37 min listen
Why the agency business model isn't working, with Michael Farmer
Why the agency business model isn't working, with Michael Farmer
ratings:
Length:
65 minutes
Released:
Mar 4, 2024
Format:
Podcast episode
Description
Welcome to episode 109. My guest is Michael Farmer, a management consultant who has been looking at the agency business model for over 30 years.
He's identified three burning issues for creative agencies.
1. Work is increasing in volume and yet agencies fees are declining. But because agencies aren't measuring scopes of work, they don't often realize the extent to which this is happening.
2. Agencies aren't helping clients achieve their business outcomes. Clients are paying them less and typically fire them every three years and generally treat them as order takers.
3. AI is now putting fuel on this fire and is threatening to reduce the amount of creative adaptation work that agencies do.
It’s not all doom and gloom. I found this an enlightening conversation and I particularly enjoyed listening to the history of how it was before agencies priced their services by the hour. Michael talks about the problems, but he also offers solutions. I suggest you read his latest book ‘Madison Avenue Makeover’, which maps out the transformation of Huge’s business model step by step.
http://linkedin.com/in/michaelfarmer
If you are in an account management role or you're in charge of an agency account management team and you want to raise the value of this position, then please connect with me on LinkedIn at Jenny Plant or check out my Account Accelerator programme by visiting my website, https://www.accountmanagementskills.com.
He's identified three burning issues for creative agencies.
1. Work is increasing in volume and yet agencies fees are declining. But because agencies aren't measuring scopes of work, they don't often realize the extent to which this is happening.
2. Agencies aren't helping clients achieve their business outcomes. Clients are paying them less and typically fire them every three years and generally treat them as order takers.
3. AI is now putting fuel on this fire and is threatening to reduce the amount of creative adaptation work that agencies do.
It’s not all doom and gloom. I found this an enlightening conversation and I particularly enjoyed listening to the history of how it was before agencies priced their services by the hour. Michael talks about the problems, but he also offers solutions. I suggest you read his latest book ‘Madison Avenue Makeover’, which maps out the transformation of Huge’s business model step by step.
http://linkedin.com/in/michaelfarmer
If you are in an account management role or you're in charge of an agency account management team and you want to raise the value of this position, then please connect with me on LinkedIn at Jenny Plant or check out my Account Accelerator programme by visiting my website, https://www.accountmanagementskills.com.
Released:
Mar 4, 2024
Format:
Podcast episode
Titles in the series (100)
How to prospect for agency new business, with Lucy Snell: Today's guest is the lovely Lucy Snell the co-founder of Cherry Consulting. Cherry helps creative and digital agencies to generate new business and Lucy started the company in 2004. She's been featured three times in the BD100 list as one of the UK's most influential business developers and during this interviews shares many tips for agencies who are looking to generate more leads. In this episode, she shares: * Some of the biggest challenges she's seeing agencies have for approaching prospects right now * Tips for how to get cut through when prospective clients aren't responding * What she did to get a 50% open rate on one of her email campaigns * What she finds agencies need the most help with in the area of new business generation * Her thoughts on why some agencies are thriving at the moment * Exactly what she believes you should be spending your time on in the area of new business depending on the size of your agency. by Creative Agency Account Manager Podcast