Andy Beal spent the day with SEOmoz, consulting with us on how to grow our business, take advantage of our strengths and shore up areas of weakness. Andy's experience with WebSourced, a giant firm in the field and Fortune Interactive, a mid-size player, has given him the ability to take a close look at a firm in SEO and immediately identify strategies to pursue and steps to take towards broader success. Although I can't be entirely transparent, I will share as much as possible.
The morning started with Andy talking to each of SEOmoz's staff members individually. He went over their strengths, their goals, and their concerns with the current state of the firm. These one-on-ones proved invaluable later in the process. From there, Andy, Gillian, and I went out for a 2:30 hours long coffee break, during which we walked Andy through SEOmoz's financials, our clients, and the items we struggle with in the business.
We presented Andy with our opportunities - the amount of consulting work we turn away is astounding, much of it because we don't have the time or ability to take on multiple, high-demand projects. We've been offered VC funding for some of our internal ideas and we've long been considering monetizing internal projects on our own. We've even received a buyout offer in the past six months. Sharing this with Andy and getting his input, backed by direct experience and an analytical, practical approach, helped to clarify our long and short-term goals for the business.
Along with the good, we reviewed the bad. SEOmoz has communication issues, both internal and external. We face the enormous challenge of scaling a brand that is largely based around a single person's reputation and expertise. We have issues of cash flow, finding new sources of revenue, and even managing the SEOmoz community itself.
Matt joined us for lunch and we spent a good deal of time concentrating on the SEOmoz website and its potential for growth. We also focused on staffing issues and talked about the next few hires we might make. Matt & Andy both opted for turkey club sandwiches (apparently, the most talented folks in search are fans of a good club).
After lunch, Andy laid out his plans for us, which I've described in short detail below (sorry, gang - you have to buy Andy yourself if you want the whole scoop):
- Transitioning from consulting-based services into a true SEO-product company. It took me several hours to wrap my head around the concept that, as valuable as my consulting can be, it will always be a trade of time for dollars and a system that can't scale. Building SEO products that can be managed by our team (with my oversight), however, is something we can grow.
- Adding a campaign coordinator to our team is imperative. At this point, I'm managing contact directly with clients - another portion of the business that can't scale. Andy pointed out that 80-90% of the questions and emails and phone calls I receive can be handled by someone who coordinates the project and manages contact between myself and the other team members working on an account.
- Allowing time to develop alternate revenue streams for SEOmoz, outside of the traditional client relationship.
- Training my team to be as good (or better) than I am at SEO, business, marketing, and content strategies
- Optimizing our services pricing, timeframe, & contract structures to create a system that would be both profitable for us and create incredible value for our clients.
Andy helped us with all of these items and much more. At the end of the consulting session between Andy, Gillian, and myself, we asked Andy to take our decisions back to the office and present them to the team - in his words and from his perspective. There was early resistance and pushback - as Andy noted, there's always fear surrounding change. But Andy was persistent and accomodating and excellent at showing the positive side of every one of our ideas. By the end of the day, everyone at SEOmoz was 100% on the same page.
Will this change SEOmoz? Absolutely. But, I think it will be a change for the better - helping us to grow, allowing us to take on more clients and projects (of the right variety), and enabling everyone at SEOmoz to do what they do best and love most. I haven't been this excited about our company's potential in a long time.
Big thanks to Andy, and thanks also to Jim Boykin, whose initial use of Andy's services convinced me that he was absolutely necessary to our growth.
Inside the Restaurant at Dinner (photo courtesy of Mystery Guest)
Andy Beal, Rand, Rebecca, Jane (our newest mozzer), Matt & Jeff
After our consultation, we met for dinner at Chiso, in the center of Seattle's liberal heart (where a statue of Lenin is decorated throughout the year). Sadly, Brandon & Gillian couldn't make it - oddly enough, both had homework. And yes, in the center is SEOmoz's latest acquisition - Jane Copland, who'll have an introduction thread tomorrow.
With more than a quarter century of success at the helm under my belt, I am pleased to tell you that Andy Beal not only earned his keep during his visit, he earned it within the first hour of his arrival.
Andy Beal has the capacity to provide the fresh insight of an 'outsider', the wisdom of a veteran in the hot seat of a growing company, and plenty of imaginative, generously-shared ideas from a capable comrade in SEO. Get him before his fees double!
ANDY: Note the free advise about your fee structure. It's time - you're worth every penny!
I enjoyed the post and had a question. You talked about "Building SEO products that can be managed by our team" Does that mean SEOMoz will be looking to develop Software Products or SEO Deliverables?
It means deliverables, absolutely, but not neccessarily software products. I've personally never seen SEO "software" that I felt was worth a nickel :)
Thanks for the kind words Gillian. Does this mean I should send you another invoice? ;-)
I thoroughly enjoy helping companies to grow their business and take advantage of the successes and failures I've personally learned from.
TMS - The E-Myth is a great book and I'd certainly recommend it to anyone in a growing business. I've actually sent copies of it to owners of other SEO firms I have consulted with. I'm planning on sending Rand a copy - but it won't be quite the surprise now. ;-)
Thanks again to Rand and Gillian (and the rest of the mozzers) for their hospitality and willingness to remain open-minded to new ideas. Rand, follow my advice and I guarantee you'll become one of the most successful SEO firms ever - you guys are unlike any other firm out there.
BTW Rand - I'll never forget this moment. https://www.flickr.com/photos/seomoz/253101365...
So, 3 years later. would love a follow up post to see how it worked out for you. I sense its going well.
If you need further reinforcement on this point you should read The E Myth Revisited, Why Most Small Businesses Don't Work and What to Do About It by Michael E. Gerber. This is exactly what Gerber writes about.
I wonder what Andy has to say about SEO firms that are just getting started.
Yep. Gerber is awesome.
One of the things he points out is that businesses are for selling and if your business is based on YOU providing your time for $$$ then it's unlikely you'll be able to sell the business at some point because without you there is no business.
"Transitioning from consulting-based services into a true SEO-product company."
You should do it Rand. You have all it takes to turn SEOMoz into a great SEO company offering full SEO services and not just consulting.
I agree with Nadir. Your "free" products are of high quality, I image your paid products are even more so. (I've long been a fan of your free tools, and hope to see more of these too.)
Good luck through this transition.
Rand,
I can feel for you re: growing pains. But they are problems of finding good ways to sustaining growth and progress, instead of just trying to get by.
I think one of the difficult thing is knowing you need to keep flexible for each client, but at the same time you need to scale by package/standardize pricing, saleing process, internal processes, reporting etc. The whole deal.
A small company's advantage is being nimble and flexible, but as the company grows it can became chaotic and inefficent. All in all, they are great challanges to have.
At our side, we definately share you excitement and challenges.
Oh, and by the way - Andy Beal Rocks. :)
Sounds like you guys had a very exciting day! Don't be afraid of changes, embrace it!
The only difference between a rut and a grave is their dimensions..... When you are through changing, you are through.
Looking forward seeing the results of your growth!
Sounds like your time with Andy was a positive experience, Rand. Congrats in advance on your next steps.
I am switching to Turkey Club Sandwiches.
The tech's at my former Kansas City firm all were fans of BLT's at a local grill. But I guess turkey clubs would be a fair alternative option.
Glad to hear you had a productive day with Andy. It really sounds like he was able to give you some truly valuable input and guidance.
I'm very excited to see how you guys grow and in what new directions you will move. Congrats and keep at it!
Bring in McKinsey next time if you want to really spend some $ on consultants.