As an agency, you probably offer your clients a number of different services.
Website development, logo design and social media marketing are probably all things your clients turn to you for.
But these services all tend to be very project based, and require you to continue attracting new customers in order to keep the revenue coming in.
But what if you could start earning recurring revenue for your agency? The kind of recurring revenue that comes in every month without requiring you to win new business over and over again.
In this guide, we’ll walk you through the benefits of selling email marketing services, help you understand exactly what you can offer your clients and show you how you can make money from it.
Email is the perfect addition to your agencies offering for a number of reasons:
With Facebook boasting over 1 billion active users per month and Twitter boasting 255 million, it’s understandable if your clients think social media is the best channel to be marketing their business.
But what you don’t see so frequently touted are the statistics on email usage. According to Radicati, the total number of worldwide email accounts was 3.9 billion in 2013, and projected to be 4.9 billion by 2017.
This means that there are 3x more email accounts than there are Facebook & Twitter accounts combined.
On top of having a larger reach, email is more effective at driving conversions as well.
In fact, the average click-through rate of an email campaign is around 3% (of total recipients), whereas the average click-through rate from a tweet is around 0.5%. This means you are 6x more likely to get someone to click-through to your website via email than you are from Twitter.
So although social may be all the rage, email marketing is a much more effective way for your clients to be marketing their business. By making it available as a service your agency offers, you can help clients get the kind of results that will make them want to work with you again and again.
As you’re likely aware, agency margins are thinner than ever.
In fact, recent studies have shown that the top 50 agencies in the UK are experiencing the lowest profit margins in over 7 years.
A key factor in these declining margins, particularly for boutique agencies, is the need to be consistently spending time and money trying to win new projects.
Unlike website or logo design, which are inherently one-off projects, email marketing services enable you to work with your clients on an ongoing basis and earn revenue each time you help them send a campaign (which can often be every month).
This reduces the need to spend time and money winning new projects, and increases your margin by allowing you to focus on doing high-quality, billable work for clients.
If you’re like most agencies, majority of your revenue comes from project-based work like developing websites.
This can often be difficult to manage as you have very little cash flow predictability and you need to be constantly attracting new projects in order to maintain revenue and pay overheads.
But what if you could start earning recurring revenue for your business?
Certain email marketing tools like Campaign Monitor allow you to white label the product as your own and add a markup to the prices.
This means that you can sell the platform as your own and earn revenue every time your clients send a campaign on your version of the platform.
In fact, agencies like yours have earned over $25 million in recurring revenue simply by reselling Campaign Monitor to their clients and getting them to send their campaigns through the platform.
Email marketing is a fantastic service to be offering your clients. It gets results for them while helping generate revenue for you.
But what exactly can you offer your clients in the realm of email marketing?
Let’s take a look at a few of the things your agency might be able to offer clients:
If you’re like the majority of agencies, you primarily work with small businesses in your local area. These people are experts at what they do, but might not exactly know a lot about email marketing strategy.
This is where you can help. As a digital expert, you can help your clients:
As an agency, you likely have a lot of technical expertise in-house.
This expertise allows you to offer setup & integration services to help your clients get set up on their email marketing platform of choice.
This could include:
On top of providing email marketing services, agencies like yours can actually offer an email marketing tool to clients as well.
Using the agency features built into email marketing tools like Campaign Monitor, you can rebrand the product, set it up on your own domain (I.e. email.myagency.com) and provide it to clients as if it’s your own email marketing tool.
You can use the simple agency interface to manage all your clients in one place, and each client gets their own login that allows them to manage their lists, send campaigns and view reports by themselves (if they so desire).
When it comes to billing, you have multiple options that allow you to work with your clients however you choose. Agencies using Campaign Monitor can pay for the tool directly and bill clients independently, or can choose to add a markup to the base prices and let our billing system handle everything on your behalf, including transferring the profits from your clients campaigns into your bank account each month.
One of the benefits of email marketing is that businesses can deliver messages and offers to their subscribers complete with their branding, beautiful imagery, prominent calls to action and more.
To help make creating these campaigns easy for end users, email tools like Campaign Monitor allow the creation of branded templates that end users can simply drag and drop content into.
Using the technical expertise and design prowess agencies like yours have in-house, you can design and develop beautiful email templates that your clients can simply drop content into and send out.
Despite how easy email marketing tools like Campaign Monitor make it to create & send an email campaign, there are still going to be a number of clients who prefer to get their agency to do it for them.
This is a great opportunity for your agency to provide valuable services to your clients. You can take their campaign ideas and content and turn them into beautiful, on-brand email campaigns ready to be sent to subscribers.
You can even send test campaigns to your clients for free to get their approval before sending it out to their subscriber lists.
One of the biggest benefits of email is how measurable it is.
For every campaign you send, you can see how many people opened it, how many people clicked, and even drill down to the exact parts of your email campaign people interacted with.
On top of that, with Campaign Monitor’s built-in Google Analytics integration, it’s easy to see what happened after the click as well, including how many people arrived at the website from the campaign and exactly what they did there.
This is incredibly valuable information, and you can feed it back to your clients after each campaign you send to show just how much value your agency’s email marketing services are contributing.
These days, the best businesses are moving beyond just sending one off campaigns and starting to look at creating automated email workflows that send campaigns to the right people at the right time.
For instance, you could setup any number of the following automated email campaigns to help drive sales for your clients:
With in-house design and technical skills, your agency is in a great position to offer email marketing services that can help grow your client’s revenue.
But how do you charge for these services so you can improve revenue for yourself as well?
There are a number of models through which you can charge your clients for email marketing services. The right one will depend on your business and how you generally prefer to work with clients, but some ideas include:
Usually best for bespoke email marketing work, you can charge your clients your standard hourly rate to do things like gather and upload their email lists, integrate their website or CRM, design & develop a template, etc.
Usually best for clients who will want to send their campaigns themselves but just need help getting started, you can offer a setup package that includes gathering and uploading their email list, building their template, and training them how to use the email marketing tool to send campaigns.
These setup packages are usually charged on a flat rate and start at around $500 depending on where the email list needs to be pulled from, what kind of templates they require, etc.
A great option to offer clients who want to do email marketing, but don’t feel they have the time or knowledge to do it themselves.
This kind of offering usually includes setting up their account (gathering and uploading their list, building a template, etc) but then also creating and sending campaigns on their behalf and reporting back on the results.
This kind of full-service offering is most commonly charged as a monthly fee based on the number of campaigns being sent and is a great way to secure your agency some reliable recurring revenue that you can depend on.
Offering email marketing services as part of your agencies broader offering is a win for both your clients and your agency.
It enables you to drive real business results for your clients whilst earning recurring revenue for your agency.
So set up your free Campaign Monitor account, brand it as your own and start offering email marketing services to your clients today.