Advertising Age ran a story today entitled “Fed-up Agencies Quit Punching the Clock: Following in Crispin’s Footsteps, Shops Charge for Ideas Instead of Time” [registration required]
“The discussion is beginning to shift from ‘What does it cost to generate work and services a client wants?’ to ‘What is the value of the services and materials the agency is creating for the client?”‘ said Ronald Urbach, partner, Davis & Gilbert. “Innovation is reaching a critical mass.”
I have sat on both sides of the table. As an agency owner I needed to maximize billable hours. As a client advocate I know that most service buyers don’t have long lead times that would provide for the hundreds of man hours required to negotiate a shared risk/reward contract. So to turn the article on its head. What is the buyer of agency services supposed to do?
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