Scaling a Multi 8-figure Marketing Agency with 170 Employees

Ashton Shanks, co-founder of Bad Marketing, discusses the company's recent merger with Four Media and their ambitious plans to reach the $100 million mark with Chad Kodary. 

With over 170 full-time employees across multiple offices, Bad Marketing is a high-level marketing agency serving a diverse range of clients, from small businesses to major brands like ClickFunnels. 

This podcast explores the company's unique approach, strategies for SaaS marketing, and insights into the evolving world of digital advertising.‍

Watch full podcast below...👇

Introduction and Background

Bad Marketing, co-founded by Ashton Shanks, has rapidly evolved into a dominant force in the digital marketing landscape. From its inception in 2020 to its ambitious merger with Four Media, Bad Marketing exemplifies a relentless pursuit of growth and excellence. 

With a focus on direct response advertising, media buying, and copywriting, the agency has expanded its capabilities to offer a full suite of services to a diverse clientele.

Partnership with Four Media

The merger between Bad Marketing and Four Media is a strategic alliance that leverages the strengths of both entities to create a marketing powerhouse. This collaboration has enabled the agency to enhance its service offerings and expand its reach to a wider audience.

Reasons for the Merger

The decision to merge with Four Media was driven by a shared vision and complementary skill sets. Both agencies recognized the opportunity to combine their expertise in ads and content, respectively, to offer a more comprehensive suite of services to their clients. This synergy has propelled the agency towards its goal of building a MEGA Agency.

The Name 'Bad Marketing'

The name Bad Marketing stands out as a bold and disruptive choice, reflecting the agency's approach to challenging the status quo. Initially met with skepticism, the name has come to symbolize the agency's commitment to excellence and innovation.

Team and Offices

With over 170 full-time employees spread across multiple locations, Bad Marketing boasts a diverse and talented team. The agency operates both remotely and through physical offices in Nashville, Atlanta, Denver, and London, emphasizing flexibility and accessibility.

Number of Clients

Currently managing between 250 to 300 clients, Bad Marketing serves a wide range of businesses, from local establishments to high-profile brands. This diverse client base underscores the agency's versatility and ability to adapt to various market needs.

Working with Big Brands

Bad Marketing's portfolio includes notable names like ClickFunnels and Spec phone cases, showcasing the agency's capability to deliver exceptional results for prominent clients. This experience with big brands further establishes the agency's reputation as a leader in the marketing industry.

Video and Creative Services

In addition to media buying and direct response advertising, Bad Marketing offers comprehensive video and creative services. This expansion allows the agency to control the creative process, ensuring that all aspects of a campaign are aligned with the client's objectives.

Cross-Channel Advertising

Bad Marketing excels in executing cross-channel advertising campaigns that maximize reach and engagement. By leveraging multiple platforms and media types, the agency ensures that its clients' messages resonate with their target audience, driving meaningful results.

Qualifications for Media Buyers

Finding the right media buyer is crucial for the success of any marketing agency. The ideal candidate is not just skilled in media buying but is also a well-rounded marketer.

Key Qualifications

Prospective media buyers must demonstrate a deep understanding of marketing principles, not just technical media buying skills. They should be adept at analyzing why campaigns are or aren't working and suggest improvements.

Cross-Platform Media Buyers

In today's digital landscape, versatility across platforms is invaluable. A media buyer's ability to navigate various channels can significantly impact a campaign's success.

Versatility Across Platforms

Depending on the division within the agency, media buyers may be expected to handle both Google and Meta platforms or specialize in one. This flexibility allows for a cohesive strategy across different media.

Frequency of Account Management

Account management frequency not only showcases an agency's dedication to remaining ahead of the curve but also underscores its proactive approach to fine-tuning campaigns to achieve optimal results. 

By consistently monitoring and adjusting strategies, agencies can ensure that their clients receive the highest level of service and performance in today's dynamic market landscape.

Daily Management and Optimization

Media buyers at top agencies review and adjust campaigns daily, ensuring that every opportunity for optimization is seized. This proactive approach is critical for delivering exceptional results to clients.

Changes in Optimization

The landscape of digital advertising is ever-evolving, with optimization strategies needing constant refinement to stay effective.

Adapting to Platform Changes

Understanding that platforms like Google and Meta have their unique optimization timelines is crucial. Media buyers must adjust their strategies accordingly to maintain campaign performance.

Employee Breakdown and Sales Team

Gaining a deep understanding of the composition of an agency's team can offer valuable insights into not only its operational focus but also its diverse capabilities and areas of expertise. 

By delving into the team's backgrounds, skill sets, and roles, one can uncover the unique talents and strengths that contribute to the agency's overall success and effectiveness in achieving its goals.

Role Distribution

While it's challenging to pin down an exact breakdown, a significant portion of the team is dedicated to media buying, with a robust sales team supporting client acquisition and retention.

Sales Team Collaboration

Collaborative efforts between the sales team and various departments within a marketing agency play a pivotal role in achieving success. 

This collaboration fosters a shared understanding of goals, enhances coordination on strategic initiatives, and promotes a unified approach toward achieving overall objectives, resulting in a more cohesive and effective operational framework for the agency.

Internal Synergy

The sales team works closely with media buyers and marketers to ensure a seamless flow of communication and strategy implementation, enhancing the overall effectiveness of campaigns.

Marketing Strategies for SaaS Companies

For SaaS companies, innovative and effective marketing strategies are crucial for attracting and retaining customers.

Effective SaaS Marketing Strategies

Challenges and community-driven marketing have proven successful for SaaS companies, encouraging user engagement and product adoption.

Challenges as a Marketing Strategy

Implementing challenges can be an effective way to engage potential customers, offering them a hands-on experience with the product.

Benefits of Challenges

Challenges not only educate potential customers but also encourage them to utilize the product, thereby demonstrating its value and fostering a community around it.

Challenges and Show-Up Rates

While challenges can be an effective engagement tool, ensuring a high show-up rate can be a hurdle.

Maximizing Engagement

To combat drop-off rates, it's essential to maintain engagement throughout the challenge, ensuring participants see the value in attending live sessions.

Improving Challenge Show-Up Rates

Increasing challenge show-up rates is vital for maximizing engagement and conversion. Bad Marketing addressed this by transitioning to an on-demand format, removing barriers such as waiting times and unnecessary registration fields.

Instant Access

Switching to an on-demand format led to a significant increase in participation rates. This approach ensured participants could engage with the content immediately, eliminating drop-offs due to waiting periods.

Simplifying Challenge Structure

Simplification of the challenge structure proved essential for streamlining participant experience. By reducing complexity, Bad Marketing aimed to enhance focus and reduce confusion among participants.

Reduced Complexity

Minimizing the number of steps and requirements for registration and participation helped in maintaining participant interest and engagement throughout the challenge.

Challenge Curriculum and Homework

The curriculum and assigned homework were carefully designed to engage participants actively, ensuring they applied what they learned to achieve tangible results.

Engagement Through Homework

Homework assignments were a critical component, designed to reinforce daily lessons and encourage practical application of the challenge's content.

Controlled and Precise Challenge Structure

A tightly controlled and precise challenge structure was pivotal to delivering a focused and effective learning experience. This approach ensured that every aspect of the challenge was aligned with its objectives.

Focus on Precision

By limiting the duration of daily sessions and maintaining a singular narrative focus, Bad Marketing was able to deliver content that was both engaging and effective.

Future Goals for Bad Marketing

Bad Marketing is set on a clear trajectory towards achieving its ambitious goal of reaching the $100 million mark. This journey is characterized by strategic planning and a focus on scaling effectively.

Path to $100 Million

The agency has a detailed plan in place, outlining the necessary steps, infrastructure, and team expansion required to reach its revenue goals.

Company Growth and Funding

Bad Marketing's growth trajectory is impressive, with the company already achieving multiple eight figures in revenue. This success has been achieved without the need for venture capital funding, highlighting the company's robust business model.

Self-Sustained Growth

The company's robust financial health, underscored by consistent revenue growth and prudent cost management strategies, coupled with its strategic acquisitions in key market segments, has strategically positioned it for further expansion and market dominance. 

This solid foundation has effectively eliminated the immediate requirement for external funding, allowing the company to focus on organic growth initiatives and internal development to solidify its market presence for the long term.

Performance-Based Pricing

Bad Marketing has adopted a performance-based pricing model for certain clients, aligning the company's incentives with client success. This approach underscores the agency's commitment to delivering results.

Aligned Incentives

By taking a share of the net profits generated from increased business performance, Bad Marketing ensures that its goals are directly aligned with those of its clients, fostering a partnership-like relationship.

Conclusion

Bad Marketing's self-sustained growth, performance-based pricing strategy, and focus on aligned incentives showcase a forward-thinking approach to client relationships. 

By prioritizing financial health, strategic acquisitions, and a commitment to delivering results, the company not only positions itself for continued success but also cultivates strong partnerships with clients. 

This unique business model underscores Bad Marketing's dedication to mutual success and long-term sustainability in the competitive marketing industry.

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