Thoughts on “A New Business Model for Digital Agencies”
Through Mansi Trivedi’s Tumblr, I came upon Mike Arauz’s post. Not surprised Mike works at Undercurrent. Josh and Aaron hire sharp cats.
I’ve told a couple of people recently that their strategy driven shop is a business model to emulate and I plan to build a consulting practice using some similar methodologies. No need for massive production, you can get the ideas MADE anywhere. We’ll give you the strategic thinking, the ideas, the plan to execute it, the access to resources and the oversight…thank you very much.
I have read Mike’s post on the new business model and I think it brings up great valid points and also has some folly. I’ll get all whiteboard on this one…
1. The work CAN be done cheaply and quickly - so get used to that and start updating the model around that (pricing, production, what you sell etc). Clients won’t be stupid for long. You can build a great site with a CMS on Wordpress in 2-4 weeks with a talented team of 2-3 people
2. The future is outsourced production by agencies. I’ve seen the work of too many great, cheap, off-shore production facilities recently to think otherwise. Digital agencies paying top dollar for in-house developers in America is a dying model. You have no R&D or training baked into your process and you can’t possibly compete in the long run.
Ajax, PHP, all the old code bases, iPhone apps, Android apps, Facebook aps, new widget platforms (AIR etc), Twitter aps, Aps for sites you haven’t even heard of yet. You think your Flash developer is studying this stuff? Think about it.
3. Embrace the tools that help get it done. Yes, yes! Smart strategists, planners and creatives are gonna require a great grasp of the tools available to help develop the right ideas.
4. Totally agree with sell ideas, not things…but to me the folly is - we’ll execute the idea as well. Why not sell the 100 ideas, give feedback as they get made and then sell the ability to evangelize those ideas after they are ready to hit the market?
I think that’s basicallllllly what Mike means, Undercurrent won’t actually be excuting, but they will provide the oversight to do so. To me the question is just whether or not that is transparent and how you price it and sell it.
A big miss (even though a bit off topic…)
1. No mention of one of the biggest folly’s out there with digital agencies: The “build it and they will come” mentality. Everyone loves creating the next cool thing, but few shops plan or spend the proper time promoting, marketing and getting behind the work they create for an extended period of time.
Its launched, and its on to the next idea. Making it useful and visible by the people that should (and might) care is rarely considered.
Obviously tons more to say but its great that Mike kicked off a conversation that is bound to continue.
