Bold Session Recap – Rebuilding Agency Pipelines
In a chat with Mark Colgan, we did a deep dive into the art of rebuilding agency pipelines.
Mark Colgan is a seasoned B2B sales consultant with over 12 years of experience helping B2B SaaS startups and agencies generate more pipelines with trigger-based prospecting campaigns.
Keep reading to learn the best practices when rebuilding your agency’s pipeline. Let’s start from the beginning – having a dedicated business development team in your agency.
What is your advice for agencies that rely too heavily on their founders to run sales or close deals?
It’s common to see that the agency’s founder or owner is still involved in the sales process. It comes down to the agency’s maturity, how long they’ve been operating, and the team size.
Initially, you don’t have the budget or the capacity to hire and onboard a salesperson. You might not even have a service market fit but an idea of an offering. This is the early stage, and bringing in a sales team is probably not a good idea until you’ve worked out some of those things. Once you start closing deals, it might be time to think about hiring a sales function.
The biggest issue I see when hiring a sales role is the lack of documentation or a playbook for that person to follow. They expect the person to close as many deals as they did without any groundwork, which won’t happen. You need to have processes documented if you want salespeople to do well. The agency owner is still heavily involved in this phase since they share knowledge and probably close the deals. The actual moment of removing the agency owner from the sales process comes when the agency hires a seasoned sales leader, but they are very hard to find.
The reality is that I haven’t met many agency owners who have a sales team that can close at a higher rate than they can. That’s because the founder resonates with people, especially if they sell to other agency founders or owners. The main thing when looking for a salesperson is to manage expectations. You won’t be able to find a carbon copy of yourself as the agency owner.
What should agencies look at to gauge the right time to hire a sales representative or a director?
There’s no easy formula for answering that question. For starters, you should consider your agency’s price point and the sales cycle length. How much are you charging for the service? How long does it take to close a deal? Is it weeks, months, or years?
I work with agencies with between 10 and 50 people and between 50 and 100 people. I usually see that bigger agencies have a more sophisticated, mature sales model. The founder might be the Sales Lead or even the Head of Operations. In this phase, you could wait until your team grows and develops before hiring someone to take on that role.
This is unique to the agency’s service, the service cost, and the sales cycle length.
What common struggles do you uncover when you audit an agency’s outbound strategies?
The biggest mistake I see is that many agencies don’t have a clear understanding of their ideal clients and who they should speak to. When you tell a potential prospect that you can work with anyone, it comes off as a bit of a red flag. If you can work with anyone, what makes you different from all the other agencies in the market? This shows that you don’t have an understanding of who your best clients could be.
Similar to that are also poor messaging and positioning. Sure, you’ve won awards, and you’re amazing, but that won’t get you prospects. They want to know how you can help them solve their problems. They need to know if they can trust you as a solution or a service provider who can help them overcome their challenges. Make your copy less about you and more about your prospects and the problems they might be facing. That will improve your reply and booking rates.
Reports say that referrals are a strong source of new business for agencies. Would you agree?
Yes, I’m a massive fan of referrals in general. I’d say whatever you’re doing for client referrals now, do it more often and consistently. There’s really no denying that referrals have a much higher closing rate than any other sort of sourced pipeline. My advice would be to completely exhaust the client referral channel before starting other pipeline generation activities.
Sometimes, asking clients for referrals might feel a bit pushy, so I encourage agency owners to connect their requests with key client milestones or achievements. It’s all about reciprocation. Agencies need to make their clients feel special, heard, and understood—they should feel like a respected business partner.
Every call you have, be it a discovery call or a qualification call, could be a referral source. You’ll have calls with prospects that won’t be a fit, but don’t waste that opportunity. Ask if they know someone who might be a better fit for your agency. This is great if you have a referral scheme in place. It could be a one-time bonus or a percentage of the sale. Referral schemes really make a great impact.
What would you advise agencies to do when client budgets are too small or smaller than their expectations?
When client budgets are smaller than expected, agencies should adjust the scope of their services. This could mean anything from reducing the number of one-on-one meetings to finding ways to streamline processes to fit within the client’s budget. By tailoring the service delivery to be more efficient and focused, agencies can still provide value without overextending their resources.
Agencies should also explore ways to increase efficiency in their operations. This could involve investing in tools and technologies that automate routine tasks or improve workflow. Optimizing the delivery process reduces the time and cost associated with the agency’s service, making it easier to work with smaller budgets.
When faced with clients that don’t align with their ideal project size, agencies should consider building a network of referral partners. Instead of turning away clients outright, they can refer them to other service providers who can better meet their needs. This approach helps smaller clients find solutions and fosters positive relationships within the industry.
These gestures can lead to future opportunities and collaborations as people remember and appreciate helpful recommendations. Overall, agencies should also reassess their market positioning and messaging to attract the right type of clients that match their service offerings and budget expectations.
What would you tell agencies that are facing slow pipelines?
For agencies facing slow pipelines, there are several strategies to address and mitigate the issue. Agencies need to understand that fluctuations in sales can be due to external factors beyond their control, such as current events or political climates. However, proactive steps can be taken to minimize the impact of these fluctuations.
Start by focusing on your discovery calls. It’s key to dive deep into your prospect’s pain points and emphasize the cost of inaction. For example, if a prospect’s revenue from email marketing is stagnating, highlight how their revenue could decline without intervention. This approach helps prospects understand the urgency of their needs and the value your agency can provide.
During these initial interactions, ensure you understand the prospect’s buying process and who the key decision-makers are. Ask questions about their past purchasing experiences to get a clear picture of the approval process. This will help you navigate your organization’s internal dynamics more effectively.
Instead of rushing to send a proposal, save the detailed proposal for a second call. Initially, provide a rough pricing idea, but schedule a follow-up meeting to present the entire proposal. This lets you control the conversation, gauge the prospect’s reactions, and address any objections in real-time. This personal touch can prevent prospects from ghosting you, as it keeps them engaged and allows you to handle any concerns immediately.
Don’t hesitate to follow up with silent prospects. A direct phone call can often re-engage them, as many people avoid uncomfortable conversations by simply not responding. By being proactive and persistent, you can often get a clear yes or no, which is far better than no response at all, enabling you to focus your efforts on more promising leads.
