Make Your Marketing Budget Work Harder With a Virtual Agency

These marketers also say the lack of layers inspires ownership of the work—among both internal and external staff. "Everyone here feels it's our work, so recognition is team-building," says Beerman.

Ultimately, the virtual agency model gives the marketing director more control over the brand, which produces better results. Plus, easy access to team members and quick turnarounds don't hurt either.

So what's the catch?
The only drawback Beerman sees is a little extra coordination. But for a person who enjoys participating in the creative process, he's not complaining. Likewise, marketers need to understand the process that goes on behind the agency's doors to know which skill sets they need. If they don't, they can recruit someone who does.

Even those who manage a large scope of activities appreciate the virtual agency model. In her position, Zokan manages marketing, advertising, public relations, community relations, and Web functions for a hospital, a medically-based fitness center, a group of multi-specialty physician practices, and a healthcare center in a neighboring community—all with her virtual agency.

"Team members need to understand and embrace their roles," says Zokan. "They know their limitations and they're the first to admit they're lacking a particular skill set. Then we find the right person. This is a loose, but fun and vastly different approach."

So when is it a good idea to use an ad agency? An agency might be helpful if you need a fresh direction or a project requires substantial hours. However, your virtual agency can be as full-service as you can build it.

Expect results
Expect the level of ownership and brand consistency to pay off in results. Since Zokan took her position six years ago, she has exceeded every marketing goal.

Beerman has similar results. In the year and a half since Beerman arrived at Children's, calls to the physician referral line jumped from 10 to 140 per month. Web visits increased 20% in the past year. Plus, Children's scores well on preference and awareness in its market—all without an increase in the media budget. Likewise, Comes reports that his virtual agency has helped increase ER volumes by 30% in less than three years.

"We all have had a tremendous stake in the results, so we feel a greater sense of responsibility—and accomplishment," says Zokan. "The virtual agency really puts me and my team on the line, but from a satisfaction and ownership standpoint, I wouldn't have it any other way."

How to Create Virtual Agency
It's easier than you think. First, identify the skill sets you need. Recruit former colleagues, your staff's contacts, and word-and-mouth recommendations. You want experienced professionals who may have previously worked for an agency or experienced freelancers. Choose people you like and respect. After all, this should be fun, right? Bring them all together, check the egos at the door, trade contact info, set your plan, and go.