“Everybody has a plan until they get punched in the mouth.”
The ongoing economic crisis is that “punch” for so many business owners, including the digital agencies.
During the boom, running a digital marketing company in USA seemed seamlessly easier and quite lucrative.
However, the long-due recession is here on the back of a pandemic. And agencies are already struggling. It’s true – few of them would eventually be shut if the previous economic downturn is taken as an example. Many would barely survive. Even those that are positioned strongly in the market, they would struggle a bit as well.
To give you a heads-up…
If you run a digital marketing agency in USA, here are 5 challenges you’re about to face (along with what solutions should you opt):
1. A handful of your clients will leave. After all, they are a business themselves. During these economically difficult times, they are likely struggling as well. So, to cut back on their spending, few of them would entirely stop digital marketing for the time being. So, they would leave you.
Solution– Don’t try to convince them. However, do communicate with them clearly how your agency can still provide them high value during this downturn. And if they do leave, make sure the relationship with them is on good-terms so that when they do start with digital marketing again, they come back to you.
2. Many clients will reduce their digital marketing budget. Again, as a business, this is an attempt to lower their expenses and consolidate their financial standing.
Solution: Again, don’t be pushy in convincing them. There’s not much you can do in such situations. Do communicate with them how lowering the budget will negatively affect their returns – and how continuing with the same spending will amplify their growth.
3. With businesses lost, you will struggle to meet the payroll. Paying yourself and your employees would become slightly difficult if your agency isn’t financially positioned well.
Solution: Talk to your employees about this. Be open and transparent. Let them know the difficulties the company is going through. Ask for their understanding and cooperation. If you have built a good team and culture, almost all of them will understand and be supportive.
4. Difficult times demand difficult decisions. And this is no different. You might end up in a situation where you might have to take tough decisions. Like, holding back promotions and hikes, lowering salaries, furloughing employees, and laying off people.
Solutions: These aren’t easy decisions to make. But at times you might not have many other options left to achieve financial stability in your company. Many companies are already taking such cost-cutting measures. You might have to too.
5. If the economy goes worse, you might find it challenging to survive and keep your agency alive. With some clients gone, others paying less… with many employees gone due to cost-cutting which would decrease your manpower and operational prowess… Running the agency won’t be easy.
Solution: Hire a white label marketing agency. This is a simple and highly effective measure to survive and thrive your business even with limited resources. Sign up to a good digital marketing reseller program and tap on white label service. Continue reaching out to more clients and getting more projects. And then have an off-shore team handle these projects for your clients on your behalf under your brand name. This way you will increase your clientele list and make up for the low clients’ budget through the higher quantity of projects.
These are five challenges a digital marketing agency in USA will face in the coming weeks and months if this recession really turns up to be a bad one.
Knowing what lies ahead for you – and knowing exactly what needs to be done to combat the challenges – is important and will take you (and your company) a long way.
Follow the solutions above, survive, and sail through this downturn. Once the economy is back on track, hand-in-hand with a white label marketing agency and your strong in-house team, move forward to grow and thrive.