Say No To That Next Pitch

One of the more complicated conversations inside an ad agency is the debate about a new pitch opportunity. Should we or shouldn’t we? Leadership is always looking for new revenue opportunities, and the potential addition of a new brand to your portfolio can be thrilling (and sometimes a lifesaver).  

But there are many reasons to say no to a pitch.

All agencies are looking for new revenue opportunities, not just to grow, but also because there is perpetual instability with current clients. A CMO can leave, a budget can be cut, or the work just may not land. Given any of these, a client could put their account up for review, or in the project-based world many of us live in, just stop giving you new ones. So, agencies are always searching for new revenue.

But growth does not equal new business alone. I advise agencies I work with that growth from existing clients (“organic revenue”) can be easier than navigating a pitch, winning it, and then onboarding a new client. You can drive organic revenue by getting wins on the board, making your clients look like rock stars, and then getting your firm marketed like crazy within the client’s organization. But don’t become salespeople (it doesn’t work). In my career, I’ve been able to make recurring revenue from current clients more than half of all growth, which is a slightly more stable place to be.

And SUPR is here to help agencies build powerful, stable growth organizations. 

Back to that pitch. In my career as an agency leader, I’ve often had to make the case against taking on a pitch. I don’t mean an initial meet and greet capabilities presentation (those are not a heavy lift and are usually good to do), I mean participating in the pitch process with custom work. 

Here are some reasons why your agency should consider turning down a pitch. All of these are based on actual real-world situations:

1. You don’t have the capacity to do the pitch, especially if you need to hire near-100% freelancers to participate. 
2. You don’t have the capacity to ingest the client if you win it. When agencies adopt our Four Step Growth Playbook, this step is known as Readiness. Listen to your new business lead, but also talk to account and PM teams, creative and strategy leadership. And listen to your gut. The worst thing is to win, and then get fired for failing. 
3. You don’t have enough of the right skillset. There are times where you can fake it till you make it, and there are times when you can’t. I’ve seen pitches fail because an agency couldn't fake a measurement strategy, or the agency just “didn't get social.” You can build a service around a new client, but you have to be running faster than the tidal wave behind you. Hire a specialist to help, and then keep them on if you win.
4. The RFP is one page long, or 30 pages long. Which means lack of vision, or lack of focus. Or both. Ask for more, or less, or consider walking away.
5. The client will not or cannot give you a budget. Even rough parameters. 
6. It’s bad chemistry. You’ll know. 

Ultimately you have to make the best decision for multiple stakeholders and business reasons. At SUPR, when we talk about sustainable business development, we mean taking a critical look at new business opportunities that come in the door in the context of your overall organization, not just to hit a revenue number.

We're here to help you build a powerful growth organization that wins.

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Todd Lombardo is the founder of SUPR and an ad leader at both independent and holding company agencies for over two decades, responsible for winning pitches and renewing clients worth well over $50 million.