Last week we looked at how the ‘gig economy’ is benefitting the country’s freelancers. In a follow-up interview, we chat with digital marketing guru, Nick Wilsdon – founder of E3 Business Incubator and Global Channel Optimisation Lead at Vodafone Group.
For two decades, Wilsdon has been recognised as an expert in search engine optimisation, being one of the first ‘SEOs’ to develop the discipline in the UK. He’s also a vocal advocate of the ‘networked agency’ model (or ‘incubator model’, as he calls it) that Nick Hoskin and Ben Wrigglesworth spoke so eloquently about in our previous blog. Who better, then, to explain the way things are going to work?
Having worked in traditional agency setups before, what is the attraction of the new incubator model, whereby freelancers come together to work on projects as and when they see a situation that each could contribute to?
The internet has completely transformed the way we work. Professionals can now work remotely, using team communication tools to collaborate on projects, rather than sitting together in an office. Flexible working, usually a key part of the incubator model, suits those who want to avoid the daily commute or have existing work or family commitments.
Unlike financial incubators, they will offer skills and experience rather than funding to a project. There are sometimes opportunities to receive equity in the business, which is interesting to freelancers who want to build their own revenue streams.
What benefit does the client get from this kind of service, do you think?
The main benefit for clients is being able to keep their start-up costs as low as possible, as they test out their business proposition. Nine out of 10 start-ups will fail, and interestingly, the main reason for this is the lack of a market need for their product or service.
The incubator model can quickly get the business online and leave the client with funds to re-pivot the business proposition or invest in paid marketing. For established businesses, there are also strong benefits in the incubator model. They can get direct access to a team of hands-on consultants who would normally be charged out by an agency at the higher-end of their rate cards.
Successful incubators are focused on business transformation rather than selling services. In my opinion, it’s that focus that both differentiates the model from traditional agencies and explains why it is more effective.
How about the freelance consultants themselves?
This collaborative model is attractive to freelance consultants, as they will work in a team but not have the restrictions of a full-time role. Flexible working allows them to better manage their work/life balance. As the focus of the incubator is business transformation they have the freedom to challenge the business and deliver their value as a consultant.
Incubators will usually pre-screen the projects they take on, ensuring that they have the freedom to make the required changes to the business which results in higher levels of satisfaction with their work.
Is this something you’re seeing increasingly in the digital industry, and do you think it’ll become the norm eventually?
Absolutely, especially among experienced consultants who are looking to develop their own income streams. Many of them have industry friends who they have previously worked with and trust – it makes sense for them to form collaborations outside the usual agency structures.
Businesses are realising that the value they receive from agencies is the people working on their project and not their offices in central London. It makes sense for them to approach these high-value teams directly. It’s also obvious that flexible working will become the norm, as public transport systems reach capacity and fares costs rise. This model is aligned with a far healthier work/life balance and has proven to be more productive.
Do you think the agency model is on the wain?
There are some significant problems with the traditional agency model, especially within digital. They find it hard to retain talent and often have a staggeringly high rate of staff turnover. Too often in large agencies, the work is delegated to junior staff members with little or no experience while the senior talent is focused on winning new business. It would be fair to say that in the case of some agencies, their business has become about by winning pitches rather than delivering great work.
This explains the increasing trend in businesses bringing digital skills in-house. The agency model will continue to work but in my opinion, they will be pushed into providing lower-skilled support or execution as in-house teams and consultants take over strategic responsibilities.
See also…
- Making tax digital: what you need to know
- How the UK’s freelancers are benefitting from ‘the gig economy’
- Great websites and startups helping freelancers in the UK
- Basic tax tips for the self-employed
If you’re considering taking the leap and becoming a freelancer or an independent contractor and you’re concerned about how the numbers might add up, get in touch with My Accountant Friend – the online accountants with a human voice.
