Connect with us

Business Entrepreneur

How to pitch your tech startup to ad agencies

In order to understand how to pitch your tech startup to ad agencies, you must first understand their priorities and goals, not just assume your tool fixes all that ails them.

Published

on

pitch your tech startup

pitch your tech startup

How tech startups often fail at pitching to ad agencies

Since only a fraction of a percent of brands really do social media well by having a team integrated into the DNA of their company responding in real time to their customers and bringing true engagement to the space, numerous tech startups have emerged at the intersection of big data, social media and marketing to help the less enlightened brands deal with the onslaught of conversations in their space at scale. Of course, on the lower end of the spectrum, these tools are used to fake social media. On the higher end, they’re a helpful filter to getting to getting some keen insights into customers, their behavior and needs.

To that end, every startup in this space faces some very unique challenges. Often, headed by what we’d affectionately call nerds, they don’t have an understanding of the landscape and realpolitik of selling in some of these concepts.

Whenever you’re selling something you need to know the motivation of the customer. In this case, we start selling to agencies or brands with an idealized notion of this:

  • What we think brands want: A tool that helps them understand their audience in real time and lets them ring the register in each market with a detailed response of all marketing efforts online and off. We’ve created the automated marketing silver bullet and brands will open their checkbooks to figure this out.
  • What brands really want: They want a tool that their ad agency can figure out and pay for out of their existing budget because they are too damned busy to be taking your phone call about some unproven product that probably shouldn’t be out of beta testing and there is no money left until Q4 2015 at which point this person will no longer be working there.
  • What we think agencies want: A versatile tool that will help analyze, deep fry and add a delicious powder sugar coated insight into the audience of each of their client’s brands complete with a package that lets them easily add new clients without costs becoming overwhelming.
  • What agencies really want: To not lose the client. To not get fired. To not lose the client and then get fired. To waste your time.

There are exceptional agencies doing amazing work who go above and beyond for their clients. But these are probably the agencies for the aforementioned small amount of brands who really get social. That’s not who you’re really selling to – that’s who you should give your product a free license to so you can get some awesome case studies. You’re selling to, who we affectionately call “everyone else” and everyone else’s motivations are suspect at best.

Remember, a brand’s job is to sell more products to the consumer while balancing a warm, fuzzy appearance that keeps them top of mind for even more purchases. An ad agency is hired to help with these things, but remember the agency is selling something too: hours and media. The hours are billed, coincidentally enough, hourly. Media is commission based. Do you know what’s not commission based? Your newfangled tool to improve engagement. Do you know what an agency can’t bill more hours for? Using your newfangled tool to improve engagement because that’s what they’re already being paid to be experts on achieving.

They will waste your time

When you understand the true motivation of an agency, this is where you go “But Marc, I get meetings with agencies all the time, they seem really enthusiastic about what we’re up to.” Which brings me to my final point: They will waste your time. It’s their job to know about your tool. Do you really think when you go show your tool to the client and the client comes back and says “Hey, why aren’t we using AudiencePulpified3000X?” they want to say “What’s that?” No! They want to say “Sure, we’re having ongoing conversations with them about their new DemoSlayer6000C product, but we really feel that there are some issues with the data modeling at this point so our team is monitoring their progress and continue to bill lunches with them to job number SPF-100-gB.”

How to successfully sell to agencies

Gosh, this seems so hopeless though, doesn’t it? Isn’t there any way to sell a new social media tool to agencies? I’m glad you asked!

Here’s how you sell into agencies:

1) Focus on new business and new projects: When you focus on new business, you’re working with the people in the agency who have motivations that align with yours. The new business director wants to win the account. They want to say that their agency is at the pinnacle of new technology and that includes your proprietary new tool that they are a preferred agency partner of. Therefore, they’re bringing insights and analysis that no one else has. And guess what? Slipping your fee into the budget at this stage is a no-brainer. And once you’re in there, you’re in there for good. You just need to avoid long term clients who are “automated” meaning “run by a team of highly enthusiastic interns.” New clients, new launches with existing clients open up the conversation to the appropriate “how can we have an edge here?” That’s where you come in.

2) Focus your pricing on agency profitability. I met one startup at a conference recently and saw a tool that, upon inquiring was $5,000 per month per brand. It’s a useful tool and they have great case studies, but it’s a staggering cost to pass onto a client, even without markup, in an unproven area. What would work best for me working on the agency side would be if there was some sort of snack-like sample of analysis on my client I can have for free that I can give to my client to give them a taste of what’s to come, not a bunch of infographics and charts. Then I really want pricing for all my clients as one big package. There should be an exponential discount once you start bringing 5-10 clients. Sure, you could look at that as 10 big brands you could still be charging $5,000 a month. Or you could give agency respect for the fact that they have the relationship with the client and therefore deserve to profit from it as well – especially now if they’ve proven themselves to be good partners in showcasing your product to other brands, they essentially become a free implementation and sales team. If you get another $500 a month per brand without having to do anything extra for it? That’s awesome. Once your product becomes an industry standard that everyone believes has to be part of the DNA of a marketing plan, then you can charge whatever you want.

3) Market your product to each different role in an agency or client. The person pushing the button on the social media accounts doesn’t care about the same things as the head of strategy. The head of strategy doesn’t care how it works, they just want the insights. The social media manager wants to know if this is going to be a giant pain in the ass to use and does it integrate with whatever they’re using now because they already have so many tabs open in their browser that the standard 2006 Acer laptop they’re using will die. Since pretty much every new startup in this space is the same thing approached 100 different ways, here’s a cheat sheet that will probably work for your offering:

• Chief Strategy Officer: It’s a dashboard! Look, pretty charts! Show your CMO how great you’re doing, it will only take 10 seconds for him to understand. It will help you justify your job, maybe give you a raise and bonus! It exports to a ready-made branded powerpoint presentations and even takes your client out to lunch with a robot that looks just like you programmed to say what a great job you’re doing!

  • Social Media Manager: It saves you time because now you don’t have to do all this menial labor for free – something that’s clearly beneath you with your certificate in social media wizardry from the University of Social Engagement Online because you’re obviously smarter than your boss and they totally don’t get it. It plugs right into HootSuite, Radian6 and all those other things you’re already using automatically, you really don’t have to do anything and your boss will think you’re even more of a genius because here are some fancy charts they can send their client that proves that because you got 5 likes per post instead of 4, you’ve increased engagement 20% this month.
  • New Business Director: Here’s a bunch of free stuff for the clients your pitching and super aggressive pricing if you win anything. We’re here to help you win and if you agree to sign with us upon winning we’ll promise that you’re the only agency getting these analytics on the Quaker Steak and Lube pitch.

If you do not know how to properly pitch them, agencies, known for coming up with brief, succinct statements such as “got milk?” will often look at what you’re doing and respond with a resounding “Huh?” It also pays to play the brands and agencies off of each other. In the brief time I was helping sell a social media tool to the agency side, it definitely worked to try to set up a meeting with a brand manager client side, then tell the agency you were already working with their client, who is interested in learning more. This is a great way to tap into the fears of losing the client and losing a job that are the key motivators of agency personnel these days.

4) Make sure you’re not too early I’ve been often stung by getting excited about a technology only to find that I’m a year or two too early and what I’m working on either isn’t a relevant as I think or it’s just not important to anyone yet. Last year was the tail end of the era in which brands obsessed over how many fans they could accumulate on Facebook and Twitter and the beginning of them wondering “Hey, how come they’re all ignoring us.” That said, I was selling a product that was supposed to improve engagement with content before anyone at brands or agencies realized or cared that their fans were not interacting with them. I equated it with trying to sell something that made a car go 30% faster when the car had just been invented and only travelled 10 miles per hour. “Hey, come back here – I also have a speedometer that tells you how much faster you’ll be going!” Until those cars are going 60MPH+ and getting somewhere faster is important, you’re going to get lots of blank stares.

5) Make sure you have great case studies:  I started a rather analog company in 2003 that I tried to market to brands. The response: “Great idea, let us know when someone else goes first.” Being analog and involving distributing thousands of free music CDs that people could play on their DiscMan™, I couldn’t afford to do this idea for free even once. But you, digital startup, you can! The most important thing in the beginning is starting relationships with customers and proving value. Give it to one brand, sell it to their competitors.

Of course, all of this is assuming that your agency-side contact every responds in the first place, because between overwork, fear, and complacency, it’s tough to even hear anything back. The absurdity of the situation is best summed up in Tony Price’s hilarious comedy routine about his switch from agency side to vendor sales – just remember to bring lots of bagels to the meeting.

Marc Lefton is a creative director and tech entrepreneur with over 20 years of experience. He's a partner in Digikea Digital based in NYC and Gainesville, Florida.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business Entrepreneur

Every modern business needs to automate these important processes

(ENTREPRENEUR NEWS) If you’re still handling the majority of your business functions and processes manually, you’re missing out on a chance to grow.

Published

on

Automate your biz

We’re living in an era of tremendous innovation. But not only are business technologies rapidly advancing, they’re also extremely cost effective. If you’re still handling the majority of your business functions and processes manually, you’re missing out on a chance to grow.

bar
There’s something to be said for performing tasks manually, but if you’re attempting to do everything on your own, you probably have an issue with control. You’re worried about what will happen when you step away and aren’t quite sure of how your business will respond. Well, here’s a news flash: The most successful small businesses in the world are automating many different key activities, including the following:

1. Employee Scheduling

“If you’re still scheduling your employees using pen and paper and then calling them individually or making them come into work to learn when they are working, you are living in the past and need to modernize your process,” ShiftPlanning clearly explains.

It may seem like a basic business process, but employee scheduling is extremely important for many companies.

You need to ensure you have the right number of people working at every hour of the day, as well as the right mixture of talent and personalities.

Thankfully, you don’t have to handle this responsibility on your own. You can streamline and automate the entire process with employee scheduling software.

2. Social Media

For small businesses, social media is a big priority. Platforms like Facebook, Twitter, and Pinterest allow you to put your brand in front of thousands – even millions of people with the click of the button. But if you’re like most businesses, you don’t have the time or resources to spend 40-plus hours per week working with social media.

Don’t fret, though. Automation is possible in this area as well. In fact, social media automation is a swiftly growing industry that features dozens of reputable tools that can take your business to the top. Here’s a look at a handful of the top ones.

3. Human Relations

Most people don’t realize that you actually automate many different HR tasks with relative ease. While it’s still a good idea to have an HR person on staff (or at least someone who has experience in the area), HR software can reduce much of the burden associated with maintaining a full-blown HR department.

With HR software like Zenefits, Justworks, or Algentis, you can automate tasks like compliance, benefits, insurance, taxes, and payroll – all things that otherwise take up hours of your day. This also lets you move towards a paperless system, saving money and space.

4. Backup and Recovery

If your business has ever experienced data loss, you know how significant and detrimental it can be. However, you’re also aware of how time-consuming it is to manually backup files. It’s easy to forget, space is at a premium, and you aren’t even sure you’re doing it the right way.

This is where automated backup and recovery comes into play.

An automated solution handles the process without any need for manual intervention and ensures your data is waiting for you in the event of a disaster.

How does that sound?

What are you waiting for?

If you aren’t currently automating business processes like these, you’re well behind the curve. Whether you realize it or not, you have access to tremendous tools that allow you to streamline these responsibilities with relative ease.

Take advantage of these opportunities and actively work to push your business forward. It’s the businesses that automate that will excel in the future.

This story was originally featured on November 11, 2016.

Continue Reading

Business Entrepreneur

7 books every entrepreneur should read

(BUSINESS ENTREPRENEUR) You’ve heard it said, “do as I say and not as I do.” Read these books from authors who have figured out what works and what doesn’t when starting a business.

Published

on

bookstores books

The power of books

If you’re thinking about leading a startup, but not sure where to go, the internet is often the first place we look. Surely, you can find dozens of blogs, articles, stories, and opinionated editorials that can help give you something to think about.

bar
However, there are tons and tons of great books that can help you think about what you need to get started, how you need to change your mindset, or challenges you may confront as you begin your startup journey. Take a look at the following 7 you may want to add to your bookshelf.

1. The Startup Checklist: 25 Steps to a Scalable, High-Growth Business
This text not only boasts a 5 start rating on Amazon, but offers what few books do – practical, tangible, down to earth advice. Where lots of books try to tell you a story, talk strategy, and share wins, author David Rose instead focuses on advice that assumes no prior experience – and breaks it down from the fundamentals.

2. Nail It then Scale It: The Entrepreneur’s Guide to Creating and Managing Breakthrough Innovation
Nathan Furr and Paul Ahlstrom focus on creating a lean startup by offering a step-by-step process that focuses on nailing the product, saving time, and saving money. The first step is about testing assumptions about your business, and then adjusting to growing it (hence: Nail It and Scale It). Strong aspects of this book include a great theoretical foundation, and an easy to follow framework.

3. The Founder’s Dilemmas: Anticipating and Avoiding the Pitfalls that Can Sink a Startup
Wasserman’s strength here is that he focuses not only on the financial challenges, but identifies the human cost of bad relationships – ultimately how bad decisions at the inception of a start-up set the stage for its downfall. This book is a great tool to proactively avoid future legal challenges down the row, and also discusses the importance of getting it right from the start.

4. The Hard Thing About Hard Things: Building a Business When There Are No Easy Answers
Horowitz writes about his experiences, taken from his blog, in a way that even inexperienced managers can touch and learn. The advice here really focuses on leading a start-up, and what lessons his experience has given him. Presented in a humorous, honest, and poignantly profane way.

5. The Startup Owner’s Manual: The Step-by-Step Guide for Building a Great Company
Blank and Dorf here standout due the sheer mass of this text. A comprehensive volume at 573 pages, my favorite piece for new investors is a focus on valued metrics – leveraging data to fuel growth.

6. The Subtle Art of Not Giving a F*ck: A Counterintuitive Approach to Living a Good Life
A personal favorite of mine, this book is recommended for entrepreneurs not because it’s focus on business, but as a reminder that those of you wanting to start up are people. You have limited resources to manage as a person, and will need to adjust your perspective on what you care about. This book is about changing your mindset to pick your battles and be more focused.

7. Disciplined Entrepreneurship: 24 Steps to a Successful Startup
Bill Aulet starts with an approach that entrepreneurs can be taught, and breaks down the process into 24 steps, highlighting the role of focus, the challenges you may encounter, and the use of innovation. This text wins due to its practicality for new start-ups, and a specific method for creating new ventures. It also features a workbook as an additional, optional resource. Check it out on Amazon

GET READING!

Continue Reading

Business Entrepreneur

6 entrepreneurial tools for startup productivity

(ENTREPRENEUR NEWS) Whether you’re a small business or startup, improving efficiency means more money and less stress. Here are six tools to help do just that!

Published

on

automately net neutrality desktop laptop freelance isps

All good entrepreneurs are full of ideas

Truly great entrepreneurs are also well organized and know which tools will help them see their ideas to fruition.

That can be key for getting a startup business off the ground. Good ideas and a strong entrepreneurial spirit aren’t always enough on their own. Sometimes you need the right mix of technology and tools to keep the more mundane and tedious tasks from bogging down your efforts.

bar
Here are six tools almost any entrepreneur can use to help keep productivity high when starting a new business:

Lawtrades: For legal help

For most entrepreneurs, it’s not the most exciting thing in the world, but making sure you have your legal ducks in a row is important for any startup. Lawtrades helps with that while trying to keep costs down — music to the ears of any startup business owner.

The service is a legal marketplace of sorts designed specifically for startups and entrepreneurs. It connects business owners with legal professionals that it claims don’t charge “bloated law firm hourly rates.”

Lawtrades offers a number of services, including business formation, employment and labor, contracts and agreements and intellectual property.

Do: For productive meetings

Anyone who has started a business knows that it doesn’t happen without a multitude of meetings. Do is a service that can help make your meetings productive so you can waste as little time as possible.

The app allows you to plan and share an agenda to make sure everyone is on the same page. Other features include the ability to track accountability by showing you which points and/or tasks have been covered.

1Password: For easy password management

Starting a new business likely means starting and managing lots of online accounts. The 1Password app from AgileBits helps you save time by remembering passwords and other information for you.

The app helps you generate strong and unique passwords for your many accounts, and secures them behind one safe password known only by you. The app doesn’t only work for passwords — it can also help remember other information such as credit card numbers, safe combinations or street addresses.

Kanbanize: For product development

If your startup involves a specific product or set of products, Kanbanize helps you develop them with your team without bogging down the process. The software allows you to post and share boards that include product information and progress, and you can choose which people see which information.

For example, if you want to update investors on the status of your product development, you can share certain boards with stakeholders and no one else.

Evernote: For organization

There are many applications available that aim to help team productivity, but Evernote is one of the best.

The software allows you to collaborate with your team all within one workplace, keeping projects and other work together. You can also give feedback on ideas and share notes while syncing the data across computers and phones.

There are many other features as well, including in-app chat functionality and integration with Google Drive.

TaskHusky: For web development

Almost any new business will want some sort of business, but a staff of web designers and developers isn’t always an option for startups. That’s where TaskHusky comes in.

TaskHusky is an on-demand service for small businesses that need help with one-off tasks with the Shopify, Bigcommerce or WordPress platforms. The company has a simple three-step process: You create a task and pre-pay, a TaskHusky team member is assigned the task and gets to work and the task is completed and is sent back for your approval.

The takeaway:

Smart entrepreneurs understand they can’t get everything done on their own when it comes to starting a new business. These six tools may not be everything you need to launch and maintain a startup, but they will go a long way to helping you keep productivity at a high level.

#productivity

Continue Reading

Emerging Stories