How to Compete with the Agencies
I’m going to start this article by showing you a couple of my bruises. (Okay, fellas, I know what you’re thinking. But calm down. These are ego bruises.)
The first happened about a month ago. A longtime friend asked me to write a website redesign proposal for the non-profit organization she directs. I distinctly recall her saying that she wanted me to do this redesign project. So, I went into proposal-writing mode, submitted it, and the silence was deafening.
Oh, yes, I did follow up by phone and e-mail, but to no avail.
The truth came out in mid-June, when Elusive Friend and I spoke on the phone. She’d just gotten out of a meeting with her board of directors, and, sorry, Martha, the board had chosen a local marketing firm as the redesigner of the organization’s website.
My initial reaction was, shall we say, shocked. This marketing firm isn’t exactly known for the eye-catching design of its websites. But, according to Elusive Friend, two of the board members were friends of the marketing firm’s owner, and that was that.
Oh, well.
Then there was that round of warm calls I made earlier this month. The people on my call list were faculty members at a university-based research institute. I’d just completed a website redesign for a graduate degree program that’s affiliated with this institute, and I figured that this would be a good time to drum up more business.
When I’m calling academics, I find that a two-pronged approach works best:
- I call, and more often than not, I end up leaving a voice mail message. At the end of that message, I say that I’ll be sending an e-mail. (Most academic institutions have online directories listing faculty phone numbers and e-mail addresses.)
- Then I send the e-mail. In this case, my e-mail included a link to the just-redesigned graduate program website.
One of the faculty members’ responses included a note saying that she’d forwarded my e-mail to the institute’s director of communications. And, since I’ve known the communications director for 20 years, I sent her an e-mail with links to three other design projects that I’d done for the institute.
Well, turns out that they’re still using that local branding agency that beat me (and a lot of others) in an Request For Proposal (RFP) derby last year. I distinctly recall that RFP asking for a quote on the redesign of the institute’s website and logo. Although the website was recently redesigned, and, in my not-so-humble opinion, not for the better, the institute’s logo remains the same. Oh, yes, the logo does have a catchy slogan beneath it, but I wouldn’t call that a redesign.
In short, Martha’s pride as a designer has taken a real beating of late.
Which has gotten me thinking hard about how freelancers can compete against the agencies. I think it can be done, but we, the small, the scrappy, and the proud freelancers will have to choose our battles carefully.
Here are my recommendations:
1. When seeking leads, avoid the business communication groups. Here, I’m referring to groups like the American Advertising Federation, American Marketing Association, International Association of Business Communicators, and the Public Relations Society of America.
These groups tend to attract directors of communications, and, yes, they do have nice, juicy budgets. But, I’ve found that when it comes to prospecting, the communication director’s office is where my efforts go to die. When I stopped trying to court communication directors and started going directly to university faculty members, my business emerged from its multi-year coma.
The business communication groups also tend to attract agencies. And, sorry to say, it’s going to be tough for you, the freelancer, to break into the dance between the agencies and the communication directors.
2. Choose your markets carefully. Since I deal with scientifically oriented faculty in academia, I don’t have to storm the communication directors’ temple. I can go directly to the faculty.
And, let’s face it, there are plenty of clients who like small, scrappy, and proud freelancers. They may be small business owners. Or the founders of innovative, rapidly growing tech firms. Or they may be professional practitioners like doctors, dentists, accountants, and lawyers.
Or maybe you’ve decided that your route to freelancing happiness is to do work for other people who share your interest in skydiving. Or your passion for fly fishing. Or your love of gourmet cooking.
As a freelancer, you have the freedom to craft your business the way you want. It’s not the sort of freedom that an agency, with a staff to keep busy, mondo overhead to cover, and big accounts to chase after, can enjoy.
3. Form a virtual agency for going after the big fish. So there you are, out in your freelancing boat, and you’re fishing for marlin. And there’s a huge tug on your line.
That’s no marlin-project, it’s a whale-project. Much too big for you to handle by yourself. Time to find a crew to tackle this thing.
The good news is that there’s this thing called the Internet. It’s a great way to find the virtual crew-mates you need for those too-big-to-handle-yourself projects. (Have you checked out the FreelanceSwitch Forum? Or the Job Board? I’ve also found very good project partners in the Women Web Designers Directory.)
If you’d prefer to collaborate locally, consider the idea of a shared workspace. They’re popping up all over the place. And they’re a great antidote to that “working at home alone” isolation that solo freelancers often feel.
4. If you can’t beat ‘em, join ‘em. If you’re a Web programming whiz, a copywriting superstar, or an illustration ace, there are agencies that need you. Especially if their work doesn’t sparkle the way it should. And, maybe-just-maybe, you’d rather not deal directly with clients. So, become an agency subcontractor. (You can find agency principals at the meetings of the organizations that I mentioned in Item #1.)
Note: I make this recommendation with one caveat, and here it is: Agencies are notorious for their “you don’t get paid until we get paid” policies. Which means that, in essence, you’re acting as their bank, and you’re not earning interest. For the sake of your financial health, add this verbiage to your subcontracting agreement: “Client’s obligation to pay [Name of Your Business] when payments are due is independent of Client receiving payment from the Client’s Customer.”
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I think that the one thing freelancers can compete with agencies on is price. In the end their overhead is not as high, but their quality of work can be just as good if not better.
I think it is smart to look at why companies hire agencies. The most obvious to me is stability. The agency has an office, a number of staff with different talents, someone to always answer the phone. All of these things create a perception of stability. However the reality is that these firms are just as stable or unstable as a freelancer, but it is the perception of stability that wins them the contract.
To really win contracts over agencies a freelancer (in my opinion) needs to show that they are stable as well. There is no reason why you can’t have an office of your own. As well you should show off the number of years you have been in business, have client testimonials to back this up. Have hours that you always answer the phone. When you go to see a potential client, make sure you are dressed professionally in business attire.
A freelancer can be just as professional and stable as a agency, but it is important to make sure that they work at this perception, as agencies tend to have it from the get go.
Alavri
Interesting story.
Your articles are really useful, however, they’re much longer than the other blog posts. Is it not possible to make them shorter and more succint?
Me- your self-indulgent comment is more annoying than usual. Is it not possible for you to STFU? If you don’t like it, quit reading and stop crying about something so petty.
The article itself was fairly good read. Kudos!
Thanks for sharing your experience and this awesome post.
This is Helpful
Well its can be hard as a freelancer. Most companies may take freelancers not serious enough…
No wonder. A lot of so called freelancer ain’t serious.
Hi Martha,
Great article. Very interesting. I do not usually Comment on blogs but feel this may be the first of many now. Your article has kind of inspired me to speak out a little more about my experiences as I am sure many others will as well.
You are quite right, though there are many, many more reasons that freelancers can not compete at a particular level with Agencies and Consultancies (A&C) for that matter. This is not a price equation. From my experience this can be due to the following and many others which I may list in the future:
* The opinion is that the freelancer has always been seen as a “here today, gone tomorrow” resource. This is obviously far from the truth and generally it is promoted by A&C’s who see the freelancer as a threat. The only thing to do in this case is promote that you continually try to work with the same clients. That should always be obvious anyway because it is so much easier to build relationships with the same clients than find new ones. However, large companies do not see that.
* Your loyalty is going to be more inline with the large company because they put food on the table. However, A&C’s still get the nod because they are the “bigger specialist” and work with more clients. Rarely is this ever seen for what it actually is, which is negative to the large client. You really have to think about why that is a negative thing though and try and use it to your advantage.
* Terms of Business. Larger clients like the concept of paying every 90 days or so. This usually stifles a freelancer because A&C’s will, in general, have greater cash flow or the greater ability to leverage their business. Consider your finances carefully and think how you can compete here.
* A&C’s business models are usually nothing more than glorified freelancer collectives anyway. A bunch of freelancers getting together under an umbrella name. A natural progression in some respects. This is why there is such a demand for “contractors” where a freelancer is entrapped within an A&C contract to work for the A&C. Contractors are not freelancers and should never be considered in the same light. There are massive distinctions between the two.
* Large companies do not have the facilities in place to handle the many many freelancers that they would need. In general it makes commercial sense for a larger company to outsource down the food chain where unfortunately a freelancer is last in line. You need to think like the end client here. As business models change to be more project related then you have an opportunity but the playing field is never that clear.
* From a more mirky perspective any existing A&C with an end client relationship will see you as a threat, particularly if you specialise in their niche. This is just business. You are simply the competition and as such there will be a great deal of political background conversations that the A&C will have with the larger clients which will prevent your access to them. This can be as simple as “I’ve heard XYZ about that person”. Try to consider how this is used against you. I have “people” impersonating me at the moment on the social web space in order to effect potential client decisions. This happens. It is business and as companies get bigger they tend to loose the moral perspective, particularly if you are very good. It does not matter how good you are though. In fact the better you are then more it will happen. Unless you form an alliance with A&C’s your access to the end clients will slowley, by many means become denied. Remember the food chain I mentioned. You can break that but it takes a lot of time and there are a lot of battles along the way even if they are not obvious to you.
* This however is the perfect time promote yourself more. “Larger vehicles are not as nimble” and freelancers are generally more skilled, more affordable and more friendly as a whole. A lot of good freelancers will be consumed by A&C’s. This is why A&C’s are full of ex freelancers or people wanting to be freelancers but they have other commitments which mean they are trapped by the economics of the A&C (i.e. regular pay etc). That is just life.
Some of the many things that you have to do is make your offering more attractive. It doesn’t mean simply saying “I’m great”. It can sometimes be as simple as making the end clients live easier. As business thinking starts to change, which it will do, you have an opportunity. You just need to think about all the angles.
(Apologies for grammar – I’m a software specialist not a copywriter)
Really like the design of your blog man!
Thanks a lot for the post. That had been helpful!
- Abdo
Great article.
Your final “Note:” deserves a whole article.
My day job in letterpress printing runs into this often; we scramble to get jobs through the system before really nailing down who is responsible for payment.
It boils down to this—If the agency/designer wants to mark up our services, then they are the client, and need to pay us according to our net 30 terms.
Beware the client (usually a large corporation) that comes with a mountain of paperwork to get you into their system. Filling out forms is billable time and you should be aware of that during estimating.
If you specialise highly in one particular service you can become a great asset to agencies (your 4th point). My agency clients are my best clients. Best thing about working with agencies is they usually have dedicated project managers. Unlike working directly with end clients, they will tell you exactly what needs to be done. Makes things very smooth.
I’m a freelance myself and have been for the past 4 years!
I’ve had the exact same probleme! With the exact same gut feeling that the prospect was making the wrong decision! And they were!
My arguments now to compete with medium firms (5 to 15 poeples) are pretty ugly but they work!
First, an agency of 15 people will only put 2 to 3 persons on the job, and most of the time one of themm is a non productive, account manager! The only thing that will fit the company’s size is the bill! Not the reactivity or design quality!
Second, I do live from my design, for the past 4 years! My portfolio is mine and not the one of 4 to 15 designers who have gone through the design agency!
In addition to a real portfolio, I’m a real professionnal, who’s business depends on the quality of my work. I’m not an employee, I’m directly involved in the success on my clients business. In other terms I don’t take short cuts ni the desing to be more cost effective or just lazy! (no downloaded templates or half made work!)
Third, Your contact is the project designer and the deisgner!
The KnowHow person is the company’s contact! So 99% of the time the response is fast and real! No account filter and no account fees for just picking up the phone! Knowing that some account managers really do their job and actually deal with real issues! But in my experience 1 out of two is just doing the job because it was hired and not out of passion or competences!
Last but not least, the Node style! As a freelance I work with other hard working, smart and experimented freelances when it comes to things out of my range!
But not as agencies I do tell that these people are freelancers! I actually let them bill the client directly, so there is no miss understanding and that the price is clear to all! It works as a charme and 99% of my clients feel safer with my prices after seeing that I don’t fool them with a 15% commition!
These four arguments got me some contracts that weren’t supposed to be mine! And I actually fitted to their needs and most of my clients are still mine!
So besides for the companies that require expansive insurrances or a minimum cashflow to start doing business, these face to face arguments actually work! One important thing is to never depreciate the agencies! They do bring things you don’t, BUT they also bring things you don’t, such as delays, high prices and filters in internal communication all due to the size of the marketing agency!
So long…
I recently had the “you don’t get paid until we get paid” saying they pay once the project is complete. I assumed that meant the project i was working on, no, it was the whole ENTIRE project. I didnt raise too much hell because I think it was my fault for not clarifying.
But yes, I wont be making that mistake again. I thinks its a crappy way of doing business.
Agencies are funny, most of them dont have the guns to do most of the work they get. But they do get major $$$ business so ill give them that.
Great read! Sadly, it’s not an isolated account of what happens in the advertising world, me thinks.
The reality is that most organizations are fearful of hiring a single individual for a project they deem to be a “multi-person project.” It doesn’t matter if you can cherry pick your partners or that you come in more budget friendly. What they want is the prestige and the presence of an ad agency.
Clients love to think–and agencies eagerly let them–that the 50+ person shop is collectively working on their business. Quite often, the fact is that they might have a junior creative team and account exec-in-training actually doing the work, which is why aren’t overly expensive. (Note to clients: If you’re not paying top dollar, you’re not getting the top dollar team.)
For all the reasons above, I choose to be an agency subcontractor, as you fabulously phrased it. I avoid the RFP nonsense and am able to work with clients who understand what a creative strategy is or why I can’t turn around an ad in one hour…usually.
Thanks again and lots of luck! I look forward to being a frequent reader, if not a sympathizer.
This is why clients don’t trust freelancers:
http://www.artstardesign.com/
That’s not to say that agencies can be any less flaky, but I can understand why a client would gravitate toward the appearance of permanence and stability. After hearing from so many potential clients who lost their shirts thanks to a freelancer who either did poor work or went AWOL, I would.
I went full-time freelance this calendar year. I want to partner with agencies as a subcontractor. Not sure how successful I will be, but I want to position myself as a partner/collaborator rather than competition. I’m finding that quite a few agencies have great design talent but are weak in the front end coding area. It might be useful for a freelancer to look for gaps to fill. Also, sometimes agencies will keep a list of freelancers on hand for referrals (when they come across potential clients who can’t afford them).
Here in Tucson, there are agencies that are in serious trouble. The reasons for this are many, but most often, it boils down to too much debt service on the overheard and a client list that was too real estate-centric. This area has been hit hard by the collapse of the real estate bubble.
Hi, I’m a marketing communications -branding specialist.
This is eye-opening, eye-popping advice. A great help in going down the consultant route – hoping to be more economical, one stop shop than the agency. As a graduate of ad and marketing agencies, I should have known. Job search is the same story…..It seems so obvious and has been right there in front of me and I didn’t put it together.
Thanks also for the tips about sharing…I’ve been thinking about that…now all I have to do is find the group.
Am working on my website and blog – should be up soon.
Elli Strauss
International Marketing Communications
and I alway thought that a freelancer is a designer who do not have to work in a agency, but can work FOR agencies. Agencies often hire freenlancers because of the freelancers unique style, because he/she is better than its workers, because they need more “hands for work”… I worked in a agency, now I work for myself, as a so-called freenlancer. But I have one-person company, that has a name and acts like an agency, on a bcard a have my name and “owner”… And it’s enough. I do not have these problems.
Thanks for some pointers with freelancing.
There’s far too many my niece and my nephew is a designer and he/she can get the job done. The work created by these individuals for hobby purposes may be good for web but not so great when it comes to printing.
Really interesting articles, it can be hard to keep up with the bigger web design firms but using freelancing to your advantage and taking control of powers that big businesses don’t have is the key to success.
Good advice, its a tough world out there but like you say there are people who want to give their business to freelancer as opposed to agencies, which is why the freelance industry is, and always will be strong in web design.
This is a great article! I think #4 is a very good strategy. You’re right, sometimes working together is better than seeing lots of competition everywhere. Agencies can be a steady source of incoming jobs (and money). If you choose your agencies carefully, there’s more for you to win than to lose.
For example: I’m a web copywriter with a strong focus on interactive web projects. So first of all I try to sell my services to rather tech-focused web agencies who don’t have their own copywriters. I try to convince them that by hiring me they can offer better quality to their clients. And they will also earn more because they can sell a new kind of service which they couldn’t offer before.
By the way, if you’re wondering how I can be a copywriter even though my English isn’t perfect: I mainly write in German
Very interesting read. Thank you very much
This is really good information. I recently got invited to join a business communications agency and I was unsure about the logistics of it all. I realize now that it will be good to get my feet soaked through the job oppportunities that will be handed to me but at the same time, take in as much as possible and then start my own “agency” later. Really, it is all about the right marketing. Get a website, business name, and logo and give clients the illusion that you’re a full service company with a central office location in some high rise building with a full staff of writers. When really, its just you on you macbook in your bedroom. This people, is smart and the way to go. Companies are more than likely to hire what they think is an agency than a freelancer (which is often the case in the business writing world)
This is absolutely right. Ive landed my big clients by explaining that I’m NOT an expert at everything, only good in a certain small area, but that I work with some extremely talented people that fill in the huge gaps.
I don’t really agree with you on being polite though. Ive tried that approach, and I found that being almost rude can be really good. If I say what no-one else dares to say – but what everyone can see – it makes me a resource in peoples eyes, and that has landed me my biggest clients to date. Establishing yourself as a resource – in any way you see fit – is crucial to getting good clients.