One thing we would never do is suggest that employing a digital media agency is right for every business. For some companies, hiring an agency to do their digital marketing just doesn’t make sense. For others, it can be the best decision they ever made – placing them firmly on the path to success. (We know this from having spoken to and worked with businesses of all shapes and sizes over the years.)

Helping a business to understand whether they should use our services or keep their digital marketing in-house has always been the main focus of our initial discussion with a new enquirer. There is a lot to be taken into account, but the decision usually comes down to the numbers.

Take the Quiz

In this short quiz below, we ask you 6 questions. Your answers should reveal whether or not hiring a digital marketing agency would work for you.

1.   How much of your profit comes from new customers as opposed to existing customers?

a. 1 – 10%
b. 10 – 25%
c. 25 – 50%
d. More than 50%

How much of your profit comes from new customers as opposed to existing customers is a key question in determining whether or not you should keep your digital marketing in-house. If your company relies mainly on repeat business from existing customers, then you don’t need to do additional marketing and won’t need to hire an agency. If, on the other hand, you rely on constantly attracting new customers to buy your product or service (because what you supply is usually just a one-off purchase), then you will have to keep the online marketing wheels in motion at all times – and the knowledge and expertise of an agency could be fundamental to your success.

2.   What is your average gross profit per new customer?

a. Less than £50
b. £50 – £200
c. £200 – £500
d. More than £500

When it comes to your average gross profit per new customer, basically, if your profit margin isn’t big enough to cover the cost of your agency management fees or online ad spend, chances are you won’t be able to afford an agency.

3.   How much are you willing to spend on your online marketing monthly?

a. £0 – £500
b. £500 – £2,000
c. £2,000 – £10,000
d. More than £10,000

Whether you hire an agency or keep things in-house, how much you are willing to spend on your online marketing will play an important part in the success of your marketing. There is an optimal spend dependant on your individual business and your goals – but you have to be prepared to invest in your marketing if you want to see results. How much you are willing to spend will be a deciding factor in whether you should employ an agency.

4.   How many digital media experts do you currently employ (including social media experts, content writers, SEO experts, PPC/AdWords experts)?

a. 0 – 1
b. 2
c. 3
d. 4 +

The number of digital media experts you currently employ is an indicator of your commitment to digital marketing. And the advantage of employing people to manage your digital marketing is that they understand your business from the inside. The disadvantages are the hidden costs of employment and the lack of work in just one speciality field to constitute a full-time job for one person. With an agency, you get access to a team experts each with their own speciality, who invoice you only for the hours they have spent working on your business.

5.   Does your business get a good return on investment from the digital media platforms you use?

a. No – we see poor results for our efforts
b. Not sure – don’t know how to measure it/we don’t keep track of results
c. Yes, not bad – we get a few leads from our online marketing
d. Yes, completely satisfied – we get a lot of new business from our online marketing

An important factor is whether you get a good return on investment from the digital media platforms you use. If you get a poor return, or you don’t know how to measure your results, hiring a digital media agency might be of benefit – whether to train your staff or to handle your digital media for you.

6.   What is the current conversion rate on your website?

a. 1% or less
b. 2 – 4%
c. 5 – 9%
d. 10% +

The current conversion rate on your website is a good indicator of how successful your marketing is. If your conversion rate is high (over 10%), you already understand how to get traffic to your website and how to convert it. If it is low (4% or less), then you could benefit from the expertise of an agency.

Work Out Your Score

1.   How much of your profit comes from new customers as opposed to existing customers?

2.   What is your average gross profit per new customer?

3.   How much are you willing to spend on your online marketing monthly?

4.   How many digital media experts do you currently employ (including social media experts, content writers, SEO experts, PPC/AdWords experts)?

5.   Does your business get a good return on investment from the digital media platforms you use?

6.   What is the current conversion rate on your website?

48 – 60 Points

It looks as though you don’t need a digital marketing agency at the moment. This is either because you handle things in-house or because hiring an agency is not a practical option given your type of business/customers/budget. If there are areas of your digital marketing you need help with, sitting down with an agency to chat through a few options might be a good idea.

27 – 47 Points

You might find hiring an agency to be of help to your business – particularly if you have limited marketing resources or know-how. Whether you outsource your social media management or upskill your staff with training from a digital marketing agency, you will soon start to see results.

10 – 26 Points

Hiring an agency will almost certainly be beneficial for your business. Lack of resources,     time and poor results all mean it’s time to seek external help to boost awareness of your company and ultimately increase profit.

0-9 Points

Hire an agency as soon as you can to grow your business!

Still don’t know whether hiring a digital marketing agency is right for your business? We would be happy to advise you. Please get in touch here.