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The consulting model for offline... what does it look like?

by MaxwellB
12 replies
Hello everyone,

Hope everyones Monday has started off productive.

I wanted to ask if anyone has used more of a "consultant" or "strategic consultant" type of approach for offline marketing.

Wherein you don't offer services but offer consulting and implementation of services done by vendors of your choice whether companies or individuals.

So instead of a $3500 per month online marketing package for a doctor or lawyer or whatever you are a consultant on retainer for $1500 per month and the doctor gives you a $2000 per month budget to work with in which you can craft a marketing strategy based on what you know works and have it done by companies you know do good work or outsourcers you know good work.

Then maybe a % of growth or a discretionary bonus based on growth so they really feel like you are more of a Marketing Director than another service provider.


So essentially it's the same thing except positioning yourself as a consultant not a service provider.

I have a feeling that this type of model will cause a few things to happen.

1. The client sees you as more of a partner just because of the nature of what a consultant is. I feel as though they will be quick to hire, slow to fire you.

What I mean is I think they'll be more willing to work with you and more willing to let you go through some bumps in the road to success than they would another normal seo company.

2. You dont need to sell anything specific...so it's not about seo, not about redesign or sms. It's about growth. Top and bottom line growth and your strategic expertise in knowing what works what doesn't work...to get them there.

More about I can make you more money by allocating your existing marketing budget or a new marketing budget to where I know it will bring in more housewives that need botox, more divorce cases, more boob jobs whatever :p

3. For us it's the same, 42% gross margin (with the numbers I used above), although I'd double the monthly management for the first month of work since it's where a lot of the work comes in.

In fact some like myself might feel like they can project growth better with a square and solid monthly retainer that you know is yours.

It's really all the same except for how you position yourself.


Does anyone do it like this, I know there are lol discuss your success or failures with this model.

For those of you used to working with $400 per month clients it would require you to really be confident in your ability to work with and sell a hire end client, or at least a client with a real marketing budget.
#consulting #model #offline
  • Profile picture of the author Aaron Doud
    Here's how I view it from the other side.

    1. Why am I paying you $1500 for if I am only getting $2000 of marketing value.

    -This is why I think selling it as $3500 may be better for many.

    2. If you convince me of the value of a consultant at $1500 and a budget of $2000 for you to use why are you the person to run this for me? Why not in house? Why not just work with Reps (who get commission) since you will likely be working with those same reps?

    - You have to show how your knowledge is what they are paying for. You can do it better and cheaper than in house. And you can buy marketing in volume which will save them money vs. just going to the ad reps.

    Consulting in it's true form is a great way to make money and many companies hire consultants. But consulting is a harder sell vs. a service IMO. And in an example like this I am not sure what the point it. It is in essence the same thing but you are pointing out your profit to the client. Do you know how anger people get over "Doc Fees" because it is just dealer profit? Now think about how you will look when presenting this.

    Why not sell it as a $3,500 marketing service. You and your team will handle all aspects of it and than simply budget $1,500 for management.

    In a year when you have everything on auto pilot do you want them thinking that they are paying you $1,500 to do nothing?

    I disagree with your conclusions that as a consultant they are less likely to "fire" you. In fact IMO they are more likely to fire you as they could come to resent you as a pointless middle man.

    I have no problem paying a consultant if he brings value to the table. But I see a consultant as often a temporary solution. I hire a service for the long term but a consultant I hire to handle something that I don't feel hiring an employee for would work. Normally because it is too part time or not long term enough to justify an employee.

    A consulting style of pay does work with some services like PPC management where there is your fee plus another fee from Google. But you really are a service and not really a consultant. And I think in your example it is much the same but you could handle it all on one bill easily (which some PPC people do) and IMO you are less likely to be nickel and dimed by a client if there is one fee vs. multiple.
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    • Profile picture of the author MaxwellB
      Originally Posted by Aaron Doud View Post

      Here's how I view it from the other side.

      1. Why am I paying you $1500 for if I am only getting $2000 of marketing value.

      -This is why I think selling it as $3500 may be better for many.

      2. If you convince me of the value of a consultant at $1500 and a budget of $2000 for you to use why are you the person to run this for me? Why not in house? Why not just work with Reps (who get commission) since you will likely be working with those same reps?

      - You have to show how your knowledge is what they are paying for. You can do it better and cheaper than in house. And you can buy marketing in volume which will save them money vs. just going to the ad reps.

      Consulting in it's true form is a great way to make money and many companies hire consultants. But consulting is a harder sell vs. a service IMO. And in an example like this I am not sure what the point it. It is in essence the same thing but you are pointing out your profit to the client. Do you know how anger people get over "Doc Fees" because it is just dealer profit? Now think about how you will look when presenting this.

      Why not sell it as a $3,500 marketing service. You and your team will handle all aspects of it and than simply budget $1,500 for management.

      In a year when you have everything on auto pilot do you want them thinking that they are paying you $1,500 to do nothing?

      I disagree with your conclusions that as a consultant they are less likely to "fire" you. In fact IMO they are more likely to fire you as they could come to resent you as a pointless middle man.

      I have no problem paying a consultant if he brings value to the table. But I see a consultant as often a temporary solution. I hire a service for the long term but a consultant I hire to handle something that I don't feel hiring an employee for would work. Normally because it is too part time or not long term enough to justify an employee.

      A consulting style of pay does work with some services like PPC management where there is your fee plus another fee from Google. But you really are a service and not really a consultant. And I think in your example it is much the same but you could handle it all on one bill easily (which some PPC people do) and IMO you are less likely to be nickel and dimed by a client if there is one fee vs. multiple.
      ahh yeah I can definitely see it from the other side, however think of the following:

      On your first point, Paying $1500 for a Marketing Director is a steal, that's someone who would cost $100,000+ per year. Your getting a marketing directors knowledge for $1500 per month.

      On your second point we are the people to run it for them because in house would be more expensive than $3500 per month and they wouldn't get the same amount of work they would get less if they just hired a marketing guy.

      We have access to a world of internet marketing services that they don't know about, I'm not talking about going to hubshout for them lol I'm talking about using the outsourcers we use and the strategies we use that they don't know about.

      See i'm thinking of it as an alternative to hiring a $100,000 per year marketing director and giving him a budget.

      Maybe consultant isn't a good word then. Maybe outside/outsourced marketing director or CMO, Marketing Director service is better i dont know.
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      • Profile picture of the author Aaron Doud
        Originally Posted by MaxwellB View Post

        ahh yeah I can definitely see it from the other side, however think of the following:

        On your first point, Paying $1500 for a Marketing Director is a steal, that's someone who would cost $100,000+ per year. Your getting a marketing directors knowledge for $1500 per month.

        On your second point we are the people to run it for them because in house would be more expensive than $3500 per month and they wouldn't get the same amount of work they would get less if they just hired a marketing guy.

        We have access to a world of internet marketing services that they don't know about, I'm not talking about going to hubshout for them lol I'm talking about using the outsourcers we use and the strategies we use that they don't know about.

        See i'm thinking of it as an alternative to hiring a $100,000 per year marketing director and giving him a budget.

        Maybe consultant isn't a good word then. Maybe outside/outsourced marketing director or CMO, Marketing Director service is better i dont know.
        I think at that price point it would be easier to just sell if as the total outsourced service vs. splitting it. As you get to higher price points I could see charging separately.

        I guess my thoughts are what are the risks vs. rewards. In the long run without a split test you can't say for sure but I suspect you could close it as one fee easier than two fees and if that is the case why make more work for yourself?
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  • Profile picture of the author Jason_V
    Michael Hiles was very good at thinking/implementing this type of strategy. Unfortunately, he doesn't really post anymore.

    He was big on numbers. He was big on going in and helping the owner and their staff become more efficient. He was a huge proponent of helping develop systems for the business to implement that cut costs, raised productivity, and revenue.
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    • Profile picture of the author MaxwellB
      Originally Posted by Jason_V View Post

      Michael Hiles was very good at thinking/implementing this type of strategy. Unfortunately, he doesn't really post anymore.

      He was big on numbers. He was big on going in and helping the owner and their staff become more efficient. He was a huge proponent of helping develop systems for the business to implement that cut costs, raised productivity, and revenue.
      Yes that's exactly what I'm talking about...well sort of.

      I think what he did was actually have them put up like $100,000 marketing budget, his margin was 30% so he could take 30k out from the very beginning if he wanted.
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  • Profile picture of the author MelanieandMiles
    Miles here... I have a number of companies I consult and perform marketing services for. I always shoot for one number as far as their monthly budget for me and my services, to keep it simple. Usually I offer 3 monthly package options.

    With your example of the doctor, off the top of my head, I'd put together a $1500/mo package that covers seo and WP blog management, then a $3500 package that offers seo, wp management and adwords PPC with a $1500/mo budget and maybe a $5000/mo option that offers seo, adwords PPC, social media mangement and a $1000 FB marketing budget.

    For clients who I only manage PPC campaigns for, I do use the process you mention where they have a click-spend budget they pay directly to Google/FB and I invoice them for the monthly management fees.
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  • Profile picture of the author vndnbrgj
    I do consulting... real marketing consulting.. similar to Michael Hiles.

    However, I also offer I'M services. These act as a lead in for my consulting services.
    Then, each individual service acts a lead in for my I'M services.

    Something like:
    I'M Service -> I'M Package (several services) -> Consulting

    Each service has its own website.
    Then, I have a site that offers the packages for IM
    Then, I have another seperate site for consulting.

    Hope that helps some.
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    • Profile picture of the author ewenmack
      I wonder if people's knowledge base is strong enough
      to have clients pay you for your knowledge?

      Most here mix up what consulting and implementation is.

      Think Bain and Co and Mckinsey.

      They are pure consulting firms where they deliver their research findings
      and clients then have to implement.

      I get paid for marketing consulting.

      Client is left to implement.

      Best,
      Ewen
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      • Profile picture of the author MaxwellB
        Originally Posted by ewenmack View Post

        I wonder if people's knowledge base is strong enough
        to have clients pay you for your knowledge?

        Most here mix up what consulting and implementation is.

        Think Bain and Co and Mckinsey.

        They are pure consulting firms where they deliver their research findings
        and clients then have to implement.

        I get paid for marketing consulting.

        Client is left to implement.

        Best,
        Ewen
        Well now many consulting companies are turning to a more hands on approach, implementing changes in the clients company or assisting in those changes.

        This is one of the reasons why Accenture's outsourcing branch is now almost 50% of their business, because after consulting they can now offer the services to the clients.
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  • Profile picture of the author AndrewCavanagh
    In the model you're talking about from the business owners
    perspective it's all money they're paying you.

    They don't really care what you do as long as you're bringing
    them in way more profits than they're paying you in fees.

    That's why Melanie already mentioned quoting one fee instead
    of breaking things up into multiple fees (which is just inviting
    problems..."I think I'll keep doing this pay per click thing you
    sorted out for me but I don't need you as a consultant any more.")


    Also when you're talking to a prospect working on getting hired
    the whole conversation is not going to be about you...it's going
    to be about them and their business and ideas you have that
    will help them make more profits.

    That's what will get them excited enough to pay you.

    Kindest regards,
    Andrew Cavanagh
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  • Profile picture of the author sdentrepreneur
    I have been down this road the past 3 years. I charge between $1,500 and $5,000 per month to meet with business owners and their marketing departments.

    What is funny about this, is that the marketing department people, think I am gonna take their job. That is something I don't want, once they learn that I can help them and make their company better, then we become friends and everyone is happy. :-)
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    • Profile picture of the author Jason_V
      Originally Posted by sdentrepreneur View Post

      I have been down this road the past 3 years. I charge between $1,500 and $5,000 per month to meet with business owners and their marketing departments.

      What is funny about this, is that the marketing department people, think I am gonna take their job. That is something I don't want, once they learn that I can help them and make their company better, then we become friends and everyone is happy. :-)
      I just couldn't help but think of this, when I read that:

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