Hi
there and welcome to another exciting analysis and discovery with yours truly,
Adex.
Today,
we will be answering the question: IS SMMA WORTH IT?
Yes,
SMMA is worth it. Stick around and find out why.
Just
as other business models face criticism and entrepreneurs trying to dabble into
them are uncertain of their end results and outputs, people often question and
ask if SMMA is worth their efforts and time?
I am
sure that you are someone asking such a question and that is why you are here.
Well,
to clear your doubts, answer your questions and give you more assurance, I’ll
be speaking on why social media marketing is worth your while.
The
popularity of using social media for business activities is growing quite
rapidly and has become a major factor for the enormous increase in revenue for
social media marketing agencies (SMMA’s).
This
has enabled SMMA’s to earn as much as $10,000 from clients i.e. entrepreneurs
and businesses looking to get exposure and new customers via the internet and
as such, hire SMMA’s.
Sproutsocial’s survey confirms this.
The
increase in popularity also seems to be an issue that makes people think that
social media marketing is not worth their while.
Let’s
clear those misconceptions and get you started on your journey to SMMA success.
First
on our list, we will be covering the reasons why people think SMMA is not worth
it and we will debunk them one after another.
Let’s
go!!!
COMMON REASONS PEOPLE GIVE WHEN THEY SAY SMMA
IS NOT WORTH IT.
1. High competition
2. Lengthy customer conversion process.
3. Varying client needs.
4. Unpredictable results.
5. Inconsistent income.
6. Complex paper work and admin tasks.
1. High competition:
Due to the increasing popularity of
using social media for business activities, the social media marketing agency
business model has gained some vast and notable recognition.
The increase in popularity of a business
model often leads to saturation. And when a market is saturated, the demand for
services tend to drop and can lead to low income.
People saying that SMMA is not worth it
for this reason are simply shallow minded and haven’t done their research.
These people do not take their time to note the facts and rather make
conclusions based on little or no knowledge at all.
Let’s breakdown why high competition and
the increasing popularity is not a reason to write off SMMA.
You may have been told that because of
the low barrier to entry of starting a social media marketing agency and a
great increase in popularity over the years, it will be saturated.
One needs to understand that unlike drop
shipping, affiliate marketing and other saturated business models, SMMA
requires a lot of hard work, skill and managerial intellect. These are
attributes that 90% of individuals do not possess and as such makes SMMA for
the 10% only.
If you think social media marketing is saturated,
I want to clear such notion by telling you it is not.
If one does not possess the skills and attributes
I mentioned above, such a person is likely to fail in the first year of
starting their SMMA.
Iman Gadzhi, a prominent figure in the
world of SMMA and founder of IAG Media has stated and made us all to understand
on many occasions that 90% of SMMA’s fail in their first year of operation.
Another prominent figure, Jordan Platten, the founder and managing director of
Affluent.co from Norwich, England, United Kingdom mentioned that SMMA is not for everyone and that you must be
consistent and driven to succeed.
Ippei.com confirms this.
This my dear friend is more than enough
reason why SMMA is far from saturated in this day and age.
To put it simple most people don’t have the
balls for SMMA. Only a few do.
Even though there is a low barrier to
entry, there is a high barrier to keep moving forward and actually attain
success.
HARDWORK IS KEY!!!
2. Lengthy customer conversion process:
Another
common point that people who say SMMA is not worth it love presenting is that
there is a very lengthy customer conversion process for SMMA.
The
process for customer conversion is how a firm, business or organization tend to
get their prospect or clients via one means or the other.
People
most likely to say that this process is quite long and stressful. Actually, this
may be true.
But,
I would like to add that the length of your customer conversion process as a
social media marketing agency largely depends on the following:
I.
Your
angle of handling it.
II.
The
tactics you use.
III.
How
much effort you put into it.
IV.
How
well you love it or how much affection you have for it.
I.
Your Angle of Handling It:
Your
way of viewing the customer conversion process determines how lengthy and complex
it will be for you.
When
you think or view the process as simply finding new customers, getting in touch
with them and helping them solve their problems, it feels not as lengthy.
On
the other hand, when you think of it as:
·
Cold
outreach- emailing, Facebook DM’s, cold calling, Instagram DM’s, LinkedIn DM’s
·
Booking
a call
·
Stating
your proposal
·
Stating
your price
·
Signing
the contract
·
Service
delivery
You
would see it as a rather long process.
Remember
that you are dealing with other human beings not some aliens who want Business!!!
Business!!! Business!!!
On
your journey with them, there would be free flow of communication and you would
so love to be around them.
You
need to dispose the mindset that your customer conversion process is all about
formality.
Another
thing to note is that most businesses want to get started fast. They need those
new customers quickly.
In fact,
taking all the lengthy formal steps with most business owners will make them
loose interest. They would most likely want you to spare them those formalities
or get it over with as quickly as possible.
You
do not want to do that.
You
may even need to skip most formalities with some business owners. As they are
simply not interested.
It
is up to you if your customer conversion process is lengthy or not.
II.
The tactics you use:
Another
factor that determines how lengthy your customer conversion process is the
tactics you use.
In
this day and age where Artificial Intelligence makes everything quite simple,
if you decide to use a manual prospecting process, you should be ready for a
lengthy process.
At
least, all aspirant SMMA owners and active SMMA owners should have some
knowledge of automation in business.
Sincerely
speaking, if you don’t use automations in your social media marketing agency,
you are in for one hell of a ride.
You
are going to work your ass out and get a fraction of the results that your
competitors are getting.
Imagine
sending a thousand emails a day MANUALLY!!! When your competitors are sending
tens of thousands of emails a day by pushing buttons.
Who
would have a lengthier process?
The
answer is obvious but, still leave your answers in the comments.
When
you use tactics that make each and every task in the process simpler and
easier, you would spend less and less time with customer conversion.
III.
How much effort you put into it:
You
may think that the amount of effort you put into the customer conversion
process has nothing to do with its length.
I’m
not going to really explain this, I’ll give you a take home.
YOU
CAN’T PUT IN HALF ASSED WORK AND EXPECT TO GET FULL RESULTS.
This
means that when doing the customer conversion process, give it your best at
first trial so that you don’t have to keep doing it over and over again.
When
you put in the right amount of effort, you shorten the length of you doing such
a thing as you would get it done quicker and not have to do it over and over
again.
IV.
How well you love it or how
much affection you have for it:
If
you love what you do and do what you love, you would not mind time consumption
when dealing with such a thing. You would rather love to take your time.
If
you actually love meeting new customers and helping them solve their problems
(customer conversion) you would not see it as a menace.
3. Varying client needs:
It
is true that different business owners have different problems and as such have
varying marketing needs.
This
my friend is why picking your niche before you start an SMMA matters.
See:how to start an SMMA in 2024.
When
you pick your niche, narrow it down and focus more on that aspect, you would
most likely encounter business owners with the same or similar problems.
The
problem of varying client needs only arises when a social media marketing
agency does not clearly define the kind of businesses they will be working
with.
Practical
example:
SMMA
1 has narrowed down and clearly defined its niche. It has settled with Med spas
as its area of focus.
SMMA
2 has chosen to focus on Ecommerce (quite a broad niche) and did not narrow
down.
SMMA
1 knows he only has the following in his skill set
·
Paid
advertisement
·
Writing
ad copy
·
Seo
optimization
And
has found a market tailored to it.
SMMA
2 also has the same skillset as SMMA 1 but still chooses the E commerce niche.
SMMA
1 is happily helping customers with their needs.
SMMA
2 begins to struggle with clients’ needs like website building, rebranding,
graphics design, web analysis etc.
Why
do you think SMMA 2 is struggling? Leave your answer in the comments.
SMMA
2 is struggling because it did not choose a niche well fitted to its skill set.
To
sum it all up, when you take up a much-tailored niche you would find people
with the same or similar needs and you would be able to satisfy them.
Even
if the customer needs vary, it will be volume based or offer based, not service
or skill based.
4. Unpredictable results:
A common way that people explain this as why
SMMA is not worth it is that;
You might encounter unpredictable results
because of the changing prices in paid ads, difficulty in measuring your ROI,
and challenges in producing viral social media content.
This may actually be right when you first
start out.
But as
you keep pressing on, fulfilling services and developing your skill, you would
quickly become well informed.
When you are, you would know what and what not
to do for clients to get them consistent results.
In SMMA, experience gives birth to consistency
in results.
5. Inconsistent income:
People
really need to know what they’re doing and have the necessary information
before starting a SMMA.
The
only reasons why new SMMA’s experience a fluctuation in income is because they
did not get their service pricing right.
Most
new SMMA’s try to charge their clients huge retainers right off the bat. This
may work for some clients and this may not work for other clients.
When
SMMA’s do this, the clients feel rather insecure and try to bargain the price.
This leads to income fluctuations.
You
must avoid this.
The
best way to do your service pricing is to charge your customers while removing
risks.
Here
are the ways to do that:
- · State a risk reversal in your
contract:
By
stating a guarantee that ensures that clients actually get value for their
money, you can avoid income fluctuations. When you give them this assurance,
they are more likely to react positively and not try bargaining.
- · Create a
payment schedule that feels more comfortable:
Charging
clients and expecting them to pay without any doubts or fraudulent worries is
quite challenging. For you to negate this, you need a payment schedule that
gives both you and your client coverage.
EXAMPLE:
50%
of retainer should be paid on signing and the other 50% at the end of the month
(after service delivery).
- · Price your service based on the
results you generate:
The
most common way to do this is to know the customer value for your client’s
business and charge them a percentage for every new customer you generate. For
consistent income, you also need to set a target number of customers you would
get them per month. If there is at all
any deviation from the target, you then refund the difference.
EXAMPLE:
Your
client’s customer value is $300 (You should charge them a percent of that for
every new customer you bring in.)
Like
30% = $90 per new client.
For 20 customers = 20 x 90 = $1800 per month.
6. Complex paper work and admin tasks:
It
is a very strong point that social media marketing agencies have complex paper
work and admin tasks.
But,
this is not a strong enough reason to stay away from it and conclude that it is
not worth it.
Social
media marketing just like any other business model have paper work and that
should not become an avenue for people to miss entrepreneurial opportunities.
In
all, the common reasons why people think SMMA is not worth it are quite flimsy
and are mere products of misconceptions.
Moving
on, lets speak upon the reasons why SMMA is worth it.
WHY SMMA IS WORTH IT AND WHY YOU SHOULD START
NOW.
1. 1. Working
flexibility.
2.
Low
barrier to entry.
3.
Little
startup capital required.
4.
Low
market saturation.
5.
High
and still increasing demand
6.
High
income potential.
7.
Skill
and knowledge building.
8.
Increase
exposure and connection in the business world.
9.
Innovation
in business.
10. You get to choose your
clients.
1. Working flexibility:
Flexibility is one of the most valuable advantages
of running a SMMA business.
Making
a steady and high income while choosing your work hours and having total flexibility
is a dream life.
In 2018, Harvard Business Review published an
article about the survey conducted among 1,500 employees by Werk. The survey
showed that 96% of US professionals need flexibility, however, only 47%
reported having access to flexible arrangements.
SMMA
offers working flexibility at a rather high level.
Flexibility
while working and earning high is a dream that most professionals and white-collar
job workers dream of having.
SMMA
offers you what highly trained personnel’s wish to have. Does that not make
SMMA worth it?
Leave
your answers in the comments.
There is no necessity for a physical store this
gives an agency owner the freedom to determine what to do with their time and
work anywhere.
SMMA owners can structure their work schedules to
meet personal commitments.
The flexibility of social media marketing agencies
work time and hours allow for scalability at a sustainable pace.
This flexibility leads to opportunities to test marketing
strategies and refine service offerings.
2. Low barrier to entry:
To start a social media marketing agency, one does
not require some a lot like some other business models out there.
Much unlike other service and product-based
businesses, SMMA does not require a lot for you to begin. A lot of requirements
for these other business models are usually optional when it comes to social
media marketing agencies.
Some examples are;
·
A domain.
·
A professional website.
·
A professional email.
·
A business phone number.
·
An LLC. (you can simply get one once you are
already making profits).
3. Low startup capital (cost)
required:
To start up a SMMA, there is little to no cost to
get started and make your first income.
To begin operations as a social media marketing
agency, you literally only need a laptop or phone an email, a working mobile
number and some internet connection.
These are merely the basic things that people in a
civilized society need for simple internet and social interactions.
I bet you have all I listed as you can view this
post right now.
All I am saying is that basically anyone on the
internet with the right set of skills can start an SMMA.
But, it takes a determined mind to push through and
actually attain success.
4. Low market saturation:
Although SMMA has a low barrier to entry, low
startup cost and just anyone can start it, there is still a low market
saturation.
SMMA is still far from becoming saturated like drop
shipping and affiliate marketing.
You may ask why is that so?
Try answering that.
Lock in your answer and leave a comment before you
continue.
Don’t peek forward.
The reason why SMMA is still far from saturated is
that although anyone can start, not all have what it takes to keep going.
Many are called, few are chosen.
That is the scenario and reason for SMMA not being
so saturated.
This makes SMMA more than worth it. There are fewer
people to compete with.
If you want to learn more about this, view
IS SMMA SATURATED
5. High and still increasing demand:
If you have even the slightest knowledge of
marketing and economics, you should know and understand that fewer means of
supply bring about higher demand.
When there is still demand, low or high, it means
that income can still be made off such market.
When there is high demand, it signals that high
income can be made off such market as price ranges will be high.
Due to the low or medium number of running SMMA’s,
supply of their services are low and this brings about high demand of these
services.
Another factor for this high demand is the increase
in popularity of using social media for business.
Most business owners want to jump on this
opportunity to earn more thus bringing about high demand for SMMA services.
This demand makes SMMA worth it.
6. High income potential:
The amount of income or revenue that a business
model generates is a major criterion to know if a business model is actually
worth it.
With a major increase in demand of SMMA services
which we previously covered, the price range that these agencies can charge for
these services have become significantly high.
In the past, SMMA services were priced around a
smaller range because of its not so high value then.
In these present times, social media marketing
skills have become very prominent and pricey.
According to studies by Statista, the SMMA market
is the second top market in digital advertising, raking in an estimate revenue
of $226 billion in 2022.
Without the market being saturated, it still
generated a whole lot of revenue.
The price range for SMMA services a month has been
estimated as not less than $500 a month by Sprouts social’s survey. They took a
survey of 288 agencies and found out that their prices started from $500 and
kept going higher and higher, no less.
For anyone, earning $500+ with no limits to number
of clients and charge per clients is gaining quite a lot of profits or income,
considering that it took little or no capital to start.
SMMA has a very high earning potential and this is
a major reason why it is absolutely worth it.
7. Skill and knowledge building:
 |
| IMAGE BY: FREEPIK |
Apart from money, income and revenue related
benefits, SMMA also offers skill and knowledge acquisition and building.
When carrying out the day-to-day activities of a
social media marketing agency, one is required to use his or her skill set
regularly.
And it is known that the continuous usage and
practice of skills and abilities leads to an advancement.
SMMA helps individuals to hone their skills to
their peak and finest point.
Thereby creating business and digital marketing
professionals.
You stand a chance of becoming a professional
without having to spend quite some gruesome time in learning institutions.
This is a candid reason why SMMA is worth it.
8. Increase exposure and connection
in the business world:
Working with a vast number of business owners and
entrepreneurs on a regular basis, you are likely to increase your exposure to
the business world as well as your connection with other business owners.
As a SMMA owner, unless you get into a fight with
every single one of your clients and customers (which you will not), your
exposure and connection in the world of business will continue to grow and
expand.
This goes a long way as your connection and
interaction with other business owners may prove very helpful and fruitful in
the future.
Don’t go about your SMMA in such a way that you do
not form some kind of trust with customers.
Trust me, you don’t want to do the opposite.
Why would someone then think SMMA is not quite
worth it when you get a lot of useful exposure and connection.
9. Innovation in business:
A major part of the daily task of SMMA’s is to
innovate and find new and engaging ways to incorporate marketing, client
acquisition and in all, business activities into socialization channels on the
internet (social media).
These agencies are constantly making innovations
that allows business to go on in social media forums without disrupting their
normal order of activities.
In all, SMMA’s bring innovations to the business
and marketing world.
It is absolutely worth it.
10. You get to choose your clients:
 |
| | |
Much unlike many other business models, SMMA’s get
to choose the customers and clients they work with.
During prospecting, SMMA’s outline the businesses
who would be suitable to work with them based on their standards before they
then reach out to them.
In simpler words, social media marketing agencies
choose their customers.
In only very few occasions do you see SMMA’s not
choose their clients. But, these clients usually fit their standards as they
must have attracted them based on content released.
CONCLUSION:
With all these outlined and stated above, can we
then say that SMMA is more than worth it.
You get to see that all the attributes of the SMMA
business model proves to be worth your while.
This business model is a dream come true for most
professionals and white-collar job workers. They get all what they have yearned
for, while not jeopardizing their income structure and range.
SMMA is worth it and you should get started now if
you are looking forward to that.
If you want to get started now, see;
How to start a SMMA in 2024 and achieve
entrepreneurial success.
If you have any questions, leave them in the comments,
I will be more than happy to answer them.
See you next time.
BYEE.