Small But Mighty Agency: Win clients and build better networks for marketing and consulting agencies Trust Equity: Why Less Experience is Winning at Higher Prices
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Jan 22, 2025 The podcast dives into the concept of 'trust equity' and how it's reshaping agency-client dynamics. Surprisingly, 70% of agency decisions are made before showcasing results. Personal stories reveal that clients are often swayed by perceived safety rather than experience. This shift is driving newer agencies to command higher prices despite lesser track records. The conversation challenges traditional validation approaches, emphasizing the importance of trust in today's competitive landscape. It's a must-listen for agencies wanting to adapt and thrive.
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The Safer Choice
- Audrey Joy Kwan spoke with an agency owner, "Meredith", who lost a pitch to a competitor charging 20% more.
- This competitor had less experience and a smaller track record, yet they were perceived as the "safer choice."
Trust Equity
- Trust equity, the accumulated trust before a prospect reaches out, is crucial for agencies.
- It allows some agencies to command premium rates with less experience.
Beyond Great Work
- Quality work alone is no longer enough to win business for agencies.
- A larger shift is occurring in the industry, affecting how agencies win or lose.