One of the toughest things for agencies to get right is pricing. If it is too high, you scare away good prospects. If it is too low, you sacrifice the profitability and sustainability of the business.
Agencies and their advisers have come up with all sorts of creative approaches. Performance-based pricing. Value-based pricing. Equity-based compensation. It goes on and on.
Chip and Gini talk about some of the options, as well as the underlying motivations of both clients and agencies in seeking new models and approaches.
- Pricing and sales question (Reddit)