– What's goin' on guys? Today, I'm gonna talk to you about why you should never, in your life, hire a marketing agency. ♪Workin' on a Wednesday ♪ ♪ And up again the next day ♪ ♪ Summer soul was poppin', man, ♪ ♪ I skippin' like it's leg day ♪ What's up guys, Los here. So, today, I'm gonna talk to you guys about why agencies suck. Now, listen, if you have an agency, maybe you don't suck. Odds are you might suck. The big thing we were
running on an account audit, and one of my best friends called me, and he was like, hey
dude, I kinda feel like my Facebook's not scaling, right? We're just kinda stuck, we've
been spending less money.
And, we spend hundreds and
thousands of dollars a month, if not millions, on our
own brands every month. And, so, we know a lot about media buying. Like, real deal media buying, right? Not like, we spend a couple money on ads and we do some trash drop shipping and build nothing in return. Like, real deal brand building stuff. And, so, I looked at it. I looked at it with Malby,
(children cheering) and it was trash.
(crowd yelling) Nothing was going on right. The relevancy scores were garbage. Everything was in one account. They didn't have retargeting. Their copy was just spread out. Like, the same copy on every single ad. They weren't refreshing their creative. And, just to my suscribers,
I'm gonna be showing you guys the video Malby that made, which is great. It gives a lot of content,
and there's Malby right there. Okay, so, that's Malby, and you're going to see
the video here in a sec.
– What's up guys. Today, I'm going to be
doing my first on-video agency account audit. And, I say the first on-video, because I hope to do many more of these. I personally love going out and auditing somebody's agency account. And, really determining if
they're doing something good, or if they're just doing nothing at all. So, if you have an agency
that's running your accounts and you feel like they're
just doing something screwy, throw me on there! I'll check that thing out,
and I'll let you know, in probably twenty minutes,
if they're playing you and they're just keeping you around for your monthly retainer, or if they're actually trying to scale and grow your business. Because, the reality of the situation is that many agencies simply
keep you on for maybe a three month commitment
to kinda "test the water.", and then, in that time, you
realize that they're terrible and you fire them, but it
doesn't matter to them, because it's a revolving
door and they already have more people that are lined
up ready to take your place.
Now, of course, that isn't
the case for all agencies. But, 99% of them are like this. And, especially now, where
people are just making agencies completely randomly with
no idea of how to actually do any kind of marketing, and they're just bullshitting their way into getting clients. This is a prevalent issue that I'm seeing more and more and more.
And, now, with this account specifically, I'm not going to go into crazy detail and tell you the offer in the niche and all that kinda stuff, because, it's someone's personal account. But, this is one of Los's friends
that recently came to him, and the guy was like, hey
I've been using this company for a couple years now to run my ads, and things kinda seem to be dwindling. The performance really isn't there. Can you guys go in and check it out? So, of course, we were
more than delighted to go and check this out. And, what I found was
startling and disgusting.
Not even at best. It just gets worse from there. So, that being said, let's
check this sucker out. Alright, so, the first
thing I want you to notice is that this account total has spent $3. almost seven million. That's awesome. And, the money that
they got back from that, according to Facebook, was $733,000. (screams) That's terrible. Okay, so, I know that
this is a webinar funnel, and they were going primarily for leads. I think the goal was to get $15 leads. So, some months they were
there, some months they weren't. But, overall, at the end of this webinar, after you put your lead and your email in, then you're expected to buy.
And so, if overall, they're
spending $3.6 million and getting back $700,000… Now, this is, I guarantee you this is off, because they have a phone team that's actually closing
people and stuff like that. So, it's not this drastic, but, I guarantee you,
this account lost upwards to a million dollars or
a couple hundred thousand in its lifetime and it's all
just from shoddy advertising. And, so now, I didn't
even notice this before, what I'm gonna show you now, but I just saw it and
it's even more disgusting. Let's look down at this. So, $73,000 was spent
on engagement, alright. $3.1 million– $3.2 was spent on conversions. Alright. This is the scary part: $133,000 was spent on traffic. That is disgusting. I guarantee you, if
they took that $133,000 and put it towards conversions, they would've actually made
some freakin' money on it. And, this is a big thing
that I see agencies and people that don't know what they're doing do all the time, is they just run traffic to websites so it looks like you're getting
views and all this stuff, but, you're not converting 'cause Facebook is just finding traffic people.
It's finding people that
just like to click on stuff, and that's all they're really good for. So, this was a complete waste of money. That's a nice car right
there, or a house payment. But, instead it went into some clicks. So, let's get into the account and see how much worse it gets. So, the funny thing, the real funny thing, is, let's go– I'll just do active. Is they got us on a call yesterday to kind of run through the account and ask all these weird questions.
Why the relevance on the
ads are two to fours? Why no one's using post IDs? Why everything is just
thrown into one campaign? The retargeting structure
is almost nonexistent. After the call, we told them
it needed to have retargeting, so, they actually
launched this last night, or this morning. This is a new campaign. But, they literally were just running this one campaign for months. They've spent $300,000
on this one campaign that's CBO doing $1,390 a day. I've never seen someone
just run one campaign and throw everything in there, and just hope that it does something.
And, the funny part is,
when I asked them about this on the call, they said
that their Facebook rep had told them that this was the best way to do things now, because CBOs. That's complete bullshit! So, I had to tell them, on the call, that you can never listen to reps. They are outsourced, third-party people from a random tech company that don't even know
how to run Facebook ads, and are simply reading off a sheet what "You should do,", what is "best for your brand
and for your accounts.", when they actually have no real knowledge of how any of this shit works. So, that is one of the funniest things I have seen in a while. There may be one retargeting campaign or ad set in here, but
it's just a nightmare.
I'm not even gonna go into that. But, the real funny part here is that, let's see, lifetime, let's
go back to last month, because it looked better
for this demonstration. So, this is the kinda the
metric we are going for, or basing everything off of. So, last month, they spent $50k. And, they were saying that they had a five times return. So, we see our purchase
for turn on ad spend here. And, that's the over all,
including the offline events. Let's take a look at that. So, over here, in the offline purchases, it's showing that they
had 156 offline purchases. And, those offline purchases
accounted for $128,000. That's bullshit. It's completely wrong. We brought it up on the
call, and in reality, for the entire month for
this section of the company for this webinar and
everything, it totaled, I think like $66k? And, that's with the call
teams that are closing people, e-mails and all that stuff. So, there's a really good
chance that this account's spent $50k and only brought
back $16.3 in return.
But, at the same time, they were preaching that this campaign had a 3.3 return. The account had a 5.7, when
in reality, they had a .37. And this company is
clearly doing very well. They're doing so well to
the point that they simply didn't notice this slippage, because they trusted the agency that was running their stuff, because they've been running
their accounts for years. And, so, from the person
who owns the account's side, they're like, oh,
so-and-so's been running this for years, they're not
gonna screw me over. Where on the agency's
side, just looking at this, I know that they're like, oh, this guy's been paying us for years,
he's not gonna stop now. Let's just make sure that
we get the leads somewhere around where they need to
be and just call it a day.
And, that's exactly what's been happening. This is the first account
that I've seen in a while that has spent so much and
had such low relevance. All the ads are, they're pretty terrible. They're just stock footage
with some text thrown on them. Like, I get that. But, the copy on them
is what really gets me. The copy on them is all identical. It's all super clickbaity. It's like, "Do you want the
number one secret that nobody "else in your industry knows
about? Click here to find out!" And, then you go and click on it and it's an hour long webinar.
And, I watched it yesterday, and it takes 40-something
minutes into the webinar to really understand what
the webinar is about. So, instead of taking the time to presale the person on the ads they
know what they're getting into. It's just some clickbait garbage
that's trying to get them to click and go through
and then get that lead. Oh, also, to top it off,
the call team apparently has been vocalizing how terrible the leads are for months.
So, they can't do their job, because these ads are
bringing in low-quality leads, because the ads themselves just suck. – Alright, now you see how
insanely crazy that was, right? And if you do have an agency, I'm gonna put your feet to the fire, because we're gonna keep
calling these people out. So, the big thing with agencies, guys, you have to understand
their business model, right? Their business model is to bring in people and kinda run their advertising. Specifically, I'm talking about advertising companies like that. There's a few that are great, but the big problem is,
you have all these people making courses on how John,
Jo, and Jake can go out and build an agency and scale clients. Well, John, Jo, and Jake
don't a (beep) thing about Instagram, or Adworks, or
Facebook, or media buying. So, you get all these
Tom, Dick, and Harry's tryin' to (beep). God, I'm cursing. So, you get all these Tom, Dick,
and Harry's trying to build a business that they
don't know anything about. And, guess what? It goes on to you and your results suck.
Now, we don't have an agency. We run and control all of our brands. What we do have is an accelerator, because we only care about building brands and building teams internally so you can actually grow your business. Also, seriously, if you own a company, why are you outsourcing
one of the most important things in the world? Why are you outsourcing your marketing? You know, I'm just gonna go
give this to somebody else. What are you going to do then? Like, come on. Build your team. One of the things I will say, if you have a media buying
team, you can hire an agency to try to beat your team,
because then you can learn what's happening, or you
can see that your team is actually doing a good job, because we do that all the time. We hire agencies, then we smoke 'em. And, then, we realize that
they're not that good. See, what you should do is
build your team internally. Like I said, we do that.
Drop me a comment if guys want
us to give a Facebook audit of your ads. Join our Facebook group. We're happy to do it. And, if you're an agency, drop a comment, 'cause odds are, we probably spend more money than you, anyways. Anyways, guys, that is for me. Subscribe. Join the notifications, and we will see you guys
on the next episode. (lo-fi beat).