March 15th, 2009
SoDA unConference
SoDA founded over a need for an association to improve the digital agency industry. Founded 18 months ago; spent the time since developing the organization to be sustainable and scalable. 4,000 inquiries of interest.
All the research is showing that digital is growing and set to grow for the foreseeable future. The industry is growing; there’s a revolutionary shift in market approach.
What is the biggest challenge?
-educating our clients about the importance of spending more on digital
*SoDA conducts research and outreach and advocacy on the tangible ROI of digital
-increase margins (both gross and net) (look at hotel626 site/$150k)
*it takes time; it’s still early in the history of digital
*digital is currently 30% of the total marketing pie; 2 years ago it was 15%
*strategy + emotional impact + coding = what we do
*standard profit margin in industry: 10-20% (except for the very large players, who are at 7-9%)
Picasso story (forget that he lived in the 20th century, not the 17th) 3-minute sketch for $5,000 because it didn’t take 3 minutes; it took a lifetime.
Who’s really sitting in the room and how do I address each of them?
We have a process and here is how it works. We’re not Kinko’s we can’t give you a price-per-page.
Put strategy in the bid; make it very overt.
In providing ballparks, especially when cost is dependent on discovery, give comps from previous work.
25-30% of total project price goes to strategy/discovery/definition.
Add rebid clause so that if after discovery there are undisclosed requirements we have the opportunity to revise the pricing.
Weekly status reports that are signed off by the client before next week starts.
Master deliverables list that is ranked in concert with the client; when the scope slides, revisit the ranking and trade off one piece for other pieces (like we do with HA). Add it to the Master Services Agreement and language saying the scope document is collaboratively created and if scope changes then there’s a method for review with client.

