No snakes need apply: how to find, evaluate, hire, and work with an ethical advertising agency.

Jane was looking over the financials of her long-term care facility. For a while now, she's had a gnawing thought about hiring a marketing person. She really needs to get her numbers up, and her marketing efforts have been disorganized and sporadic. Obviously, a marketing professional would have to pay for herself, but even if she tripled occupancy, her company could barely support it. What a quandary.

Sound familiar? For many long-term care facilities, hiring staff to handle marketing and advertising can be cost-prohibitive. Some might not market or advertise enough to justify hiring an employee dedicated only to marketing, even if they could afford it. Hiring an independent advertising/marketing agency seems like it might be a good choice: It allows you to pay a professional only when you need one. But here's the rub: Many people panic at the thought of hiring an advertising/marketing agency.

Maybe you've heard horror stories about Slick Willies in BM Ws selling facilities up the river. Maybe it's even happened to you. But there is hope: An organized approach will help you separate the splendid from the snakes in the grass when seeking professional help in getting your message across.

Why and When to Hire an Agency

Bottom line: The role of an advertising agency is to help you accomplish your objectives by communicating effectively. An agency helps you to plan, research, create, and produce marketing messages and to select the appropriate media to convey those messages. These include traditional media such as print advertising and direct-mail campaigns, television and radio spots, open houses, and events. But today, promoting your business online is just as important. Agencies can help you determine what online tools would best benefit your facility and can provide search engine optimization services, develop blogs, handle e-mail blasts, or create podcasts or video feeds that will help you reach the right audience at the right time.

You might consider hiring an agency for several reasons; e.g., if you have no marketing staff, if your marketing staff is overtaxed, or if they lack specific expertise in a particular type of media. Your people may be terrific at churning out newsletters and press releases but might feel less confident working on capital campaigns, producing brochures, creating Web sites, or handling events. A well-chosen agency can fill those gaps in your talent array.

By necessity, the role (and the image) of the advertising agency has changed of late. Far from simply crafting catchy advertising displays, many firms are now serving as consultants, handling all manner of communications, media, and events--from strategy to execution. And the good ones are not that difficult to find.

How to Prepare for the Search

First, determine your marketing objectives and be specific about your goals. For example, you might want to increase occupancy rates, introduce a new service, raise funds, or improve your company's image. Then, put a number on it: Figure out what meeting these goals will mean to you from a budgeting standpoint. Set a range for your budget--this helps agencies understand what latitude they have in exercising creativity.

Think short term and long term. Many clients have two sets of objectives: First, they may want to "pick the low-hanging fruit" in establishing their market identity. In the long run, though, they may need to identify and penetrate new markets.

How to Find Competent Agencies

Referrals are far and away your best bet. Start by asking noncompeting businesses whose ad campaigns you have liked who they have used for this. Your trade associations will likely have recommendations, and the local chamber of commerce may also be of help. Once you have identified at least three agencies of interest, call each to ask if they are accepting new clients in your field. (Generally, agencies cannot take on a new client in direct competition with a current one.) You'll need to ask if the agency handles clients with budgets in your range. Also, if you are looking for help only one time or sporadically, be sure that the agency works on a project-only basis.

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How to Screen an Agency

Hiring an agency is essentially a three-step process. First, you'll meet with each agency to discuss the project. (Do yourself a favor and bring an outline of your objectives, expectations, and budget.) Next, ask each firm to submit a written proposal outlining its project approach, the specific tasks to be accomplished, and the projected item-by-item cost. After reviewing these proposals, conduct final interviews.

Here is a bit more detail on each step:

Initial meeting. The objective of the initial meeting is to educate the agency so that it can provide you with a written proposal that is relevant to your needs. (Tell the agency that it is competing with other agencies; the agency will appreciate your honesty, which will set the tone for the relationship. It also may "sharpen its pencil" a bit.) Discuss your company and your objectives, using your outline as a guide.

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Next, ask about the agency's experience handling accounts of similar type, size, and budget. Review samples of its work and discuss the scope and effectiveness of each project. Get the names and telephone numbers of the agency's three most recent clients; call them to be sure they are satisfied. Finally--and this is important--ask to see the agency's mission/vision/values statement. If it doesn't have one, run. If it does, read it carefully and make sure these are people you'd want to invite to a dinner party.

Proposals. When proposals are received, carefully review and compare them on their approach, rationale, and creativity. (Your written budget has already leveled the playing field on cost, which allows you to focus on quality.) The agency should have a detailed, logical approach for getting to know your organization and what you've already tried, what worked and what didn't, who your customers and prospects are, who you are to them, and details of your competitive arena, including industry and market conditions. The proposal should also highlight the agency's process for project management; i.e., how your specific project will be trafficked through the agency.

Final interview. After reviewing the proposals, schedule the final interviews. At this juncture, it is crucial to meet the agency personnel--especially the account executive with whom you will be working--directly. The agency's staff will be functioning as an extension of your company; you will be communicating and working closely with them. It's fair to ask questions of the agency's employees, particularly regarding professional values. Test their expressed mission/vision/values to the extent possible--you should be able to see that the agency doesn't just talk the talk, it walks the walks. But know, too, that advertising people can be a bit quirky, funky, and artsy. That's OK--you aren't looking for a carbon copy of yourself, you're looking for creativity and, most importantly, results! Bottom line: Listen to your instincts. If alarm bells go off, even if you're not sure why, the agency is probably not a good fit. You should walk away from any interview feeling good about the energy, competence, and integrity of the agency's staff.

How to Hire an Agency

Once you have selected an agency, it's time to talk turkey. You all need to agree on a dollar figure and what you expect for your money. Also, ask how you'll be billed. Will it be a flat fee per project or a percentage of the annual budget as a retainer? Depending on your budget, you can expect to pay from $1,000 to $10,000 for a retainer; on a per-project basis, you can expect to pay between $60 and $250 an hour. Also, find out what variable costs (such as printing, photography, and media) might be involved. Final details should be nailed down in writing.

How to Work With an Agency

As with any relationship, communication is key. The better organized you are, the more guidance you can provide to your agency. Address as many details as possible in advance. Ask the agency for a written outline of the project so everyone understands what's expected, when it's expected, who's doing what, and what it will cost.

If the agency staff is doing its job properly, you may occasionally find yourself outside your creative "comfort zone." Remember, you are paying for expert advice, and you may be asked from time to time to take a leap of faith. However, if you are uncomfortable most of the time, either creatively or ethically, it's clearly time to talk with the agency's senior management. Business owners shouldn't blindly follow the advice of any consultant, whether it's an accountant, attorney, or marketing professional. Even when you are on the same wavelength, you will need to be hands on, approving creative direction and reviewing everything carefully before it "goes live."

Remember this basic rule: If you want to have a long-term, mutually beneficial relationship with anyone, you need to create ongoing, open, and honest dialogue. That's no less important in working with advertising agencies than with any other supplier or consultant.

Paul J. Cowley is Founder, President, and Creative Director of Cowley Associates, a full-service advertising and marketing communications firm based in Syracuse, New York, since 1975. For further information, phone [phone] or visit www.cowleyweb.com. To send your comments to the author and editors, e-mail [e-mail].