The Power of Network Effects

In the early days of commission, J Walter Thompson created £300,000 worth of net value out of expenditure of £50,000. The agency did it because it comparatively didn't cost that much to do. It delivered a huge amount of value and the reward came because it was an investment in the relationship. If there's a procurement function which says effectively every year you have to start again from scratch on your pitch for three years, if the past had never happened, there is no incentive to invest in relationships. There's no point in doing a favor for a goldfish? In relational capitalism, you have the discretion to invest in the relationship so it's not just about transactional capitalism