Today’s Axios article highlights the traditional hourly billing model is being challenged by technological advancements. However, the real conversation should be about recognizing and compensating agencies for the immense value they bring to the table, which goes far beyond the clock.
Clients aren’t just paying for time. They’re investing in expertise, results, and a partnership that drives success. In today’s rapidly evolving digital landscape, the true value of a professional agency lies not in the hours clocked but in the expertise, experience, and results delivered. Here’s why:
- Expertise Over Effort: With the advent of AI and other technological advancements, tasks that previously took hours can now be completed in minutes. But the real value isn’t in the speed; it’s in the expertise to know which tools to use, when, and how to use them effectively. For example, we purchased local directories for many years before media contact directories were online. We then called the media outlet to ask who was on which coverage “beat,” or we bought the newspapers and magazines, scoured the articles, and after hours of reading them, we compiled our lists to pitch and target. Oh, and back then, we mailed the news releases or faxed them. Database technology and spreadsheets changed how we worked, just like AI is doing today.
- Results Speak Louder: Clients seek agencies for outcomes, not time spent. Whether it’s a successful PR campaign, a viral advertisement, or a robust digital marketing strategy, it’s the results that matter. Agencies bring a wealth of experience and a proven track record that ensures clients get the best possible outcomes. Ever wonder why the same agencies win business constantly in certain market sectors? They have relationships, skill sets, and knowledge based on experience.
- Problem-Solving Prowess: Challenges are inevitable. An agency’s ability to navigate these challenges, come up with innovative solutions, and manage crises is invaluable. This problem-solving capability is a culmination of years of experience and cannot be measured in hours.
- Investment in Growth: Agencies continuously invest in training, research, and tools to stay ahead of industry trends. This investment ensures that clients always receive cutting-edge solutions. It’s not about the time spent learning, but the knowledge gained and how it’s applied.
- The Intangibles: Beyond tangible results, agencies offer strategic guidance, industry insights, and a deep understanding of market dynamics. These intangibles, derived from years of experience, can’t be quantified in hours but are crucial for a client’s success.
While some industries will be affected by how fast they can turn things out, business decision-makers have to understand that all industries are not created equal, and it’s not only about time. It’s all about how the intelligence is applied, and that still requires lots of human capital, and that’s what agencies are really paid for.
Want more validation? Check out this Harvard Business Review article.