March 24, 2007

The Marketing & eMarketing Forums March Supplier e-Newsletter
I Just Got a Manicure – Can I Put That On My Timesheet?
A few things for clients to consider about billable hours and the creative biz
By Buffy McCoy Kelly
Creative Director/Owner, Tattoo Projects
Since the Stone Age of David Ogilvy, Mary Wells Lawrence, and Darren Stevens, the advertising industry has churned out ideas – and timesheets. In order to get the ideas, it is de rigueur for clients to exchange vows with their agency, plan a long and strategic future, and then start paying. And paying. And going to meetings. And paying. The cocktails, the hobnobbing, the relationship-thing. It’s a fabulous enterprise in the marketing world. But wouldn’t it be nice if you could just buy really great, strategic ideas, as you needed them? Better yet, with a set price tag, instead of those labyrinthine billable hours? For clients who wonder the same thing, here’s some food for thought.
Some of the most creative writing agencies do is on their timesheets. When I started out as a young creative at a major agency, one of my very first lessons was “How To Fill Out A Timesheet.” Timesheets, I was lectured, was the way we made our money. This was shocking to me, because I had been lead to believe we made our money from creating great ideas that got results for our clients. But I was just a dumb kid.
One thing’s for sure – the staff working on your business may not know your demographic, your business goals, the ROI on your last campaign, or even your CEO’s name — but they do know how to round up in 15 minute increments on your job number. For further information on this topic, google Shona Seifert and Thomas Early.
Your agency’s shorts should be flapping in the breeze, right alongside yours. For most agencies, there is a comfort level with the billable hour. It provides an easy metric for measuring and deconstructing fees. Clearly, it doesn’t always reflect the value of the work being done, but it’s predictable and familiar. And for a client who wants an agency that does predictable and familiar work, well, that would be a perfect fit.
More sure-footed agencies are willing to base their compensation on performance. Or to have the knowledge and cajonès to tell you exactly how much a job is going to cost, and to adhere to that down to the penny. Advertising is a valuable commodity for advancing your brand; when an agency knows their worth, and is willing to have skin in the game, the game heats up pretty quickly.
I’ll have the cake, please. When you hire an agency, what are you paying for, anyway? You’re paying for ideas and knowledge. Not time. Creative is a commodity. As a client, you should get the luxury of only paying for the final work. Sometimes, the idea pops out of nowhere, in a smidge of a billable hour. But that doesn’t mean that’s how much it’s worth. Or it could be squeezed out painfully slow, like a 12-lb baby. That doesn’t make the idea worth more money.
I like to think of the whole thing in terms of cake. When you go to a restaurant and order, you just pay for the cake. Not an hourly rate for the time it took to mix, bake, and frost. Or for the chef to take a break and play xBox and have PBR while the thing is in the oven.
Clients should have the experience of feeling the same way about their creative work. You should get to order the cake.
Hey, it’s on your dime. In “The Art of Creativity¨, Psychology Today notes, “research suggests that creative people make more mistakes than their less imaginative peers. They are no less proficient-it’s just that they make more attempts than most others. They spin out more ideas, come up with more possibilities, and generate more schemes. They win some; they lose some.¨ Which is perfectly fine — unless you’re paying by the hour.
“You have to have a coyote inside you.” These words of wisdom about creativity from Chuck Jones, the animator who created Wile E. Coyote, are especially true of the people doing your advertising and marketing. Either you have it, or you don’t. No amount of billable hours can change that.