Adfreak, PSFK, and BBH Labs have all gone gaga over Hank Leber and his startup, Agency Nil. And why shouldn’t they? Here’s a guy like the rest of us. Talented. Unemployed. Frustrated by the lack of hiring agencies. And he says, you know what? There’s work out there. I know there are clients who need what I do. And if an agency isn’t going to hire me right now, then I’ll just start my own.
The concept? Agency Nil doesn’t charge a penny up front. Clients (some of them agencies) give them a project. They complete it. When it’s all said and done, those clients pay what they think the work is worth.
I say, brilliant. By its very nature, their model brings out the best from both client and agency. No one who touches the work from AN’s side will give anything but their 100% best. Deliver a crap product, and they don’t get paid. From the client side, are they really going to stiff the agency after delivering all that work? Not only would that be bad karma, it would be the worst PR mistake in the history of advertising.
I do take a bit of an issue with their positioning. “Cheaper than freelance” is talking directly to agency clients and practically ignores client clients. As Hank said in the Adfreak interview, it looks like their client base will “be a mix of agencies and businesses.”
For my money, I’d like to see Agency Nil make “will work for all it’s worth” work exclusively for their own clients. It’s a big enough idea to market to any brand. And it sounds like they’re smart enough to pull it off. Besides, I don’t know a single freelancer who isn’t currently earning a fraction of what they made two years ago. Everyone is willing to undercut everyone else, so “cheaper than freelance” may be potentially untrue and unnecessarily combative.
But, hell. It’s his business. Hank’s driving the bus. He can steer it any damned way he pleases. And isn’t that the point?
13 Comments
Is it just me, or does this whole concept diminish the value of ones own work?
The whole idea of “cheaper” speaks to a void in quality. And comparing yourself to interns? I dunno.
I admire the inventiveness of this and the bravery of the entrepreneurs. And do I wish them all the luck. But somehow this seems flawed.
I like the idea, but I agree that the tagline needs work. I don’t think that “Cheaper than freelance” speaks to a void in quality, but I do think it might make people not pay as much as they would have. Hope it’s a success.
The basic problem with the model is that there is no way to become a sustainable business. You can’t forecast income because you have no rates, which means you can never hire.
Which means you’re a freelancer but you don’t have rates. So one client spinning you around because they change their mind on strategy, are not feeling the work etc.. and you are broke.
Kudos for thinking out of the box (out of the paycheck), but I have to agree with PMS. Could be a nightmare in the hands of a bad client and, well, there ARE some of those around. (I think the tagline should be “Will work for what it’s worth.”
I always love seeing new compensation models. It’s the only way we’ll ever end up with something that works. But I’m not sure this one is the right answer.
First, how many clients know what work is really worth? Just look on Craig’s List at the number of clients looking for creatives to work at $35/hr.
Second, I haven’t met many clients that can tell great work without something to compare it to. So you could show them campaign X and they say “That’s just ok. It’s worth $1000. But show them a worse campaign Y and suddenly they’re a lot happier with X.
And third, with all the profit pressures on agencies, don’t be so sure they wouldn’t short change you on price. In fact, I’d almost count on it.
It is a brilliant differentiator.
But at best, it’s a model that says “We’ll agree on a price, and we’ll work until you’re happy with it.” Yes, it could create income, but I agree that it’s ripe with pitfalls to make it unsustainable.
But who am I to say?
All the best to them. Let’s hope it produces great work and $$$. For these really smart guys anyway.
Because if it works, like it or not, freelancers everywhere might soon be needing to follow their model.
I give them points for striking it out on their own. That always takes balls.
I’m just not sure about the whole cheaper than interns angle. Aren’t we in the business of creating value?
I really think they’re on to something. As I said, I think they’re tag line is unnecessarily confrontational and a bit of an untruth. But the idea of paying what you think the product is worth has potential to suss out the real value of what we do. Because, really, who knows what that is for sure? If these guys come in and give agencies and clients a better product than 10-year veteran freelancers, it means one of two things…that seasoned freelancers are overpaid or juniors are underpaid. To me it seems like a great equalizer. AND, these guys have the audacity to compete for clients while other the ink on their diplomas are still wet. You know what? I’ll take that kind of moxie any day.
It’s nothing new. It’s called spec.
90% of advertising doesn’t work; doesn’t provide a positive ROI. Therefore 90% of the time this dude won’t get paid. Sounds like a bummer business model.
My issue is this: at this time in this economy, why would anyone go into advertising in any way shape or form? The industry is going through cataclysmic and possible catastrophic changes.
A “career” in advertising may not exist in ten years. So, while I applaud the initiative, my cynical yet realistic advice would be, learn a new set of skills.
What is it about the skeptics who always go with names like “S” and “Retake Accounting 101?” If nothing else, you’re proving how big one’s balls need to be to try something different and put your name out there. Succeed or fail, Hank’s going for it. Publicly. I thought my readers would be more encouraging of that fact.
Signed, Erik Proulx (AKA, Admin)
My only concern about this is you have to really know your client before you get involved with something like this.
There are just so many people out there who either don’t want to face the price of good work or don’t really believe peoples’ ideas are worth what they’re worth.
I just think it’s a hard conversation to have.
Agency: “So do you like the work?”
Client: “We love the work.”
Agency: “How much do you love the work?”
Client: “Oh we really love the work.”
Agency: “No, HOW much do you love the work?”
That’s just tough. And in regards to S who said advertising won’t be around in 10 years. I love this. I’d be interested in which businesses that are around today that will still be around in 10 years. HMM let’s see…
Manufacturing?
Investment Banking?
Music Business?
Newspapers?
Television?
Circut City?
Blogging?
Publishing?
maybe we should all run for congress.
As always, great site Erik.
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