Future Flex

First and foremost, the client wields more power over agencies, even as their position is more precarious. Agencies are being forced to align services to the client’s needs, not their business model. They have to break down the old silos to deliver integrated marketing solutions, not just advertising. And in some cases, the agency is being re-crafted as an integrated business partner.

Consider the two-year old start-up Anomaly, recently profiled in Business 2.0 magazine. Anomaly is getting big ink for blowing up the classic agency model to create a client relationship that allows it to take a stake in a business or product in return for services. This is not completely new, but they’re doing it exceptionally well, it seems. All agencies are invested in their client’s success—at least all the good ones. But how many of us are ready to truly stake our business on the client’s business?

If you dig a little deeper on Anomaly, you learn that some of their business is still fee-based, even if called something else. Something between the old-school retainer model and a pure pay-for-performance or equity stake is more likely the right answer for most agencies and clients. Today’s reality dictates a level of flexibility from agencies that challenges us financially and professionally as never before. And it’s a good thing because it creates opportunities for new agencies and new players to emerge and drive change in the industry. It also requires clients that are willing to take some risks on new thinking from agencies to reap the rewards of new markets and opportunities. I think we all better start our stretching exercises and get ready for an amazing ride ahead.