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At what point did you bigger guys hire a marketing manager? Looking into hiring someone experienced to take over marketing programs including canvassing, events (trade shows) etc... Also, any input on pay scale? I'm thinking some type of performance based incentive such as a base pay plus commision or bonuses.
 

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At what point did you bigger guys hire a marketing manager? Looking into hiring someone experienced to take over marketing programs including canvassing, events (trade shows) etc... Also, any input on pay scale? I'm thinking some type of performance based incentive such as a base pay plus commision or bonuses.

I have thought about this myself. I figured if you do a lot of shows like 3or4 a month and spend 150k a year on advertising. Then yo should hire someone to do that job.

I have seen them advertised and it usually around 60k plus some sort of bonus plan.

Just kind of guessing here. But i believe that is all you will get here i dont think anyone on here has a marketing manager.
 

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Help Me With The Math...

Let's look at the math... spend $150K on advertising then pay someone $60K to spend it for you. So how's that work out in terms of lead cost as a percentage?

$210K of a million is 21%
$210K if you do $2 mill is 10.5%
$210K of $3 mil is 7%

I can't justify much more than 5-6% as a lead cost, but then that's just me. Maybe you are doing that kind of volume already?
 

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Let's look at the math... spend $150K on advertising then pay someone $60K to spend it for you. So how's that work out in terms of lead cost as a percentage?

$210K of a million is 21%
$210K if you do $2 mill is 10.5%
$210K of $3 mil is 7%

I can't justify much more than 5-6% as a lead cost, but then that's just me. Maybe you are doing that kind of volume already?

I guess if you look at it like that? I would look at it with the hopes that they would do that much better of a job.That their 60k would be cheap.



Just so you know the average lead cost of the largest 200 specialty remodelers is something like 18%.

Mine is around 11%. those numbers you posted are not out of line at all.
 

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I guess if you look at it like that? I would look at it with the hopes that they would do that much better of a job.That their 60k would be cheap.



Just so you know the average lead cost of the largest 200 specialty remodelers is something like 18%.

Mine is around 11%. those numbers you posted are not out of line at all.
I would look at it like that, doesn't mean you have to, but "Hope" is a risky way to run a business. The point is that $60K is only cheap if that new manager increases your volume by $1.2 million (for me), $545K (for you).... without losing any effectiveness, or increasing the actual dollars.

By the way, I'm not trying to be argumentative, but want to remind the OP that he needs to evaluate his own situation and do the math for his company. Apply some logic and know what he has in his budget for advertising, and ask himself if he diverts $60K into management will that bring in x amount of dollars to maintain the budget. Is the market share available and does he have the sales staff, crews, and resources to deal with the volume?

Maybe that's a given, but the OP's situation is pretty vague. I wouldn't encourage him to spend $60K unless I know more about the other factors.

In conclusion, I'm not one of the top 200 specialty remodeling companies in the US nor do I want to be, so I can't afford 18% nor would I feel comfortable passing those kinds of costs on to my customers. To be able to make a profit with an 18% advertising cost, a company better be doing a huge volume and selling with a 60% or better gross margin. My goal is 5% but I've crept up to 7% when I spent $190K one year. Nice year, but hard to duplicate at this point in time.
 

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This does present an interesting question. Me being a marketing manager, I suggest offering a lower salary and a performance commission. Offer paying a salary of 35k/ year. That is about average for a person with 5 years of experience in marketing. Give them a reasonable bonus plan that they have potential to earn 60k+ based on their effectiveness. Find someone that is hungry and has knowledge and you will definitely see the benefits.

I agree however, that a big part of your homework before hiring is to understand the threshold of your service for that market. If you can't expand past a certain point you need to carefully consider the options to get you to that point.

Hope this Helps
 

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I see your from the great state of Wisconsin, my state as well.

If you want really great marketing people who are organized you have a chance to grab many college kids after the November election.

In politics right now the Republican candidates have hired some really top notch marketing grads and they will all be jobless in a matter of weeks.

Some of the best marketers you will find are in politics. They know how to hustle and they are very organized. The work ethic is top notch, it has to be......they volunteer.

If you in Milwaukee I can help you locate a dozen of them. I'm good friends with a few candidates running for office .

Mike
 

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I don't know if he still visits here Mike. I BS with him quite often, mostly football smack - :laughing:

He has given me some very VALUABLE marketing information all for FREE. I am going to refer him to my buddy in South Florida, and eventually hire him sometime in the next year.
 

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I don't know if he still visits here Mike. I BS with him quite often, mostly football smack - :laughing:

He has given me some very VALUABLE marketing information all for FREE. I am going to refer him to my buddy in South Florida, and eventually hire him sometime in the next year.
Well, next time you talk to him tell him to get his butt back here. He's a good guy to chat with.

Mike
 

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I don't know if he still visits here Mike. I BS with him quite often, mostly football smack - :laughing:

He has given me some very VALUABLE marketing information all for FREE. I am going to refer him to my buddy in South Florida, and eventually hire him sometime in the next year.
Do you mean football smack like, wow the Jets beat up the dolphins in Joe Robbie Stadium, Pro Player Park, Pro Player Stadium, Dolphin Stadium, Dolphins Stadium, and, most recently, Land Shark Stadium Sun Life Stadium. That was a great game to be at. Or are you referring to how the gators lost at home to LSU :clap:
 

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Do you mean football smack like, wow the Jets beat up the dolphins in Joe Robbie Stadium, Pro Player Park, Pro Player Stadium, Dolphin Stadium, Dolphins Stadium, and, most recently, Land Shark Stadium Sun Life Stadium. That was a great game to be at. Or are you referring to how the gators lost at home to LSU :clap:
C'mon man. Don't you know that everyone that lives in Florida, is NOT FROM FLORIDA ! :laughing:

My teams are the NY Giants and Michigan.

Darren likes the Eagles :furious:
 

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C'mon man. Don't you know that everyone that lives in Florida, is NOT FROM FLORIDA ! :laughing:

My teams are the NY Giants and Michigan.

Darren likes the Eagles :furious:
Well as it jets fan it's nice to finally have a Stadium that we don't have to pay rent in :) and even the better team!:thumbsup:
 

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You may just consider hiring an advertising agency. They handle the negotiations on the media buys for radio and tv. It also helps with all the annoying calls for this magazine or these flyers. I just tell them I use an agency, and they'll call them.

If my rep at the agency feels it may be something I'm interested in, then he'll let me know. That way all the sales calls go to them, and don't waste my time or my office managers time.

While agencies typically have minimums, they don't really cost you anything, as there fees are paid for out of the media buys. They're like travel agents, in my opinion. They get you the better buys, as they have relationships, and know the going rates in the market.
 
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