When deciding on an agency partner, it’s easy to feel overwhelmed by the many details (big and small) both parties need to agree on before sealing the deal. Some of these elements can be finalized quickly, but agreeing on one component in particular tends to be more difficult and often involves several exchanges between brands and agencies—budget.
Budget may be a daunting subject — but it’s arguably the most critical detail to discuss in the beginning stages of finding your agency partner. Agreeing on deliverables, timeline, and communication style is essential, but everything else will fall apart if you’re not aligned on budget. If you don’t know where to start this challenging - and let’s face it - awkward conversation, you’re not alone! We’ve put together the following tips and best practices to take the stress out of talking budget.
Be Transparent
As with most communication, the most important principle to follow is transparency. Disclosing your budget openly and without hesitation gives both parties a starting point for discussion. A best practice is setting a budget range to allow for some flexibility and communicating to the agency the maximum amount you’ve allocated for this undertaking.
Provide as Much Information as Possible
It’s incredibly challenging for an agency to provide exact pricing before discussing the needs of your project with you. Deliverables and timelines are factors that will influence the budget, so clearly outline the results you expect to see and the amount of time the agency will have to execute. Schedule a face-to-face virtual call with the agency to dive deeper into your scope of work and allow them to follow up with a refined proposal based on your conversation.
Ask For Package Options
If an agency shares a proposal that is higher than you were hoping for or even out of budget, don’t hesitate to re-open the conversation. Agencies are usually willing to have a candid discussion to shape a mutually beneficial agreement for both parties. If you have multiple projects in mind, ask your agency what they think you should prioritize first and always request a proposal with ‘good,’ ‘better,’ and ‘best’ package options — many agencies offer this type of proposal structure upfront!
Manage Your Expectations
Lastly, remember that you’re ultimately paying for the quality of an agency’s work. You don’t want an agency to undervalue their work and deliver results that don’t meet your expectations. Do your research to determine the work's market standard price and expect an agency’s quote to be within that ballpark. It’s also important to understand your ROI — don’t be afraid to ask the agency what a realistic return will look like based on their experience.
When starting a conversation with a potential agency partner, budget may feel like the least approachable topic, but aligning on this crucial piece of the puzzle allows the rest of the pieces to fall into place. Be clear, confident, and understanding. Remember that the right agency partner will want to work with you to find a favorable and exciting solution for everyone involved!
