Ugh. Just the phrase "long-term contract" makes most businesses want to cringe, especially when it's associated with their marketing needs. However, despite this, you'll still find that a lot of marketing agencies do require a long-term retainer contract for their services.
Why You Should Be Weary of Long-Term Marketing Contracts
I always recommend that you conduct some careful due diligence and speak with a few marketing agencies to help you determine the best fit for your business. However, in these discussions with prospective agencies, you'll find that several of these agencies will want you to commit to marketing contracts of at least 12 months in length and will usually push for 24.
The pitch they'll give you regarding the need for a long-term contract is that strategy, execution, and results all require time. By entering into a long-term contract, you're demonstrating to the marketing agency that you're committed to "riding it out" with the agency's game plan to get your desired results. The thinking here is actually spot-on and in all fairness, many agencies know that businesses can be fickle with their ad dollars which can result in campaigns that don't perform.
Why I Prefer To Do Things Differently
I encourage you to look at long-term contracts in a different way. If you sign a contract to commit to an agency for 12 months or more, that agency now knows they can count on your income each month, regardless if they're producing results for you or not. Sadly, some marketing agencies, not all, won't put as much into the relationship once they know they've got you. Therefore, it's not uncommon for long-term marketing contracts to produce results that decline over time.
This is why I choose to do things differently than the industry standard and not require long-term marketing contracts for my clients. The reasons why I started my digital marketing agency, New York Ave, in the first place are because I firmly believe in doing right by the client and I want to be able to choose who I do business with. I don't want my clients to HAVE to do business with me because they've entered into a long-term contract with me. Instead, it's much preferred that my clients WANT to do business with me because I'm doing a good job for them.
Not to contradict myself, I do want to mention that contracts can be good in some situations. Contracts provide both businesses and the agency with a legal document that establishes the expectations of both parties. This legally-binding document is intended to hold everyone accountable to following-through with the agreement.
My point is that you should think very carefully before you choose to enter into a long-term contract with a marketing agency. Because I don't require contracts at New York Ave, we approach each month with the same excitement and vigor as we did when we started with each of our clients. In my opinion, this is something that all clients deserve to get from their marketing agencies. However, once a deal is inked, there are too many scenarios where marketing agencies consistently over promise and under deliver.
When looking for a marketing partner, choose to do business with someone that has your best interests at heart. If you want a marketing partner that consistently strives each month to exceed your expectations, choose to work with an agency that doesn't require contracts. I guarantee that marketing agency will work incredibly hard to keep you happy as they know you're not a guaranteed source of income each month.
Don't fall for a marketing agency that is constantly in pursuit of the next "deal." Instead, choose to work with an agency that is a true partner to your business. Or at the very least, partner with a marketing agency that can explain in good detail why they believe a contract is necessary.
I always recommend that you conduct some careful due diligence and speak with a few marketing agencies to help you determine the best fit for your business. However, in these discussions with prospective agencies, you'll find that several of these agencies will want you to commit to marketing contracts of at least 12 months in length and will usually push for 24.
The pitch they'll give you regarding the need for a long-term contract is that strategy, execution, and results all require time. By entering into a long-term contract, you're demonstrating to the marketing agency that you're committed to "riding it out" with the agency's game plan to get your desired results. The thinking here is actually spot-on and in all fairness, many agencies know that businesses can be fickle with their ad dollars which can result in campaigns that don't perform.
Why I Prefer To Do Things Differently
I encourage you to look at long-term contracts in a different way. If you sign a contract to commit to an agency for 12 months or more, that agency now knows they can count on your income each month, regardless if they're producing results for you or not. Sadly, some marketing agencies, not all, won't put as much into the relationship once they know they've got you. Therefore, it's not uncommon for long-term marketing contracts to produce results that decline over time.
This is why I choose to do things differently than the industry standard and not require long-term marketing contracts for my clients. The reasons why I started my digital marketing agency, New York Ave, in the first place are because I firmly believe in doing right by the client and I want to be able to choose who I do business with. I don't want my clients to HAVE to do business with me because they've entered into a long-term contract with me. Instead, it's much preferred that my clients WANT to do business with me because I'm doing a good job for them.
Not to contradict myself, I do want to mention that contracts can be good in some situations. Contracts provide both businesses and the agency with a legal document that establishes the expectations of both parties. This legally-binding document is intended to hold everyone accountable to following-through with the agreement.
My point is that you should think very carefully before you choose to enter into a long-term contract with a marketing agency. Because I don't require contracts at New York Ave, we approach each month with the same excitement and vigor as we did when we started with each of our clients. In my opinion, this is something that all clients deserve to get from their marketing agencies. However, once a deal is inked, there are too many scenarios where marketing agencies consistently over promise and under deliver.
When looking for a marketing partner, choose to do business with someone that has your best interests at heart. If you want a marketing partner that consistently strives each month to exceed your expectations, choose to work with an agency that doesn't require contracts. I guarantee that marketing agency will work incredibly hard to keep you happy as they know you're not a guaranteed source of income each month.
Don't fall for a marketing agency that is constantly in pursuit of the next "deal." Instead, choose to work with an agency that is a true partner to your business. Or at the very least, partner with a marketing agency that can explain in good detail why they believe a contract is necessary.