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Elaine Fogel Elaine Fogel   Bio
04.03.06

Needed: Feedback on Hiring a Marketing Consultant

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I've worked on both sides of the consulting equation....

I've been part of a senior management team that used a variety of consultants on a regular basis, and now, I am the consultant. What a difference a day makes.

I'm encountering a whole new realm of experience. Business development - not for an employer's product or service - but for my own company's consulting services. And I see what it's like on the other side. So much so, that I'm in the midst of a full-blown article about it. No, not a tell-all, but a how-to.

I'm very curious. MarketingProfs is distributed to over 180,000 subscribers, and I'm sure this Daily Fix is gaining in popularity as more of you discover it. So, inquiring minds want to know. If you're an internal marketer, what's been your experience in hiring marketing consultants? What do you look for? How do you find them? Does your senior team support it? See the necessity? What's been the result?

And, if you're a consultant, what are your challenges? What are the red flags you look for when meeting a new prospect? What's your fee structure? Do you work on retainer? Project basis? How do your clients prefer to work? What are the pros and cons of being on your own versus being an employee?

I'm learning every day. I love working with new people and helping them develop their marketing strategy or write and produce their marketing collateral. The small business owners and nonprofits are especially in need of assistance and I provide that to them. I particularly relish my flexibility.

My real dream? To win the Powerball lottery so I can provide marketing consultation to a select group of nonprofits each year and not feel one iota of need to generate an income. Of course, there has to be some room in there for golf, at least twice a week. But, the rest of the time, I'd be brainstorming, copywriting, art directing, yada yada.

And, OK, I admit, an occasional shopping splurge. (If you're a guy, jump to the next paragraph.) Even if I won big, I'd still be a Marshalls and TJ Maxx affecionado. I love a good bargain. There's nothing like the exhilaration of finding a 100% supple leather handbag regularly priced at $175 and marked down with a red ticket to only $40! Now, that's a good day.

Back to marketing. I want to hear from you. Please reply here in the Daily Fix. Your honesty is encouraged.
Thanks!




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Comments

I think the biggest things I bring to companies as an online marketing consultant are:

1. The ability to see the company from an outside perspective

2. Being able to ask the really hard questions that most internal marketing teams don't bother to think about or ask themselves

3. Bringing an expert mind-set to accomplish real goals that most internal marketing teams simply don't have the time or knowledge to do.

That's just from the consultant side. From the client side, never, ever go with a consultant nowadays that does not back up thier plans with a distinct return on investment scenario.

We're years gone from not expecting that, from anyone. Everything can be tracked back to ROI. It's a must.

Posted by: Jim Kukral | 04.03.06

Thanks, Jim. Good points, well taken. On the measurement side, however, I sometimes think it depends on the client. The ROI is absolutely imperative as a consultant measurement tool for larger companies and organizations. For the smaller companies or nonprofits that may not have the resources to see a consultant's strategy through to completion, it's tough to deliver or project the ROI if it depends on their follow-through and usage of what you provide. Small business and nonprofits often fall into a category of their own. But I agree, that we must indicate what the ROI can be.

Posted by: Elaine Fogel | 04.04.06

If you're an internal marketer, what's been your experience in hiring marketing consultants?

I am a Marketing Director for a $10+ million electronic manufacturer.
We have a very tight marketing budget and using external consultants is almost unheard of. Consultants are only hired if our internal staff cannot handle the task. Until today only software consultants were hired occasionally. I have hired and worked with outside agencies in the past and my experience was great. The initial mistrust was soon replaced by respect for great work delivered on time and with in budget. – This was in Europe. In the US I worked with one agency and was very disappointed.

What do you look for?
Quality, good portfolio, definitely an online presence, serious content on their web site, no fluff! Understanding of product and industry. Be careful sometimes the learning curve may be too long and half your budget will be blown before the consultant gets the drift! Ask for risk sharing! If the consultant is confident that he can work and deliver within the budget and the time line, then he/she will agree to a penalty structure that will give the customer confidence in what the consultant will deliver and when.
Write a scope of work and attach a payment schedule to it.

How do you find them?
A great way to find consultants is by recommendation. Another way is contacting local consultants you can find in local marketing associations and through the Internet.
I ask for portfolios and have them stop by for an interview, similar to hiring an employee. The best three candidates get an opportunity to bid on one job. They will give a presentation and then make a decision.

Does your senior team support it?
Generally not! My CEO doesn’t believe in marketing! As an engineer he believes that a good product sells by itself. Why do we have a marketing department? Because the former CFO pushed for it.

See the necessity?
I do! I believe in getting new ideas from unbiased parties. After a while, one gets to close to the product that needs to be sold and marketed. I appreciate any external input.

What's been the result?
As I mentioned before good and bad, with a strong trend to good!

Tom Noack

Posted by: Thomas Noack | 04.05.06

Thanks for this feedback, Tom. There's a lot of meat here. It goes to show that there's still such a disconnect between many company leaders and the value of marketing, especially if the leader doesn't come from a business background.

It amazes me how so many leaders have an attitude of entitlement. If you build it, "they" will come because the product/service is so good. But how will "they" know it exists?

Posted by: Elaine Fogel | 04.05.06

There is definitely a niche available in small business marketing consulting. We specialize in this niche, but I recommend being equipped to address nearly every area of their business - from cash flow to customer service training (and of course, the actual marketing plan falls in the middle).

With that in mind, I look for passionate business owners that have a solid, doable business model. Even if it is struggling, their passion and idea combined with a disclosed budget, however small, gives me the parameters for success. I avoid desperate and know-it-all prospects. I want to be a teacher, so my clients can move on in their marketing life without me at a later day.

Fee structure issues: I charge a hefty fee but one that is easily paid for by the bottom line improvements we provide. We have several relationship structures including a set package coaching setup, per project fee, and long-term retainers. Different clients and types of clients have different needs, so there is a necessity to offer various structures in our business - there's a big range of "small" business.

Posted by: Marianna Hayes | 04.07.06

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