Pioneering duo opens new path in marketing industry

As ad agency CEO, Taryn Hunter Sharman knew how to spot talent, and had more than once tried to convince a young marketer, Perri King, to join Ebony+Ivory which she ran. Perri, who was carving a career for herself in the corporate sector, always turned her down, mostly because the pay could not match whatever she was earning at the time. 

Then, one day in 2016, she got another call. “If you come work for me,” Taryn told her, “I’ll give you 50%.” Also, there wouldn’t be much in the way of a salary, said Taryn, but she pledged to at least pay Perri’s debit orders with her credit card. “I thought: ‘Now that sounds exciting!’ and I said yes immediately,” says Perri.

That was the start of Faith & Fear, an unusual marketing and advertising business that the two entrepreneurs refuse to call an agency.  

Agencies have a culture of telling their clients what they want to hear, says Taryn, while at Faith & Fear they have an uncompromising approach to saying it like it is. That seminal phone call back in 2016 is just one example. It is also right there in the company’s name, Faith & Fear. 

When she resigned her position as CEO to start Faith & Fear, Taryn knew she was in for a very hard slog, a far cry from the glamorous but false image bestowed on entrepreneurship generally. On the fear side she knew there were going to be a lot of scary, difficult moments, but on the faith side she fervently believed that there must be a better way to do marketing. So why not just put the whole experience in the name, so that there is no chance for anyone, including Taryn and Perri themselves, to forget what they are dealing with?

Their edgy name has since turned into something of a litmus test for Taryn and Perri, who were finalists in 2019 Business Partners Ltd Entrepreneur of the Year®competition. 

They found that if a prospective customer does not quite understand the name, they are probably not a good fit. “But when they love the name, and we don’t have to explain it, we often click instantly and the business kicks off straight away’,” says Taryn.

Taryn’s idea of starting her own business stemmed from her increasing disillusionment with the way in which ad agencies operated even as she doubled the turnover of Ebony + Ivory, where she started as an intern, worked her way to the top in four years and ran it as CEO for eight years. 

Towards the end of her tenure at Ebony + Ivory, Taryn was so disenchanted with the industry that she decided to take a sabbatical to reconsider her career. It took all of the first weekend for her to decide to start her own company, and she called Perri, whom she had known socially for some time. Because of the difficult journey ahead, Taryn did not want to do it alone.  

The timing was good. Perri, who had cut her teeth in the marketing departments of the accounting firm Deloitte and the IT company EOH, had recently stepped out of her corporate career to set up a function venue in Johannesburg with a business partner. It was a good business, but the partnership did not work, so Perri jumped at the chance of launching Faith & Fear with Taryn.

Taryn and Perri, who both operate from Johannesburg, explain that Faith & Fear differs in three important ways from traditional ad agencies. Firstly, the two of them remain directly involved in every project. This is in contrast to the tendency in traditional ad agencies where the senior executives get wheeled out for pitching to important clients. Once the client is suitably impressed and awards the contract, the execution of the job is fobbed off to a junior team, and the client never sees the senior ad execs again. 

Secondly, Faith & Fear ditched the industry standard of billing per hour and chose to quote upfront based on the value of the completed project to the client, and thirdly, they stick relentlessly to the strategy agreed upon with the client, avoiding the drift away from the original plan that so often happens when projects are not properly managed. 

Their departure from industry habits allowed them to experiment also with a radically lean approach to overheads and staff. Taryn and Perri briefly tried sharing an office, but it felt way too much like an agency, and since then they have been working from home, or from whichever spot they chose to put their laptops down. 

When they need to build a team to work on a project, they tap into their network of talented collaborators, many of whom also roam free as they work. In this way, they can scale up a network of collaborators across the globe, as they have done recently for the launch of a South African start-up at the SXSW festival in Texas.

By the time the Covid-19 pandemic forced large numbers of the corporate workforce to work from home, Faith & Fear had been at it for a number of years. They were therefore in an excellent position to advise their clients on what to do, including the messaging that urgently needed to go out. 2020 turned out to be a huge year for Faith & Fear.

This year is unlikely to be as intense now that many companies have settled into a holding pattern and are waiting for clearer signs of the direction of the pandemic and the economy, says Taryn.

As for their own direction, Taryn and Perri have been growing increasingly certain that they are on the right path. Having won major accounts within the banking, insurance and medical aid sectors, they have been making inroads into this usually conservative industry – a good sign that while their approach is radical, it makes solid business sense.  At some point they will have to consider finding more partners like themselves in order to scale up their operations, but, vows Taryn, never in such a way that it becomes like an agency.

Negotiating a fair trade exchange – what businesses should know

Maintaining a constant stream of cashflow is a common challenge that many businesses experience. Strategic business partnerships involving a barter exchange (the direct exchange of goods and services for other goods or services) can, however, be a great alternative solution for preserving much-needed working capital. If done correctly, a barter system can help less established businesses save their capital, while still having access to some of the goods and services that are essential to their operations.

These types of exchange agreements can also form the foundation of valuable, long-term partnerships between growing companies. It’s worth exploring ways to best manage barter exchanges so that they can help sustain your business as it grows.

Tips for negotiating barter exchanges include:

Know your real costs

It’s important to understand exactly how much it costs you to deliver your product or service before you enter into a barter agreement. Take into consideration the full value of what you are offering versus what you are getting out of the exchange and ensure that it’s a fair trade. In such an exchange, your product or service is traded as a currency, but it’s only effective if it results in a cost saving.

Be flexible

Savvy bartering takes creativity and an open mind about what offering within the business could be a valuable currency to others. Start by getting a feel for what other businesses might be looking for and think outside the box regarding what trades would most benefit your business. For instance, you might not be able to afford employee benefits for your staff, but you could enter a trade for dental care. Evaluate your options, depending on your needs, you could barter through a business exchange network, or a once-off deal might be best.

Have a contract in place

It’s not uncommon in South Africa for barter deals to be based on informal agreements, however, this is often the root of misunderstandings and can result in unequal value distribution. Contracts should clearly state what each party will give and receive, include the value of each product or service and stipulate the timeframe in which the transaction will occur – and should be drawn up by a lawyer. A carefully drawn up contract will ensure a successful partnership.

Keep detailed records

Once an exchange has been secured, make sure to keep a detailed record of goods and services traded to ensure the agreement remains profitable. Potential tax implications are another good reason to ensure barter deals are reflected in company records. If bartering through a network, unclaimed trades that you have not yet collected on can result in a tax credit – however, if you are yet to settle a trade when the financial year closes, you need to reflect this in your financials and may find yourself with a tax bill for the trade surplus, so make sure all trades are settled before the end of the financial year.

Trade what cannot be sold

The real value of bartering comes when using otherwise unused capacity – if you can’t sell your goods or services for cash, you can normally barter something to generate value for your business. Barter exchanges can offer operational, customer or staff benefits, as long as it adds value to your bottom line. Once again, this requires being flexible and thinking outside the box.

Effective barter agreements have the potential to generate value to the company while preserving much-needed cash, move surplus stock and serve as a foundation for a long-standing strategic business partnership. It is therefore worth the time to explore potential agreements with like-minded businesses whenever the opportunity presents itself.

Source: www.businesspartners.co.za