Over the past few years, there has been a lot of noise about the tradition agency model slowly dying and in many respects, it’s not far wrong. But rather than totally kill off the agency model, we believe it’s time it’s evolved to be more transparent and fairer for both clients and the creatives.
The model has always been run by hierarchy.
This was the way since it was created in the early 1900’s on the factory floors. When the industry moved to a fee-based structure, the hierarchy had even more value because the more senior you are, the more you can bill out.
In the hierarchical system, the approval process for work takes longer. Inevitably, you have too many layers second-guessing what clients like, what consumers want, with a million voices diluting the work. And with more senior people in a business, the chances are the fewer creatives there are. The funny thing about hierarchy is that it implies that the better and more seasoned we get, the less we have to actually do, and the more time we spend directing others. In fact, in many agencies today, there are whole levels of people whose job it is to essentially sit around and wait to approve or disapprove someone else’s work. This system has clearly missed the point.
Clients are onto it and they are, rightfully, demanding core, specialist, teams with fewer people. They’re questioning why they would pay for large teams when they don’t know what half the members are doing.
As agencies chase to keep clients satisfied and still make money, they end up trimming their staff. The problem with this model is that many are firing the creatives and keeping senior relationship managers, who are merely overseers. This is a big mistake. Clients come to our industry for the deep and distinct creative thinking as well as the ideas, thus the creators and doers are essential.
An alternative to the agency model.
Here at WeAgile we’re challenging the standard agency model and ensuring a fairer deal for both our clients and creatives by focussing on Creative Capital.
Creative Capital blends the creative studio and venture capital firm model to reward all parties involves vs founder only equity. It distributes industry leading expertise as investable asset rather than traditional venture capital (cash). It is the creative evolution of the equity-for-services model that helps ensure our creatives produce the best work of their lives for our clients by allowing them to receive more than just a day-rate from impact their work has created.
“By sharing the risks and the rewards of the work together we can fairly align incentives for all parties involved to build true partnerships.”
We realise that when we combine creatives, all over the world, to come together to solve a particular problem with the right incentives and the right mission point we get better results. We understand that clients aren’t just looking for a generic designer or developer but want to build relationships so each member of the team understands the core ethos of the business to deliver a product that hits the mark the first time round. It is now more important than ever to double down on creative capital to ensure that the right creatives are working on each project to guarantee the highest quality of work and returns.
Agencies are realising that “schmoozing” clients isn’t going to win or keep clients if the business is not leading through creativity to help client’s businesses grow.
Agencies must change to continue to be competitive and profitable. Clients are getting fed up with hand-holding and want more initiative from the industry. If they don’t get high-quality creative output, and lots of it, they’re willing to do it themselves.