Should you use a direct-response agency? - circulation promotion - Column

The trend in magazine publishing from the mid-1970s to mid-eighties was for magazines to use direct-response agencies for their circulation promotions. To some extent, that trend reversed itself in the mid-eighties. Now, many publishers are once again debating the pros and cons of hiring an agency to augment their own circulation departments.

I've worked on all sides of the circulation desk -- for magazine publishers, at a direct-response agency and in my own direct marketing company for the past nine years. I've been the client and I've been on the service side. Along the way, I learned a few things -- I couldn't help it! -- about working with and without an agency. So, when I'm asked, "Should I hire an agency?" my response is a resounding "Maybe." It depends on your needs, your unique situation.

Think seriously about using an

agency if --

* You have lots of work and need a way to control costs and budget expenditures accurately. When there is one major provider of circulation promotion materials, costs are easier to manage and work flows more smoothly.

* You'd welcome outside viewpoints from experts who can offer you the benefit of experience on a wide variety of accounts. Your agency will be able to adapt this knowledge to your product line because it's their job to learn almost as much about your business as they know about their own.

* You don't like to be told by your own people, "We don't have time" to do your work, fix your mechanicals, talk to the publisher (or title of your choice), place your space, buy your time, help you evaluate test results, plan for the future, etc. Retailer client's work always comes first.

* You'd benefit from circulation consultation on managing subscription sources, budgeting, management reporting, fulfillment or other circulation topics. Many direct-response agencies serving the publishing industry employ people who have worked for publishers. Therefore, you can tap into this experience on a regular basis.

* You'd like the security of having immediate, knowledgeable help in a crisis. Once an agency is familiar with your magazine, and with its corporate philosophy and circulation strategies, it can hit the ground running if an unexpected problem or opportunity present itself.

* You could use some help in production. Most direct-response agencies can handle production. It can save time, aggravation and-- believe it or not-- money to use the agency to control this function. It may also save your sanity. Not every publishing company has a circulation production staff, and many circulation executives don't like production work. Not only is it labor intensive, it's fraught with potential disasters. Besides, most circulation people don't get real production training beyond the basis school of hard knocks.

* You want all your creative work to reflect the image you and the agency decide is appropriate for your company and magazines. This eliminates the need to start over every time you give out an assignment, and avoids lengthy meetings to train creative people in the fine points of your style. You can avoid having to explain to a freelancer why you can't use a headline that says, "Get naked and read Fun in the Sun Magazine."

You probably won't want to use an

agency if--

* You have a single title, a seasoned staff and circulation that requires simple maintenance.

* You aren't willing to go through the unitial get-acquainted period. It takes a little time to get up to speed on an account-- particularly if there are problems to be diagnosed and solutions to be proposed.

* You decide it's less expensive to keep all work in-house. It reality, it always costs more to do just about anything in-house. But, as we know, there are lots of ways to account for these costs. Yo need to be brutally honest about what it's really costing you in terms of salaries, fringes, overhead, services of other departments, etc. before you decide on the basis of cost alone.

* You want a fresh viewpoint on every assignment. There's a trade-off here. With an agency, you get continuity; with project work that you assign to various freelancers, you get different perspectives. Keep in mind, however, that your agency can and will use any creative talent that you want to investigate for a specific project. This should not really be a problem.

* You don't have a person at your company whom you can designate as the primary contract for the agency. It's dangerous to have 10 people giving instructions to the agency. You need to funnel work an directions through one or two people. This procedure keeps your staff from stepping on one another's jobs, is les confusing to the agency, and safer for your business. It is a time-consuming job for the primary contact, however.

* You don't really believe in testing and don't respect the contribution creative work can make to circulation. An agency will push you -- gently -- to do the right thing. Your agency will think its job is to bring you new ideas and suggestions for evaluation and testing. No agency worth it salt will be a rubber stamp for wrong-headed client and thinking.

* You don't trust "creative types." Many principals of direct-response agencies are also writers or designers (or both). This does not mean they aren't pragmatic business executives too, Publishing is highly competitive and so is the agency business. It's tough and teaches the true meaning of life on the edge. Agency principals are survivors, not wing nuts.

If you want to use an agency--

If you've decided you want to hire an agency, here are the next steps:

1. Ask other publishers for referrals and study trade advertising to make a list of agencies to contact. Make certain you talk to companies that really are direct-response agencies. You'll probably turn up a few "agencies" that are really printers, service bureaus and lettershops that tout creative work. Your agency should be a company whose primary business is direct response advertising.

2. Schedule meetings to determine that you are really dealing with direct response professionals. Get background on the company principals, ask for client rosters, and ask who will handle your account. This would also be a good time to look at the agency's work.

3. Match the services you need to the agency's capabilities. Don't hire less or more agency than you need. You want to deal with one company, but you don't want to pay for a lot of services you won't ever need or use.

4. Determine exactly how many magazines publishing clients the agency has. Like other professionals, direct marketer tend to specialize. If the agency's experience is limited to local retailers and financial services companies, it will take more time than you've got to teach them your business.

5. After your initial meetings, you can eliminate those companies whose work you don't like, those who have client conflicts, or whose services don't fit you needs. Then, invite the three top contenders to make a formal bid for your account.

To get good bids, be sure you brief each agency exactly the same way. What are your needs, objectives, budgets and timing for start-up? You may want an in-person presentation as well as a written proposal, but you should not expect agencies to provide "spec" unless you are willing to pay for it.

Do keep in mind there are many legitimate ways to staff an agency and produce great work. There are also different methods of establishing retainers and fees. No one way is always best. Like other service companies, agencies need to be fairly compensated--but they, not clients, have to decide what works best for them. What you care about is total cost, not how the costs is determined.

Once you've been given your presentations and proposals, the intangibles come into play. Chemistry has a lot to do with the agency you hire. Do you like the work and the people, and do you trust them? Can you imagine accepting their advice or opinions? If the answer to any of these questions is "no," you'd better keep on searching.

As corny as it sounds, a client/agency relationship is like a marriage. Each party has to be as concerned about the other as he is about himself. You have to work as a team, taking advantage of each other's strengths and shoring up each other's weak spots. Everyone involved needs to bring a lot to the party because no one knows everything.

It may take a little time, but hiring the right agency can help your magazine grow and prosper. When it's all working, you might wonder how you ever got along without one.

Elaine Tyson is president of Tyson Associates, Inc., a Ridgefield, Connecticut-based direct response advertising agency and consulting firm.

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