What Makes a Great Marketing Agency
Audio only version of the podcast here.
Podcast Transcript
00:00:56 Don
Today, we want to talk a bit about what we do. Over the past few episodes, we’ve walked you through the different levels of contractor businesses that we see and work with, and how to progress from one level to the next. One thing we’ve emphasized is that there comes a point when, as a contractor and business owner, you need to look for outside help—specifically experts who can take some of the load off your shoulders so you can continue to grow and scale your business. Marketing is one of those areas. Today, we want to discuss what a digital marketing agency does, what makes a great one, and how you, as a contractor, can choose the right digital marketing partner. So, Janet, when you think about that topic, let’s start by explaining the basics: what is a digital marketing agency, and what do we do?
00:02:08 Janet
That’s a great question. Let me make it simple. As a digital marketing agency, we help our clients build and manage their websites, get found on Google (also known as SEO or search engine optimization), and run paid advertising campaigns. These campaigns can be on platforms like Google, Facebook, Instagram, and more. We also help with email marketing, direct mail, and social media. Did I miss anything, Don?
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00:02:41 Don
That pretty much covers it. We also focus on brand awareness and community engagement, but in terms of digital marketing services, those are the main areas.
00:02:52 Janet
If it’s online, we pretty much handle it.
00:02:59 Don
Exactly. But what’s the goal? What are we trying to achieve for our contractor clients with all these services?
00:03:08 Janet
Great question! It’s easy to get bogged down in the details of digital marketing. I’m usually the first person prospective clients talk to when they approach FatCat, and one of the most common questions I get is, “How do I get to be number one on Google?” I have to explain that’s not necessarily the right goal to focus on.
00:03:34 [SPEAKER_2]
Right.
00:03:43 Janet
But, to your question: the ultimate goal of working with a digital marketing agency is to help you achieve your business objectives. A good agency partner will ask about your business goals, not just focus on data or technical details. They’ll ask, “Where do you want your business to go? What’s your current revenue, and what do you want it to be next year?” Maybe you want to hire an operations or project manager to help you scale. The key is aligning marketing strategies with your big-picture business goals.
00:04:33 Don
That’s a great point. One of the common questions I get is, “Are you like Angie or HomeAdvisor?” Contractors wonder if we’re just another source for leads. How are we different from lead aggregators like those?
00:04:58 Janet
At the end of the day, yes, we’re in the business of generating leads, but we’re very different from lead aggregators like Angie or HomeAdvisor. Lead aggregators run campaigns and get homeowners to fill out forms saying, “I need a painter” or “I need a roofer.” Then, they sell that lead to as many contractors as they can—usually at least three other businesses.
00:05:35 [SPEAKER_2]
Yeah.
00:05:35 Janet
As a result, you’re competing against other contractors for that lead, which makes “speed to lead” crucial. But that’s not what a digital marketing agency does. We work on behalf of your business to build your brand and generate exclusive leads—leads that only go to you. When we generate a lead for, say, a roofing contractor, we’re not selling that lead to another roofer. We send it directly to you. Exclusive leads typically have higher set rates and better conversion rates because the homeowner specifically chose to get a quote from your company, not just any company.
00:07:12 Don
So, it’s not just about driving leads, but about building your business and driving leads specifically for your business. I love that distinction. Bringing on a digital marketing agency is more like bringing on a business partner than just paying for more leads.
00:07:38 Janet
Exactly. And to be clear, we’re not trashing Angie or Thumbtack. Many of our larger clients still use those platforms as part of their marketing mix, but they understand that those leads will set and convert at lower rates compared to exclusive leads. Lead aggregators can be useful, especially when you’re just starting out, but they’re not a long-term solution for growth.
00:08:21 Don
That leads to a great question. If a contractor has been using lead aggregators for a while, how do they know when it’s time to move to a digital marketing agency? What are the signs that indicate it’s time to bring in additional help?
00:08:55 Janet
Typically, we start talking to business owners when they’ve reached a certain revenue level and are looking to grow to the next level. One common scenario I see is when contractors are aligned with a manufacturer, like an acrylic bath or siding manufacturer, and are relying on that manufacturer’s lead program. They’ll grow their business to a certain point—maybe they have a showroom, branded trucks, and staff—but eventually, they plateau. The manufacturer’s leads become predictable, but they’re also being shared with other contractors in the area. That’s when they come to us and say, “I need to generate my own exclusive leads. I’m too dependent on this one source.”
00:10:27 Don
It’s like you’ve gotten all you can out of that source, whether it’s a manufacturer or a lead aggregator, and now it’s time to scale.
00:10:37 Janet
Exactly. You’re not going to scale further using the same lead sources. That’s often when business owners start considering a digital marketing agency.
00:11:07 Don
Okay, but how does a business owner know when they’ve reached their capacity in terms of time and resources? When should they start looking for outside help?
00:11:35 Janet
It often comes down to a revenue threshold. If you find yourself splitting your time between running appointments, checking on jobs, and troubleshooting while your marketing efforts are drying up, that’s a sign. You’re busy now, but what about three weeks from now? That’s when you need someone dedicated to managing your marketing efforts, ensuring that your pipeline stays full.
00:12:30 Don
Right. Someone needs to be giving that part of your business dedicated attention.
00:12:36 Janet
Exactly. You’ve probably bootstrapped it as far as you can. Now it’s time to bring in experts to take it to the next level.
00:12:56 Don
So, let’s say you’re ready to bring in an agency. How do you choose the right one? What should a contractor look for?
00:13:40 Janet
There are a few key things to consider. First, ask about ownership. Some agencies might set things up for you, but you don’t actually own the assets they’ve built—like your website or domain name. You need to ask upfront: if you part ways with the agency, do you own everything they created for you?
00:14:19 Don
Like, for example, what kind of assets are you talking about?
00:14:21 Janet
Some agencies will buy your domain name and build your website, but if you decide to leave them, they own everything. You could end up in a legal battle or have to start over from scratch. Make sure you understand who owns your assets before you sign on with an agency.
00:17:02 Don
Yeah, that’s crucial. If I work with you and we part ways, what do I get to keep? What’s mine?
00:17:08 Janet
Exactly. If you don’t get a clear answer to that, it’s a red flag.
00:17:16 Don
What else should a contractor look for in a marketing agency?
00:17:33 Janet
I’d recommend partnering with an agency that specializes in working with contractors. The home improvement industry is unique, and it helps to work with someone who already understands your business. There are enough agencies out there that specialize in this space, so find one that does. You don’t want to waste time explaining what bath leads are—you want an agency that already knows.
00:18:29 Don
That makes total sense. If you’re having to educate your marketing agency on what you do, you’re not saving any time.
00:18:51 Janet
Exactly.
00:18:52 Don
Let me ask you this: what are some questions contractors ask that aren’t really the right questions when choosing an agency?
00:19:20 Janet
A lot of contractors ask, “How much should I spend on PPC?” or “How many leads will this generate?” Those are important questions, but if you’re looking for guaranteed results with the ability to turn leads on and off at will, you’re probably better suited for lead aggregators like Angie. Working with a digital marketing agency is more of a long-term partnership aimed at growing your business, not just generating quick leads.
00:20:43 Don
Yeah, there’s a difference in pricing structure as well. With lead aggregators, you pay per lead. But with a digital marketing agency, you’re paying for the services they provide, like PPC management or SEO. The goal is to generate higher-quality, exclusive leads for your business, not just any lead.
00:22:20 Janet
Exactly. And a good agency will also talk to you about your lead goals and cost per lead. We love having conversations where we review the results from campaigns, assess set rates, and calculate marketing costs as a percentage of sales. That kind of deep partnership is what sets an agency apart from a lead aggregator.
00:24:04 Don
Yes, and over time, your cost per lead may even improve because the agency is dialing in your campaigns and bringing in more qualified leads.
00:24:46 Janet
Exactly. We had a client who was spending $4,500 a month on PPC at the start of the year, but now they’re only spending $2,000 a month, and their sales are up. That’s the kind of partnership you want—where the agency is constantly working to improve your results.
00:25:32 Don
Absolutely. Well, if you’re a contractor ready to bring in some help with your marketing to crush your lead goals and take your business to the next level, we’d love to be that partner for you. Visit FatCat Strategies to schedule a call and get a free consultation. We’ll walk through your business