Posts Tagged ‘businessmodel’
11th August 09
Posted in transformational change
At the end of May this year we got pretty excited and the debate got fairly heated about the launch of Agency Nil – the agency with the convention-busting business model that ‘will work for all it’s worth’. In other words, they’ll do the work and you pay them what you think you should. Unorthodox, audacious stuff whichever way you look at it, we were impressed.
Since launch they’ve been approached by both clients and talent and, inevitably, as they started work on live projects (including clients with food products and online services, not to mention a pitch for a large software company’s NPD launch), one of the toughest questions facing any agency arose: when were they going to find time to do the work brilliantly AND keep scouting for new business? Clearly a conventional solution wasn’t going to cut it at Agency Nil, which is when they came up with this ultra simple, ultra ‘on brand’ idea:
Catching up again with Agency Nil’s founders, they explained the concept a little more:
“If a person connects Agency Nil with a business that would be interested in our services and they become a client within a year, Agency Nil will give the person who refers them 10% of the first payment they receive (from $100 to $100,000 or more…). This person is called an Agency Nil Spotter. All it takes to become one is an email to Agency Nil introducing the potential client (with the client cc’d, of course). Then the Spotter’s referral is documented. When Agency Nil get paid, the Spotter gets paid. Simple.”
We love the idea of an agency experimenting with new business in this way. A smart move that painlessly exploits an era where networking and sharing useful information has never been easier. What’s more, it’s in keeping with the spirit of their launch which, as they put it at the time: “It’s a win/win. And that’s the kind of business we like to be in.” Agency Nil also draw attention to the fact they’re putting into practice a simple way for talented individuals to profit from their connections: “Isn’t it about time people started to get rewarded for the networks they’ve built?”
Of course this isn’t the first time an agency has used crowd sourcing to find prospective marketing clients. Who knows, will people really refer a hot prospect? How reliable will the connections be? Will it tend to be for small projects only, or will Agency Nil land a multi-million dollar account this way? They may hit some bumps in the road along the way, but to us this approach looks like a natural next step for them and a dead simple, innovative solution to an age old problem. So again, we say hats off to Agency Nil and good luck.
If you want to sign-up as an Agency Nil Spotter, send an email to Spotter@AgencyNil.com.
3rd April 09
Posted in BBH Labs
Tasked with exploring new models for marketers, one of our first orders of business will be to hold an “open pitch” for our new logo. All interested designers please visit http://bit.ly/39yWEd for more on the deadline, the brief and the fee.
We’re posting a brief on Crowdspring well aware of the heated discussions taking place within the design community regarding sites that promote spec work. Though the crowdsourcing business model is still clearly in its infancy, BBH Labs reasoning for giving Crowdspring a try, simply put, is because the model seems to be working (albeit, better for smaller companies).
We’ve heard the arguments against Crowdspring. We’ve heard it said that it lowers the standard of what is considered “good” design. But for the purposes of this conversation, isn’t a “good” design one that pleases the person paying for it? I think Marley and Me is a “bad” film. My niece disagrees. So be it.
Another argument is that the Crowdspring model is akin to outsourcing, putting professional design work in the hands of untrained amateurs, and in the process, driving down the price real designers are able to charge for their services. If you’re a great designer, these sites shouldn’t be a threat since aspiring designers willing to work on spec is nothing new. If you’re a mediocre designer on the other hand, then consider that new technologies will only continue to make you better: just as the mouse made you better and Adobe Illustrator made you better, competing on a larger playing field should also make you better (and add to your bottom line).
I don’t want to sound overly insensitive, but evolution isn’t always orderly: we are living in a transformational period and in order to not be put out to pasture prematurely, entire industries are having to retrain themselves and rethink how business is going to be conducted going forward. From young designers to established agency networks, change is coming.
I’ll stop rambling now and come back to why we like Crowdspring. We see these sites as giving much more than they take. By matchmaking small businesses that wouldn’t have been able to otherwise afford a custom logo with a pool of designers that wouldn’t have otherwise been able to offer their services, they are helping to grow an overall appreciation for design as well as build an entirely new market that didn’t previously exist.
Will Crowdspring deliver Labs a great logo that meets our demanding and sophisticated needs? Not sure, but we’re looking forward to fishing these new waters nonetheless.