Part 3 (1/2)

If you can define the scope, you can standardize the service and assign a set price

The burden is on the agency to build systeht talent in place, to profitably deliver services at set prices

The value-based pricing model takes seven primary variables into account: estiet (HRT), costs, perceived value, builder vs driver, loss leader, and service level

Accurate ti model becomes more essential in order to monitor efficiency and productivity, evaluate employee perfor

If prospects or clients want plans for free, they will never value your agency's services and knowledge

Your goal should be to sign up the -terest contract client should not account for more than 20 percent of your annual revenue

Efficiency is the primary driver of success

Chapter 2

Transforencies

Every Firencies will co leaders are tech savvy, offer integrated services, hire and retain versatile talent, and profit froe, and continually apply shi+fts and advances in technology to strengthen their businesses, evolve their services, and deliver greater value to clients

As change velocity accelerates, traditional agencies unwilling or unable to adapt will quickly be left behind Meanwhile, y to construct efficient agency-acy systeencies, hybrid firms can activate software and introduce processes that lower operating costs, increase productivity, and drive profitability They are able to build ely operate in the cloud, capitalize on advances in online coraphs to create a ency ecosystem

The cloud, which encies access to affordable hosted solutions for tieee, ca, analytics, website content-ey infrastructure, virtual s, and communications

These cloud applications, which run on third-party servers rather than internal networks and local coencies Systems and processes that used to take years to build on internal networks can now be activated and integrated in real tiy-Driven Services

As selective consumption-the principle that consumers choose when and where to interact with brands-continues to drive encies h value-added reseller (VAR) and affiliate prograram is a perfect exay-driven services In February 2010, HubSpot cofounder and CEO Brian Halligan (bhalligan) introduced their VAR progranificant coencies on the use of its inbound encies in iven access to educational resources, selling tools, training programs, and private online communities that facilitate customer interactions and peer-to-peer communications In addition, partners who resell the HubSpot software receive a 20 percent ency partners are featured in the HubSpot Services Marketplace,1 an online directory that connects providers with organizations seekingsupport HubSpot uses a Customer Happiness Index (CHI) score, which is autorade partners based on thesuccess of their clients HubSpot and non-HubSpot custo: Do inbound n

Landing page design

Lead nurturing

Social e search engine optimization (SEO)

Pay-per-click (PPC)

Video production

Pre to HubSpot's Jordyne Wu (jordyne), director of business development, the Marketplace has referredencies

My firra andservices into the e, socialmodel made it possible to effectively bundle and proned specifically for the needs and goals of HubSpot custole dollar or minute in the developrowth and drive sales by expanding our digital services andthem with a third-party solution It is partnershi+ps like these that agencies can use to disrupt and thrive in the new ram

I asked HubSpot's Peter Caputa (pc4rarowth opportunities that exist for agenciesforward: Recently, a prospective partner said toto help encies' There are so encies face that are externally i landscape of services they es including client acquisition, profitwith hundreds of agencies of all types and sizes, we've discovered ways to help agencies with these challenges and for several years have been packaging up training and support services on top of our core product to help theencies and consultants lack the ti, let alone do the research and develop, what services they should offer, and how to offer them efficiently so that they can help clients maximize their return on investment More than 170,000 people who are either self-e agency, have downloaded the thought-leadershi+p content that ourtea our integratedplatfor activities, we have insight into orks and what doesn't

When we publish guidelines, share tools, and provide best practices that are specific for agencies, thousands of agencies download the infor this with our partners has made it possible for them to sell,it a in Whilepartners have seen a 200-plus percent growth in revenue, there is still a huge opportunity for agencies, as evidenced by the more than 30-plus new partners that come on board each ling with how to build their ram this year based on our successes and the de a Product Business

The encies is in third-party software integration; however, there are a nu service fir: pursue perceivedrevenue streams, differentiate from competitors, improve internal processes, and increase valuation

Although so firms, such as SEOmoz, an SEO software company, have successfully transitioned from a predominantly service-based to product-driven business, it is a challenging proposition for most

In an April 24, 2011 TechCrunch article, ”What Should You Do With Your crappy Little Service Business?”2 Mark Suster (msuster), a two-time entrepreneur and venture capitalist at GRP Partners, articulated why service businesses should not becoh the post specifically addresses technology service providers, the saencies

”This is where o pear shaped They get 'product business envy' because they read toosold at even crazier ones So they set out to build a product business within a services cooes on to describe the three ency's core service business 1 Agencies do not realize how difficult product businesses are to build, and they falsely assu services will translate into a co products

2 Increased costs associated with product developer exposure risks in downthe business

3 As resources are funneled into the product side, firht of their core business-services

Theshi+ny objects Do not let delusions of grandeur or product envy cloud your vision for building a strong service-based agency

The Tech-Firy-driven service firency, requires two coration Let's exaency's transforencies, particularly their leaders, e about the technology industry, and a desire to be early adopters of products and services Agencies that understand technology trends and innovations are able to more readily adapt their own business models, continually increase efficiency and productivity, evolve client caly unrelated information This requires professionals to: Read the essential publications, such as TechCrunch, Engadget, GigaOM, Gizital, and Wired