inbound-marketing-calculator

Take Your Pick: Online or for Download

Measuring marketing success can be really challenging. With all the players and moving parts involved with a sale, it’s often really difficult to figure out where things are going.

The mathematics of marketing is actually quite simple.

We use these simple calculations for our clients every week at least, and now we’re turning over the secret sauce to you. It’s actually it’s quite underwhelming when you see it, but some of the best tools are the simplest ones.

We’ve got two separate marketing calculators for you to choose from. Both will help you calculate how many new customers, new leads, and total website traffic you’ll need to generate in order to achieve the sales goals you set.

If you want to bring in a million dollars in revenue every month, great! …but logically it’ll take a certain number of new customers to do this. Working backwards, you’ll need to generate so many new leads on a regular basis to get those customers. Still further, you’ll need to attract an even great number of website visitors (strangers) that you’ll be able to convert into the leads you need.

Using this data, you can find your weaknesses and figure out which areas of your sales funnel needs work. Maybe you need to boost your Search Engine Optimization efforts, or if conversion rates are low, you might want to focus on lead conversion path building. If you’r ramping up and looking to grow, here’s a great article that discusses the outsourced lead generation vs. handling inbound marketing yourself.

The online calculator is a quick and easy way to figure out how many customers, leads, and website visits you’ll need based on the sales goals you set and close rates.

The excel template is slightly more comprehensive, and you’ll have the ability to access any time you want.

Either way, you’ll benefit from knowing what is required from your marketing activities and where your strengths and weaknesses lie. We hope you find these tools helpful.

If you’d like us to review your site and your marketing efforts, we’re glad to offer some suggestions…no strings attached. There are often some low hanging fruit that can serve as quick wins for most companies.

Good luck!

hire a person vs hire an agency

So, you’ve finally come around and figured out that this internet thing is a good way to bring in some business. Maybe you’ve brushed up on some SEO education and have a decent idea how to set up your site and bring a little traffic your way.

Now it’s time to ramp things up a little bit. Your first thought is to hire a 22-year old and show them the ropes. You can put her to work for pretty cheap and handle everything in-house. Sounds like a plan.

We can’t dispute it’s a plan, but is it the best one?

Let’s walk through the logic of hiring in-house vs. going with an agency to take care of your online marketing work.

Let’s Start with What you Need…

You’re in charge of marketing, and that’s a huge job. Success is pretty hard to measure and there’s a lot of pressure on you. Let’s say you’ve got $100k of annual budget to address the problem. Here are the bullet points you’re probably thinking about:

1. Flow of Content – You’ve figured out that Google doesn’t like static websites. You’ll need to find a way to produce cool stuff regularly to keep your site fresh and interesting. Search engines need to love you.

2. Keyword Research – Great content is of no use unless people are actually looking for it. You’ll need to research what keywords are hot with your prospects and which ones aren’t worth any of your time. Keywords need to be reconsidered all the time as your business evolves and new trends emerge.

3. On-Page SEO – You’ll need to make sure your website is technically optimized for those creepy crawly spiders that search engines use to read your content. Things like headers, meta information, urls, keyword densities, alt tags and other cool tricks to help your site get ranked near the top.

…and Some Things you May Have Forgotten

1. What Happens Post SEO – Fast forward the tape to when you’re ranking well and new vistitors are flowing to your website. Now what? What’s their experience like? Where do they take action? Is there any way to know something about them? You need a strategy to help turn these strangers into customers beyond a phone number to call or a “contact us” form. How about generating some real leads?

2. Keeping in Touch with Past Prospects – After days, weeks and months go by, a bunch of people have come to your site and forgotten about you. If they were interested at some point, for one reason or another, they decided to move on and never pull the trigger. You might need some kind of lead nurturing strategy to keep these guys engaged a little bit and stay top of mind.

3. Tapping into Existing Customer Base – What about leveraging your current happy customers? SEO doesn’t do this at all. You ought to consider efforts toward turning your customers into promoters of your brand. More email nurturing is a great way to do this…continually over delivering value to your current customers means they’ll recommend you to their networks.

All the strategies go well beyond SEO. They fall under the Inbound Marketing umbrella.

Here are your two choices…and estimated costs: 

hire a person vs hire an agency

Hiring in-house wins, right?

Not so fast…

We’re not comparing apples to apples just yet. 

…But let’s Think Total Cost

The cost of hiring and retaining an employee is much more than base salary. Here are some things we need to add in to figure out the total cost of a new hire:

Benefits
Health insurance, 401(k) and Paid Time Off account for an additional 35% of base salary, or $22,050.

Overhead
They’ll need some space to work in (rent), furniture, computer, software licenses, snacks and free coffee. That’s an additional 25% of base salary typically, or another $15,750.

Administrative
You’ll have some extra accounting, legal fees, liability insurance and some corporate taxes. Add on another 18%, or $11,340.

Training
Normally, it’s 6 – 9 months of salary to onboard new team members and get them trained up, but let’s call it 3 months: $15,750

updated scoreboard

And we’re still not there…

Turnover

Over 90% of millennials see themselves sticking at the same job less than 3 years.

You’re probably not looking for a 45-year old to fill this role in your company. Finding someone with 5 years of experience means you’re probably thinking of someone in their mid-20’s. This bunch is notorious for really high rates of turnover.

This means you’ll be starting over in just a few years. You’re taking on all the cost and all of the risk.

Productivity

The average worker is producing only 60% of the time.

Figure in all the social media checks, long lunch breaks, water cooler talks, and sicknesses that come around when the surf’s up.

Agencies spread the work around to many different people. Instead of one person working for 40 hours per month, they might have 8 people each putting in 5 specialized hours. Also, typical contracts will lay out specific deliverables rather than a number of hour to work. If the agency staff isn’t productive, it’s their problem.

And here are the biggest caveats of them all…

Aptitudes

An agency’s cumulative skill set is many times what your best employee could ever bring. With a good agency, you’ll have a full entourage of diverse skill sets working on your behalf. You’ve got an SEO Specialist, Creative Director, Graphic Designer, Writers and Editors, Research, Data Analyst, Programmer, and Project Manager to coordinate it all.

Software Licenses

Beyond the people at the agency, you’re effectively tapping into all their software licenses, libraries of shared content and many years of trial and error experience.

Scaling

Forget all the other stuff, we’ve been comparing a single person to an entire team of professionals.

With outsourced online marketing, you can ramp up or tone it down at the drop of a hat. When you figure out that your blog is catching fire, a good agency will not only help you recognize this in the first place, but they’ll suggest redirecting resources from other areas to crank out more posts for you. Little Johnny-New-Hire can only research and write so much.

Beyond that, when it comes time to grow your efforts across all channels, you’ll be able to make adjustments on very short notice with an agency engagement.

On the other side, you’re limiting your risk substantially. Whatever the exit clause is in your agency contract, it’s going to be easier than firing staff and filling in the holes.

Conclusions

I get that comparing these two options on a cost basis can be a challenge. There’s a lot to consider, especially if this is new territory for you.

Here are a couple other things you might consider:

Agencies like ours can hire the best SEO and Inbound Marketing talent before you can. Why? Because they’d rather be here with a wide range of clients, guaranteed work, and unique challenges. They’d rather be a part of a team with clear direction, success formulas, and plenty of flexibility for them to experiment and test things out. Sorry, but there are things we can offer them that non-agencies just cannot.

As you consider the merits of outsourcing online marketing, you’re taking on some level of risk either way. Don’t get too hung up on cost. There’s no comparison between cheap services that don’t work versus killing it with expensive retainers. Of course, always negotiate the best arrangements you can, but I encourage you not to get too hung up on price.

Here’s the Take Away…

• Agencies will cost more per hour
• An employee will do more work per year
• An agencie carries less risk and ability to scale
• There is no substitute for the breadth of competency in a good agency

Good luck.

outsourced-lead-generation

If you’re reading this, you’re probably a business owner, CEO, or Marketing Director trying to decide whether to hire a marketing team of your own or to put things in the hands of an outside agency. It’s a big decision with a lot of unknowns. I’m going to try to make this choice a bit easier for you.

First, I’m going to take a look at inbound marketing and make sure there’s no confusion about what an effective inbound marketing campaign entails. Then, I’ll investigate what I believe are the two biggest factors in your decision: Time and Money. I’ll list some pros and cons of each option, and fire off a few questions that should help frame your thoughts a bit more clearly.

By the end of this article, I’m hoping to arm you with the information you need to make an informed decision about your marketing strategy.

Full disclosure: I am a co-owner of a Hubspot Partner inbound marketing agency called Web Design Phoenix. Although I bring my own set of biases to the table, I’m taking off my company hat for the sake of this article iin an effort to help you arrive at your own conclusions.

What is Inbound Marketing?

In basic terms, inbound marketing is the concept of using helpful online content to attract the right visitors to your website. Once they get there, inbound marketing focuses on converting these visitors into qualified leads, and then turning those leads into happy paying customers. Inbound uses tools like blog articles, videos, ebooks, and social media to address your target audience’s basic questions and show that you’ve got the answers.

While traditional or outbound marketing is interruptive in nature (think television commercial or pop-up ads), inbound marketing doesn’t involve any hard selling at all. In fact, the goal is to provide your audience with resources they are asking for. The goal is to win trust over time…and of course their business in turn.

Inbound marketing content makes use of many different tools to deliver content to your target customer at regular intervals in the buying process, moving them along toward a decision. The delivered content is “smart” (based on behavioral data) and personalized (customized to the interests of the individual).

A typical inbound marketing campaign makes use of the following:

• Blog
• Landing pages
• Calls-to-Action
• Web forms
• Content offers (premium pieces such as ebooks, videos, case studies, etc.)
• Video
• Automated email nurturing
• Social media
• Online advertising

Recent shifts in buying behavior has brought on a huge spike in popularity of inbound marketing. Consumers have the ability to research every alternative, price, and option online – and therefore have all the power. Inbound marketing is an effective way to help your website be found, generate leads online and is now used by businesses in all industries.

What does it take to successfully run an inbound marketing campaign?

Inbound isn’t rocket science. Barriers to entry are low and pretty much anyone can learn some basics online for free. I could set up a Google Analytics account right now, start tracking website visits, and publish some pay-per-click ads.

This doesn’t mean that I know what the heck I’m doing. I’m sure you’ve seen this commercial making the same point for a financial advisory firm.

So what does it take?

Understanding your Audience – Inbound marketing attepts to meet your target customers in the places where they find information online, addressing their specific pain points, and grabbing attention in a personalized way. Marketers need to bring a deep understanding of who your ideal customer is and what they’re interested in, or your website will not bring in the right people. Without details buyer profiles, the visitors who do make it to your site won’t convert into leads, and you’ll have no idea why.

Sound Processes – Inbound marketing involves a lot of moving parts. It involves planning and creating new content, researching keywords, and promoting that content effectively. All this requires sound internal processes and workflows to be most effective. Leaving steps out or shortcutting the system means diminished returns. You’ll need a step-by-step checklist that you can roll through every time.

Tools – Your inbound marketing campaign employs a bunch of online tools to help bring everything together: tools for blogging, search engine optimization, keyword research, social media publishing and monitoring, email marketing tools, analytics tools, and more depending on the nature of your campaigns. A good toolbox will help you save time in delivering, promoting and analyzing your content…and the results you’re getting. how-to-seo

Quality Content – This is the hardest part of any marketing campaign. Quality trumps quantity every time. Good content that your users find helpful and interesting is what is going to attract them to your company in the first place, get them to come back to you, and help to build trust in your capabilities over time. Ideally, your content is so good that users are going to share it on social media or use it to make some decisions related to their questions.

Marketing Experience – It’s really important to have some experience in inbound marketing. Handling all the tools and processes efficiently takes a lot of time to learn. Guiding the planning processes, allocating resources and setting up the necessary tasks for ongoing success can only be done by someone with significant experience in the business.

Now that we’ve laid out some of the basics of inbound marketing, let’s take a look at pros and cons of doing inbound internally vs outsourced lead generation.

The Pros of Handling Inbound Marketing Yourself

• You run the show and you control every aspect of the process. You can control the look, the style, and the tone of every piece of marketing content

• You have oversight in all steps of the process as they’re happening. You’re able to allocate resources as needed and delegate tasks where appropriate.

• Decisions can be made quickly.

• You’l have a deep understanding of inbound marketing because you’ll have built everything from start to finish.

• You’ll be able to make quick adjustments if you see things working or not working in certain areas.

Cons of Handling Inbound Marketing Yourself

• It takes a lot of time to master inbound marketing. There are a lot of moving parts and tools to use. The learning curve is long and will require significant time investment.

• There will be a lot of trial and error, especially early on.

• Turnover risk is high. When your delegated staff leaves, you’ll be starting the training process all over again.

• Total cost can be great when you account for salaries, benefits, equipment, and administrative for new employees.

• You will be pulled away from other areas of your business, or responsibilities you have currently.

• Returns and favorable results may take longer to appear.

Pros of Outsourced Lead Generation and Inbound Marketing

• Full team of experts working on your behalf. Greater breadth of expertise and ability to scale up quickly.

• You should get up and running faster with more specialized people working on your campaigns.

• Your time is freed up for other higher level critical business tasks.

• You are delegating instead of executing the details yourself.

• Scaling up (or down) is much easier. It’s usually a matter of assigning more or less bandwidth.

Cons of Outsourced Lead Generation and Inbound Marketing

• Hiring an agency can carry significant monthly costs.

• Although you have input, you’re putting the creative voice of your company in the hands of an outside party.

• You will  not be able to oversee every detail and action (may be a good thing to some)

• There’s a chance that the relationship doesn’t work out

• The agency may not necessarily be experts in your particular field.

To Summarize

What is inbound marketing? It’s about using great content to attract people to your website, converting them into leads, nurturing them along the buying process and selling them the right thing at the right time.

What does inbound marketing require? It requires a real understanding of who your ideal customers are, what they’re interested in, and what questions they are looking to resolve. There are a ton of tools available to publish, optimize and analyze your content, but it takes time and expertise to master this approach.

What are the Pros and Cons of both options? Doing inbound marketing yourself grants you greater control of the process and allows you to pivot quickly. You’ll need to invest significant time, money and opportunity cost for what is usually a slower ramp up to returns. Time to market is typically much longer because of all the necessary trial and error. Hiring an agency gives you immediate access to a group of experts. Time to returns is reduced and scaling up is easy. You’ll free up more time for you and your time to take on other responsibilities. You’ll have a bit less control of the little things with an agency, and costs can be significant in the short term until returns start rolling in – typically monthly retainers.

Some Questions to Guide your Decision

Try to think about how life will be like at your company under both scenarios…not in terms measured in days or weeks, but think about 6, 12, 24 months out. What will be the most sustainable approach for you to compete in your space ongoing?

Handling internally warrants a few questions:

• How much time will need to be devoted each day or week on inbound marketing tasks? How much time do you have to give?

• What’s your current level of expertise and how much learning is going to be required to get you going?

• Who will be writing your content and what the heck do I write about?

• Who will be designing your web pages and the content that you put together? What about gathering images, infographics or producing high level content offers?

• Do you have an in-house team with skill sets that you can delegate? Are there any pieces of the team that you’ll need to assemble or hire for?

• What are the opportunity costs of pulling staff away from duties to spend time on inbound marketing?

Hiring an agency begs a few different questions:

• How much control are you willing to turn over to an ouside group?

• How willing are you to step back and let others take the lead?

• How much upside benefit is there for being quick to market? For freeing up youself and your team to focus on other tasks?

• How much time will you have for weekly and monthly update calls?

• Are you open to giving and receiving feedback?

Conclusions

Nobody will ever know your company better than you do. You know what your goals are, how your company identifies itself in your unique space, and what resources you have available to you.

I believe that a good solid evaluation of each alternative will give you that gut feeling you need to move confidently in a particular direction. Of course, whatever your choice, the decision doesn’t need to be final.

Inbound marketing can be really fun…especially when you start seeing those website visits, new leads and new customer charts ramping up. I wish you all the best of luck.

Cheers!