Pitching

Can You Afford New Advertising Accounts?

Peter · May 25, 2014 · Leave a Comment

Can You Afford New Advertising Accounts?

Maybe Not.

A couple of years ago a Portland digital agency, once a high-flyer, closed its doors because of serious cash flow issues. Their last straw was the amount of cash they used to win and startup a large famous account — and how long it took to get any revenue from the client to offset the cost of pitching and on-boarding.

Before the first client payment ever hit the bank, the agency spent three months pitching; added staff to win the pitch; spent time negotiating a compensation and scope of work agreement while they started to develop the programming to support the client’s program and then added more staff to build the relationship — way before the agency could even get the first invoice out. The agency then had to wait over 90 days to get paid. Not smart.

7 Months – No Pay

So, at the end of the day, the agency was in the hole for about 7 months of costly work before they ever get some moolah. This time-lag does not work for small digital agencies.

Did the client care that the agency couldn’t afford to fund the client’s marketing before receiving the first payment? Of course not. According to an Advertising Age article on clients now extending their payment schedule to 120 days, they still don’t. Try this one on for size.

Mars Seeks 120 Day Payment Terms From Vendors

Mars isn’t alone in asking its agencies to extend a line of credit. According to Advertising Age, Procter & Gamble, Anheuser-Busch InBev, Johnson & Johnson and Mondelez have also extended their payment terms. Will client’s recognize the pain they are inflicting? Don’t bet on it. Even the ANA can’t seem to get its members to behave.

In a report published late last year, the Association of National Advertisers stated that at least four in 10 marketers lengthened payment terms for at least some marketing services in the preceding year.

“Client-side marketers need to consider what is fair and how they would want to be treated,” the ANA report said. “If the payment terms they are suggesting to their suppliers would not be acceptable to them as suppliers, a re-think might be in order.”

What Can An Agency Do?

Yes, this is a tough one since most agencies are not remotely in the driver’s seat. Why?

Most agencies don’t offer services that are so unique that the client can’t go elsewhere.
If an agency already has the account, they are at the mercy of their beloved client.
They are so hungry for new business that they bend over and then lose a strong negotiating position.

But, If they know that the client wants to screw them before they commit to a pitch they can… yes, this one will be hard to believe: NOT pitch.

So, keep how long it will you to get paid in mind when you decide to pitch an account and when you build a one-sided relationship like the one that Mars wants to have with BBDO.

In this case, its seller beware.

Does You Agency Ask For The Order?

Peter · May 14, 2014 · 1 Comment

I had an advertising exec friend read the manuscript of my new book on pitching* — its still being edited. She mentioned that I should add that advertising agencies should ASK for the deal when they are closing their presentation.

Ask For The Order

You know, ask for the order. I know that most agencies do not. Interesting, right?

Think about it… they responded to an RFI / then an RFP and then worked their tail off creating a super fine presentation. They delivered their best, smiled and walked out of the room without asking for the account. Most of the time, an agency thinks that their effort alone is serious proof that they want the business. Well, they are right. Any savvy client would realize that the agency is serious.

But, why not add a bit of passion to the end and politely ask for the the account? Or, as Zig Ziglar, one of the leading sales gurus says… A.A.F.T.O. Always ask for the order.

Need more sales inspiration? Here is a SlideShare presentation by Viru Nigam, an MBA student that I bet has spent more time on Ziglar’s sales techniques than most of us smart, cool agency folk. Take a look. Oh, slide 9 is all A.A.F.T.O.

[slideshare id=33435810&doc=theartofselling-140412001838-phpapp02]

*Oh, my book’s title:

The Levitan Pitch. Buy This Book. Win More Pitches.

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Presentation Toolkit Must Have

Peter · April 21, 2014 · Leave a Comment

Here is an oh so simple presentation tool that will cost you all of $30 or less. Keep this with your laptop to projector cable in a handy presentation toolkit and don’t leave home without either of these.

If you are going to present off of a laptop and don’t want to be tethered to the machine – you know, having to walk back to or reach across the table to advance the slides or play the video – then get yourself a wireless remote clicker thing. You will look way smoother.

Sounds obvious? Then cool. You have one? Even cooler. Now, all you have to do is to remember to bring it to the presentation.

1 Reason To Pitch French Advertising Clients

Peter · April 13, 2014 · Leave a Comment

One of the better weekly newsletters I get is from the long-time-insight-rich-website Six Pixels of Separation. As the website says:

TWIST IMAGE PRESIDENT, MITCH JOEL, BRINGS YOU DIGITAL MARKETING AND MEDIA HACKING INSIGHTS AND PROVOCATIONS FROM HIS ALWAYS ON/ALWAYS CONNECTED WORLD.

Twist Image is a digital agency with offices in Montreal and Toronto that kicks most digital agency’s marketing butt and, as you can see, has a blog that adds value and drives agency awareness. Interesting fact… the agency website does a location lookup to personalize the home page. In my case, it knows that I am in Mexico right now. Nice touch.

OK, Back To Pitching French Clients

The blog has a guest feature called: Six Links Worthy Of Your Attention. This week it points to the news that the French government has dictated that management can’t email employees after work hours. In France that means after 6PM. Here is the post along with a link to the CNET News article.

French say ‘non’ to work email after 6 p.m. – cNet. “Ahh, who doesn’t want to spend their entire childhood and teenage years studying in an old school education institution that is making young people miserable, feeling inadequate and, ultimately, forcing them into a regiment of memorization of things they should never need to remember? I see this often when you look at more traditional European countries and their non-progressive school curriculums The good news? You get to graduate and become a ‘fonctionnaires,’ (if you live in France). A place that makes insane rules like this. I have a better idea: why stop at email? Just shut down the electricity for all fonctionnaires so nobody has to do anything? Alternately, you could just say, ‘hey, what if we let these adults make their own rules and attempt to find their own balance? Wow, what decade are we living in? How stupid do we think that people are?” (Mitch for Hugh).

My take…

France is fucked up. I am not a small government guy but please… can’t people run their own lives? Are the French babies that need coddling?
Recent press has discussed France’s issue of losing talented digital / programming / entrepreneur / creative class types to countries where they can do their thing in a pro-business environment.
It must be a sign of the times when management (this means some of you) has to be told to let people live their lives. I never emailed my staff after 6PM. I am a really good, understanding, caring pro family guy. I didn’t need laws to be act like a decent person. 🙂

If French agencies are going to work at say 80% of capacity then go and get business from the French clients that need 100% agencies. Hello Peugeot. That said, you will need to have a French language website like Twist Image (it helps that they are in Quebec where the government dictates that they need a bilingual website.) Hmm… is there something about French speakers?

Bon chance!

Advertising Pitch Book Update

Peter · March 18, 2014 · Leave a Comment

I hit 41,000 words this weekend. That’s 41,000 words on how advertising, digital, design and PR agencies can better manage the process they employ to build new business winning presentations. 41,000 means I am getting close to finishing the book.

Why am I repeating myself? Good question. Here is a short segment from the book on the art of repetition.

Think Flow.

“We can learn a lot from Nancy Duarte’s sparklines analysis of Steve Jobs. However, I suspect that you might be thinking that channeling a new Apple product launch with the dramatic reveal of the first iPhone might not directly relate to an agency pitch about advertising the essence of Widgets. An advertising agency new business pitch most likely does not have an earth-moving climax. But, lets get past that. For another path to channel, consider Aristotle.

Aristotle, apparently one of the earlier presentation coaches, is credited with developing the three act structure and advising people to, “Tell them what you are going to tell them, tell them, then tell them what you told them.”

Tell them what you are going to tell them. Tell them what you want to say and what they want to hear form you. This will set up your major points and will let the client know that you have your act together.

Tell them. In this section you’ll tell them that you understand their needs, that you have the experience to meet these needs and that you have proof that you can deliver. Think of this as the content section.

Tell them what you told them. I consider this the support section. You will reiterate your major points, support these points with clear rationale and you will nail your pitch with conviction and enthusiasm.”

Experts.

The book includes interviews with experts from the world of agency search consultants, major advertiser organizations, procurement specialists, IP lawyers and the world’s smartest presentation consultant and author. What is a word they all use to describe what it takes to win the heart and mind of a new client?

Chemistry.

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