The Futur with Chris Do 292 - The End of the Billable Hour - With Tim Williams
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May 22, 2024 
Tim Williams, founder of Ignition Consulting Group and author of "Positioning for Professionals," challenges the traditional billable hour model in professional services. He advocates for value-based pricing that focuses on results instead of time. Williams discusses how agencies can innovate through productization and strategic partnerships with brands. He highlights the necessity of adapting to AI impacts and rethinking pricing strategies to enhance client relationships and agency profitability, urging agencies to reclaim their pricing power.
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Agency Pricing Problems
- Ad agencies face significant challenges with pricing, stemming from a history of hourly billing.
- This model, adopted from law firms, arose after the decoupling of media buying from creative services.
Death of Traditional Advertising
- The traditional advertising agency model is dead due to changing media consumption and the rise of AI.
- The old revenue models no longer work, necessitating a shift in approach.
Client Focus
- Clients seek solutions to business problems, not just efforts or activities.
- Agencies must shift from billing for inputs (time) to billing for outputs (deliverables).
