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Or Are We Just Confused About Value?

We’ve been hearing for ages now that the agency model is broken. But let’s be honest, it’s not the model that’s the problem—it’s how we define and measure value.

Back in the 1950s, agencies introduced timesheets to track the cost of creativity. Ever since, we’ve been trying to measure the unmeasurable. Now, after two decades in this industry, I can confidently say: I still have no clue how long it’ll take to come up with a winning campaign. Could be a day of scribbling on paper, or months of late nights. Either way, both can produce brilliance.

Sure, we’d all prefer to be compensated based on value rather than time. But let’s be real—defining value is tough. In the data-driven parts of marketing, metrics like impressions and clicks give us some insight into value. But for most of us, we’re left to rely on the good ol’ timesheet to determine pricing. Not because it’s better, but because it’s easy. Yet, here’s the kicker: faster, high-quality work gets your campaign to market quicker, meaning a bigger, sooner impact. So why aren’t we rewarding efficiency?

Agencies are being unintentionally incentivized to waste time. Throw more people at the problem! Add more layers of “accountability”! Meanwhile, the core issue remains misaligned incentives. By constantly pushing to lower costs (understandable!), clients risk suffocating the very creativity they need. Warren Buffett once said, “Price is what you pay, value is what you get.” So why is it so hard for clients and agencies to talk about value without that awkward dance around price?

Relationships: The Secret Sauce

At the heart of this value discussion is something simple: relationships. A strong agency-client relationship can make or break a contract. A great agency isn’t your bestie (though I’m sure they’d love to grab a drink with you after work), but they should have your best interests at heart. In a good partnership, both sides are invested in each other’s success.

As David Ogilvy famously advised, negotiate your agency price carefully. But here’s a twist: after the negotiation, add a little extra. Maybe it’s just 1%. It’s negligible to you but could make all the difference in how much more effort, creativity, and enthusiasm your agency puts into your work. Just remember: relationships matter—a lot.

Quality vs. Cost: The Never-ending Struggle

Creative services are tricky to price. There’s no clear “cost of goods” for ideas, experience, and expertise. Yet, clients often treat marketing as an expense rather than an investment. This is where procurement swoops in, focused on dollars and delivery, leaving creativity and innovation on the sideline. But when you’re constantly looking for “faster, better, cheaper,” something’s gotta give. Spoiler: you can’t have all three.

Trust: The Ultimate Value Multiplier

The best agency-client relationships are built on trust. The kind of trust where both sides are so aligned that the agency is looking out for your bottom line just as much as you are. When agencies show up on time, prepared, and focused, they build respect. And with respect comes trust—ultimately leading to that magic dynamic where everyone is working toward mutual success.

Steve Jobs famously said, “Great things in business are never done by one person; they’re done by a team of people.” This holds true for agency-client relationships too. At its peak, your agency will add far more value than you’re paying for, but it starts with investing in that relationship.

Be Kind, Do Good Work

Finally, let’s not forget the golden rule: do unto others. Even if others play by a different set of rules, take the high road. You’ll not only change the dynamics of your relationship, but you’ll set the tone for how you do business.

And when you’re tempted to revisit the “faster, better, cheaper” mindset, remember—you can only pick two.