Vying for the Ring

In my last story, “RIP RFP“, I played Taps for Request for Proposals (RFPs) for long-term retainer based relationships. In this new paradigm an agency and client might enter into a long-term relationship, not an explicit commitment, based on a series of discrete projects. Throughout the year these projects might equal the value of a long-term retainer but are structured in a way that offers the client greater flexibility than a traditional retainer based arrangement.

The birth of the Micro-Proposal

Paige Arnof-Fenn, Mavens & Moguls

When agencies know that each job is contingent on the last positive result, they might be more likely to go above and beyond for their clients. “Clients are getting a great value from each and every project. Micro-proposals can be negotiated and inevitably the scope can shift in order to fit the appropriate budget or time line. This creates an environment where ongoing pitching is necessary as is over delivering on the expectation,” says Paige Arnof-Fenn, founder and CEO of Mavens and Moguls, a Cambridge-based marketing company.

If clients are more inclined to “date their agencies” throughout the life of the relationship, at what point should the agency start hinting at a ring? Perhaps never.  Arnof-Fenn believes there are benefits to the project-based approach. “Scope creep is much less when there is a specific project with specific tasks and deliverables. With a retainer, the lines can get muddied and often the agency is pulled in multiple directions without being able to focus on any one initiative.”

The project-based approach offers constant opportunity to engage potential clients.  Without a formal pitch process, infused with a number of agencies vying for the coveted Agency of Record title, the decision to work with an agency is often generated and won through the development of long-term relationship building.

Let’s get serious

The building of relationships is a part of OTW Advertising’s development strategy. Cindy Hale, president:

“We carefully target businesses we believe need comprehensive work, but only tackle one project at a time. By the middle of the project, our clients are already invested and wondering about the next step, the next phase and how we can continue to push them forward. Then, we build projects based on priorities and budget.”

Arnof-Fenn revealed that she spoke with a client on and off over 4 years before any money was exchanged. And what was the difference after 4 years of talking? A simple cup of coffee, over which Arnof-Fenn shared some business updates and continued to showcase the value she brings to her partners. “If you are well-networked, have been at it for a while, and have a good track record, that bodes well in this environment. You’ll have a seat at the table.”

Does the ring really matter? Do you have a different relationship with partners that do long-term projects versus shorter-term ongoing projects?

About the author

Rebecca Garnick Ast -

Rebecca brought her passion for strategic brand development to Tippingpoint Labs in early 2010. As Brand Director, her role includes championing the focused growth of the agency through mutually beneficial partnerships and results oriented initiatives that help strengthen brand credibility, reach and influence.

A skilled marketing executive, Rebecca has successfully built both entrepreneurial and established brands. Through business-driven marketing programs and partnerships with worldwide leaders including Rolex, Ogilvy, P&G and Wal-Mart, she has championed increased revenue and decreased customer acquisition costs. Coupled with her entrepreneurial experience at Streamline.com, LifeClips and RunMyErrand,  she has a well rounded, flexible and thorough marketing approach

She earned an MBA from Babson College where she focused on entrepreneurship, opportunity identification, marketing and consumer behavior.

"Consumer behavior in the digital space is evolving. The only way to be successful is to deliver the right message, apply the right media, and distribute on the right channel. TPL is securely positioned to deliver on this promise of building branded relationships that lead to measurable results."