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You created a story in your head that he wasn’t telling and then argued against that. Clearly states in the intro this agency is selling a 2k/month package. Ty

You created a story in your head that he wasn’t telling and then argued against that. Clearly states in the intro this agency is selling a 2k/month package. Typical in a marketing agency this is what you would do. Places like EY and Deloitte didn’t start in 2019, their success stories probably can’t tell you much about conducting a small growing business today. Whilst it’s fun to bash people on twitter for being techbros let’s not let that cloud our vision

pembrook 3y ago
I directly argued the core points of the article. There is no magical 50K revenue plateau, nor is there a math formula that dictates anything about agencies (they aren't Saas, humans cannot be replicated at zero marginal cost). And there are tons of agencies over 50K monthly revenue (if you have 3-4+ employees, which literally tens of thousands of agencies do, you're likely over that number). The core of the article is wrong. It is not typical in a marketing agency to sell a 2k/month package. That would only sound typical, if your entire knowledge of the professional services business comes from reading that DesignJoy guy's viral tweets. If you're repackaging human hours into tiny 2K/month slots, you're going to have a bad time if you aspire to be anything more than an overworked freelancer. That's not a business model that scales -- hence why a vast vast majority of agencies do not sell tiny "productized services" packages. The reason? Its the worst of both worlds -- tiny ACV (in Saas parlance) with crazy high marginal cost. 99% of agencies go for high ACV with more bespoke project-based or AOR retainer agreements. It's a 500+ year old business, so things are the way they are for a reason. And no, I'm not comparing to Deloitte. I was simply making the point that hundreds of agencies get acquired every year and rolled up into conglomerates like Deloitte. None of them do this Twitter-trendy productized services model. It appears the author discovered what any professional services business-owner already knows. Then tried to "thought leader" the space with their 6 months of knowledge and bunch of fake-analytical charts.

pembrook 3y ago

I directly argued the core points of the article. There is no magical 50K revenue plateau, nor is there a math formula that dictates anything about agencies (they aren't Saas, humans cannot be replicated at zero marginal cost). And there are tons of agencies over 50K monthly revenue (if you have 3-4+ employees, which literally tens of thousands of agencies do, you're likely over that number). The core of the article is wrong. It is not typical in a marketing agency to sell a 2k/month package. That would only sound typical, if your entire knowledge of the professional services business comes from reading that DesignJoy guy's viral tweets. If you're repackaging human hours into tiny 2K/month slots, you're going to have a bad time if you aspire to be anything more than an overworked freelancer. That's not a business model that scales -- hence why a vast vast majority of agencies do not sell tiny "productized services" packages. The reason? Its the worst of both worlds -- tiny ACV (in Saas parlance) with crazy high marginal cost. 99% of agencies go for high ACV with more bespoke project-based or AOR retainer agreements. It's a 500+ year old business, so things are the way they are for a reason. And no, I'm not comparing to Deloitte. I was simply making the point that hundreds of agencies get acquired every year and rolled up into conglomerates like Deloitte. None of them do this Twitter-trendy productized services model. It appears the author discovered what any professional services business-owner already knows. Then tried to "thought leader" the space with their 6 months of knowledge and bunch of fake-analytical charts.