As a social media manager, there comes a time when you feel you need to turn your business into a social media agency. You may have seen your friends go this route and how they are quite successful at it.
Or you have shopped around and noticed how other social media agencies are fortunate in this trade than freelancers. So you think it is the best way out.
Well, turning from freelance to a social media agency is easier said than done. Seeing that a colleague or former friend is triumphant, being an agency does not mean you will enjoy the same stardom. Know that every person’s journey is different, and you too have to craft your own.
But, if you think forming a social media agency is the real medicine your business needs. Here are five signs you need to note before you consider taking this route.
1. You Have A Lot of Work Coming
This comes after building your freelance business, and you work extra or odd hours to complete most clients work. With burnouts and exhaustion setting in; soon, you feel demotivated by your work.
To avoid burnouts, you leave money on the table by turning down clients or see them churn. Yet, you could keep this money by outsourcing subcontractors and paying them an agreed percentage while you keep the rest.
If you find yourself with lots of work coming but do not want to miss the chance of getting more money, that is a clear sign you need to be an agency. However, it takes a lot of a hassle to get to this level.
2. You Have Got Other Social Media Managers in Your Connection
One mistake some social media managers make when turning into a social media agency is to jump in with both feet. That is, having a few people in their connections who do similar work. This is catastrophic because when the business balloons, they have no professional to onboard, so they end up hiring family and friends.
While this may bear fruits in a short period, family and friends have their downsides since they may not know the secrets in this field well. The cons of having family and friends run social include:
- It is hard to reprimand your friend or family members when they make errors.
- They can also ghost you when you need them most or have urgent client issues to solve.
- These guys think social media is the same and may end up making mistakes that cost you and your business.
You need several professionals in your network such that even if the regulars can’t accommodate you or engage your clients; they are still other to take on trust. They should be individuals who know this art and are always around to take on extra work.
3. You Have Build A Rapport or Have A Knack for Marketing
Running an agency means you have so many people to take care of in your team, hence cannot experience downtime or run out of work. You need to have enough clients that bring you ongoing projects for you and your subcontractors and keep them busy or else they will fly in droves.
Spent lots of time sharpening your marketing skills, getting more clients even if you are dead engaged. This will increase your network of contacts and clients by having a streetful of work.
4. You Got Management Skills
Managing an agency means you are the one shepherding the people or team. Some task you will perform include:
- Keeping track of your team’s effort.
- Train your team on your needs and those of your clients using relevant social media marketing courses.
- Benchmark with competitors.
- Find suitable subcontractors.
- Explain to clients why and how things operate on social media.
- Find and talk to clients and subcontractors.
- Negotiate pay with both clients and subcontractors.
Other administrative duties may come along once in a while. That means you have to be an excellent manager to lead your team pretty well to bring you the desired success.
If you lack management skill, you can learn from the several online courses available to enable you to raise your game. However, the essential expertness to have is that of efficient communication since you should not have any miscommunication between you, your clients, and subcontractors when fulfilling your duties.
5. You Want To Diversify into Other Platforms
Sticking to your lane may be significant when operating a social media agency, but as you already know, social media sites come and go. And let’s face it, not all of us are pros in all the social media channels.
You may be up to scratch with Facebook or Twitter or YouTube, but find it had to scale with Pinterest or Instagram. Since you already have clients in such areas and cannot stop taking available money, you can discover subcontractors to take care of such clients.
Going From Freelance To A Social Media Agency
While these may be the most straightforward and vital signs to consider. In the long run, going from freelance to agency has its downside. These include:
- Deal with the last-minute changes that may come from the client, especially when the subcontractor is not around.
- Subcontractors may not produce stellar work because they have other clients they are working with.
- Subcontractors may increase their rates at will.
- The subcontractor may have a hard time understanding both your business goals and those of your clients.
- It is so hard to find a subcontractor who will take lower rates so you can improve your margins.
What To Do If You Meet All The Above But Still Undecided on How To Start A Social Media Agency
You can focus on rising your rates or be selective on the clients/projects you chose. You can achieve this by looking for clients paying higher prices. It will help you capitalize on the extra margins you get from high paying clients.
The second is to send the extra leads to other social media managers in your connections and spare yourself the torment of operating a social media agency and of subcontractors.