This post might annoy most Amazon agencies. My peers, if you will.
By George Barnett Reid 👀 · October 20, 2022 · Curated by George's Blog
This post might annoy most Amazon agencies. My peers, if you will.
"He tried to charge me $4000"
$4000 for this account made no sense. The agencies margins, without a doubt, would be insanely high.
The client would have a horrible experience. Not only hating that the charges simply didn't add up, but also making profit, particularly in the current times, so much harder.
The reality is, Amazon advertising expert demand has gone absolutely wild.
And companies are exploiting it.
I understand that is how business works. Demand up, prices up.
Even if that client were to 5X demand, they'd naturally increase their prices. We'd all tell them to. And it'd be a fair point.
But if they were selling a $10 product and made it $40, you might say they're exploiting the customer.
We've all felt this with airlines recently.
Talent is one reason why fees are getting silly too. Talent is becoming highly sought after. And I imagine agencies and aggregators are starting to offer bigger and better packages.
Not necessarily for a manager that's getting better at the same rate that the package is growing.
A year ago I heard an Amazon ads manager base salary being around $80k USD. I imagine that figure is higher now. Perhaps $100k?
Are they 65% better than someone at $60k? Really?
Can their extra ability actually be passed onto YOU and YOUR brand?
I'm not sure.
But you will pay for it.
Agencies, in my opinion, typically fall into one of these categories. Which is why your fees are getting so silly.
A) Hire locally. In America, the UK, or Europe. Salaries increasing. Fees increasing. Quotes get accepted. They make v good margins.
B) Hire abroad. India, Pakistan, Philippines, etc. Salaries lower. Fees increasing (cus demand). Quotes get accepted. They make wild margins.
Whether an agency hires locally or abroad is another discussion. I can argue both sides but my heart sits on the abroad side. For the simple fact the talent is equal and the salaries are not. Clients benefit every single time.
I also won't get started into how fancy offices, corporate travel, and worthless events, are all potentially unnecessary. All paid for by increasing fees.
$800. Our fee. And I can guarantee you the quality for $4000 will not be any higher.
Rant over. And I don't care if I upset anyone.
#itsalwaysdayone
Photo: Me wondering where my view is after a 3-day trek. Machu Picchu.