Pay-what-you-want ad agency

Marketing & Advertising Published on 5 June 2009 in Marketing & Advertising

If magazines, restaurants and hotels can turn to pay-as-you-want pricing schemes to help them survive the recession, why not an ad agency? Sure enough, Agency Nil offers a variety of freelance branding, media and advertising services without any set price, leaving it instead up to clients to decide how much to pay.

Clients begin by submitting a work request form with Agency Nil. Drawing from its pool of recent grads and between-jobs business and advertising professionals, the agency gets the work done by the deadline requested. It's then up to the client to decide how much the work is worth—the only charges required to be paid are those agreed upon ahead of time for travel, proprietary research tools and production. If a client decides not to pay anything, "it's not likely that we will do work for you in the future," Agency Nil explains; then again, "we've yet to have that happen, ever." Revisions and further work are arranged once a client has valued and agreed to pay for the first assignment.

Some industry professionals may protest that starting with a price of zero is sure to devalue the work ad agencies provide—much the way some designers have balked at efforts to crowdsource graphic design. But Hank Leber, the recent Virginia Commonwealth University Brandcenter grad who founded Agency Nil, begs to differ: "This isn't about undercutting anyone. It's about supply and demand—honestly, I think this should've happened a long time ago," he explains in the AdFreak blog.

"The system has been terribly lopsided for a while now, and I hope this can be the start of a breaking point in the industry on some level. It won't depress the market—the price will still come up and down, and work will get done just the same. Except now, it won't be based on a set amount of hours to fill or stay under, and work can get done for work's sake. For quality's sake. For the client's sake."

How Leber's model evolves over time remains to be seen. Meanwhile, it may just be what it takes to survive—and help countless out-of-work professionals survive—the current economic mess. One to watch, try out or emulate in your own neck of the woods...?

Website: www.agencynil.com
Contact: info@agencynil.com

Spotted by: Chris Rollason

Comments on this idea:

An interesting proposition, and a gutsy move by Hank.

However, I have seen this sort of thing very much abused by punters in the past, even by so-called 'professional' established companies who should know better.

It all boils down to what value a client will place on the work, and often with services such as copywriting and design, the client is unsure how to value such concepts and copy.

More sophisticated 'buyers' may well know the value of the work produced, but may still abuse the 'pay what you feel like' proposition.

On the other hand, as long as there are a few caveats in place, then I think it *can* be a great way for anyone new to the industry to get client samples and testimonials.

I wish Hank all the best, and would be really interested to see how his model develops.

Tracey
http://blog.mediaminister.co.uk/

I just don't believe there is enough corporate responsibility to handle a model such as this. Designers and copywriters will be used, abused and discarded by small and medium sized businesses looking to get top shelf collateral.

I've traditionally been one of the designers railing against crowdsourced graphic design. I don't believe it places enough value on the work provided. While I believe in corporate responsibility, and the "giving back" change happening, I just don't think businesses understand the value of the brands they'll receive.

Again, best of luck.

Matthew
http://www.Signalfire.us

In a word (or a link, as it were) here's why this is an incredibly bad idea http://www.youtube.com/watch?v=R2a8TRSgzZY&feature=related

And if anyone doesn't see the nuggets of truth in that video, then, really, they've never in their lives worked in an advertising or marketing agency of any kind.

Mind you: I love what I do. And I love my clients. It's just that this is the most fundamentally unrealistic model for a service business they could possibly have conceived.

What ultimately sells records for Radiohead (after they've made it huge and really don't give a damn about money and are more into social-experiment mode) doesn't necessarily translate into the real world of billings, timesheets, etc.

But good luck with that.

This has nothing to do with entrepreneurial ideas. This means fear and fear drives us to decline. There will always be those who fight recession with a FIRE SALE instead of working on a real CHANGE of product/service/model business, no matter if it's an adv agency or something else.

Now if i could offer the position of a business that use's graphic/web design firms and ad agencies:

What a FANTASTIC idea!

A model that allows clients to pay just for the core service they are after- idea's and creative assets. NOT the fancy furniture in the agency waiting room, the Friday booze sessions and the executive pay of senior management.

To Pedro- this service is not a FIRE SALE- its supply and demand at its best and gives clients what they want and nothing they don't.

To Mathew- its obvious why you don't like the idea, you are a graphic/web design company. But i challenge you to tell me why this service wouldn't provide the same thing you say you do on your site, especially "designed professionally" - this service employs professionals and "delivered timely"- surely this service would be quicker than yours as it takes out the extra fluff agencies tend to use to bill more money like client meetings and large paper trails.

I have been using crowd sourced design sites for about 6 months now and wish i had of know about them years ago and every other business i talk to says the same thing. These will grow as will this agency model- its supply and demand and there is little that can stop it.

I can't say i have ever had 68 designs to choose from within 7 days from any graphic designers and i have never had better quality options. The service exceeded my expectations and I ended up paying about 25% more than what i used to pay via a local graphic designer that took 3 weeks to do the same thing.

great idea guys and good luck with it!

Riley

"68 designs to choose", Riley

This is not design. This is an art gallery - choosing within 68 pieces-. Design is a focused discipline which means strategy plus creativity. In my design consultancy we always present only one concept approach that we consider to be the very best solution for the client. During this process the client is involved at certain stages. This minimizes the risk of refuse and the solution is the sum of different contributions from both sides. Design is work team!
Besides, 68 designs to only choose 1 is an huge waste of resources and an huge waste of time: 68x7 days equals 476 days, for only one design?! This is WASTE CULTURE, which drove us to the difficult times we are living now.
And after all, i don't believe you will find the very best designers wanting to work in a model like this.

To Riley -

Thank you for the kind words and valid points.

It's the optimism among mass skepticism that makes real change happen.

-h

Hank Leber
CEO/Janitor
Agency Nil
http://www.agencynil.com

Let the commercials decide. If Agency Nil has a good business model they will succeed. If not.... Time will tell. Let's follow up in 12 months.

to pedro

Clients with half a brain want choice...the idea of an art gallery sounds great. After all the client is the only one who truly knows their business and can therefore make the best choice.

As for your calculation of 7 days per logo...are u joking. I doubt your clients are on here reading this, so come on, we all know it doesn't take anywhere near that long. Unless like many other creatives your day starts at 11am and you play foosball for half of it.

Your are right about the waste culture. But guys like you started it and this article is about the solution.

The first they teach you in advertising design don't give clients to much to choose from. Wow 68 you should of made it 69. I hear you about designers taking a long time, 3 weeks is insane depends on the scope of the project. Our company does concepts within 3 business days most of time and its priced right. Well good luck to you. If it works stick with it.

Check out out http://www.hfbadvertising.com

I love the model of a mobile agency. Crowdsourcing does complicate larger projects, especially if the company is only offering half of the work or if they ask for a hundred revisions and then your final product isn't chosen, but to each their own. I think their is a place for all of these models.

Another magazine giving it a go:

http://gudmagazine.com/subs/pwyw.php

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