Selling an Agency and Starting Over the Right Way, with Jodie Ball | Ep #675

Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Is the wrong prospecting process bringing you clients who are just not a good fit? Are you feeling trapped in a contract with clients you wouldn’t choose to work with again? Building strong connections with clients based on common ground and understanding can significantly impact the success and fulfillment of partnerships in the agency world. Today’s guest saw her first agency end after all partners lost their passion for the work. The reason? Working with clients who didn’t fit the agency’s personality left them all feeling stuck and overwhelmed. After selling and starting over, she has made the right prospecting process a focus of her new business and is seeing the results. Tune in for insights on starting over the right way after selling an agency that wasn’t working out.

Jodie Ball is an agency owner specializing in search engine optimization helping clients scale and grow. She has a decade of experience in SEO and digital marketing and uses a data-driven, non-siloed approach to capture target demographics at pivotal points during their decision-making process. Jodie shares her journey of building and selling her first agency with partners, along with the challenges and successes she experienced. She now enjoys the freedom to choose her clients and work with people she wants to work with.

In this episode, we’ll discuss:

• How the wrong prospecting can lead to agency frustration.

• Ensuring your vision aligns with your prospects.

• Selling and starting over the right way.

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Sponsors and Resources

E2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service.

When Clients Don't Align: The Path to Agency Frustration

Jodie’s agency journey started when she was an intern helping build websites for musicians and got the amazing opportunity to work in the search engine optimization of an Amazon-owned business. She sort of fell into the role of executing an account for Amazon, a path she would have never imagined for her career. Later on, the people who first contacted her for that project called her when they decided to build an SEO agency and eventually became her business partners.

The Amazon gig helped them gain credibility as they started and grew their agency. Initially, she worked on sales and strategy and had to wear a lot of different hats as she and her partners figured out the agency.

After starting off with a bang with Amazon, Jodie’s agency went on to work with high-end fashion retailers like Skims and Good American. They stayed within the fashion niche to leverage their expertise and reputation in that area and attract clients who valued their industry knowledge and experience.

However, they fell into a pattern of taking on clients that didn't fit their agency's personality and started to feel stuck and overwhelmed. This led to stress and ultimately made the business less enjoyable. Five years in, her partners were now too busy for the agency and it seemed there was not enough meat left on the bone.

Basically, it seemed clients did not have a full understanding of the value the agency was providing. This resulted in unhappy clients and frustration on both ends. Looking back, Jodie sees their reporting was not complete enough to communicate the full extent of their results.

How to Find The Right Prospects: Correcting Past Communication Mistakes

Agencies must establish clear channels of communication with clients from the very beginning and consistently update them on the progress of their projects. By setting expectations and goals upfront, agencies can ensure that clients are aware of the value they are receiving and can better appreciate the results of their work.

There are certainly many things they could have improved which Jodie now implements in her new agency with her current understanding of prospecting that helps eliminate the wrong prospects since the beginning.

A lot of it has to do with educating the client during the onboarding process. Clients may not always be familiar with the intricacies of digital marketing, SEO, or other services offered by agencies, so it is crucial to take the time to explain these concepts in a way that is easy for them to understand.

Jodie finds that many times with clients the business model is a really great fit for the agency but the person they’ll be communicating with is not there yet in terms of understanding or being in the right mindset. This is not necessarily insurmountable and agencies can empower these clients to make informed decisions and better appreciate the work being done on their behalf.

Looking forward, Jodie would like to focus on growing the team, scale the agency to reach the 7-figure mark and retire to live a more relaxed lifestyle.

Selling an Agency and Starting Over the Right Way

As the partners' passion for the agency waned and problematic clients drained the joy from their work, discussions about a potential sale arose. Initially, Jodie resisted - in her early 20s with minimal living expenses, she felt ready to keep battling for their vision. But her partners craved more stability and Jodie admits their backend costs were spiraling out of control.

Then a familiar company came calling, sharing a business partner and needing project management with solid SEO chops. When Jodie's team opened their books to this potential buyer, the numbers spoke volumes - they were tanking fast. So they accepted a decent exit package and walked away.

For Jodie, the transition back to employee life quickly confirmed her entrepreneurial itch. Just selling websites at a corporate gig felt like a downgrade from the autonomy she once had. The realization cemented her future path - that the risks and rewards of building her own venture were worth the fight.

It was a bittersweet closing chapter for that first agency but Jodie emerged with the unshakable tenacity and determination to build something even greater in her next iteration as a founder.

Get Paid More with a Foot-in-the-Door Offer

Revamping her client onboarding has been enlightening for Jodie. She now deeply appreciates the value of an exploratory conversation to truly get to know prospects. In the past, she learned the hard way that seeming like a good fit upfront doesn't guarantee long-term alignment.

These days, Jodie's process kicks off with discovery calls and initial questions, but quickly dives into extensive conversations searching for that essential common ground. It's a critical step to prevent getting trapped in contracts misaligned with her agency's core. For Jodie, there must be a palpable connection - a sense you could comfortably chat with this person as a friend, beyond the business transaction. Without shared fundamental beliefs and values, any working relationship is doomed.

The next step to improve this approach would be to offer a "foot-in-the-door" to collaborate on high-level planning. This offer vets both sides - proving the client's seriousness and fit, while showcasing Jodie's agency value with some initial results. It's a win-win for rapidly progressing viable prospects toward full-scope engagements at well-deserved premium fees. With good results on this end, clients will see the value you bring for their business and be willing to pay a higher ticket to get there.

Do You Want to Transform Your Agency from a Liability to an Asset?

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