Podcast Summary: "Scaling Delivery with a LATAM-based Team"

Podcast Information:

• Title: Owning the Outcome
• Host: Sarah McDevitt, HubSpot’s Sr. Director of Partner Strategy
• Episode: Scaling Delivery with a LATAM-based Team
• Release Date: November 8, 2023

Introduction

In this episode of "Owning the Outcome," hosted by Sarah McDevitt, the conversation centers around Carlos Corredor, CEO and co-founder of Condor Marketing and Staffing Agency. Carlos shares his insights on scaling an agency by leveraging a Latin America (LATAM)-based team to serve primarily US-based clients. The discussion delves into the history of Condor, their growth strategies, employment models, and the unique advantages of tapping into the LATAM talent pool.

Background of Condor and Growth Trajectory

Carlos begins by recounting the inception of Condor five years ago, co-founded with a good friend from Venezuela. Having relocated to Chicago 12 years prior, Carlos leveraged his experience in US-based marketing agencies to identify significant cost differences between US and LATAM operations.

Carlos Corredor (04:02): "We always thought that okay at the beginning, we'll do... but eventually we'll get somebody to do account management. The US we thought that was a no brainer. And then we said, you know, for what we're gonna pay to somebody in the U.S., we can get, instead of somebody with a couple years of experience, we can get the head of sales of Leo Burnett Mexico to do sales for us."

Condor has grown to 72 employees, all based in LATAM, with Carlos being the sole member in the US. This strategic decision led to Condor being recognized in the Inc. 5000 list for its impressive growth.

Building a LATAM-based Delivery Team

Carlos emphasizes the strategic advantage of building a team in LATAM, not just for cost savings but also for accessing top-tier talent. The agency focuses on medium-sized US companies, typically generating between $5 million to $500 million in revenue, which find it cost-prohibitive to engage well-regarded US agencies.

Carlos Corredor (19:29): "We go after the top talent in Latin America because we think that's the way we do it for ourselves, and that's the way we recommend doing it for clients."

Employment Models: Full-Time vs. Contract vs. Freelance

Condor employs a mix of full-time employees (FTEs) and freelancers based on workload predictability and project requirements. For stable and predictable services, they prefer FTEs due to cost efficiency. Conversely, for sporadic projects or new service areas, freelancers offer flexibility.

Kevin Dunn (08:00): "It makes sense though that the determining... is to the workload predictability. Is this something that we're hoping to offer or the type of deliveral, the type of engagement we want to consistently deliver to clients?"

Carlos advises agencies to assess the predictability of their workload to decide between hiring FTEs or freelancers, highlighting the importance of flexibility in scaling operations.

Benefits of the LATAM Talent Pool

Beyond cost savings, Condor prioritizes high-quality talent proficient in English and equipped with relevant expertise. Countries like Mexico, Colombia, Argentina, and Venezuela are preferred for their skilled workforce and cultural alignment with US business practices.

Carlos Corredor (17:29): "We go after the top talent in Latin America... they need to speak great English, you know, almost perfect, essentially."

This approach ensures that clients receive high-quality deliverables while benefiting from reduced operational costs.

Resource Planning and Common Pitfalls

Carlos outlines common mistakes agencies make in resource planning, emphasizing the need for detailed data on gross margins by service, client, and deliverable. Without this data, agencies struggle to make informed decisions on scaling, pricing, and resource allocation.

Carlos Corredor (10:26): "If you don't know which services are profitable, which clients are profitable, how can you increase those profits?"

Another pitfall is hiring without clearly defined roles and responsibilities, leading to inefficiencies and missed project deadlines.

Hiring Process and Cultural Considerations

Condor's hiring process underscores the importance of cultural fit and commitment. Carlos notes that LATAM professionals often exhibit a strong drive and dedication, akin to baseball players striving to make it to the major leagues.

Carlos Corredor (23:49): "People in Latin America tend to be really hungry. They all... they're really hungry."

However, cultural differences, such as varying attitudes toward work-life balance and company loyalty, necessitate thorough vetting to ensure alignment with the agency's values and goals.

Incorporating in Other Countries

For agencies considering expanding their team in LATAM, Carlos advises against immediate incorporation in the target country. Instead, he recommends partnering with a staffing agency until the team size justifies the legal and administrative overhead of incorporation.

Carlos Corredor (32:40): "If you only have a couple of people... you can find a partner that does that... but if you're up to 10, you're going to continue to be in that country..."

Partnering with a single staffing provider can streamline the process, handling recruitment, payroll, and compliance efficiently.

Utilizing AI in Agency Processes

Carlos highlights the transformative role of Artificial Intelligence (AI) in enhancing creativity, efficiency, and personalization. Tools like ChatGPT and MidJourney are integral in optimizing marketing strategies, automating copywriting, and personalizing client outreach.

Carlos Corredor (42:00): "Something that would take us six months and I would be okay with the result now we can do it in a week."

AI integration has significantly reduced time-to-market and improved the quality of deliverables, showcasing its value in modern agency operations.

Key Lessons Learned

1. Data-Driven Decisions: Meticulous financial planning and margin analysis are crucial for sustainable growth.

   Carlos Corredor (37:00): "You can never be too meticulous with your financial planning and with your gross margin reports."

2. Scalable Hiring Practices: Understanding the demand and defining roles clearly prevents over-hiring and ensures project success.

3. Cultural Alignment: Ensuring cultural fit and commitment fosters a harmonious and productive work environment.

4. Strategic Partnerships: Collaborating with specialized staffing partners facilitates seamless team expansion without administrative burdens.

Conclusion

Carlos Corredor's experience with Condor underscores the strategic advantages of building a LATAM-based team for US-centric agencies. By prioritizing top talent, leveraging flexible employment models, and integrating AI, Condor has successfully scaled its operations while maintaining high-quality service delivery. Agencies looking to emulate Condor's success should focus on data-driven resource planning, cultural alignment, and strategic partnerships to navigate the complexities of international team scaling effectively.

Notable Quotes:

• Carlos Corredor (04:02): "We can get the head of sales of Leo Burnett Mexico to do sales for us."

• Carlos Corredor (17:29): "We go after the top talent in Latin America... they need to speak great English, you know, almost perfect, essentially."

• Carlos Corredor (23:49): "People in Latin America tend to be really hungry."

• Carlos Corredor (32:40): "If you only have a couple of people... you can find a partner that does that..."

• Carlos Corredor (37:00): "You can never be too meticulous with your financial planning and with your gross margin reports."

• Carlos Corredor (42:00): "Something that would take us six months and I would be okay with the result now we can do it in a week."

This comprehensive summary encapsulates the key discussions and insights from the episode, providing valuable takeaways for agencies aspiring to scale their operations through LATAM-based teams.