Why Digital Marketing Companies Fail – Mistakes to Avoid
Everybody wants success. Nobody wants failure. Neither do I. Do you? Of course, not. If you do, you wouldn’t be here to read this article.
Is great idea enough for business?
Many people start a business thinking that they will definitely be successful because they have wonderful ideas. They believe that they’ll turn on their computers or open their doors and start making money. Yes, if we want success in business, we need ideas of course. So business ideas are important. But is it enough to have a business idea alone? Of course not. You have to have so many other things to be successful in business. Running a business is easy, but making money in that business is much more difficult than they thought.
Why Digital Marketing Companies Fail?
As far as business failure is concerned, some basic things need to be ensured. Do you know that 90% of startups fail within the first 5 years? Why do they fail? In this article, I have tried to tell you some reasons so that you can make sure that you don’t make the same mistakes.
Reason # 1: Lack of money
One of the common mistakes people do is that they start a business when they don’t have money. Don’t do that. You can’t start a business entirely with a loan and no investment. Start a business when you have a good amount of money. Otherwise, you will be desperate because you don’t have any money to pay your bills. You will rush. Over 100 opportunities may come but only 10 of them may work. It takes time to know which may work and which may not. It will make you panicked and you will take the wrong decisions and the wrong management will follow, the failure is the ultimate outcome. This is common for both online business and offline business.
Reason # 2: Poor budgeting
Now imagine you are not a digital marketing agency. You are a normal business. Just imagine it. You are going to launce online campaign for your own business. What comes to your mind first. How should I allocate budget? Another reason of business failure is the lack of proper planning on budgeting. It happens because you don’t know what drives sales.
What Drives Sales?
The emotion and pain drive sales. People don’t buy because of logic. They buy because of emotion. They may buy because of pain also. However, B2B clients don’t buy because of emotion. They buy because of pain only. Without pain, you can’t reach a deal with your business clients.
Does Popularity Drives Sales?
You may have millions of likes on your page. But that doesn’t guarantee you the sales. Some people just like the page but they don’t purchase anything online. You need to know from which source the most sales will come. Who are the people who buy the most? Find it. If there is no benefit for your clients from social media, there is no worth of huge numbers of page likes. In this case, If you don’t have any offline outlet, you don’t have the chance to grow.
When Is Digital Marketing for Offline Customer effective?
If you have offline outlet and people don’t buy from online, you can promote your business which will bring customers offline. But if you have only online store and all of your potential customers are offline, you don’t have a chance to grow. So you need to target the right people. And the more you invest there the better you grow. Don’t target indiscriminately. Budget efficiently.
Now get back to the reality. Now you are the owner of the agency. If you don’t budget efficiently and effectively for your clients, your clients will not get satisfying result. So he will leave you. After a few years, you will find that you have no clients.
Reason # 3: Lack of skills
Another reason is that they rely on motivation, not on their skills. They don’t focus on improving their skills. They spend hours in watching motivational video but they don’t works on improving skills. The most important skill for a business owner is that he needs to know how to convince people. Because people will not come and just start a business with you. If you can’t present your skills to the clients appropriately, you will not get the sales. People get convinced depending on the total process and how tactfully and efficiently you communicate the process with your clients.
Reason # 4: Failure of getting 1st profitable client
Most of the business fails because they don’t know accurately how they will get the 1st profitable customer. You have found that a specific product that has great potential. But you don’t know how you are going to make the 1st profitable sale. You will think at first that it is just a fresh start so you may not get the expected customers now, but things will change for sure in the future. The cruel reality is that things don’t work in this way. You need to bring the 1st profitable client who will repeatedly buy from you as fast as possible.
Reason # 5: Picking a wrong client
Doing business with an appropriate client is extremely important. Imagine you have picked a potential client. You have convinced him. He reached a deal with you. But you couldn’t reach the expected outcomes. Because the customers of your clients are not on the internet. Retail stores are the best clients for Digital Marketers. Because the end customers buy from the online mostly. The more your clients get sales from online the more you grow. The customers may not buy directly online. But they may watch the ads on Social Media or the Internet and they may go to stores. The main point is that you need to pick the clients who will be benefited from Digital Marketing. Pick the right customers. Wrong clients will dry your business up. It will also show you as a loser. People don’t go to the losers.
There are countless reasons for failure of business. What I have said to you is the most common reasons why 90% of startups cease to exist. These points are common for every business even though I focused primarily on digital marketing agencies. Arranging money and utilizing the money by proper budgeting is important. In this regard, the budget must be allocated to getting profitable clients in appropriate ways. Business owners’ skills, especially communication skills, have also important roles in the success of the business.