Neil Tortorella is a veteran graphic designer with
over 25 years' experience in developing identities,
collateral and web solutions for both large and small
companies. Based in Northeast Ohio, Tortorella Design
has received numerous awards for design excellence.
Becoming a full-fledged ad agency
by Neil Tortorella
The follow came in to Bill's inbox
and he asked me to tackle it. So, without further ado, here's
the query and my response:
I'm working as a Visualiser in
a company. Also Freelance with 2
clients of my own.
I am a Commerce Grad with no formal Arts degree. Am learning
both Traditional and Commercial Art on my own (reading, internet,
other designers, etc.)
How do I transform myself into a fully fledged ad agency
(handling both creative and business side) effectively? What
are the
basic things I should remember for the above?
Also, kindly throw light on the basic matter to be put in
an Estimate and a
Bill. May I get a template for the same, if there is any.
Please help.
Thanks
Karthik M.
Karthik,
Our boy, Bill shot this one over to me to answer. So, here goes.
If you're looking to become a full-fledged ad agency, the first thing to do is
set up your business plan to reflect this focus. Agencies are a different animal
than design firms. One of the biggest differences is media buying. Ad agencies
make the bulk of their dough from media commissions, along with mark ups. I've
been out of the ad biz for a while, but commissions typically range from 15%
to 17.65%, if memory serves.
So, in addition to knowing the creative - art direction and copy - you've got
to have a handle on the ins and outs of media buying. Media buying is tricky
and an entire industry of its own. You'll need to educate yourself about how
radio works, tv and a myriad of other vehicles.
You'll also need a handle on the "the big picture" when it comes to
creating a campaign. You start with a concept and strategy and then adapt it
for various types of media such as print (newspapers & magazines); outdoor
(billboards, transit, etc.); radio; t. v.; direct mail; etc.
Plus, either you, your employees or team members are going to need more than
just a working knowledge of production across these various media. That means
knowing how to produce a radio and tv spot along with how to set an ad up to
run in several publications with different size requirements.
On the business side, you'll need a sales strategy for getting clients and keeping
them. You'll also need a fair amount of working capital. Media doesn't come cheap
and you can find yourself in that not so happy place if you've got a couple of
slow payers ... or worse, no payers. If you're not careful, you can get caught
in the middle of media and production bills and a slow or no-pay client. Not
a good place to be.
I'd recommend you try to pick up a copy of "The Designer's Commonsense Business
Book," by Barbara Ganim (North Light Books, $27.99 US). It's a bit dated,
but carries a lot of useful information. Although it's title says,"Designer's," much
of the content is focused toward ad agencies.
Also, check Cameron Foote's Creative Business site at www.creativebusiness.com.
The site has a lot of good information and links to Cameron's books and CDs which
will give you a lot of information and direction.
Another resource is Second Wind. Second Wind
is a network of [smaller] ad agencies and provides its members with lots of resources.
You find some useful free forms and articles on their site.
As for estimating, you'll need to get estimates from all involved in producing
the ads or campaign. Those fees will likely get marked up by you. Typical markup
ranges are 15% - 20%. You can find some estimating forms in CL's Resources section
When you're
doing your estimating, it's a good idea to slap an extra 20% or so on top. Everything
takes longer than you think.
Billing can be handled several ways. A lot of places bill by the project, usually
breaking it down into thirds. I bill monthly for tasks completed during the previous
30 day period. Still others choose to work on retainer. That's agreeing on a
set fee for a set number of hours each month. Overages are billed in addition.
In any event, you'll want to get some money upfront.
Beyond all this, associate yourself with others in the field - writers, production
folks, photographers, media buyers, public relations people, etc. You can then
build a team specific to each client's needs. It's generally not the best idea
to try to be all things to all people. At best, one ends up being mediocre at
several things rather than brilliant at one or two.
In the end it's important to carefully plan your business and have contingencies
in place when things don't go the way you hope. Ask yourself what market segments
provide the best opportunities for your talents and experience. What's the best
way to reach them? What make you different than every other agency out there?
