The reality of new-age design agencies
Welcome back. Hot take: Minimalist landing pages are back. I’ve been seeing a ton of over-designed landing pages
What do you think: Are we over-designing the web?
—Tommy (@DesignerTom)
The Wireframe:
The New Age of Design Agencies
A new wave of designer agency models is emerging—and it’s time to start paying attention.
Today, many experienced designers are either 1) facing layoffs
Enter today’s hottest new positionings: Fractional and subscription design agencies. These models have taken over social media with lofty promises of better work-life balance, growth potential, and financial gain.
If you’re thinking of going freelance
What’s a fractional design agency?
Fractional design agencies offer services on a part-time basis and engage with clients as needed. Agencies like Flexxi and Continuum are crushing the fractional niche. Some nuances of the fractional positioning:
1) They deliver like an agency. I spoke with Allie Vogel, Founder and Head of Design at Flexxi, who told me that her agency may be a temporary solution, but they leave a lasting impression. Their approach? Treat clients like Flexxi is part of their in-house team—while shipping like an agency.
“We’re not just delivering the work. We’re teaching the in-house team how to do work more effectively,” she told me.
2) They “embed” differently for each client. Some companies may want a fractional designer to help grow their in-house team, while others may seek a long-term partnership with fractional designers for their external perspective—they like to keep “fresh eyes on retainer,” as Allie told me.
3) They act as a true strategic partner
“We’re placing designers at companies that essentially ‘rent’ the designer," Allie told me. "With the traditional freelance model, if the freelancer is sick or goes on vacation, the client is out of luck. But with a fractional agency, the client has a whole team behind them."
P.S. Allie said Flexxi is looking for designers. Hit her up to learn more!
Sound like your vibe? Fractional may be for you if you have:
What’s a subscription design agency?
Subscription design services charge a flat monthly fee in exchange for unlimited design requests each month. A few agencies I’m watching are Off Menu, Endless, Designjoy, and Rex. Let’s look at the nuances:
1) They see fast and furious as a lifestyle, not a phase. Subscription design agencies work quickly and ship quicker—they typically offer three- to four-day turnarounds and unlimited monthly requests.
This may sound like a lot (it is), so to offset chaos, subscription agencies hold artificial limitations—they accept one request at a time and take limited meetings.
2) They have high-ticket monthly fees. Just like a product subscription, all fees are typically paid upfront. This model simplifies payments—so the agency doesn’t have to track time, submit itemized invoices, etc.
This model is built for a specific type of client that wants predictable monthly fees, even if they’re high, and a reliable service provider for a higher volume of tasks.
Side note: Higher churn is expected with subscription models, but some argue this doesn't matter if you have a good funnel for marketing and sales.
3) And they have the potential to make millions. One such agency is Off Menu, founded by Hunter Hammonds.
But this doesn’t happen overnight. As Hunter shares in this thread:
领英推荐
If you’re considering building a subscription agency, these skills will give you a head start:
But what about traditional agencies? New models aside, there are still unique ways to position traditional agencies to stand out in today's market. Reboot is a great example.
The bottom line: Freelance design models keep evolving: Fractional and subscription design agencies will likely look different even six months from now. At the end of the day, these new models are a testament to the resilience of designers. When all odds are against us, we find ways to adapt.
TOGETHER WITH FAST FORWARD FREELANCE
Everything You Need to Know for the First Year of Freelancing
Learn from Grace Walker as she shares thoughtful lessons and personal advice from the last four years of freelancing. From building a multi-six figure income to crafting a fulfilling career of your own design, Fast Forward Freelance compiles everything you need for the first year of freelancing and beyond.
Ready to fast forward? Registration closes TOMORROW on May 1st.
News, Tools, and Resources: The new freelance models
Got a great tool, podcast episode, idea, or something else? Comment below and tell me what’s up.
3 Skills to Hone in the New-Look 2024 Economy
Considering starting an agency? There are a few skills you should practice:
1. Anticipate client needs: Predict what clients will ask for/need throughout the design process.
How to do it: Ask better questions before, during, and after a project wraps. Nail your weekly retro to identify areas of improvement, notice patterns between clients, and refine your process or be proactive about sharing updates.
2. Get clear on what you offer (and what you don’t): In this chaotic market, it can be tempting to want to be everything to every client…but that’s only going to lead to burnout.
How to do it: Refine your portfolio to display only the kind of work you want to do to ensure you attract the right clients.
3. Understand cash flow and profits: Many freelancers throw in the towel because they don’t have a good grasp on their financials. But you can be the exception.
How to do it: Check out this article to learn how to calculate your burn and break-even rates. Once you have those numbers, evaluate your project rates and adjust.
It can be tough to motivate yourself in a competitive job market—but that’s when it matters most.
The UX Tools Job Board
Hiring for a design role, or know someone who is? Submit it here to hit the inboxes of 75k+ talented designers.
Thanks for reading! How are you getting creative to attract clients in this market? Comment below and let me know.
See you next week!
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