Agencies want to capture more of the value they create for their clients; in other words, earn more for what they do. The important first step is to understand the nature of value, including how, when, and where value is created.

In groups of agency professionals around the world I have often asked the question, “What do clients really buy from your agency?” Their answers usually include things like “Solutions to marketing problems,” “Insights and innovation,” “Expertise,” and “Successful marketplace outcomes.”

I’ve always believed that the greatest benefit of getting paid based on value instead of time isn’t that the agency has the potential to earn more money (although most do).