Agency Business Models For The 21st Century

Recent Additions

Propulsion Blog: Where agency profits come from

June 12, 2013 | Author: Tim Williams

Consider the deceptively simply question, “Where do profits come from?”  When you pose this question to a group of agency professionals, the answers will typically include such things as clients, hours worked, and even efficiency.  But the real answer to this question is that profits come from risk. Just being in business – paying salaries, rent and the light bill...

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Propulsion Blog: Agencies are chasing the wrong rabbit

June 10, 2013 | Author: Tim Williams

Why is there so much rework on a lot of agency projects?  Because most agencies are so submerged with “rush” work (now the rule instead of the exception) that most assignments are initiated with incomplete information, no brief, no briefing – only a job number and a due date.  It’s little wonder that when the work is presented to the...

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Propulsion Blog: How to Tell Your Client You’re Charging Them One Million Dollars

June 6, 2013 | Author: Tim Williams

  CLIENT: I want to hire you for your expertise and your ability to create and execute transformational business ideas for my company. AGENCY: Excellent, we are ideal for that challenge.   CLIENT: Yes but before I hire you I have a few important questions. AGENCY: Okay, shoot.  What do you mean?   CLIENT: What will you charge me? AGENCY:...

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Propulsion Blog: Why client relationships are a strategic decision

May 28, 2013 | Author: Tim Williams

Agency-client relationships fall into one of three types.  Which type of relationship do you seek, and which type do you prefer? 1. Employer/Employee This is, unfortunately, the most typical kind of agency-client relationship.  The client gives the orders, the agency executes them.  The agency is an “agent” and does “work for hire”.  This kind of relationship almost always leads to...

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Propulsion Blog: Why agency revenues are headed in the wrong direction

May 20, 2013 | Author: Tim Williams

A look at advertising agency industry financials shows that both income and profit has been steadily declining for at least the past two decades.  Some studies show up to a 40% reduction in total agency compensation.  Hardest hit are the media agencies, whose margins get thinner every year as a result of cost-based compensation agreements that get negotiated downward with...

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