Becky McKinlay, Managing Director at Oystercatchers, delves into the complexities of intermediary models in agency selection and shares six essential tips to help clients get a transparent and best value service.
by Becky McKinlay, Managing Director, Oystercatchers
1) Question the cost of intermediaries offering ‘free’ consultancy advice to clients. How is that possible? Only by the intermediary being paid by the agencies they recommend. It’s often not clear to clients that’s what’s happening, or that they are only being recommended agencies who pay for that recommendation. Employing an intermediary should deliver an agnostic view of the market, with recommendations based on client needs formed from an holistic and informed view. Otherwise its promotion, not consultancy.
2) Beware of hidden fees. A marketing director accepting a free service from an intermediary, because procurement won’t sign off a consultancy fee. How will procurement react when they understand the fees they pay their chosen agency will have to cover the commission the intermediary charges them?
3) Demand expertise, not just data. An intermediary recommending an agency to the client when they don’t know them. Anyone can do desk research to reveal client wins, awards wins, headcount etc – but understanding the cultural alignment, innovation, team experience factors that make up a great potential partner, can only be provided through detailed knowledge and understanding. Facts pulled from spreadsheets alone is not consultancy.
4) Understand the value of Client-Paid Intermediaries. The word ‘intermediary’ has various usage and interpretations. The most common is the ‘middle man’ or ‘matchmaker’ description. That’s why so many businesses can claim to be an intermediary. But an intermediary service paid for by a client adds far more value than that description. How can you find the right agency if you’re not matching it to client vision, ambitions, structures, operating systems and budgets? A true intermediary will go beyond matchmaking by aligning agency recommendations with client ambitions and needs.
5) Clarify the difference between a headhunter and recruiter. Often, clients and procurement departments not digging deep enough into the differences between intermediary models. What’s the difference between a ‘headhunter’ and a ‘recruiter’? Apart from the cost, the difference is in personal service, strategic input, negotiation, value assessment and long term fit. In this comparison, Oystercatchers are a headhunter – deployed for strategically important engagements, not quick fixes.
6) Understand what you’re buying… and who’s paying for what. In a world of increased staffing costs and bottom line pressures, hidden costs and success penalties imposed on agencies don’t cut it for brands, procurement teams or agencies. It’s time for real transparency, value and fairness.