Built Online Podcast Summary

Episode Title: Agency vs. DIY: When to Hire Help for Your Online Business with Andy Seeley
Host: Cody McGuffey
Guest: Andy Seeley, Leader of Ashworth Strategy and Owner of Creatively Disruptive
Release Date: March 3, 2025

Introduction

In this episode of Built Online, host Cody McGuffey engages in a deep conversation with Andy Seeley, the driving force behind Ashworth Strategy and Creatively Disruptive. The discussion centers around the critical decision-making process for e-commerce business owners: when to hire an agency versus taking a DIY approach to scaling their online ventures.

Understanding the Investment Required for E-commerce

Andy kicks off the conversation by drawing parallels between traditional brick-and-mortar investments and e-commerce startups.

Andy [00:00]: "If you're serious about building... it's just the way it is. You putting out the shop, you're buying the stock, you're hiring the stuff... you're already 200 grand in the red before you've sold your first thing."

Key Points:

• Initial Investment: Just as a physical store requires significant upfront capital, e-commerce businesses also demand substantial initial investment.
• Financial Reality: Many e-commerce brands operate at a loss in their first year, striving to break even over one to one and a half years.
• Comprehensive Investment: Costs include website setup, inventory procurement, marketing, and staffing.

Introducing Ashworth Strategy and Creatively Disruptive

Cody provides an overview of Andy’s professional background, highlighting his expertise in both e-commerce and brick-and-mortar sectors.

Cody [02:15]: "Andy, we made it. How you doing?"

Andy [02:49]: "Having an understanding of different disciplines... we are full service in a very, I think, holistic way."

Key Points:

• Multi-Channel Focus: Ashworth Strategy primarily serves e-commerce brands, while Creatively Disruptive caters to brick-and-mortar businesses.
• Holistic Approach: The agency emphasizes a comprehensive service model, addressing both marketing and business growth strategies tailored to individual client goals.
• Specialized Teams: Employs specialists in various domains such as e-commerce, lead generation, and real-time traffic management.

Profit vs. Revenue: The Core of Business Growth

A significant portion of the discussion revolves around the distinction between profit and revenue, with Andy stressing the importance of prioritizing profit for sustainable growth.

Andy [06:46]: "Revenue is vanity. Profit is sanity. Profit is where you get the payoff."

Key Points:

• Profit-Centric Strategy: Focus on what the business owner truly wants to achieve financially and how that translates into profit.
• Sustainable Growth: Ensuring that revenue generation does not drain the business’s resources, allowing for long-term stability.
• Customized Goals: Tailoring business strategies to align with personal financial aspirations, such as achieving a specific monthly profit.

Case Study: Rachel’s E-commerce Dilemma

Cody introduces a hypothetical business owner, Rachel, to illustrate common challenges faced by e-commerce entrepreneurs.

Cody [07:29]: "Rachel has a brand in the hair tools industry... she's making around $3,000 a month in revenue but doesn't know how to scale."

Key Points:

• Limited Revenue: Rachel's current sales indicate early traction but highlight the struggle to scale beyond modest income.
• Skill Gaps: While passionate about her product, Rachel lacks expertise in critical areas like Facebook ads, SEO, and content marketing.
• Growth Uncertainty: Rachel is unsure which strategies or channels to leverage to significantly boost her revenue and profit.

Strategic Approach to Scaling: Ashworth Strategy’s Methodology

Andy outlines the step-by-step process his agency would undertake to help Rachel achieve her financial goals.

1. Defining Clear Objectives

Andy [08:28]: "One of the first things that we would start with is, what does she want to accomplish?"

Key Points:

• Goal Setting: Understanding Rachel’s specific financial targets and personal aspirations, such as achieving $20,000 in monthly profit.
• Purpose over Numbers: Emphasizing the importance of personal goals to drive business decisions rather than just chasing revenue figures.

2. Comprehensive Market Testing

Andy [12:08]: "We have a process called Rapid Results Testing... it works for any size company."

Key Points:

• Rapid Results Testing: Conducting extensive ad campaigns to test market responsiveness to Rachel’s product.
• Data-Driven Plans: Using test results to formulate a robust marketing strategy tailored to Rachel’s unique offerings.
• Multi-Channel Focus: Primarily leveraging Facebook and Instagram for their effective click-through rates and broad reach.

3. Financial Planning and Budget Allocation

Andy [20:11]: "If someone has 10k in the bank... there's a high likelihood that you're gonna miss it."

Key Points:

• Adequate Funding: Recommending a minimum of $10,000 in the business bank to sustain marketing efforts without exhausting resources.
• Investment vs. Return: Ensuring Rachel understands the correlation between ad spend and the speed of achieving her financial goals.
• Profit Margins: Working within a target of 20% profit margin to maintain business health while scaling.

4. Implementation and Continuous Optimization

Andy [25:48]: "Expect low MER initially... and work to increase it to between two and three."

Key Points:

• Media Efficiency Rate (MER): Tracking the efficiency of marketing spend by measuring profit relative to advertising expenditures.
• Scaling Strategies: Gradually increasing ad spend as MER improves, allowing for sustainable growth.
• Ongoing Testing: Continuously experimenting with different marketing tactics to refine and enhance performance.

When to Hire an Agency vs. DIY

Cody raises a critical question about the right timing for Rachel to consider hiring an agency.

Cody [20:11]: "When does Rachel know to hire an agency or not?"

Andy’s Response:

Andy [20:38]: "Depends on how serious you are... if Rachel is a hairdresser... committed and serious about her e-commerce business, she has to hire an agency or hire people into her company."

Key Points:

• Skill Assessment: Evaluating whether Rachel possesses the necessary marketing skills or if she would benefit more from specialized agency expertise.
• Financial Readiness: Ensuring Rachel has sufficient funds (ideally around $100,000) to invest without jeopardizing her business’s financial stability.
• Agency Selection: Advising Rachel to seek agencies that prioritize her business goals over their own, including transparent planning and guarantee policies.
  • Notable Quote:

    Andy [25:35]: "All the good agencies will have some kind of guarantee... if it doesn't make sense to you, then there's no cost to you."

When to Hire:

• Growth Stagnation: When Rachel's revenue plateaus and she needs expert strategies to push beyond current limits.
• Resource Constraints: If Rachel cannot dedicate the necessary time or expertise internally to scale her business effectively.
• Strategic Expansion: When Rachel is ready to invest significantly in marketing to achieve substantial growth.

Financial Preparedness for Hiring an Agency

Cody probes deeper into the financial requirements Rachel should consider before engaging an agency.

Cody [25:34]: "How much should she have in the business bank to be able to make a decision like this?"

Andy’s Guidance:

Andy [26:22]: "I would say a minimum would be five grand... preferably 100k."

Key Points:

• Minimum Budget: Recommending at least $10,000 monthly (combining operational and ad spend) to sustain agency efforts effectively.
• Runway Consideration: Ensuring Rachel has enough funds to support her business for at least six months to navigate the initial investment period.
• Avoiding Financial Strain: Warning against underfunded agency engagements which could lead to rapid depletion of resources without achieving desired outcomes.

Ensuring Successful Agency Partnerships

Andy emphasizes the importance of thorough vetting and clear communication when selecting an agency.

Andy [30:29]: "What we would do is meet with you every week and we'd sit down with one of our top platform specialists... showing you how to build and run the campaign."

Key Points:

• Transparent Processes: Agencies should provide detailed plans and strategies tailored to Rachel’s business needs.
• Educational Support: Offering hands-on guidance to empower Rachel with the knowledge to manage and understand her marketing efforts, even if she chooses not to remain with the agency long-term.
• Guarantees and Accountability: Reputable agencies often offer guarantees to instill confidence and ensure client satisfaction.

Conclusion: Connecting with Ashworth Strategy

Cody wraps up the episode by providing listeners with avenues to connect with Andy and his teams.

Andy [34:17]: "People go to AshworthStrategy.com... You can go to Ashworth Strategy on Instagram or CreativelyDisruptive.com."

Key Points:

• Contact Information: Direct listeners to Ashworth Strategy’s website and Instagram for more information and to initiate contact.
• Comprehensive Services: Highlighting the dual focus on e-commerce and brick-and-mortar businesses, ensuring a wide range of potential clients.

Final Thoughts

This episode offers invaluable insights for e-commerce entrepreneurs like Rachel, navigating the complex decision of scaling their businesses through DIY methods or leveraging professional agency support. Andy Seeley provides a clear, strategic roadmap emphasizing the importance of financial preparedness, goal alignment, and choosing the right partners to achieve sustainable growth and profitability.

Notable Quotes:

• Andy [00:00]: "If you're serious about building... you're already 200 grand in the red before you've sold your first thing."
• Andy [06:46]: "Revenue is vanity. Profit is sanity."
• Andy [25:35]: "All the good agencies will have some kind of guarantee... if it doesn't make sense to you, then there's no cost to you."
• Andy [33:04]: "What we're going to do is build out a 40-page document to show us what we're going to do with every single part of what you've got going on."

Connect with Andy Seeley

• Website: AshworthStrategy.com | CreativelyDisruptive.com
• Instagram: @AshworthStrategy | @CreativelyDisruptive

Thank you for tuning into this episode of Built Online. For more strategies and insights on growing your e-commerce business, subscribe to our podcast and visit our website.