As an agency, we are delighted when the quality of our work gets recognised and we are invited to project tenders. Naturally, every proposal requires intensive engagement with the client, the product, the services and the client in general. We approach enquiries professionally and thoroughly, and we expect the same seriousness from our partners and potential clients.
However, it is not uncommon for enquiries to go far beyond this, demanding extensive creative and conceptual services within a multi-stage and often months-long process. Clients therefore often resort to a pitch, meaning several agencies are invited to present concepts, design ideas and strategies. So far, so standard and legitimate.
However, anyone who wishes to compare more, demanding extensive and detailed drafts, must also anticipate corresponding effort from the contractors and factor in cancellation fees.
Apparently, this fact has not yet reached everyone. A recent study indicated that in 2014, two-thirds of clients did not consider paying a pitch fee. This is despite increasing quality demands on the delivered (free) work. Many companies therefore still resort to the supposedly tempting free pitch.
But what does a client actually receive when they demand a service without reciprocation, who ultimately pays, and why we, the agencies and creatives, are actually to blame for this bad habit ourselves. An attempt at explanation.
How Much Does a Pitch Cost?
Let us consider a typical medium-sized web project. Briefings are provided with requirements, objectives, target group analysis, personas and/or user stories. Ideally. The list is endless. A costing, design proposals, a strategy, a navigation concept and information architecture are requested.
This means that concept developers, controllers, designers and developers work together on the creation and implementation. Research is conducted, analyses are made, concepts are developed, and then the results are discussed in meetings before documents are prepared and drafts created.
With an average agency hourly rate between EUR 80 and EUR 120 and an estimated 50-100 working hours (depending on complexity), this theoretically equates to a monetary outlay of EUR 4,000 to EUR 12,000. A not insignificant sum.
Ultimately, the Client Pays
Every agency pitch is therefore reflected in the pricing. Yes, that is how it is. If an agency participates in five to ten free pitches a year, the costs quickly amount to a high five-figure sum. Even if a certain percentage was factored in, few service providers can afford this in the long term. And the sad truth is: if the effort is not remunerated, existing clients will pay in the medium term. This approach is unfair to current clients and damages the trusting partnership between the agency and the client.
Reputation Building and Praise
But what are the motivations behind creatives engaging in this game? Honestly: who has not offered their services for free at least once, because the hope of follow-up projects, strengthening reputation or entrepreneurial ego was soaring? Everyone knows this! And clients know how to exploit it.
Almost anything is dangled as bait. Sometimes with a kind of “prize money” if you make it into the top 3. Or material prizes are offered. Sweets, snacks or annual supplies of drinks, we have seen it all. From a business perspective, an interesting offer. Not.
The pinnacle of absurdity is then the reputation scam. It sounds something like this: “It is a great opportunity for you and your company to present yourselves to a wide audience.” Tempting. From a client’s perspective, however, one should then question whether they genuinely want to bring experts on board who offer their services for free and do not recognise the value of their own work?
The Fallacy: The Next Big Contract Is Beckoning
And then there are the promised follow-up projects. But the idea is as simple as it is wrong, and it repeatedly lures small agencies into a trap: “If we just show (for free) how good we are, word will spread, and we can expect larger contracts and more lucrative budgets.” The reality, however, is sobering: free work does indeed spread, and it primarily attracts clients who are often unwilling to cover actual expenses anyway.
The Clients Are Not (Solely) to Blame
The clients are not to blame for this predicament; internal industry self-reflection is required here. Let us look across the entire service sector. Hardly any industry allows free services to be obtained, which may – if the result is satisfactory – be paid for at a later date.
Anyone working in the creative industry knows how much effort goes into designing a logo, a campaign, a slogan or a website. But we cannot expect clients to be aware of this. It is our responsibility to work transparently and thus demonstrate that a claim is not developed in five minutes, business cards are not created during a lunch break, the interaction design for a website does not take just one afternoon, and a web shop is not implemented in a few hours.
We love our work, implement our projects with passion, and avoid off-the-shelf solutions. This involves creative processes that span months and are interdisciplinary. The effort is not solely measured in hours but also depends on the experience and expertise of the service provider.
To conclude with the words of designer Paula Scher: “It took me a few seconds to draw it, but it took me 34 years to learn how to draw it in a few seconds.”
