Beyond the Bill Rate: Why the Agency Model Needs to Be Reimagined

Beyond the Bill Rate: Why the Agency Model Needs to Be Reimagined

What happens when the very structure of the agency model conflicts with the best interests of the client?

As a marketer and business strategist, I’ve often found myself asking this question. Agencies are supposed to act as partners, helping brands navigate their challenges and achieve sustainable growth. Yet, too often, the reality falls short.

The current agency model is too focused on margins, bill rates, and deliverables, losing sight of the client’s business objectives. And when an agency fails to center its work on what truly drives client success, everyone loses.

I’ve seen it firsthand: opportunities wasted, potential left untapped, and businesses struggling because agencies were unwilling or unable to step outside their comfort zones to do what’s right for the client.

It’s time to rethink the way agencies work.

The Broken Agency Model

  • Margins Over Mission: Many agencies are designed to prioritize profitability above all else. Deliverables are scoped based on billable hours, not what the client truly needs.
  • Fear of Pushback: Agencies are often hesitant to challenge clients’ requests, even when those requests aren’t aligned with the brand’s goals. This leads to “business as usual” strategies that deliver mediocre results.
  • Transactional Relationships: The traditional model is built on short-term contracts, not long-term partnerships. There’s little incentive to deeply invest in the client’s success beyond the scope of work.

This model rewards complacency and stifles innovation. It prioritizes short-term gains over long-term growth, leaving clients without the strategic support they need to thrive.

My Experience: When Advocacy Wasn’t Enough

Over the years, I’ve worked at several agencies, each with its own strengths and unique approaches to serving clients. But across these experiences, I’ve repeatedly encountered the same frustrating dynamic: agencies doing good work, but not the right work.

I’ve stepped into accounts and seen strategies that were well-executed from a marketing standpoint, but they weren’t aligned with what the client truly needed to achieve their goals. Sometimes, it wasn’t even the client’s fault—they didn’t know what to ask for because they weren’t clear on their own needs. But as a marketer, I’ve always felt it’s our job to figure that out.

This has been my differentiation factor: the ability to assess a client’s business, their position in the market, and their competition, and to determine what truly needs to happen for them to succeed. Whether or not it’s part of the scope, whether or not the client explicitly asks for it, if it’s what they need, it’s what I advocate for.

But here’s the reality: in the agency world, this approach is often seen as “doing too much.” The focus is typically on executing what’s in the contract, keeping the business steady, and ensuring the checks keep flowing.

That mindset kills innovation. It prioritizes short-term convenience over long-term client success. And, too often, it leaves businesses without the strategies and solutions they truly need to thrive.

I can’t count the number of times I’ve been told, “Stick to what we’re contracted to do,” or, “That’s not what the client asked for.” Yet I’ve also seen firsthand the difference it makes when an agency dares to step outside of the scope and push for what’s truly in the client’s best interest. Unfortunately, by the time I was given the space to advocate for these ideas, it was sometimes too late. The moment had passed, the opportunity was lost, and the client’s potential went unrealized.

This isn’t just a frustration, it’s a systemic problem in the agency model. And it’s one of the reasons I’m so passionate about reimagining how agencies work with brands.

The Cost of a Broken Model

When agencies fail to prioritize their clients’ true business needs, the impact is profound:

  • Clients Suffer: Brands waste resources on strategies that don’t deliver the outcomes they need, particularly in critical stages like go-to-market launches.
  • Agencies Lose Trust: When clients don’t see results, they’re less likely to renew contracts or invest in long-term relationships.
  • Stifled Innovation: By sticking to the same cookie-cutter approach, agencies fail to deliver the bold, innovative ideas that drive real growth.

A Vision for Reimagining Agencies

The agency model doesn’t have to stay broken. Here’s how we can reimagine it to truly serve brands and drive better outcomes:

  1. Put the Client’s Business at the Core: Agencies must operate with the client’s business objectives as their “North Star.” Every decision should align with what will drive real outcomes for the brand.
  2. Redefine Success Metrics: Move beyond deliverables and hours billed. Agencies should be measured and rewarded based on their impact on the client’s growth, market position, and ROI.
  3. Empower Honest Conversations: Agencies need to foster a culture where pushing back on the client’s strategy is seen as a strength, not a liability. This requires bravery and a commitment to long-term value over short-term convenience.
  4. Adopt Flexible Engagement Models: Replace rigid contracts with adaptive, partnership-driven models. This allows agencies to pivot strategies based on the client’s evolving needs and market dynamics.
  5. Invest in Shared Growth: Imagine a world where agencies and clients share the rewards of success. That's a win-win, ladies and gentlemen. A hybrid model of base fees plus performance bonuses could incentivize agencies to go all-in on delivering results.

Call to Action for All Agencies to Consider

The agency model doesn’t have to stay broken. By reimagining how we work with brands, by centering their business goals, fostering honest dialogue, and prioritizing outcomes over deliverables—we can build partnerships that truly drive growth and innovation.

If you’re working with me at an agency, know this: I will always be pushing for your success, your business success, because if you don’t win, we don’t win.

I also believe that great results don’t come at the expense of great teams. I prioritize how teams operate, treating people with respect and dignity and helping them get fired up about the work they love. By leaning into individual strengths, I build dynamic teams that deliver exceptional outcomes.

So, while the agency model may be broken, I choose to work with agencies that align with my core values—those that prioritize integrity, collaboration, and client success. When I step up to the table to manage an account, I focus on what truly matters: advocating for your business success and ensuring the work we do together creates meaningful impact.

Clients deserve more than “business as usual.” Agencies are an extension of clients; they have the resources, talent, and potential to transform how partnerships work. It’s time to use that power to deliver what really matters: results that drive success for clients, teams, and the industry as a whole.

If you’re tired of the same old approach from agencies, come on over to Hero + Huge—we’ve got you covered. We’re big enough for impact and small enough to give a f*** where it matters.

What has been your agency experience? Are there things you've encountered that you wished were different? I'd love to hear your thoughts.

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