November 26, 2018 — James Fulton
In our line of work (digital agency), we work with some fantastic clients – both small and large. 99% of our enquiries are great candidates for SGD, but there are some clients that we guide in a different direction. I know, it sounds crazy to turn away business, right? But we want the best results for everyone, and we have some great insider knowledge to help you find the best agency for you, should your job fall outside the SGD skillset – which is rare guys, but it does happen once or twice a year.
SO, who do we recommend in this instance? In the same way that some larger agencies pass their small business clients to us (cheers guys!), we refer our large scale enquiries over to them. These are the clients who need a complete digital strategy, consistent upgrades, redesigns and essentially require a digital team for their company without having one in-house.
We spoke with managing partner of a great large-scale digital agency, Revium, Andrew Ellett, to explain why sometimes a bigger agency really is better… here’s what he says about why big players need big agencies.
It’s common for smaller agencies to focus on a particular niche of the market, for example SGD loves working with small businesses and have a track record for creating some really unique websites in the hospitality realm. Andrew confirms that “Boutique agencies will tend to focus on a particular sub-set of the digital world, and (hopefully) do it very well… which means you may experience a more authentic experience. It’s just a different culture.”
But while this may sound ideal for small clients, there are plenty of benefits when engaging with a larger agency. “The digital world is complex – small teams can’t possibly cover it all,” says Andrew, “Larger agencies are more likely to have direct experience in your industry or staff with particular subject matter that you need, or expertise as well as more expertise in a wider range of project management methodology.”
“Boutique agencies are almost always independent from large agency networks, so that means you will probably be dealing with companies that are owner operated. These are people who excel at their craft and aren’t being driven by upper management to always be growing revenue lines, profitability or sales. However, there are also risks with smaller agencies; what if the owner leaves or decides they don’t want to run it any longer? There is also greater risk that if projects go over budget or downright bad that they can afford to wear the extra time and cost to fix things?”
In summary, bigger agencies offer:
Andrew agrees that larger agencies such as Revium come with a higher price tag and there’s good reason for it. “Larger agencies must pay payroll tax, group marketing costs, additional superannuation as they have more staff (boutiques often use a contractor pool or off-shore resources). The average price for a website with a mid-sized independent agency like Revium would be around $150,000, but also for smaller simpler jobs as low as $40,000 and up to $600,000 for larger projects.”
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