Your clients have warehouses filled with products. But if you’re an agency, what’s in your warehouse?
Traditionally, the answer has been “hours.” Agencies treat time as their core inventory. Project managers walk the imaginary aisles of this warehouse, pulling hours off the shelves to fill client orders. Once those hours are gone, they’re gone.
Each billable professional has roughly 2,000 hours available per year. Add it all up, and you’ve defined the total capacity of your firm —your self-imposed revenue ceiling. What other industry would adopt such a limiting business model?
If you shift your perspective from selling “hours” to selling “intellectual capital,” you unlock an entirely different business: one with no inherent limits. This is the model your clients follow — and the model embraced by most successful companies.
Change your paradigm, change your financial future
While agencies cling to the illusion that they sell time, clients harness the intellectual capital of their teams to produce an ever‑expanding range of products that solve customer problems. Agencies can and should do the same.
Start by reframing what you sell. Clients don’t buy services, capabilities, or competencies; they buy solutions to business problems. The key to transforming your revenue model is to stop selling services and start selling solutions. Don’t price the time spent — price the value delivered.
The first step is to reimagine your offerings not as individual services, but as products, programs, and platforms. Hours are not scalable, but products are. An hour can only be sold once; a product can be sold an infinite number of times.
Yes, hours are required to deliver the product. But the product’s value is based on how effectively it solves a client’s problem — not on how many internal hours it consumes. In fact, some tech‑enabled programs may require minimal behind‑the‑scenes labor. That doesn’t diminish their value.
Building a scalable business
The biggest growth barrier facing agencies isn’t demanding clients, a complex media landscape, or a shrinking talent pool. It’s that the agency business model, as traditionally practiced, is not scalable.
A scalable business can generate more revenue without adding more staff—something impossible under a time‑based system.
A product‑based model, however, is infinitely scalable. You can sell repeatable products, programs, and platforms and generate revenue around the clock — the same way your clients do. They earn money while they sleep. Traditional agencies earn money only when someone is logging hours on a timesheet.
To build a scalable business, work with your leadership team to reimagine your offerings — not as a list of services, but as a suite of mutually reinforcing products. Modern agencies typically offer six to ten solution‑centric programs. Each program is supported by product "building blocks" that can be combined, expanded, or removed based on client needs.
The productized business model
For example, the agency, and SoDA member company, Wondersauce offers two main programs. Each of these programs is supported by several products, as follows:
Program 1: Revenue acceleration
Activate an acquisition strategy that powers your brand to scale faster and reach the audiences that matter most.
Product 1: Acquisition Blueprint
- Align your brand and performance goals with a powerful creative and media platform.
- Get in front of your best audience with strategy content built to flex across the channels that matter most for your brand.
- Maximize your media impact with strategic plans and testing frameworks that focus spend where it will work hardest.
- Support launch and ongoing optimization with a scalable library of content and creative assets.
Product 2: Acquisition Optimization
- Uncover exactly where and how to improve performance through focused, insight-driven audits.
- Boost performance through optimizing media, refined messaging, and creative tailored to each channel.
- Eliminate guesswork and focus on what moves the needle, with clear KPIs and attribution tracking.
- Get more out of your existing spend with fast, focused execution that drives immediate results.
Program 2: Digital experience and transformation
Rethink and evolve your brand’s digital foundation to unlock real growth.
Product 1: Visioning & Digital Transformation
- Build bold digital ideas to life through fast, collaborative prototyping.
- Validate concepts with real users and build a compelling business case.
- Align stakeholders and unlock investment with something you can show, not just pitch.
- Explore new opportunities with less risk — and a clear path to execution.
Product 2: Net-New Digital Builds
- Replace outdated systems with a fast, scalable and future-ready platform.
- Launch a seamless digital experience that reflects your brand and drives results.
- Consolidate strategy, design, and development under one expert team.
- Build a flagship site or app that’s designed to perform and scale.
Product 3: Digital Support Engine
- Streamline digital operations and reduce strain on internal teams.
- Continuously improve performance, conversion, and user experience.
- Move faster with a nimble, embedded team that handles design, development and deployment.
- Keep your platform modern, optimized, and aligned with your evolving business needs.
Programs and products serve as frameworks and roadmaps. The process is repeatable; the output is always custom.
This is part of the creative genius of the iconic architect Frank Gehry. While Gehry’s buildings are always brilliantly different, his process is always the same. One might expect Gehry and his team to be wildly unpredictable, but the opposite is true. His reputation for delivering extraordinarily unconventional designs is made possible by a “productized” business model, as outlined in the Harvard Business Review article, “How Frank Gehry Delivers On Time and On Budget.”
Standardized programs do not constrain creativity — they enhance it. Clear frameworks create more space for innovative thinking.
Capturing the value of AI
The rise of artificial intelligence makes a productized model even more essential. By aggressively integrating AI into your programs, products, and platforms, you exponentially scale your firm’s intellectual capital and IP.
Trying to capture AI‑created value through time‑based billing is impossible; you would be reduced to billing by the nanosecond.
To capture the true value of AI, shift your revenue model. Here are three practical approaches:
- Charge a fixed price for outputs created using AI‑powered tools.
- Charge for the outcomes delivered by AI‑powered solutions.
- Charge subscription or licensing fees for using agency-developed programs, products, and platforms that leverage AI.
Your agency’s future depends on its willingness and ability to build an AI‑powered, productized business model. And the time to start is yesterday.




















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