For as long as I can remember, there’s been a debate in the agency world about whether creative agencies are charging enough for the value we deliver.
We’re told to price the outcome, not the output. To stop trading time for money. To charge like management consultants.
And yet, here we are.
Still pitching for free.
Still being squeezed on scope.
Still trying to reverse-engineer profit into a proposal that’s already been sent.
The truth is, as an industry, we’re nowhere near adopting value-based pricing for agencies at scale. Sure, some experiment with it. But for most, the client relationships and leverage just aren’t in place to make it work consistently.
So if value-based pricing isn’t realistic - what is?
How do we make sure agencies actually get paid properly for the work we do?
The biggest profit leak? Scope creep
Most profitability challenges in agencies don’t start mid-project – they start before the work even begins.
At the proposal stage, we:
- Under-quote.
- Include too much.
- Assume the client will be “low-effort” (they rarely are).
- Forget to account for project management, ambiguity, or client comms.
Then we wonder why budgets don’t stretch and the team ends up over capacity.
The solution isn’t just “charge more.”
It’s scope better.
And one of the simplest ways to do that is through service productisation.
A simple example of productisation
Let’s say you’re pitching campaign creative for a new client. Right now, every proposal is unique. You’re estimating based on a rough sense of effort - and hoping the scope doesn’t shift once the work begins.
Instead, imagine you build a structured, tiered offer:
Campaign Packages
- Gold - For launches and hero campaigns
- Silver - For multi-channel or regular campaigns
- Bronze - For smaller campaigns or fast-turnaround briefs
Is it simplistic? Yes.
Is it effective? Absolutely.
Packaging services this way reduces ambiguity, creates pricing consistency, and makes it far easier to protect project budgets.
Plenty of digital and social agencies are already doing this well. But there’s still huge opportunity to bring the same thinking into other areas - brand strategy, design, animation, production, etc.
The more clearly you define what’s in the box, the easier it is to protect your team, your time, and your profit margins.
Two types of productisation for agencies
When we talk about productised services, it’s worth noting there are really two different approaches:
1. Service productisation
- The most common and accessible.
- You package services into clear, repeatable offers (like the Bronze / Silver / Gold model).
- The benefit is predictability – clients know exactly what they’re buying, and you know exactly what you’re delivering.
2. Product productisation
- Turning your IP, expertise, or process into an actual product.
- Examples include:
• A subscription design service
• A proprietary research or insights tool
• A templated strategy playbook sold at scale - The benefit is scalability - revenue can grow without adding proportional headcount.
For most agencies, service productisation is the quickest win - protecting profit and reducing scope creep. But for those with the appetite and resources, product productisation can open the door to entirely new revenue streams.
Why productisation works
Productisation doesn’t reduce creativity - it reduces chaos.
Here’s what it gives you:
- Clear deliverables - Everyone knows what’s included and what’s not
- Defined boundaries - Easier to manage scope creep
- Repeatable structure - Spend less time reinventing the wheel
- More accurate resourcing - Assign the right team at the right time
- Stronger margins - Built-in buffer without the guesswork
- Faster decisions - Tiers help clients self-select based on budget and ambition
- Easier upsells - Clear upgrade paths for bespoke or premium work
Most importantly, productisation protects your team from the uncertainty that leads to burnout, delays, and resentment. And it helps you preserve the profit margins you scoped for in the first place.
How to start productising your services
You don’t need to overhaul everything at once. Start small and build:
1. Identify repeatable work
Look at the services or deliverables you produce most often. These are prime candidates for packaging into clear, structured offers.
2. Define what’s in (and out) of scope
For each package, clearly outline inclusions, exclusions, timelines, and assumptions. The clearer you are, the less room there is for creep.
3. Create 2-3 tiers
Offer clients a choice (e.g. Bronze / Silver / Gold) so they can self-select based on ambition and budget. Keep tiers simple and easy to compare.
4. Build in buffer
Factor in project management, client comms, and contingency time. Productisation only works if the margin is realistic.
5. Test and refine
Roll out with one service first. Gather client and team feedback, tweak the packages, and expand to other areas over time.
You don’t need value-based pricing to be profitable
The hard truth: most agencies will never fully adopt value-based pricing models. And that’s okay.
It’s not the only route to better margins. In fact, for many, it’s a distraction from the real issue: unclear scoping and inconsistent delivery.
What clients really want is clarity.
What teams really need is structure.
What your bottom line depends on is predictability.
You don’t need to reinvent your commercial model overnight. But if you can:
- Scope with precision
- Price with consistency
- Deliver against well-defined outcomes
You’ll reduce risk, protect profit, and avoid the endless back-and-forth that eats away at time and energy.
A more realistic path to profit
Productisation gives you the structure and clarity that time-based or bespoke pricing often lack.
It gives you the confidence to scope properly, set expectations early, and build in the buffer you actually need - instead of over-delivering just to keep projects on track.
You’ll still be delivering great creative work. But you’ll do it with clearer boundaries, fewer surprises, and far less internal stress.
And for most agencies, that’s a far more realistic, and sustainable, route to profitability.
If you’re interested in this topic, I highly recommend reading Madison Avenue Makeover by Michael Farmer. It’s a fascinating behind-the-scenes look at one agency’s attempt to completely rethink how they work - and yes, productisation is a big part of the story.
