Best Contract Length For FB Ads Agencies

0:00hi guys it's ben heath from lead guru and in this video i'm going to talk about the best contract length for facebook ads agencies or facebook ad service providers to use when they're signing up new clients how long should you make that initial contract if you're offering facebook ad services you're a facebook ads agency you're taking on a new facebook ads client or looking to take on new facebook that's fine how long should that be should be a month six months et cetera i'm going to cover that in this video if you're an agency owner you offer services i think you're going to find this really really valuable

0:28before i get in touch with very quickly ask you to smash that like button and of course subscribe to my channel if you are new and haven't done so already so for the longest time and through a lot of my the process of building my own facebook ads agency lead guru i went with a one month initial contract and then a month to month rolling contract thereafter so basically a client once they've gone through that first month could cancel at any time we would finish it out the month um and that's basically how we operated and i think that when you're building your customer base when you're building your

1:01reputation in the industry when you're looking to gain experience looking to do great work that you can turn into case studies turn into testimonials those are things that are really really important in the facebook ads agency game if you want to attract and retain high quality clients you need those things i think starting with a one month initial contract and then a one month and then a month to month rolling basis after that makes a lot of sense now i can almost sort of hear the um reservations about that you might be thinking but hang on a minute if i just go with a one month initial contract

1:32um aren't clients going to leave straight away and some will some will not have the patience to see it through won't have the right attitude towards facebook advertising or any form of marketing where they just want instant results and aren't willing to to give it much patience what i would say is that a lot of those clients you're probably gonna lose anyway um just because of what i said if they don't have the right attitude towards the process and they expect you know you to turn on facebook ad campaigns and then produce fantastic results within the first couple of days which we've certainly had and you will have

2:03if you work with enough clients there's basically nothing you can do to help those those clients anyway right it's completely impossible to um to keep those guys happy um so i wouldn't worry too much about losing clients um earlier than you otherwise would the flip side of having longer term contracts from the negatives having long-term contracts include things like let's say for example you get a client or a six-month initial contract what happens if you're two months in and you can't really deliver results for them and it's quite clear that whatever it is they're looking to do perhaps just won't work you know this does happen everyone wants

2:40to think that whenever you work with a client it's always going to go swimmingly well sometimes clients will launch unproven products or services in the marketplace we've had this before and sometimes those products or services there's just not demand for them or there's not demand for them at the price point at which they're selling them and you have to sort of come to the conclusion and go this offer just isn't going to work it doesn't matter how good the facebook and instagram advertising campaigns are this offer just isn't going to work i'm gonna have to go back to the drawing board what are you gonna do in that situation

3:08where you work that out after two or three months um if you've got a six month contract become very difficult you don't want to keep working with those people likewise even if you are doing good work and you are making progress but the client doesn't believe that you are which again happens and they want to be uh you know they they want to leave you don't want to be working with someone that closely because of contractual obligation where um you're sort of tying them in and making them work with you longer because of a piece of paper that you've got signed as opposed to them wanting to be there that's just not

3:38a situation that you want to be and that's something that you that you want to avoid now there are good so that those are sort of the reasons why i think for the majority of facebook ads agencies majority facebook advertisers um you want to stick to that initial just the one month contract and then rolling basis in fact actually there's a couple more points i'll i'll talk about that before i move on to the pros and cons of the longer term contract and what i'd recommend you potentially move to later on another advantage to offering short-term contracts so one month followed by a month by month by month is

4:07that sometimes you will get clients that only want to advertise for a short period of time this typically happens in the run-up to christmas or something like that where a client will just want to run a campaign for a month or six weeks etc or you can still work with those people another advantage is it makes you look very confident in your own services and your ability to achieve you know when you're having those sales calls with your prospects and they say how long are your contracts something you get asked all the time you can go uh well we actually just start with a one-month contract and then go on a

4:35month-to-month basis and you can say look we're really confident in our ability to produce if we're not able to demonstrate we do good work after month one then you can you can move on you can leave but we're very confident we're able to do that and that's why we offer really short initial one-month contracts um a lot of clients will like to hear that they will feel confident they don't feel a they'll feel that you're confident in your ability b they don't feel they're taking as large a risk if you get someone to sign up for a six-month or a 12-month contract that's a big financial outlay that

5:07they're going to be signing up for if you say look we go one month and then month to month month um you're going to sign up more clients as a result because the risk is lower they feel like they can try you out um so if that makes sense so a lot of advantages to having those short term contracts for facebook advertising services now as an agency we have decided to change our contract length not to go with a really long contract we're not signing people up for say 12 months we've currently got a three-month initial contract and then a rolling basis we may look to extend that to six

5:37months and the reason why and the reason why i've sort of advocated for shorter contracts and that the reason why we've moved is because we want to be more selective over the type of business that we work with and that wants to work with us so whilst you will sign up more clients with a short initial contract of one month perhaps some of those clients when you're a more established business like we are you actually don't really want to work with as much because they're people that are testing things out that aren't very confident in their product or service that are hoping for overnight success and then potentially going to

6:11you know if it doesn't happen immediately which it very rarely does as you'll know as a facebook ads agency owner or a service provider watching this video you know overnight success is is is basically unheard of these things take time and we don't want to work with those clients and we are in as a business we are in a very fortunate position the presence i have in the industry and the audiences that i've built hundreds of thousands of people strong mean that we have more demand for our services than we have supply so we can afford to be more selective in the clients that we work with which

6:45is a fantastic position and there are ways you can do it i can show you how you go about getting into that place for sure but that's why we've taken that decision to increase our contract length it's not going to help us sign up more clients and it's there are definitely disadvantages to it but it does make you more selective over the clients you work with it's not something i would have done three or four years ago absolutely not i wanted the short-term client contracts i wanted to get more clients in i wanted more case studies i wanted more testimonials and all this stuff that's really

7:14important that we now have for our business to be able to succeed and operate um but you need to there's no one-size-fits-all just like with facebook advertising strategy there's no run this funnel it works for everyone no you need the right funnel for the type of business just like with your agency you need the right approach for where you're at along the journey you know when you're got a company with you know 20 25 people like like we do at the moment and you've got a full team of creative experts and account managers and people who can implement um and you can scale and you've got tons of

7:50leads coming in yeah you can be more selective increase your contract length but if you're not at that stage yet which is absolutely fine i obviously wasn't there for years go with the shorter shorter contract length is something that i would recommend and with the longer contract lengths you know sometimes it does happen where things still don't work out it's not perfect you still can get clients that expected overnight success and it's unrealistic or they're testing a new product doesn't work out and you could make a decision on that whether to let them out the contract earlier and so have you but it's really the what

8:20the longer term contract is is just shifts the mindset if you get a client to sign up to initial three-month contract you're basically saying i don't really think it's fair to assess the results or the performance or whatever in a time frame that's shorter than three months which is roughly what i would say is accurate i mean yes you can often demonstrate great work before that and improvements but sometimes these things take time so a three month time period is a good amount of time to it to assess how good um an agency is performing and then and it shifts that mindset definitely reduces client volume though so you need

8:53to be in a position where you're generating lots of leads lots of new clients i feel in order to be able to bring in the longer term contract okay now around that you know that's basically the topic of this video covered but what i want to mention around okay how do you go about getting loads of leads and loads of clients to be able to be in that position to go from the one-month initial contract to the three-month initial contract i've got a free resource that's going to help you out and that's what's in front of me right now that's why i've had this screen open this whole time and it's a

9:17free mini series called how to build and scale a facebook ads agency and it walks you through i think there's six elements to it of various things around you know contract lengths and you'll see me talk about the one month initial contract um and proposal documents how do you put those together even give you an example proposal document how do you price your services how do you go about getting clients how do you retain clients how do you scale all that sort of stuff is included in this free mini series so i'd strongly strongly recommend you go ahead and download that there will be a link

9:44in the video description or you can just go to lead guru to credit uk click on this little free resources up on the top right hand side then select facebook ads agency miniseries you come in here and you can go ahead and grab that for free and i think you'll find it tremendously valuable if you found this video helpful please give a thumbs up and subscribe i'm going to be producing some more agency related um content not exclusively still you know a lot of my stuff's gonna be regular facebook ads related but i know that a huge amount of my audience do offer facebook ad services agency

10:13services so i'm gonna produce some more content around that to help you guys out um if that's if that's the sort of thing you want let me know in the comments um that feedback is really helpful give this thumbs up subscribe to my channel if you haven't done so already and uh yeah best of luck guys i'll talk to you soon bye for now