Why You Shouldn’t Work With Online Marketing Agencies That Offer Performance Guarantees

When it comes to working with an online marketing agency, many small businesses want guaranteed, excellent performance for the lowest possible cost. While this may sound like a dream come true to marketing department heads, it is simply not possible in most cases. Here are a few reasons why you… Continue Reading…

When it comes to working with an online marketing agency, many small businesses want guaranteed, excellent performance for the lowest possible cost. While this may sound like a dream come true to marketing department heads, it is simply not possible in most cases. Here are a few reasons why you shouldn’t work with online marketing agencies that offer performance guarantees.

Small Businesses Do Get Results From Online Marketing

Many small businesses are seeing results from online marketing. Slowly, they are investing more of their marketing dollars in online strategies, such as content marketing and SEO. However, many companies don’t fully understand what is required to get good long-term results.

Online Marketing Is Continuously Changing

The path to online marketing success can involve months of reviewing analytics data. Online marketing is driven by data because of the constant changes that are being made. Advertising companies, such as Google and Facebook, are continuously changing the way in which they do business. Consumers also change the way in which they interact with businesses as they become more educated about products and services available in the marketplace.

Short Term Results

Given these factors, a company that makes claims of guaranteed performance is likely only going to be able to back those guarantees over a short period of time. If the company were to guarantee such results indefinitely, then it is very likely that at some point in the client relationship, there will be a decrease in the effectiveness of the service.

This often due to something that is out of the control of the agency, such as a change in Google’s search algorithm, which then puts the agency in a bad light. This is why agencies that aggressively market their services based on performance guarantees are likely to leave their clients feeling dissatisfied.

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Every Client Is Unique

Getting results for your company requires testing. The agency managing the online marketing campaign has a general idea of how to achieve results for your business based on data from other businesses in your industry. But the fact is that your business is not exactly like any other business out there. Therefore, the company has no way of knowing exactly how much the project will cost in terms of resources or labor in order to bring in the best results.

When you combine this fact with the idea that most clients want this type of work done within a set budget that is unlikely to be increased, guaranteed performance at a set price can quickly lead to dissatisfaction for both parties. In many cases, clients are also unwilling to increase their marketing budgets, even if significant results are achieved.

Performance Guarantees Don’t Allow for Growth

With the collection of data comes insight. In almost all cases, an online marketing agency will have a better understanding of how your business operates after working with you for 6 months. Performance guarantees make businesses more likely to expect immediate results regardless of what the contracts stipulate for the length of time required to see significant results. By not marketing based on performance, online marketing agencies have the time that they need to gather the data that is required to drive excellent results for their clients for years to come.

What Sort of Guarantees Are Okay?

Not all guarantees are bad. Agencies can offer guarantees of reliable service and commitment to getting the work you agreed to completed. However, specific outcomes in terms of performance should never be on the table. Businesses should instead evaluate online marketing companies by their reputation in the marketplace and the continuous demonstration of their own expertise through their marketing materials.

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