There is a popular business theory that the marketing agency business model can be applied to many other businesses. It's called the "network Marketing" approach. Some people call this the "MLM" model.
The basic business model for this approach is that a small group of people are recruited into an organization. These members are taught sales techniques and products. Then they're encouraged to recruit more people, often from the same field, and so on. So, it's kind of like a pyramid.
That's why some marketing agencies have taken it upon themselves to create their own version of the marketing approach. For example, Holiday Reception Marketing has several models. They're all trained in sales and marketing, but each one has a different responsibility. Their job is to handle clients and to recruit new reps.
So, some are responsible for getting the word out about their products, such as direct mail campaigns or brochures. Others are responsible for putting together a tele-siminar and calling prospects on the phone. Still others are responsible for creating the company website. One of the models for this type of business is called "Produce" Marketing Solutions. This is a specific example of a networking marketing agency.
The other big business model used by marketing agencies is called the "Multi-Level Marketing" (MLM) approach. The way this business model works is that there's a leader or CEO who recruits the members, and they each in turn are given a specific list of leads or customers. They are then taught sales techniques and are taught how to market their products or services to these leads.
That's a very simplified description, but the important point to take from this is that an MLM business model can be applied to any marketing agency. A network marketing company can also have a leader who recruits people into a sales force, but the leaders usually have more control over how their recruits are sold the products and services. Or, an agency may have someone who creates the company website, and that person has more control over how much the website is promoted than the leader. No matter what type of marketing agency you're considering, the business model will be similar.
So what are the differences between marketing business models? Most marketing agencies, although not all, use the multi-level marketing business model. There are some agencies that do still promote traditional direct sales and marketing methods. But for most marketing agencies, the primary focus is on marketing business models, and it's a fairly recent development.
As you can see, marketing isn't the last part of the business cycle. Traditional direct sales and marketing methods are a good way for an agency to provide quality customer service and build a client base. If you have a small marketing budget, or you're considering starting a marketing agency, keep this in mind when you're deciding which type of business to start. You'll want to make sure you choose a marketing agency that promotes business models that will help grow your business organically by allowing you to build on the current customer base you already have.