele is from inbound leads from
that what I mean by inbound leans leads
is I don't actually have to go out and
like run ads for my agency my YouTube
videos and my social media accounts do
all the work for me all of my clients
have seen like videos like this and they
reach out to me so in terms of that
that's something that's completely
different you know I could probably come
up with a strategy for you guys if you
need some help on that but personally I
don't actually have to go find my
clients but now it comes down to client
criteria this is a mistake that I made
so I went from having like seven to
eight clients in 2019 and I cut it down
to two this was by choice let me explain
why so initially I was all about like
just getting his many clients as
possible and I was charging a retainer I
had been taught from you know the
various videos that I watched cuz I was
like hey I had these advertising skills
how can I you know quickly launch this
additional source of income so I watched
some like videos on how to structure it
like what pricing structures I should
say that I should have been using and
all of them told me like two thousand
dollar retainer 2500 dollar retainer
depending on the class size of the
client and that's what I did so I got
like eight clients on two to three-month
contracts I like anywhere from fifteen
hundred twenty-five hundred dollars a
month and it was good money it's like
you know ten to eleven K net profit cuz
there was no additional cost but here's
where the issue came in I was taking on
clients everywhere from completely new
brands that had never run any marketing
that were just launching to clients that
stated they were doing all these big
things but I didn't really do my
research and I got into a weird
situation so let's dive deeper into that
number one there's gonna be a lot of
opportunity with clients that have a new
brand like this new cool product and it
completely new to market
it might it's gonna seem entiking
because they're gonna be opening the
retainer but here's the issue is you're
gonna find yourself spending so much
time on that business you know it's
gonna be it'll go from just running
their Facebook Ads to oh hey can you
actually help me set up clay vo oh hey
can you actually help me set up this
product page oh hey like you want to
build this landing page you're gonna
feel like you're part of part business
owner and that's what happened to me I
had like three clients like this great
people but it was just a bad client
because I signed on to do their
marketing and being the person I am I
hate saying no to my clients so I
started taking on all this additional
work and I was building out landing
pages and doing their email flows and
stuff and it was just way too much and
it took away from my own personal
businesses with e-commerce is that's
always my main focus it took away from
that preventing me from hitting some
milestones I definitely could've hit
looking back on it there's just a
headache way too much work so that's the
first type of bad client brand new no
previous marketing done client with no
former experience running a brand a bad
client number one do not take that bad
client number two clients that actually
do have somewhat of established brand
but it's not fully based online so I had
a client that had a like physical
location selling I'm not gonna say what
type of product but selling products but
at a physical location they did have a
Shopify store and when I vet my clients
like not vet but when I take
applications I ask them
how much revenue are you doing per month
so this client told me they were doing
$7000 revenue per month consistently for
over the past year I looked at this like
a huge opportunity because knowing what
I know from my own e-commerce brands
they must have a ton of data you know
I'll know who their target demographic
is I know what will work for their
business right so I took him on and what
I came to find out is sure they had this
Shopify store set up and that I was
showing these numbers but their numbers
were driven by using the Shopify
platform on like the iPad when people
check out at the
physical store and in reality only 5% of
their stoles worst sales were coming
from their online store not only that
but they didn't have a Facebook pixel
installed their store looked like it was
from 1985 and they were expecting me to
hit just unrealistik numbers with this
specific client I gave him like two to
three months free marketing because once
ago we were on retainer
it was my mistake for you know saying I
could drive direct response marketing so
I gave him an additional three months I
ended up working with him for six months
and what I quickly found out is that
their products were not in demand once
again my fault for not researching their
products double-checking demand once
again a skill that you will you you've
learned from e-commerce how to check
product demand always check that a
clients product is in demand mistake
number two didn't verify that their
actual numbers were coming from their
online store number three I should have
asked them what their expectations were
from the very start and that was that's
something I always do I say when you
tok to clients now or but if you think
about doing this whenever you speak to a
client on like application basis always
ask them this question what needs to
happen for you to consider this a
success in the first month and then ask
them what needs to happen or like what
results need to happen for you to
consider this a success in the first
three months and you're gonna get a
complete overview of probably what that
clients gonna be like to work with if I
would have asked this client they
probably would have said that they
wanted $50,000 driven in the first month
which obviously is completely
unrealistik for that type of company
that's doing just like 50 bucks a month
on online so mistake number two ask your
client what needs to happen for it to be
a success if they stay a crazy number
first thing is they're probably
inexperienced and it leads back to that
bad client number one and number two
maybe they're just kind of over
estimating things and you can stay give
them realistik expectations don't fluff
it at all just realistik expectations
and see how they respond and you're
gonna get your answer on what type of
client it's gonna be like to work with
and for example what actually happened
with this client is I ended up doing so
I couldn't drive results and once again
I was charging retainers so I ended up
offering services such as a product
photography doing like five different
products product photography for it
doing the copywriting on their website
read I redesign their whole website
their whole Shopify store and all of
this extra work plus three months free
advertising and guess what last month so
I branded the contract back in November
and just two weeks ago so March like
20th I see on PayPal that there's a
dispute for 2400 and like fifty dollars
and this client was disputing with
PayPal saying that they never received
any of my work they said that I promised
him like five hundred dollars a day and
adspend they said that I was supposed to
take all these product photos which I
did and so it was I mean obviously I'd
won that dispute but it was just like
all of this mess could have been avoided
and it was not worth the $2,000 that I
made so that client number two and I'm
sorry if I'm going in there's too much
detail here but I just want to give you
guys an overview of the mistakes that I
made so you do not make those mistakes
and now let's tok about best client the
by far the best client and what that
criteria is so you can follow on that
path so as I said I had like eight
clients and they were all on the
retainer and it was just a headache so
going in to 20/20
I ended all my contracts once the
contract ended I didn't resign the
clients went into 2020 with a fresh
start and I told myself I will never put
myself in that situation again I defined
my client my clear-cut what has to be
client for me to want to work with them
and I actually was someone reached out
to me on
they're entrepreneur they have I don't I
don't know I guess I can say they're an
artist really well-known renowned artist
tons of incredible work they also have
like a coaching program etc and they
approached me I ended up going out to
California I met with them we work
together for like three days before
signing anything
and then I proposed a revenue share
model and actually this client is
essentially like not my mentor and my
coach in a way you know I speak to him
on a daily basis whether it's about his
stuff whether it's about my businesses
and we we've settled on that profit
share model criteria number one that
this client met was they have an
existing business they already have a
successful business imagine it like this
they have a small fire and I'm about to
pour gas on it you know and then it
turns into a bonfire then it turns into
you know just bigger and bigger whereas
when you're working with those clients
with no fire you have to find the wood
you have to find the lighter fluid you
have to find the match you you know what
I mean so find clients that already have
a fire something working customer base
so a loyal customer base and then use
your skills to pour gas on that and it's
a win-win situation for both of you so
this client there's not even like oh
it's a three month contract contract
we're just on an extended contract no
set time period we're doing profit share
model it's been absolutely wonderful so
far then this leads into my next point
so now I had one client right I'm
driving results in the first month I'm
not gonna state the exact numbers but
the overall row is that I drove from was
like a 4.5 X really good results with
something that I can't get into too much
detail so that client then obviously
since they have an established business
has a very very good network of people
other business owners entrepreneurs here
then referred me to someone else once
again has a small fire a loyal following
great client to work with and three days
ago I we signed a contract and now we're
working together off this profit share
and it's just gonna keep expanding you
know great relationships being built
win-win situations no headaches I love
working for them I hope to say that they
love working with me and couldn't be
happier so if you've been thinking about
other ways to utilize these skills that
you're building with direct response
marketing
first of all join full-time you come and
go through the Facebook advertising
there's like 17 lessons in there you'll
have access to me my coaching my my
bi-weekly coaching lessons and I'll help
you along through this process sorry for
the plug had to do it but really
consider what type of business you want
to be in who you want to be working with
sure you can make money doing the
retainer but it's gonna be short term
you're gonna have a client for a month
you're gonna have an unhappy ex client
then headaches frustrations and just so
many different problems that will occur
here comes my cat and that's just
something to take into into your mind
you know think long term here think
about what you really want there's so
much more potential in these win-win
situations and it all comes back to
these skills that you're building
through e-commerce so keep going with
e-commerce if you're not driving really
good results yet for yourself if you
like don't aren't fully sure on how to
take your stuff to the next level I
would wait to do the advertising agency
because you don't just want to be
another burnt churn and burn advertising
agency you want to be your long-term and
now I'm actually hiring employees for
mine so it's like I'm building a
legitimate advertising agency here it's
not just one of these trendy ones that
you see online so sorry for the ramble
session I hope I provided you guys
actual value here and this is my low oh
say hi Milo Milo's employee number one
here but um yeah I'm gonna end this call
I wish you guys all the best
I wish you guys all of the best and I'll
see you guys in the next video
Dylan this was such a weird I think
Dylan out

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