How to design a winning marketing agency

🌈 Abstract

The article discusses what makes some agencies capable of leading the industry, using the example of the branding agency Ragged Edge. It explores the agency's model and the various "flywheels" that drive its success, including:

• Bringing in copywriters early in the process to generate richer, more conceptual ideas
• Encouraging positive feedback when presenting new ideas to clients to build momentum
• Investing in case studies of the end-to-end branding work they want to be known for
• Hiring a Head of People early on to maintain a collaborative, non-hierarchical culture as the agency grows

🙋 Q&A

[01] Strong Businesses and Flywheels

1. What is a flywheel, and how does Ragged Edge leverage it in their agency model?

• A flywheel is a virtuous cycle where decisions drive momentum across an organization.
• Ragged Edge has built its own series of flywheels, such as:
  • Bringing in copywriters early in the process leads to richer, more conceptual ideas, which drives better work and happier clients, resulting in more business for the agency.
  • Asking clients to start feedback with something they like about a concept builds momentum around bolder ideas, enhancing Ragged Edge's reputation and attracting new clients.
  • Investing in case studies of the end-to-end branding work they want to be known for has allowed them to gain more clients in that space.

[02] Collaborative Culture and Talent Attraction

1. How does Ragged Edge maintain a collaborative, non-hierarchical culture as the agency grows?

• Ragged Edge noticed the agency was becoming more siloed and hierarchical as it grew.
• To address this, they hired a Head of People early on (around 20 headcount) to ensure employees had a say in decisions and to help attract and retain talented teams, which drives better work.
• The Head of People, Lisa, is described as approachable and empathetic, allowing everyone to feel they can speak openly with her.

2. Why does Ragged Edge believe having a Head of People is important for an agency, even when the agency is relatively small?

• Ragged Edge believes people are the core product of an agency, just as a technology company would have a Head of Product. Investing in the people and culture is critical for an agency's success.

[03] Quality over Quantity

1. How does Ragged Edge's focus on quality over quantity of projects benefit the agency?

• Ragged Edge wants to increase the value of each project rather than just billing out more projects. This means going slower and charging more, not because they can, but because they are worth it.
• This focus on quality attracts bold, willing-to-pay clients and talented teams, which spins the flywheel - the best work brings in new clients.

[04] Conviction and Belief in Branding

1. How does Ragged Edge convince clients to make bold decisions with their brand?

• Ragged Edge believes branding is about conviction and belief. The only way an external party can drive meaningful change is if the client team truly believes in the new direction.
• Ragged Edge does not try to impose their point of view, but rather makes a strong argument and waits for the client to build deep conviction in the new direction.
• They look for robust discussions and challenges from the client, as that indicates true engagement and belief, rather than just nodding along.

2. What studies does Ragged Edge reference to help clients understand the importance of a distinctive brand?

• Ragged Edge references studies from the 1930s showing that distinctive elements (like a name) are more memorable than similar elements. They use this to help clients understand why a unique brand identity is important.