Hiring a Marketing "Expert" - Advice on how not to get taken...

Sometimes business owners and I have the frank discussion on how they have gone about choosing professionals to help with their marketing.  The most common stories I hear seem to include cold-call sales (walking in their door) or were referred from a family member (often with good intentions).  These are tough ways to choose your marketing help, but how can a business owner really judge who is legitimate and who isn't worth your time?  

Here are some things I have learned that I hope can help:

1) Do they have a real business?
The economy is weak right now, and an easy way to protect holes in the resume for many marketing people is to post they now have a business and are out consulting, while looking for that full-time gig.  It isn't to say that they don't have expertise in marketing, but their in-between consulting may cost you in the long run if they don't do this professionally.  This could result in you being liable for picking up benefits, employee taxes, and more.  Worse, you risk them leaving you the moment they find that full-time job they are really looking for.

Ask for their IRS Federal Employer ID# up front to set them up on your accounting software.  Also be sure to check out their information to see if they have made the investment to be an independent consultant.

2) Do they have the right experience for your needs?
Are you looking for specialized work in your field to communicate to other businesses, or are you looking for someone to make door-to-door house sales calls?  The level of expertise of the consultant should match what you are looking for, otherwise both of you could be frustrated on several levels (outcomes, costs, timelines, etc).


Look for recent work by the consultant that is similar to what you are looking for.  If they seem a little more experienced than what you feel you need, ask if they would be willing to negotiate their rate accordingly or refer someone who best fits your needs.  Beware of those promising more than than they can prove they have delivered, as well as those seemingly too senior for the work you are offering.

3) Do they have references?
Anyone can list work they have done, but how can you be sure they are for real?  In addition to letters of reference, consultants should be able to put you in touch with at least one client that is similar to your business or contracted them for similar work.  Although not all clients want to serve as references for their contractors, there should be a correlation of the number of their references to how long they have been in business.  

If you don't have time or are unsure about calling up other companies, check out the Better Business Bureau, Angie's List, and  even Google them - you should be able to find credible references to their work.  If not, caveat emptor!

Look for letters of reference, testimonials on their website, and ask for at least one reference to follow up with who has worked with the consultant before. 

4) What do they charge?
Marketing consultants are professionals and should charge as such.  Likewise it isn't rocket science, and the cost shouldn't be unreasonable.  Remember you are hiring someone because they should give you reasonable comfort on producing outcomes for your business, not just doing work.  If not, then hiring your nephew at $8/hour is perfectly reasonable.  Just like in your business, they have overhead, taxes, bad clients, and benefits to cover in their charge rate.  It is reasonable to ask for a discount on their rate for longer term contracts, however, be aware of deep discounting.  Consultants who charge too little will likely be out of business before you can get your project complete, or will have to come back to you asking for more money.  


Reasonable rates range from basic work at $40 an hour to highly specialized work of $200 an hour, depending on the consultant's level of experience and your needs.  More established consultants understand that marketing expenses open the door to increased risk prior to any outcomes achieved.  Many of these professionals can work with you on split rates (hourly plus commissions) or would take equity in exchange for part of their fee.  These are completely legitimate means of lowering marketing cost and risk and are pretty standard practice.


Look for professional rates relative to the work you are looking for.  Be careful of rates too low, but be open about cost with your consultant.  see if they are willing to share some risk with you in taking part of their fee as commission (if applicable to the work involved).


5) Can they show you examples of past work?
 Like their references, contractors should be able to show you work they have previously done that is related to the work you are seeking from them.  This is standard practice in the industry, and anyone unwilling to show you past work is at least not an expert, and could be trying to take advantage. 


Ask for examples of previous work they have produced similar to what you are asking of them.  If they can't produce previous work and/or client references, walk away.

6) Do they only offer preconstructed "packages" for you to buy?
Marketing work is usually done on a project basis, after both parties understand what is needed, what outcomes are expected, and what the budget is.  Only after these are known, a proposal should be made.  Be wary of 'solution experts' coming with preconstructed advertising packages that supposedly work for "everyone".  that is never true.  Your business is unique and should be treated that way.


Run away from 'too good to be true' prepackaged advertising plans or no-risk projects, especially those proposed prior to defining what your business needs are.

7) Did they provide you with a written proposal of deliverables and a timetable?
No marketing effort should ever get underway without a proposal of the work.  This can be done formally with a contract, or less formally with a scope of work, even a set of Powerpoint slides, but it should be clear to both you and the contractor what the work will entail, what the deliverables will be, and what the cost will entail.  Projects can change and grow over time, so it is good to use the proposal or Scope of Work as a reference to revisit the project from time to time to be sure everyone has similar expectations.

Expect a consultant to give you a written proposal of work, including general timelines and estimated charges at a minimum (depending on project).  Payments should be milestone based and upfront payment (if any) shouldn't be more than 20% of the overall budget unless there are special conditions.

8) Can you see yourself being able to work with them?
You will often be working close together on a project and trusting the consultant to be representing you and your business correctly when they are away from you.  Don't be afraid to 'gut-check' your feelings before signing a contract or going ahead with any work.


If your gut tells you there is something not right about this consultant, don't be afraid to follow it.  You have to work with this person and are looking to put trust in someone to help you grow your business.   

So I hope these 8 points are helpful.  It is not a complete list, but should get you well on your way to determining if a marketing consultant is right for you.  As always, feel free to ask me any questions you may have.