The Value Equation Blog

Insights, frameworks, and tools to help your agency stop selling effort and start scaling value.

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Why Agencies Must Shift to a Solution-Based Monetization System

Agencies won’t gain pricing power by tweaking scopes or switching from hours to deliverables. Real transformation begins when firms redefine the unit of value itself. A solution-based monetization system moves agencies away from selling tasks and talent toward selling outcomes, expertise, and repeatable methods. This shift clarifies what clients truly value, strengthens differentiation, and creates a commercial engine that consistently captures more of the value the firm creates.

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You Know Your Costs. But Do You Know Your Value?

Most firms know their costs but struggle to articulate their value — and that’s exactly why buyers hold the advantage in pricing discussions. This post explores how agencies can shift from defending hours to leading with outcomes, reframing pricing conversations around measurable impact instead of effort. As AI accelerates delivery and erodes the usefulness of time-based models, firms must adopt value-led strategies to protect margins and strengthen pricing power. Learn the questions, frameworks, and mindset shifts needed to price with confidence in a procurement-driven world.

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Before You Price Outcomes, Map Your Control

Before you can confidently price outcomes, you first need clarity around what you actually control. The Value Control Map helps teams distinguish between the outcomes they own, the indicators they influence, and the external factors they can only observe. This simple shift strengthens pricing conversations, reduces risk, and aligns everyone—agency and client—on where true impact happens. Use it as a foundational tool in scoping, retrospectives, and project planning to protect your team and elevate your value.

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The Agency Model Map™ — Redesigning How Firms Define and Capture Value

The Agency Model Map™ helps leaders understand where their firm stands in the evolution of defining and capturing value. By assessing both positioning clarity and pricing maturity, the map reveals the patterns that limit scalability and the opportunities that unlock defensible, profitable growth. This framework gives agency leaders a clear compass for moving from effort-based operations to a model rooted in expertise, outcomes, and long-term value creation.

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The Four Archetypes of the Agency Model Map™

The Agency Model Map™ outlines four distinct archetypes that reveal how agencies create and capture value — from effort-driven firms stuck in reactive delivery to fully evolved organizations that scale expertise, not hours. Each archetype highlights the strengths, risks, and structural patterns that shape an agency’s growth ceiling. Understanding where your firm sits today provides clarity on what must change for you to unlock pricing power, differentiation, and scalable profitability. This framework turns guesswork into a roadmap for transformation.

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How do we price outcomes when we often don’t own the events that drive the client’s business result.

Pricing outcomes doesn’t require owning the client’s entire business ecosystem—it requires clarity about the specific results your agency can credibly influence. Instead of tying compensation to lagging KPIs like revenue or market share, focus on the leading indicators you shape most: brand consideration, engagement, conversion velocity, and efficiency. When agencies define a Scope of Value before a scope of work, pricing shifts from effort to impact—creating more confident, value-aligned partnerships. You don’t need full control to price outcomes; you just need to define the right ones.

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The Great Agency Reset: Moving Beyond Time-Based Pricing in an AI World

AI is collapsing the value of time-based pricing, exposing the gap between how agencies create value and how they charge for it. As production timelines shrink, procurement teams gain leverage, commoditizing deliverables and pushing margins down even further. Agencies can no longer rely on hours or deliverables as their pricing anchor—they need a solution-based commercial model rooted in outcomes, expertise, and differentiation. This post breaks down why pricing change must follow positioning and productization, not precede them.

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Knowing When It’s Time to Reposition Your Agency

This blog is fundamentally about recognizing when your agency’s position in the market no longer aligns with how you create value, how clients perceive that value, and how that value should shape your future strategy. It’s squarely about redefining where your value sits in the market.

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The 5 Agency Growth Pathways: From Hustle to High-Margin Scale

Most agencies work harder every year yet struggle to see meaningful increases in profit or stability. The problem isn’t effort—it’s the underlying business model. This guide reveals the five pathways agencies move through on the journey from time-based, transactional services to scalable, high-margin, market-leading value models. By understanding where you are today and which shifts matter most, your firm can stop running in place and start building a more profitable, resilient future.

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Productizing Your Agency’s Value: What It Is, What It Isn’t, and Why It Matters

Most agencies try to escape commoditization by packaging services—but true productization isn’t about bundling deliverables. It’s about monetizing your expertise and designing solutions that solve high-value problems with measurable impact. This guide breaks down the difference between productizing services and productizing value, and shows how agencies can achieve stronger pricing power, clearer differentiation, and scalable, high-margin growth. If your firm is ready to move beyond labor-based revenue and into strategic value creation, this is your roadmap.

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Unlocking the Dynamics of Modern Marketing Procurement

Modern marketing procurement is evolving fast, shifting from a cost-control function to a strategic partner focused on long-term value, innovation, and measurable impact. In this guide, we break down the procurement personas agencies are most likely to encounter—and the negotiation strategies that work with each. As brands move toward outcome-based compensation models, agencies that understand procurement’s motivations and lead the value conversation will be far better positioned to protect margins and build stronger partnerships. This is your roadmap to navigating procurement confidently and on your terms.

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From Transactional Services to Scalable, High-Margin Growth

Most agencies struggle because their service models keep them stuck in transactional, low-margin work. The Solution/Market-Fit Matrix changes that by helping firms identify the highest-value problems they are uniquely qualified to solve—and package their expertise into scalable, differentiated solutions clients will pay a premium for. This shift transforms sales conversations, strengthens pricing power, and turns fragmented services into repeatable, high-margin growth engines. If your agency is ready to move beyond deliverables and start selling outcomes, this framework provides the roadmap.

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The Expertise Paradox: When Service Expansion Becomes Value Destruction

Many agencies believe that expanding their service offerings makes them more competitive, but the opposite is often true. As capabilities multiply, operational complexity rises, margins shrink, and true expertise becomes diluted. The most profitable firms aren’t the ones doing everything — they’re the ones boldly narrowing their focus to the services that create the greatest value. This article explores why doing less is the path to stronger positioning, healthier margins, and deeper client impact.

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From Complexity to Clarity: Function Growth's Productization Success and Advice for Others

Function Growth’s rapid success brought an unexpected challenge: increasingly complex services that confused prospects and slowed growth. By stepping back and productizing their value, the agency clarified what truly drives outcomes for clients and reshaped how they package, price, and deliver their expertise. Their shift to clearly defined solutions like DRIVE, CONVERT, BOOST, and MAXIMIZE has already strengthened sales conversations, streamlined delivery, and positioned the firm for scalable, profitable growth. Their journey offers valuable lessons for any agency struggling with complexity, low margins, or a lack of clear product–market fit.

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Insights From Leaders of 3 Value-Led, Timesheet-Free Agencies

As more agencies question the sustainability of billable hours, a growing group of firms is proving that value-led, timesheet-free models are not only possible but commercially advantageous. In this piece, leaders from Hard Numbers, Bullish, and FIG share how they shifted from time-based billing to models rooted in outcomes, performance, and impact. Their stories highlight the operational, cultural, and financial benefits of abandoning timesheets—and the conviction required to stand firm with procurement. For agencies considering this shift, their insights offer a practical and inspiring roadmap forward.

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The Future of Agency Revenue: Products, Price Tiers, and an AI-powered Chief Pricing Officer

Many agencies are leaving revenue on the table because they lack a clear pricing strategy, rely too heavily on billable hours, or struggle to negotiate confidently with procurement-driven buyers. A product-based model combined with tiered pricing can transform revenue potential, strengthen positioning, and help agencies sell on value rather than time. This blog introduces a custom ChatGPT prompt that functions like an AI-powered Chief Pricing Officer, giving agencies expert-level guidance on pricing, packaging, and negotiation. Paired with human judgment, this tool helps firms make smarter decisions, improve win rates, and unlock more profitable deals.

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Change is on the Horizon for the Agency Business Model

The traditional labor based agency model is running out of runway, especially as AI accelerates delivery and procurement pushes harder on hourly fees. This post walks through how value led models like value based, performance based, output based, and especially product based compensation are reshaping how agencies define and capture value. You will learn why productization is emerging as the next evolution of output based models, what it really means to turn your services into products, and what agencies must rethink in their business model to make this shift work in practice.

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The Fleeting Relevancy of Agency Timesheets

Timesheets were built for another era — one where value was measured in hours rather than expertise. For modern agencies shifting toward productized and value-led models, clinging to time tracking only limits growth, creativity, and profitability. This blog explores why timesheets no longer represent value, how they undermine operational health, and what to measure instead in a future-ready agency. The takeaway: to stay relevant, agencies must redesign their operating model around outcomes, not hours.

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How Can I Make Changes to My Agency When We’re Too Busy?

Many agencies ask how they can make meaningful changes when their teams already feel stretched thin. The real question is whether you can afford not to. Growth adds complexity, and without adapting your operating model along the way, you accumulate organizational debt that eventually slows delivery, burns out your people, and erodes margins. Sustainable growth requires proactive adjustment, not waiting until the pain becomes too great to ignore.

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How Do We Run a Client-Facing Retrospective Meeting?

Client-facing retrospectives are one of the most effective — yet underused — tools for strengthening agency–client relationships. Instead of waiting until the end of a project when it’s too late to influence outcomes, frequent retros help both teams reflect, adjust, and realign every few weeks. By creating a safe space for honest conversation, agencies build trust, improve collaboration, and keep work moving toward shared outcomes. Done well, retros become a lightweight habit that drives better work, stronger relationships, and higher-performing teams.

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