This last year our ad agency celebrated our 20th year in business. And with that, we’ve decided it was the last year we would operate like a traditional ad agency. You see, for years we’ve helped clients see amazing growth. We’re talking consistent double digit annual growth, sometimes in industries that were seeing overall declines. We have multiple examples of companies that doubled their sales in five years time (including one company that saw a 9-digit annual sales jump in that time.) We’ve taken companies from obscurity to being the national leaders in their industry.

And after awhile of seeing all of that growth, you have to ask yourselves….why do we keep making other companies very, very rich? (Don’t get me wrong, we don’t mind helping companies make lots of money. It just begs the question about our business goals. And I realize, most of you don’t care about what your ad agency is doing for themselves, but you should. Keep reading…)

Multiple times we’ve seen companies grow so much that they’ve added in-house marketing staff and we’ve ended up losing work. Our ad agency would have been better off if the clients were less successful. Not the smart way to run a business. (Or perhaps not a smart business to be in.)

So we’ve decided to change our business model entirely. We are only going to work with companies where we have some ownership or are compensated based on a sales/performance metric.

This process started when we acquired an established manufacturing and distribution company that needed some marketing help, they were losing sales by about 10% a year. Within two years we’ve seen a 40% increase in annual sales.

And now our company is partnering up with other companies to help them grow. This can be a literal partnership where we become part of the ownership. We’ll also can develop a pay-for-performance model where we may not be legal partners, but partner in the successes of the company. We get paid when the company gets paid. We no longer work in the traditional ad agency project or hourly business model. And because our compensation is tied directly to the success of our client, we are highly motivated to succeed. (And also picky about who we work with.)

So, as we mentioned above, most people don’t care about how successful their ad agency is. But, if the agency’s success is tied to their success, how does that affect the working relationship? If your ad agency’s compensation is directly tied to your profitability, don’t you think they’ll work harder at making you successful? On the flip side, if you pay your ad agency the same amount (fee for service/fee for time) whether they are successful in helping you reach your goals or not, what motivation do they have to go the extra mile? (They’re getting paid the same regardless, right?)

This approach won’t work for most businesses. We’re guessing probably more than 99% of companies out there can’t make this work. But if you’re a small/medium-sized business that makes a good product (or has a good service), but are needing to increase the effects of your sales and marketing, you may be a candidate. (And remember, we have our own warehouse and distribution network through the manufacturing company we own that we can utilize.)

Our partnership approach can work for:
• Small manufacturers
• Real estate developments
• Financial services
• Anyone that can track sales or leads

Each situation is custom designed. To find out more, contact Randy Gunter. 608-424-0264.


*Our claim is based on our search to find another agency that only works on a P4P/partnership model. So far we have not found one. If anyone knows of an ad agency that exclusively works this way, let us know and we’ll take down the claim. As a side note, we are still working with a select few clients on a project basis that we have established relationships with (5-20 year relationships) in a pay for service model: our claim is only for new agency clients as on January 1, 2018.