VCU grad tries a new model with Agency Nil
Advertising is always tough to break into, and never more so than during a dreadful recession. The ugly fact is there's a surplus of ad people right now for the work that's out there. What's a fresh-out-of-school creative to do? Work for free. Hank Leber, a recent VCU Brandcenter grad, is trying to forge his own path to success in the business. Rather than doing everything short of hara-kiri for the right to toil for minimum wage at a big shop, Leber has formed Agency Nil. He hopes to score projects with a simple, time-tested maxim: Nothing beats free. Agency Nil will work without a set price, with the understanding that agencies or clients pay what they think it's worth upon completion—no strings attached. For clients, that takes the risk out of the equation, theoretically, allowing Agency Nil to operate somewhere between intern and full-fledged freelancer. Ben Malbon, managing partner at BBH Labs, loves the idea. Leber, 28, answered some questions for us. Q. This is a tough time to break into the agency business. What's your experience been? —Posted by Brian Morrissey |
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May 20, 2009 in Agency Nil, Business models, Morrissey | Permalink |
Comments
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I love the idea, but I'm curious as to how much Hank paid for Radio Head's In Rainbows.
http://adweek.blogs.com/adfreak/2007/10/you-set-the-pri.html
Posted by: Rebecca Cullers | May 20, 2009 11:22:29 PM
It is going to break my heart if he ever loses an account by review to a new, upstart free ad agency.
Posted by: Branding is Blather | May 21, 2009 12:01:54 AM
It is going to break my heart if he ever loses an account by review to a new, upstart free ad agency.
Posted by: Branding is Blather | May 21, 2009 12:02:37 AM
This just cheapens our business. It's insulting, really.
And Bel Malbon is just a wanna-be creative who tries to cheapen what creatives do at bbh everyday.
Posted by: hello | May 21, 2009 12:34:24 AM
I agree, it is an insult to the business. If the only way to attract business is by giving away your work for free, doesn't really say much for what you do. I guess they don't teach you anything about placing value on ideas over at that ad school.
Remember my friends, you'll always get what you pay for. And in this case, well...
Posted by: ? | May 21, 2009 12:18:49 PM
Thanks for your comments "Branding is Blather". Absolutely entitled to your own opinion, of course. What Hank is trying to do is break into an industry that has never been tougher to break into. What BBH Labs are trying to do is help him and his team explore how they might do that in an interesting and hopefully innovative way. As we made clear on the blog, no one - least of all Hank - thinks that everything is right here, or that there's not work to be done. So any advice you have would be great.
Two small things.
Hank's not proposing to work for free, he's asking to be compensated for what the work's worth. They're quite different in nature. I think it's a smart area to be exploring given the tough economy.
Two, I'm not sure how you determined I'm a 'wanna-be creative' given we've not met, but I can assure you that I'm currently quite happy running BBH Labs, and before that was very happy in account planning.
Cheers.
Posted by: Ben Malbon | May 21, 2009 12:19:10 PM
Hi Ben,
I think you're confusing the posts. Someone by the name of "hello" was the one who slighted you. I, rather, added your page to my list of bookmarks yesterday because I just started reading your blog and I think it's great. I hope you end up reading this comment.
Posted by: Branding is Blather | May 21, 2009 12:33:21 PM
Sorry 'Branding is Blather' I mis-read the blog titles . . . the last comment was addressed at 'hello' and his or her points. Cheers and apologies.
Posted by: Ben Malbon | May 21, 2009 12:35:23 PM
I'm surprised everyone isn't in favor of the idea. What Agency Nil is doing is experimenting with a billing model where everyone can hopefully learn from it's success and failures.
It really is just an extension of contractual earnings based on qualitative KPIs, nothing new there, but hopefully everyone can gain new ideas on creating objective billing relationships with there clients.
Someone will always be willing to undercut you for what appears on the surface to be the same service but we know that the majority of clients see through this. Otherwise the whole creative industry would be completed commoditised by now. If prices are kept artificially high by what is in effect an institutional cabal, then the effect would be a dearth of industry innovation to create market differentiators. No one wants that.
Posted by: Stuart Eccles | May 21, 2009 12:45:03 PM
If I was on the client side of things I would hire Hank simply for having the balls to try something new. But what he's doing is so much more exciting than that - Hank is experimenting with the value exchange around advertising. God knows it needs to be played with.
It baffles me that anyone could think of this as being insulting: it's a free market and Hank will succeed or fail based on the quality of his ideas and how effectively he can turn the approach into a business. Hank I f***ing salute you. Don't listen to people who'd like to turn the clock back. This is truly progressive, and you know you're getting it right when people get defensive, insulted and angry. Remember: "First they laugh at you. Then they hate you. And then you win."
What's really funny is how people feel upset on *behalf* of the ad industry. Grow up. Oh, and if you have something insulting to say yourself (a) it's really bad form to say it anonymously - why don't you have the balls to say who you are, and (b) it's always good to try and make it at least vaguely relevant. Calling Ben a wannabe creative is just surreal. I'm the wannabe creative in the family. He's the wannabe Planner. ;-)
Posted by: Tim Malbon | May 21, 2009 12:52:32 PM
I'm late to this but I think what Hank is doing is both important and valid. As he says, it's an experiment and it's far from perfect but at least he has the guts and determination to do something, rather than just talk about stuff or pour shit and scorn while hiding behind an anonymous identity.
What frustrates me about this industry is how innovative we really are compared to other creative companies, not just in our output but in the relationships we build and how we get paid for what we make and the value it creates. This is a different way as Tim points out to look at the value exchange and I'm all for it.
Posted by: Gareth Kay | May 21, 2009 1:26:51 PM
What Nil is trying is quite remarkable. Unlike many agencies who [behind closed doors] complain about not being paid for ideas, Hank is going to give clients a chance to do just that. To Tim's point, Hank will "succeed or fail based on the quality."
We talk to clients all the time about a "test and learn" approach...well, that's what this is. Perhaps some of the shock and awe some people [above] are feeling is that there's someone in ad land willing to take his own advice.
Posted by: conrad lisco | May 21, 2009 2:02:38 PM
Interesting discussion. I 'll tell you that having been in this business a while this idea/business model is not new. So when you talk about turning the clock back, this is it.
Seriously, what other self respecting business would allow themselves to have a customer come in and set the price they wish to pay. None. Why? because things cost money. Good products cost more than bad ones. That simple.
Christ, even Kinko's would laugh you out of their store if you tried to pull this crap.
You think the "clients" of this guy are thinking he is "innovating" the agency compensation model, or being "progressive" think again. They are getting a deal. Period.
If you are talented then value what you do, stop catering to the lowest common denominator.
Posted by: Steve Donner | May 21, 2009 2:16:43 PM
Bravo, Hank.
The world is evolving quickly and belongs to the bold. Agency Nil shows a lot of guts and creativity. Keep the pedal to the metal and keep inspiring us.
Posted by: John Winsor | May 21, 2009 5:05:12 PM
This guy spammed the CP+B article on AdAge.com The article discussed CP+B's intern auction. The comment was on how's CP+B was wrong for doing this.
Posted by: A.B. | May 21, 2009 8:43:46 PM
Thanks everyone for commenting. It's fun to see the 2 sides defend his/her viewpoint. The fact that it's debatable merely shows that there was a space for it to exist.
To A.B. -
I'm not sure what your comment was referring to. Who spammed an article? Who is "this guy"?
To me, Crispin's auction is great for PR - likely far more valuable in that way than whatever the winning project will be for the client.
Posted by: Hank Leber, Agency Nil | May 21, 2009 10:03:21 PM
thank you for proving my point. you're all willing to back an "idea" of working for free without seeing any of the creative.
this is called "cheapening the creative."
homeless people will wash your window for free, but it doesn't mean they'll clean it.
this industry is fucked.
Posted by: hello | May 22, 2009 12:37:06 AM
I also have a negative POV here. Yes, it depresses everyone's rates, and cheapens what we do. But what I really don't like is that it abandons the notion of being a businessperson. Promotional creative people need to think of themselves not simply as artists but as business professionals. I think that if you're willing to let a client tell you what you're worth, you put yourself in the position of a victim. No self-respecting businessman would give away their services for free. Because then it isn't a business anymore—it's a charity.
Posted by: Tom Mescall | May 22, 2009 1:20:33 AM
- Compensation models in our industry, particularly around project based projects and new marketing, are screwed up. We need experiments like this.
- What Hank is doing is smart, and he'll start charging up front if the clients don't recognize the value of his ideas. For instance you market iPhone apps by offering them for free, then when they catche on, you set a price.
- Who the hell is Hello -- and can I propose we find him or her via techno crowd-sourcing? I'll put up $250 for the first person to out Hello.
Posted by: Steve Wax | May 22, 2009 8:58:00 AM
I work with Ben and we disagree all the time about stuff like this. But we do it person-to-person and we both respect each other's opinion, because at least he's thinking about how to make the industry work better.
Labs crowdsourced their logo, I was against the idea, told him so, but they have the right to explore it. That's why they call themselves a 'skunkworks' - it's an experiment. Sometimes experiments fail.
No damage can be done by spirited debate. It's good to be at the type of place that encourages and doesn't penalize opposing opinions.
Posted by: Frustrated creative | May 22, 2009 10:34:40 AM
I like the idea, but I'm not sure what the big controversy is.
Internships are often unpaid. Pro-bono work is unpaid (or at least, the production costs are covered.)
The guy is finding an interesting way to get experience and do something productive with his time.
Posted by: Mark Trueblood | May 22, 2009 2:49:12 PM
An interesting proposition, and a gutsy move by Hank.
However, I have seen this sort of thing very much abused by punters in the past, even by so-called 'professional' established companies who should know better.
It all boils down to what value a client will place on the work, and often with services such as copywriting and design, the client is unsure how to value such concepts and copy.
More sophisticated 'buyers' may well know the value of the work produced, but may still abuse the 'pay what you feel like' proposition.
On the other hand, as long as there are a few caveats in place, then I think it *can* be a great way for anyone new to the industry to get client samples and testimonials.
I wish Hank all the best, and would be really interested to see how his model develops.
Posted by: Tracey "Biz Writer" Dooley | Jun 9, 2009 8:53:44 AM
