How to Negotiate a Proposal with a Digital Marketing Agency

Finding the best digital marketing agency for your business is not the final step. There are still a few steps you need to take after reaching out to the agency of your choice. It is important to create a contract which outlines the payment terms and legalities, and clarifies how long the service will last. It’s possible to resolve some negotiations in one meeting. However, it is not uncommon for the contract between the agency and the company to be renegotiated several times before an agreement is reached. This article will give you some tips on how to make a negotiation go smoothly.

Why should you use an agency?

Let’s first discuss why you might want to hire an agency for digital marketing. Why not hire your own digital marketing team? It’s true, having your team within the company has many benefits. From confidentiality to communication ease, there are also many downsides. It takes a lot of time to hire an entire team. It takes a long time to hire a full team. You must post the job, wait for applications to flood in, screen those who qualify, then call them in for an interview. The whole process could take up to a full year. It’s also much more expensive. All your employees must be paid salaries and receive benefits. Also, you have to take into account the office and equipment they will use. You’ll eventually see a return on your investment, but you will have to pay significant upfront costs to get started.


By hiring a digital agency, you can avoid the headaches and costs of building a team. The majority of digital marketing agencies have all the skills and equipment they need to execute your digital marketing strategy. They also have a limited employment period, so you don’t need to pay them once they complete their contract. You can’t fire your digital team after they have completed their task.

How do you negotiate with a digital agency?

After you have begun discussions with a digital agency, you should consider several factors.

1. The service charge

Different agencies have different service fees. This does not mean that the cheaper fee is a sign of poor service. Newer agencies may do excellent work, but undervalue them to attract clients. You may be limited to only working with agencies that fall within your budget. If you are willing to negotiate, you can try to contact more expensive agencies to get a better fee. However, you must be reasonable. It’s not realistic to expect a company that has worked for Fortune 500 companies to offer you budget-friendly rates. You should always respect the agency’s pricing.


2. Portfolio

You may have an idea of what they can offer, but a personal meeting will allow them to show you their abilities better. You can ask to see their portfolio, and they can explain their full range of services. You can also ask them to show you their extensive client list. It will be beneficial if they have worked with similar companies. Each industry has a different customer base and requires a different marketing strategy. They may have tried and tested marketing strategies that are suitable for your business if they have worked in your niche.

Contact their former clients after this first meeting. It is a given that they will present themselves in the most positive light during the meeting with the client. However, previous clients are more likely to be honest. You can ask previous clients whether they have had any issues or complaints. It is important to get all the perspectives before making a decision.

3. Their work and the duration of their time

Clarify what you want and when you will get it. This is where illegitimate companies can be caught if you haven’t done your research. You can see results in as little as one day depending on the strategy. However, if an agency makes overzealous claims like ranking number one on Google within a week you should be cautious. An experienced and legitimate digital marketing agency will be able to give you a timetable estimate based on their previous work with clients. Also, they are more honest when it comes to assessing whether or not your desired result is achievable.

You can also negotiate a partnership for the long term. If you plan to work together for a while, many agencies will be more willing to offer discounts. You can let the agency manage your digital strategy indefinitely if you are confident that they will be the right fit for you. You will benefit from this because you can have a better relationship with the agency. This leads to increased productivity and trust.

4. Concerns about confidentiality or security

Ask them how they will protect your data if your company handles sensitive information or you are concerned about the privacy of your users. Working with a third party agency can be a concern because of the risk that information will leak. Good agencies have safeguards to protect their clients and users. You should be aware of any red flags if the agency with whom you are speaking does not take such precautions.

5. You as a client have obligations

The agency is not the only one who can formulate a digital strategy. You may also be asked to provide certain documents or information, such as previous data from digital marketing campaigns, consumer profiles, access to your website and social media, analytics, etc. Be sure to know your responsibilities so that you are prepared. You should immediately discuss this if they ask you to provide sensitive information you are not comfortable sharing.

6. Contract Terms

A contract protects both parties against unfortunate situations. The contract should specify situations and the legal action that is permissible under those circumstances. If the agency does not fulfill its obligations, for example, the company can terminate the partnership or file charges without giving notice. Clarify intellectual property rights in the contract, to avoid messy ownership disputes.

The agency has the right to add clauses to the contract that protect them from being terminated by the company for unreasonable reasons or not receiving their payment. The contract should also include a clause that excuses delays caused by acts of God and uncontrollable situations.

Preparedness at the table will give you a stronger bargaining position. You can spot red flags and ask the right questions if you do your research and due diligence. You may find yourself tied to a company that is more of a liability than an asset for your business if you are not careful. Your lawyer can help you identify unfair clauses or terms.


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