Creative agencies have been experiencing a downturn in the industry for several years. However, according to Robert Patin, founder of Creative Agency Success, it’s about to get much worse for them, if they do not convert to a more modern and client-focused model.
Patin stated, “The traditional agency-client service model is costly, overhead-intensive and centered on the agency, not the client. Prospective clients now have access to DIY tools, outsourced talent, and insider information. This has shown them just how broken the traditional agency model is.”
The best ways for traditional agencies to increase their revenues is to stack more billable people on a project than is needed, make everyone work slower to bulk up billable hours or have their best people work on getting new clients. All three of these scenarios are misaligned with the goals of a client.
Patin’s take on the traditional agency model’s death is shared by thought leaders and many industry publications.
The Forbes article stated, “A well-known CCO told me that his agency had done a $140,000 project for a client. To experiment with how this would compare to working in the gig economy, he sent the brief to the on-demand talent platform TopCoder. TopCoder came back with a bid of $5,000 for the same work. In the digital age, work is getting done in new ways that remove friction and unnecessary cost.”
Patin gives hope though by pointing out that pivoting to the new model can be done.
He recently authored a book, The Practical Agency, that walks creative agencies through a proven model.
“As most creative agency owners soon find, no matter how great your skill is, there will be a point where your agency doesn’t grow anymore. You can’t do the same thing you did to get where you are now, to get to the next level. It’s all changed,” said Patin.
You must step outside of your creative side and build systems to simplify and scale your business.
The Practical Agency was written as a guidebook to help creative agency owners to:
- Build a system that attracts the right type of prospects and presells you as an expert that can solve their problem.
- Design a custom workflow to take warmed-up leads and convert them into clients without a long sales process.
- Ensure consistent delivery of quality service every time while being scalable and needing less involvement from you.
Patin shared, “The vast majority of creative agencies never break past the $1 million per year revenue barrier. In fact, only 3% ever get to that point. The Practical Agency is to help you understand what separates that 3% from everybody else. Then, start you on the path to become part of that 3%.”
Robert Patin is the Managing Partner and Founder of Creative Agency Success and a two-time international best-selling author (The Agency Blueprint & The Practical Agency).
His focus is working with clients to manifest their dream business into reality, with a foundational principle that simplicity is best. Through decades of experience working in finance and over a decade working with creative agencies, he can expertly partner with clients to guide their businesses to achieve their goals.
Creative agency owners can get a free copy of The Practical Agency at: CreativeAgencySuccess.com/Practical.
