We’re partners in performance-based marketing
As we love to partner with challenger brands, we often notice that brands are ready to grow but Finance departments aren’t always ready to jump on board. We don’t think this should prevent you from succeeding. We’re willing to both bet on our team and your brand. That’s why we’re offering a new type of contract: Performance-Based Digital Marketing.
“We really want to grow but we don’t know if we’re in a place to invest in what it takes to get us there…I don’t know what to do.”
Actual Client – Director of Marketing
If that sounds like a conversation that you’ve had internally or openly, we’ve got an option for you. We don’t just believe that our digital marketing team can help you perform; we’re willing to put our money where our mouth is and bet on our partnership!
What is a performance-based partnership?
Most agency relationships/contracts are service-based. In these relationships, you pay for services rendered and your fee is standardized for the proposed level of services provided, usually based on the number of hours needed to service your contract. In some cases, agencies also charge based on the amount of media spent.
This is different in a performance-based agency model. When the performance of your website improves, as your agency partner, we share in that success. This is usually calculated by a percentage of the gross profits made through your various website channels.
Why should YOU sign up?
When you sign up for a performance-based contract, you get the best of both worlds. You have a lot more money to invest in your brand’s growth right away AND you get the additional skilled teammates. Sometimes, the capital investment in a strong agency partner can incrementally slow the growth of your brand. This bypasses that by agreeing that we’re all truly in this together.
- Pay less upfront: Since the contract is based on success, you pay what you can afford now and in the future. You’re never stretched too thin.
- Get a partner who cares more: Our success and rewards are based on your success. It matters how you perform EVERY month.
- Get more services immediately: Despite the lower initial cost, you’ll get the full team’s attention as we’re all committed to your immediate and long-term success.
Pay more when we succeed. Not before. In this model, you’ll pay more as you grow but, it’ll never cost you a higher percentage of your success.
Why would we do this?
We know that we have the team to help you succeed. We’re willing to fight the good fight with partners that we believe in. When we do what we know we can as part of our partnership, we’ll also benefit financially as well.
At Phrasing, we do what we do because we love this work and taking on the challenge of creating successful digital marketing ecosystems. This sort of partnership helps us avoid situations where “We could take this to the next level if we just had the budget to…”
We get the flexibility to do what we all agree needs to get done without the concern over budget or scope modifications. For us, it’s a win-win. As our client partners win, so do we!
How does a performance-based marketing agreement work?
It’s a little different so, people often ask how this sort of arrangement works out. There is a commitment to collaboration and transparency that has to happen in order for this to be a successful collaboration. While there are intricacies to each step, these are the basics.
- We examine past performance collectively and discuss the goals and limitations for growth.
- We create a plan for what we think needs to be done to see success and agree on the advertising investment from Brand into the contract period.
- Based on the marketing plan and COGS, we agree upon an equitable figure for gross profit sharing.
- Finally, we outline any limitations on the floor or ceiling to protect both parties due to any effects due to seasonality or other factors.
Ready to talk about a performance-based agreement?
If this sort of partnership sounds appealing to you, let’s have a chat. You can schedule a call with our Founding Partner & President, Tim Welsh, by clicking on this calendar link. If you’d prefer to send an email, you can reach out to Leadership@phrasing.agency and someone from the team will get back to you.
