

How to productise your agency’s value, with Brian Kessman
Jul 23, 2024
Founder of Lodestar Agency Consulting, Brian Kessman, discusses transitioning to a value-led revenue model in agencies, emphasizing productizing agency value, restructuring teams for client problem-solving, and utilizing key performance indicators. The conversation includes insights on the impact of time sheets, customizing solutions, and transitioning to a transformational agency model.
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Commoditization And AI Pressure
- Brian Kessman says agency commoditization has driven declining fees, burnout, and unsustainable workloads.
- He argues AI accelerates the need for agencies to rethink time-based models to survive and stay valuable.
Three Common Value-Led Revenue Models
- Brian outlines three common value-led revenue models: value-based, performance-based, and output-based.
- He highlights adoption rates and specific drawbacks that make each model imperfect on its own.
Procurement Still Commoditizes Deliverables
- Brian explains procurement uses benchmark databases to compare deliverable prices and will push agencies to lower fees.
- He warns that selling a bare deliverable keeps the conversation on price instead of business outcomes.