[Full Disclosure: The author launched his freelance business by working with agencies early on. But has since seen the light.]
Over the years I’ve read all kinds of articles aimed at us freelancers on “The Pros and Cons of Working with Agencies.” As freelancer, should you or shouldn’t you?
Much of the advice I see is the same, but, in my opinion, the debate can be boiled down to one simple truth that is rarely brought into the light:
Agencies don’t care about you.
There, I said it.
Now, does this mean I recommend you avoid working with agencies? Not at all. Over the years, I’ve worked with agencies of all kinds. From small two-person shops to big multi-nationals with thousands of employees. Why? Because there are some huge benefits to doing so. Here are a few:
Some Pros of Working with Agencies
- Access to lots of project work, with little effort. As a freelancer, you can scoop up lots of work from busy agencies who can’t handle a surge in workload internally. This is easier than going out and knocking on client doors and initiating new direct client relationships from scratch.
- Opportunity to pack your portfolio with work samples from big name clients. Many large and small agencies out there work for Fortune 500 companies. You can end up working on a little job for a huge company that might otherwise take you years to crack. Having big names in your portfolio does wonders for your credibility with new clients.
- Less client management. The account manager or someone else at an agency looks after most or all of the client interaction, so you can focus just on your creative work.
And there are other pros too. If you’re new to freelancing, or if you’re in the business-building stage, working for agencies can be a very smart way to go. In fact, I began my own career working pretty much exclusively for agencies.
But the point is, eventually I moved on. Why? Because that truth that agencies don’t care about freelancers became abundantly clear. Agencies are simply not in the business of keeping your bank account balance in the black.
Perhaps you have built up some wonderful relationships with some wonderful agency owners or employees who like to give you work. If so, that’s great!
But remember that, no matter how much work they’ve sent your way in the past, no agency owner or employee goes to sleep at night thinking of ways to give freelancers more business. They’re in the business of looking after themselves. This is, of course, how it should be.
So should you be in the business of looking after yourself.
If you view your freelance income as bonus money at the end of each month, then picking up assignments here and there from agencies may be an ideal solution for you.
However, if freelancing is your main source of income, or if you want to reach the high end of the earnings potential is this industry, agencies alone won’t take you there. You must start building direct client relationships.
For some ideas on how to do this – ideas the REALLY work – check out the articles and comments in the Getting Clients category of this blog.
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Pete Savage is co-Editor of this blog. As his wife will attest, he often goes to bed at night thinking of ways to give freelancers more business. (See http://www.savagemarketing.com/) Also, he is not on a one-man crusade to rid the world of agencies. He quite likes agency people and harbours no resentment that they don’t care about us.
{ 8 comments… read them below or add one }
I totally agree, Pete! After working with agencies for 4 years, I am now redirecting my business towards direct clients. Agency work can be great for the reasons you mentioned, but there are also many cons: when cashflow’s tight, freelancers are often the last ones to get paid; if an agency loses a client, you can go from being overworked to twiddling your thumbs in a flash; finally, freelancers are often the last ones to be brought into a project, while being asked to deliver under the tightest deadline. An anecdote to conclude: an agency I was working with asked me to sign a contract saying that I would agree to get paid only after they got paid from their clients. After (privately) laughing hysterically, I politely declined and stopped working with them.
This is the second year in my translation career, and I almost exclusively work for agencies. My income exceeds all the expectations I had before starting. I earn about 8 times the average income (of an employed person) in my country. Mine is not the richest country in the world but I probably earn more than many translators from Western Europe. This is further magnified by the relatively mild taxation level in my country (the overall tax burden was 15% for 2008; this does not include the VAT I pay in the price of goods I consume). I am in the process of consolidating my client base. As I shake off poor payers (poor in terms of rates, not punctuality) and replace them by better ones, my earnings will climb a bit more.
I suppose I could earn more if I worked for direct clients. But at what price? Being the only translator a company has means a stronger commitment in that it is harder to say “no”. If I tell an agency that supplies me with a lot of work that I am overbooked for the rest of the week, they will say OK and contact me again after a few days because they are happy with my work but I am not their only option. If I turn down an assignment sent by a direct client, the client will walk away sooner or later. Moreover, I believe I would have to be more of an all-rounder than now. And this does not concern just topics that I do not specialize in. For example, I do not offer DTP services and do not plan to learn these skills. I am happy that agencies do this part.
More importantly, why would I do that? I already earn more than I need. I am from a poor family and my spending habits are, to a large degree, still shaped by the money contraints from my childhood although they do not bind me any more. On average, my husband and I spend one fourth of my income, which, for example, includes overseas flights once of twice a year since we are from different continents and want to visit our families in both places from time to time. We will want to buy a house soon and I am sure we will pull it off without taking out a mortgage. My spending pattern may slowly adjust to a new level of income but I do not expect that I will be willing to make any sacrifices in order to earn more. Unless I am wrong, my work for agencies gives me more flexibility and is generally more comfortable.
The owner of my local bakery does not not care about me either. Why should he? But I will not start baking my own bread because I like his and he likes my money. In a similar vain, I don’t mind if agencies get their share of what the end client pays because I appreciate the services they perform and would not want to take care of everything myself.
Hi Marie Claude – yep, those are definitely the cons that come with working for agencies. The loooooong receivables period that some agencies make freelancers suffer through is my personal favourite. When I was younger and starving for work (and money) one agency made me wait five whole MONTHS before paying me. And get this… they were a former employer!
AC – thanks for adding a sober dose of Yin to my raging Yang on this topic. Looks like you’ve found a way to leverage the first PRO I pointed out… “access to lots of project work, with little effort.” Good for you. (However, I gotta say… I think the owner of your local bakery cares more about you and his other customers than you might think… without you all, he has no business.)
I love agencies. When we experienced a dip in income in one of my other income baskets, I was able to call my editor and say, “Hey there! Give me more work!” More work came almost immediately.
Truffles, phone calls, caring about personal stuff…these can all make you the number one choice and does buffer you a little if the agency has a drop in their incoming workflow. Am I replaceable? Sure! But I also don’t have to worry about kissing butt to get a check cut and I have experienced that several more than several times in order to get paid from a direct client. Of course, that might have more to do with the types of direct clients I have had rather than direct clients in general.
I’m just thrilled there are options out there for every personality type and work style. It gives everyone a better chance for success.
Thanks, Pete.
Would you mind commenting on my possible misconceptions regarding less flexibility? Do you find it more difficult to turn down a job or to spend your holidays without an internet connection?
My experience with ad agency has not been pretty. Called in at the last minute to help pick up the pieces or deliver a project with vague guidelines and too many bosses, I’ve been burned. But, in all honesty, it was my own fault. Before accepting the work I did not run through the project parameters and price CAREFULLY and write a CONTRACT before starting. I trusted them to be reasonable and behave like my own clients with whom I have direct and steady relationships. Big mistake. The moral of the story is that, as you say, Pete, there are advantages to working with agencies. But do not lift a finger to help without a WRITTEN agreement of some kind, no matter how big the hurry. The goal of agencies is to satisfy their customers, and if they have to sacrifice a relationship with you to do it, they will.
Hi AC,
I didn’t quite catch what you meant about ‘less flexibility’… what is it that you think might be less flexible?
Hi Michele,
Great advice… it’s important to make sure the agency has a clear objective with the project, and can give you clear direction. I think many freelancers can relate to being burned before, by just agreeing to help on a project, jumping right in, and assuming you can figure things out as you go along. It’s painful! Better to walk away from a “fuzzy” project if there is no agreement between you and the agency on expectations and deliverables. (Same goes for direct client work, of course.)
Jennifer & Michelle –
This is a very controversial topic. Great comments and observations from both sides of the fence. My thoughts on agencies (and any type of client in general) are best explained with this analogy…
You own a small tour bus and have 10 seats available. When you’re starting out as a tour operator, you’re not that picky about the kind of customers you get. It may be a long drive from Seattle to San Diego, but you’re ok with a rowdy crowd (or one with tough expectations; say…the “real housewives” of Orange County or New York, if you’ve seen the show…).
As your business picks up and there’s more demand for your West coast tours, maybe you start thinking a bit more about who you let on your bus. If you’re going to ride with these folks for 5 days, you want the experience to be pleasant. So you start making different choices, trying to balance income with enjoyment.
And if your business goes through a slump (think 9/11 and what happened to the travel industry for about a year or two), you’re back to letting anyone on, as long as they pay according to your terms.
So…my feeling is that there’s no right or wrong. Your situation is very unique, so you have to make decisions based on that.
But the key, NO MATTER WHAT, is to make sure that you ARE thinking about all of the variables. If you choose to let a rowdy rugby team (or a bunch of drunk fraternity brothers…or a group of stuck-up, spoiled rich housewives), just make sure you’re doing it for the right reasons.
Life’s too short — and the trip to San Diego is too long — to compromise all the time.
-Ed