Devoted to liberating agencies and other professional firms from the tyranny of an outdated revenue model and an unfocused business strategy.
USA
Joined August 2009
- Tweets4.8K
- Following583
- Followers1.6K
- Likes5
Pinned Tweet
What’s the point of preparing a detailed cost estimate if your client doesn’t see the value in the first place? Better to start with the question of perceived value. Price first, cost second. bit.ly/3xiRMdB
Agencies, it’s time to stop remodeling the house and move to a better neighborhood — a community where firms are paid for their heads instead of their hands. More here: bit.ly/3zFWF4g
Agencies devote too much effort to building the best house in a bad neighborhood. Maybe it’s time to move, not just remodel. More here: bit.ly/3zFWF4g
Agency leadership often announces a “restructuring” that results in a new website featuring yet more offerings tacked onto an already overly ambitious service set. But instead of just remodeling the house, how about moving to a better neighborhood? bit.ly/3zFWF4g
The point of progressive pricing strategies isn’t to charge more; it’s to charge differently. bit.ly/3XNtpSn
“Value-based” is a suboptimal way to describe a new approach to pricing because it sounds too subjective. Better to use the term “solution-based.” What we’re really referring to is pricing based on the value to the customer — as in customer-based pricing. bit.ly/3XNtpSn
State-of-the-art pricing starts with WTP: Willingness to Pay. The answer to that question defines the price. bit.ly/3XNtpSn
If you’re in the process of exploring new revenue models, be careful not to confuse “value-based” with “performance-based.” While outcome-based pricing is a form of value-led pricing, it’s not how new pricing strategies should be defined. bit.ly/3XNtpSn
Agencies generally have low multiples in the M&A world because it’s so easy to enter and exit the agency business. But a productized business model changes all that, creating inimitable assets that create exponential value. bit.ly/3T7AMkL
Because they are tethered to the hourly rate, agencies as businesses lack the ability to scale; increasing revenue means increasing staff—a form of anti-scaling. bit.ly/3T7AMkL
A productized business model requires agencies to come to grips with the fact that their promise of “full-service, full-funnel, or end-to-end” offerings is untenable and unrealistic. bit.ly/3T7AMkL
No firm that plays on a national stage can claim to be a monolithic stand-alone resource for its clients. Rather, the best professional service firms are part of an increasingly complex and interdependent ecosystem of specialized solutions providers. bit.ly/4fA04RZ
"Why Time-Based Billing Doesn’t Work for Agencies," Ignition's Tim Williams' recent interview with Jenny Plant on The Creative Agency Account Manager Podcast bit.ly/3S5rN2P
The real resistance to revenue model transformation isn’t external; it comes from the inside. The resistance is cultural, rooted in an outdated view of what the agency business is supposed to be like. bit.ly/3UcJ6zi
All good agencies ask the question, “What is the objective of this assignment?” Unfortunately, most clients are surprisingly unprepared with a good answer. bit.ly/3LToIiS
Now that AI is demonstrating its ability to accomplish many of the tasks required to deploy a marketing campaign, migrating to a new revenue model is both a strategic and financial imperative. bit.ly/3UcJ6zi
Why are so many agencies just heads-down filling scopes of work pre-defined by their clients? Because neither agencies nor their clients have stopped to decide what constitutes a “valuable” relationship in the first place. bit.ly/46wwvwI
Why do so many well-meaning professionals fall into the “full service” trap? Perhaps they’re worried prospective clients will assume their firm offers only “partial service?” It's a nonsensical waste of words. bit.ly/4fA04RZ
