Agencies Push For Value Pricing Over Time-Based

One trend that's been bubbling around in agencies for some time now might, aside from its other important benefits, may result in the elimination of the most dreaded operational activity: filling out time sheets. In recent history, following the shift from old-school 15 percent compensation, agencies have based revenue on the time it takes to complete a project mapped against the cost of hours to accomplish the project. There was then a shift to performance-based marketing that tied campaign performance to agency revenue. Now, the notion of value has been added to the compensation equation with several agencies, including Crispin Porter + Bogusky and Anomoly, setting fees based on the perceived value of the work they do for clients.

Wait a minute! Wait just one goddamn client squeezing minute! This means I can't bill my 30% PM overhead cost?! Not fair! That gap between delivery and performance was the sole reason I went into client servicing.

Good thing I'm into consulting now.