The way ahead for agencies

For quite some time we’ve been exploring how our remuneration as an agency can be based not on hourly rates but on how we add value to the service clients buy from us.

Ad agency, Anomaly, seems to have found a way. They’ve abandoned time sheets and charge either a fixed fee plus a share of the incremental revenue they help generate or take an equity stake in their client:

Founder Carl Johnson says “We don’t want to own services, but intellectual property. Anomaly is also vehemently opposed to selling time. We charge based on the value of ideas. We have two different price strategies: value pricing for us and for the client, and payment based on results. We’re not in the advertising business; we manage consumer brands and some form of content.”

With thanks to Fallon for this.