BryanPovlinski.com

Hiring a marketing consultant or ad agency can be quite expensive.  Most of the time a consulting firm will charge a given rate per hour and you pay simply for their time.  Supposedly the firm has so much expertise that they’re definitely going to get it right, and you should pay them for every minute that it takes for them to make it happen.

Consulting firms, ad agencies, or other marketing service providers that charge by the hour or even by project will be obsolete within 5 years.  Why?  Performance is so much easier to track, and other companies are starting to realize that they can provide enough value to be profitable.  This makes the buyer’s decision so much easier because they can’t lose.

For any kind of web campaign or initiative that involves the internet (and what doesn’t involve the internet these days) you can download a free application like Google Analytics and measure any kind of variable you’d like.  Email sign-ups, clicked links, conversions, can all be easily tracked by these free applications.

What about a marketing service that doesn’t involve the web like branding or graphic design?  That can’t be tracked as easily, but they can be tested.  Services like crowdSPRING and 99 Designs allow you to get advertisements, websites, or print materials designed at a fraction of the cost of hiring a full service agency.  Designs from these speculative competitions can be tested against each other to focus groups or in smaller test markets.  Then you’ll have a clear idea of the value you’ll be able to get from the project.

If you’re an ad agency or marketing consultant it might be the time to reconsider your business model.  Charging $300 an hour for your services might not last very long.

This month Inc. Magazine did a feature article on Ponoko, an on-demand manufacturing platform from New Zealand. The article explains founder David ten Have’s motivation of starting a company that provided an opportunity for everyday people with a desire to make things.

The article explains ten Have’s theory that the innate desire to make things has been suppressed by our “consumer-oriented” society and the fact that we’re so used to being able to go buy whatever we want at Wal-Mart or any other store.  Ponoko is absolutely an awesome business concept.  I can upload a design for any kind of object that I can dream up and Ponoko will have it manufactured for me at a reasonable price.  No minimum quantities or any other restrictions.  If I want to sell my creation I can set my own retail price and even use their web site to start marketing it.  Plus, if I’m planning to sell I don’t have to purchase any kind of inventory.  My product is stored simply as a design file on my computer and whenever someone makes a purchase I can place another order with Ponoko to have one made.  I’m excited…this is really cool!

However, here are the problems I see with this as a major business.  How many people really understand how to use CAD (computer aided design) applications?  I don’t, and I’d consider myself pretty proficient with technology.  Ponoko has already addressed this by allowing users to request a product by working with an experienced designer.  That’s definitely helpful because then I don’t have to worry about learning the software.  But the deeper questions is how many people really have their own ideas for how a product can be made?  If I want a new table I’m probably going to go looking around a store to see what types of designs look best.  I’ll probably be able to find one that I really like.  I don’t think I need to create my own when I don’t have the slightest idea of how one should look anyways.  Have I become a victim of the consumer-oriented society that Ponoko’s founders are trying to rebel against?

Regardless of how Ponoko does as a business, I think it’s a great concept and I plan to try it out and get a product built soon.  Heck, maybe I’ll even try to sell a few.  I do hope this type of distributed manufacturing catches on because it could lead to innovation in a whole slew of product categories.  Is Ponoko something you’d like to try out?