small agency
Risk vs reward
17/05/10 13:37 Filed in: Gareth Lloyd
A friend of mine who ‘works in the City’ recently recommended I buy shares in a small oil exploration company. It was, he admitted, a high risk investment because if the company didn’t find oil where they were drilling, the shares would fall considerably. I steered clear. A few weeks later they struck oil. The share price rose immediately from under 40p to over 90p. Within a few days it was worth over £2. As I write this blog, it’s £2.20.
So why am I telling you this story? Because what annoys me the most is not the lost profit – it’s that I didn’t practice what I preach. We are forever trying to convince cautious clients to trust us, a small agency, with their marketing budget. And many still prefer the ‘safe’ option of sticking with bigger agencies, despite their higher costs and longer lead times. This has to be wrong. The reality is that small agencies simply have to ‘strike oil’ because if they don’t, they fail. So they put enormous effort into every project, giving clients a lot more for a lot less outlay. So I believe the risks are altogether lower, while the potential rewards even greater. And if you can see the value in this argument, please get in touch with Daisy.
Michael Scott replies My comment: Interesting article. I'd choose a smaller, keener agency like yours personally. But many marketing people feel safer using the big players - especially when it's not their own money they're spending! I think this is changing though because the figures no longer ad up in my experience.
Add Comment