Who wins when companies free pitch?
This week I've been deliberating on the subject of 'free pitching' in order to win contracts. As an agency, 383 Project are 'invited' on a pretty regular basis to pitch or tender for work. More often than not the potential client is after some development or concept work to be submitted as part of our 'pitch' and more often than not we find ourselves going through the same deliberations as to whether or not to meet the clients request. Now, before I go any further it's worth stating that this isn't a free pitch 'rant' per say as some of our biggest projects, and best clients, have been won through pitches. But, and it's a big but, just because free pitches can work, it doesn't mean it's necessarily the best route forward for both agency and client. As well as having several downsides for the client, there's also massive business implications for the 'losing' agencies involved as well - a side of the fence we've been on before too.
For clients, the prospect of getting 3,4 (or more!) 'ideas' before signing a contract seems a great prospect. In addition to the benefit of being able to compare a company's response to the brief it also offers the obvious benefit of being able to take forward a more informed picture of what you're wanting to achieve when you finally sign that cheque. In addition, when chatting to our clients as to why they feel concept work is beneficial to them, several came back with the valid reason that they 'don't think visually', and as such a designed concept translates a lot better than words or text. From the client side then the process seems to make sense, but I wonder if that'd still be the case when considering the way in which agencies are forced to tackle free pitches?
From my point of view as a creative director my experience of free pitching in a 18 month window has been a mixed bag....
- We've won some one off jobs
- We've won some great accounts
- We've been able to produce some concepts with a healthy sense of urgency
- We've lost several jobs with no explanation
- On occasion we've had 'ideas' stolen from our pitch and then executed by cheaper agencies
- We've pitched and then realised that the person that wrote the brief didn't actually know what they wanted
- We've been forced on occasion to submit rushed or unfinished ideas because of a dodgy brief or live project time constraints
- We've won jobs which have never come to fruition because 'after fielding responses we have now decided to reassess our entire marketing strategy'
So, where do I actually stand? Well as a designer, my primary motivation is always going to be to win the work off the back of a great design concept. I want to invest as much as possible in the creative, and come back with work that I'm proud of that I believe best suits the brief. The problem is, that with a business hat on this is rarely a realistic approach. To even be able to pitch in the first place the agency needs to have the man hours and cash flow to cover their overheads whilst developing concepts. In terms of being conducive to creating a great design, working with the added pressure that every minute could be loosing you money isn't really a complementary mindset. As such, when it comes to 'the pitch' clients often end up with solutions that have been produced in a hurry and with a response that doesn't truly represent the way in which the agency would have tackled the brief had it been a 'live' job.
Organisations like NO!SPEC suggest that creative businesses should protect the interests of the industry by uniting in refusing free pitch requests. NO!SPEC seeks to promote the reasons why free pitching has a detrimental effect on everyone involved and encourages agencies to adopt a 'No spec' mentality. As good as this may sound I do wonder how sustainable this approach is - it's certainly not a business model I can see working for most young agencies (it wouldn't have for us). A number of other organisations like the BDI have piloted pitch guidelines which take a more cooperative approach, seeking to set templates and guides which businesses and agencies can adopt to try and reduce or eradicate the need to produce concepts through a more informed interview process. Again, this sounds great, but without a better awareness of the pitfalls of free pitches amongst 'non creatives' then I wonder how businesses are expected to become motivated to adopt these practices and how some of these principles will actually take root?
So, then is there a solution? Does free pitching work? And do people believe it's an acceptable business practice? As a designer I certainly don't find the process ideal, and as a business owner I have found it can be expensive and costly to both agency and client.
What do people think? over to you.....
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I reckon free pitching will always be around (even if not the best practice) – it’s an easy way to get good work, and I doubt IP law will ever be good enough to stay ahead of it. Whether or not creative businesses will ever be in a position to refuse to pitch is a different matter.
Ideally all the best agencies would refuse to pitch for free (don’t some do this already?) – in the end creative business owners probably need to choose between the ethos of the company (not allowing the motivation/vision behind the enterprise to be eroded) and the need to keep profit margins high by keeping [potential] clients happy.
Hi Dan,
Yep I agree. It's a classic business vs creative call for most design agencies. At present a number of agencies refuse to pitch for free, but there's still some major players who don't. There's not always a correlation between those who don't free pitch being the 'best agencies' though. For most SME creative agencies it's still very much a necessity than a preferred choice. Many large ad agencies I know of have reached a size where their turnover is such that free pitching can be costed in as part of their business model. This is fine for the larger agency, but negates to address the fundamental issue for smaller companies where the creative could be just 'as good', but the resources don't lend themselves to being able to always deliver the work at pitch stage for free. The fact that the design industry is in some respects a 'cottage industry' made of smaller agencies makes it more difficult to adopt an entirely 'anti free pitch' ethos. I think this will always be the case until theres better dialogue between those commissioning the work and those of us who deliver it - looking past the end user benefits of free pitching and recognising some of the compromises it creates.
Interesting post Dan, I can definitely relate - as I'm sure most in our industry will.
I wonder if we look at jobs where we've pitched for free, how often the final product has to be moved away from what was pitched as the project develops and we understand the requirements in more depth? Obviously the concept is a key element for the client, and what they ultimately buy in to, but you can only validate a concept so far for a pitch?
Is it better to concentrate on a single 'big idea' that can be worked through to deliver the requirements and developed creatively as the project moves on, than coming up with 3, 4 or more ideas of which there's probably 2 strong contenders and one which you'd throw your weight behind if it was up to you and not the client?
PR firms run into this problem as well, and it sounds like we balk at it for the same issues design firms do. Since we try to work with clients who want us to develop a strategic PR plan and then work the plan, rather than one-off projects, we really dislike doing a full spec plan. We don't know enough about the client to provide the best and most strategic recommendations, and when we do win those full spec pitches, we often have to make major alterations to the spec plan after we've had time to really dig into learning the client.
Bottom line - occasionally we'll do a full spec pitch for a particularly desirable client, but most of the time, a request for a spec plan raises the red flag that this client probably won't be a fit for us.
Creative pitches should be paid for. We charge clients for updates and new assignments so it would therefore be hypocritical for non paying companies get our ideas and work for free? We’re not here to educate their existing suppliers with our ideas. Intrinsically pitches create an artificial environment lead by a Client’s sometimes limited knowledge and a scenario built on a tendering model more suited to the procurement of 1 Million Bed Sheets and Pillow Cases for the NHS. Some of our best customers are the ones that originally sat down and had a two way conversion with us about their requirements, their plans and aspirations and allowed us to suggest a solution that we were able to underpin with a demonstration of previous work and success. Prospective clients without a budget for pitches can see our style, interrogate our ability and ethos and this should be the way forward. Winning a free pitch on the day can form the basis a fragile relationship if no respect for time and effort is initially offered.
Thanks.
Interesting post ToM. You said, “it uses and alters the shot material of Brando without his consent or creative consultation.” That might be somewhat difficult due to Brando’s being dead.