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You are here: Experts > Jobs/Careers > Advertising > Advertising > over smart clients
Expert: Sean Trapani - 10/26/2009
Question
Hi. Our agency just pitched to a potential client with some advertising needs. Budget $55,000/- a year. All went well, we finished the presentation n all.Then spoke the Chief Managing Director (client)(who went out for a smoke while the presentation was on) that he loved the ideas and wanted to give us the account - but wanted us to do the marketing and sales parts as well - to which i explaied that sale is a completely different job.
He explained, he wanted to give the complete job to one agency as (acc. to him) the ad agency will advertise and send the ad budget but the quality of the ad campaign can be measured by sales only. and if ad agency is give the right to spend on behalf of the client they should also be responsible to the sales, and then he targets that an we were supposed to meet in terms of sale - 1st month - this much, in six month this much... and so on.
The product in not in the market - its a new launch. so i have understood the product but i certainly do not know the quality. I background checked the client - they are, ok, and pay the mmoney on time etc. but till now they are just channel partners of some product and the new product is home service for similar products.
1) i dont doubt their knkowledge on the product coz they have been selling it for long time.
2) quality for support service on the product is a diff thing.
3) support service is on a subscription bases - sales of which i have to take care of.
4) i just a letter from the client saying that - We understand that the initial market pull would completely depend on the communication strategy, media plan and its delivery. Hence depending on the agency's vision and depth in the plan we may like to consider enhancing the budget from the present $55,000 to $110,000.
5) now they want 2 plans, one for each budget.
6) personally i dont think any company can just double the budget just like that. - i guess for this budget he might be banking on me to make sales first.
7) recent clarification - the budget he is telling me includes both advertising and marketing.
8) My agency is a 6 people small agency. we have handled such budgets and higher earlier but only for advertising not marketing or sales targets.
Need a lot of comments and help here. is it a do or not do. if its a do then how should i split the budgets for sales team and advertising.
Answer
My advice is to trust your instincts.
It is not unheard of for a client to ask their agency to tie a PERCENTAGE of their compensation into sales results. However, it sounds like you already have doubts about the sincerity of the client (walking out of the room during the pitch). This guy might be working you for free ideas. He will get your plan, tell you he doesn't like it, and then walk away with your intellectual property. (That happened to me once.)
A lawyer can't guarantee a verdict. A doctor can't guarantee a cure from cancer.
And an ad agency can't guarantee a successful product.
It's up to the client to find an agency with credentials that suggest they have what it takes and then to proceed from there. Hence, one of the oldest sayings in advertising uttered by a client, "I know I'm wasting half of my money on advertising. Trouble is, I just don't know which half."
Best of luck,
ST
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