Using BPO web development model for your agency: does it bring financial benefits?
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So, you are probably thinking what is BPO and how it can financially benefit your agency. Business Process Outsourcing (BPO) is a form of outsourcing that engages third party service providers into performing specific business process. It sounds very academic but BPO is commonly used in many business processes from accounting through telemarketing to market research. In this post I will try to explain how BPO Web Development can help your agency grow through scaling development budgets based on the workload acquired by your agencies sales.

 

 

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1. BPO web development white label

With our BPO web development solution you will be able to scale the growth of your agency without the need of hiring in house Dev Team. You will be able to offer your clients a white label solution where your agency takes full credit for the job. This BPO model is exceptionally favorable for inbound marketing agencies. Believe me, I know what it is like to run an inbound marketing agency. You have to deal with a number of your client’s HubSpot Portals, and on top of that, managing content creation, implementing inbound marketing strategies, and constantly pushing new sales. A lot of moving parts to maintain and already quite a large group of people on a payroll. Let your team members do what they are the best in, which is Inbound Marketing and leave all coding work to specialists.

2. BPO and inbound marketing agencies and the retainer bases pricing model

In order to usefully execute a number of inbound marketing campaigns for your clients you have to deal with a lot of moving parts. First of all, you need a team of people constantly working for your clients’ success. Depending on the number of account you are running, you will need to scale the size of you team accordingly, anywhere from 3, 9 or 18 people and more. In general, your team should consist of team members working in three stages of Inbound Marketing Methodology:

  • Attract: Your content writers, designers, SEO specialists, and social media managers
  • Convert: Everyone involved in conversion optimization, including landing pages, calls-to-action, lead scoring, and nurturing
  • Close: Your sales enablement marketers helping the sales team close opportunities

Inbound Team StructureZrzut_ekranu_2016-09-27_o_5.04.20_PM.png

The above layout was presented by Mike Volpe at Inbound 2014 who, at that time, was CMO at HubSpot. Mike in his agency structure human resources model does not mentioned web developers as they are not needed directly to execute inbound marketing campaigns. Where they are need is at the beginning of the inbound marketing process to code websites, configure HubSpot portal along with blogs, landing pages, email templates and so on. They will not be need during the execution of the campaigns, but never the less they are at the commencement of all Inbound Marketing campaigns.

Compared to inbound marketing activities, which are based on retainer contracts and recurring revenue structure where your agency gets paid on a monthly basis for executing Inbound Marketing campaigns, website development is a project based work where you get paid once the work is delivered. Even though the fee can be substantially high, this still is project based work and can pose a serious issue regarding cash flow. You need to have a solid pipeline of new web development projects in order to sustain a qualified development team, thia is a real pain-point. This can be crucial for smaller Inbound Marketing Agencies who specialize in providing IM services and have not yet developed proper development standards and lack experience in the matter. Therefore, if you want to safely grow your agency, BPO website development will take off the financial burden of your agency, by not maintaining in house developers payed on a monthly basis, where your agency gets paid on a project basis for website development projects. Remember it is not healthy for your agency to pay people for doing nothing.

BPO companies enjoy cost saving by performing tasks in bulk

For BPO web development companies, the core business means web development. They scale their workforce in a way to maximize performance. In simple economic terms, it means economies of scale. If you concentrate to perform one and only task, you are able to maximize efficiency and lower the cost of each unit produced. This view applies to web development projects, where a skilled team can perform project-based work at a much higher pace compared to working individuals. Same rule applies to quality of the work. The more web development projects a team of developers successfully completed, the higher code quality and finally the end product - a website.

The core business of Inbound Marketing agency’s is in adding value to their customers by delivering top notch IM strategies, creating remarkable content, optimizing buyer journey, and generating traffic and leads through multi-channel marketing approach. That itself requires a number of people with different skills. On top of that, you need to add a proper development team, which requires minimum of 2 developers (one front and one back end), a graphic designer and a tester. The number of people on payroll increases. In this post, I mentioned BPO web development because it is a solution that:

    • Scales with the growth of your agency
    • Does not require long term financial commitments
    • Adds professional web design and development service to portfolio
    • Gives your agency an ability to take advantage of the price efficiency and quality model of BPO’s economics of scale factor

Taking these factors under consideration, BPO web development ensures a process that is worthwhile for agency owners who want to optimize their costs and increase their profit margins.

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Szymon Binek

Szymon, as the main originator and the co-founder of ClickRay, has been with it from the very beginning, that is from 2012. He develops marketing strategies and personally supervises projects, making sure that everything goes smoothly and on time. Szymon has a Master’s degree in Marketing Management. He is responsible for the content-related and business side of projects. To put it simply, he listens to the customers and makes sure they get what they expect. He is always eager to share his know-how and some useful tips with the rest of the team.