The Need for Transparent Vision
In the dynamic world of creative agencies, profitability becomes a constant concern. Not just for the financial aspect, but also for sustainability and growth. A powerful tool that is often overlooked in this context is the strategic renegotiation of fees.
Within the vast universe of observations and insights from some of the major advertising, marketing, and media agencies, a notable trend emerges: numerous agencies have managed to significantly boost their profitability by granting their clients full visibility of the working process and offering a tool for collaboration and transparency. This openness not only generates trust but also becomes a competitive differentiator in the market by ensuring a better way to visualize what is invested in each project. It is a trend that is present in agencies around the world, including Latin America, Spain, the United States, Mexico, among others.
The Dual Benefit of Transparency
The impact is twofold. On one hand, this transparency has opened doors to new business opportunities, allowing agencies to r
On the other hand, by having a clear understanding of the hours and resources involved in a project, agencies can establish more accurate and suitable rates for emerging business opportunities.
Proactive Management: Key to Success
Effective management is not merely a day-to-day operation; it is an art. For an agency to position itself advantageously, it is crucial that it can review, adjust, and continuously renegotiate its scope of work. It is not about waiting months or even years to make adjustments, but about being proactive and anticipating the changing needs of the client and the market. This management must be a key part of the business’s strategic planning.
The Importance of Concrete Information and Data
Adjustments in the scope of work are not arbitrary. They are based on data, on constant feedback, and on a deep understanding of the agency’s operations. It is essential to recognize that such improvements and adjustments are not possible if there is not complete and up-to-date information of the operations. There are no success stories without transparent and full access to operational data.
Steps for Successful Renegotiation
So, what is the path forward for agency and client?
- Define the initial scope of work: Both parties must be clear about the expectations, deliverables, and resources needed from the beginning. The overall goal should be clear.
- Agree on the fee for that project: Once the scope is defined, a price is established that reflects the value and work that will be contributed.
- Execution of the scope of work: During this phase, the agency must be transparent, showing the client how the project is progressing as agreed, giving visibility to each step.
- Evaluation and adjustment: At the end, or even during the process, the results should be reviewed, evaluating whether adjustments are necessary or if new requests from the client arise. This is the renegotiation phase, where fees can be reviewed based on changing needs.
Conclusion
In an increasingly competitive market, transparency, adaptability, and collaboration are key to driving success and profitability in the world of agencies. The strategic renegotiation of fees is more than a financial tactic; it is a management philosophy that, when applied correctly, can transform the trajectory of an agency and achieve a competitive advantage in the business model within the industry.
