Blog Post

Marketing services companies can do more


Why would anyone want to outsource their marketing to a marketing service company? For starters, many small businesses have their specific area of expertise (maybe you're a dentist, a lawyer, a plumber, or you sell a specific product). If your expertise is any of these specific things, you might not know a whole lot about marketing. Another reason a small business might outsource their marketing to marketing service companies is because, well hiring a person who can do it all is rare and comes with other sorts of costs (time to train/manage) and you may find it less expensive to outsource. Watch the video to learn more about why marketing service companies can do more!

TRANSCRIPTION:

Hello, and welcome to our video on marketing services companies. I'm Chad Hill, and I have Adam Stetzer here with me as well. Adam, how you doing?

I'm good. Good afternoon, Chad. Yeah. Today's topic is marketing services companies. And I'd be interested on why you think people use them, what is the business case when people are looking to outsource marketing services to a marketing services company.

There's a couple that-- there's three that I think are the ones that you hear most often. The first one typically is that you hire a marketing service company because they have specific expertise that you don't have, and that could be for a couple of reasons. It could be that your business is building widgets and sending widgets to your customers. And so you don't really spend a lot of time developing expertise around marketing, and you want to bring that expertise in in the form of marketing service companies. So that's typically one part of it.

And then in terms of that expertise, you can decide to hire it and hire a person. But then you have to train them and manage them, and a lot of times it's better to work with somebody who is building that expertise and continuing to refresh it through an outside vendor.

I think particularly in the small business world the cost of having someone full time versus being able to hire a part-time person with this expertise as well as, as you say, keeping up on the trends has got to be ridiculously hard. So outsourcing marketing services companies for a small business makes a whole lot of sense to me.

Absolutely. And so on that point of sort of the variable cost, again, if someone is really thinking about that, well, I could hire somebody for this amount of money, the problem is is that what often happens is you can't hire-- you really need two or three skill sets, and so typically there isn't the jack of all trades. The person who can do design and development and analysis and all the different things together doesn't really happen. And so when you're looking for a marketing services company, they're able to bring those skills together in a way that you couldn't simply hire it.

And there, maybe that's not just your average small business, like a dentist or plumber or doctor. Now you're probably talking about agencies and other marketing companies who may actually be looking to outsource to other marketing services companies. It seems confusing to say. But as they're looking to variabilize their labor, they may want to augment with an outsource partner.

Absolutely. That's very much the case. There's all sorts of agency partnerships going all the time, and HubShout has a very successful online marketing reseller program as well as a website development reseller program and marketing services for agencies looking to plug in those types of skills into their current businesses.

And then I think the final point here-- so in addition to the specific expertise and the ability to kind of variablize the cost and get the right type of expertise for what you need, the third thing is really looking at technology. And so, again, when you're looking for a marketing services company, a marketing company is focused on a certain area as able to either build or bring together technology that makes delivering those services more efficient and effective. And so that's something that you're going to get when you-- you pick the right marketing services company of all the marketing companies. You're not only getting their expertise, you're not only getting the advantages of a variable cost over fixed cost, but you're also getting some great technology infusion into the process to make the whole thing more efficient.

This is cool. This is really the economy of scale argument, because they can build technology-- if many different agencies or even small businesses are outsourcing their marketing services to marketing companies, they can go after much more bigger technology initiatives. So, to me, it becomes sort of a marketing services co-op of a sort where those development costs are able to be spread over lots of participants, who then can use that technology. And, of course, we do that very heavily here at HubShout. Others do that as well. I think it's a winning strategy that keeps you on the leading edge of technology without having to bear the full development costs.

Thank you.

Comments (5)

  • Renee Reply

    Small businesses are busy enough trying to run their businesses successfully. Finding the time to simply even know what questions to ask about what they should/shouldn't be doing online to connect with their customers can be daunting. Having a partner that has the expertise, a tested process and the technology in place to successfully implement and track all the tactics involved with a solid online marketing strategy is invaluable.

    01/14/13 at 02:36 PM
  • Jesse Reply

    I agree with Renee that running a small business is incredibly time consuming. Business owners sometimes have to log in 12, 14 or 16 hour days. This leaves them barely enough time to get to sleep, let along find the ideal marketing company. Pairing up with an expert in the field is not only convenient, but it just makes sense.

    01/14/13 at 02:58 PM
  • Matt Reply

    The learning curve is enormous. For most people it is like an oil change, not worth their time to do themselves when considering the time investment to not only implement but learn this stuff

    01/14/13 at 06:13 PM
  • Nick Reply

    Even setting aside the idea of learning everything you'd need to in order to get a marketing strategy up and running, as a small business owner, I think the ongoing maintenance of the various marketing channels would be time- and energy-consuming as well. I know it's hard for a lot of small business owners to hand over the reins, when they are so heavily invested in their own company and its success, but the DIY approach just doesn't make sense when it comes to marketing. Better to find a company that they can trust, work together to establish a plan, and touch base as needed

    01/15/13 at 02:18 PM
  • Paul Reply

    You don't make the quarterback practice catching. Assemble a team and let each member focus on what he does best. Hire a wide receiver to do the catching.

    01/15/13 at 04:42 PM

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