In these times of financial uncertainty, one thing seems to be clear: those working in the so-called ‘gig economy’ are really finding their way forward. Matt Roberts, chief executive of In Touch Networks, recently noted that “40% of Americans will be self-employed by 2020“, and both he and a recently study entitled Way We Work suggest that the UK is heading much the same way.
As the results of the survey above show, some 68% of the ‘artistic, literary and media’ industries are now freelancers. So, with this in mind, we set off to chat with two of London’s up-and-coming gig economy creatives, both of whom either run or are heavily involved in a new form of marketing initiative: the ‘networked agency’.
As advertising trends change rapidly with the continued evolution of social media and ‘content marketing’, so too must the agencies that have traditionally been the go-to powerhouses for brands hoping to extend their reach.
However, with their designer interiors and ultra-desirable postcodes, only the deep-pocketed client can really afford to keep them on their books, and many are beginning to resent paying over the odds for what can be done in a more efficient and cost-effective way by smaller outfits.
“Clients realised who was paying for all the big, fancy offices and the hundreds of staff within the agencies a long time ago,” explains Nick Hoskin, creative director and founding partner at Something Inc, a lithe and nimble networked agency based in Paddington.
“They’ve become much more aware of getting the most out of their continually decreasing budgets. The networked agency model enables clients to allocate budget based on the deliverables rather than by the hour, so clients are paying for what they need… not just for their agency to have a “cool” office and bums on seats.”
For Something Inc, the model is clearly paying off, with prestigious clients in the drinks industry such as Diageo World Class, Zacapa Rum and Ketel One Vodka on their books. Hoskin explains: “By developing ongoing relationships with a highly curated network of the best creatives, we are able to ensure we assemble a team of Avengers on every project we do.
It enables us to create the best quality output and enables the freelancers to work on amazing projects for big brands whilst also having the flexibility to work on their own things.”
Clearly, there are multiple benefits for the freelancers themselves that go beyond being able to charge a more comfortable day rate. As we’ve seen on these pages before, many of our freelancing clients choose to go down the self-employed route because it offers them the chance to ‘control their own destiny’.
For a creative worker, the idea of being kept on the same project for years on end, as often happens in a traditional agency setup, can sour the creative juices, meaning that neither the client nor the creative get the best out of the arrangement.
By associating themselves with these new networked agencies and making the most of the gig economy, freelancers get to work on large projects with some of the best in their industry – an inspiring situation that also gives them the occasional company that many freelancers find they miss while working from home.
That said, the Way We Work survey reveals that 69% of those now working in the gig economy feel that the need to be in an office to get their work done is less important than it was in the past. Indeed, 52% of them already work in ‘virtual teams’, meaning that the cost of commuting, both in financial terms and in time eaten up, is far less detrimental.
Ben Wrigglesworth, a self-employed creative who regularly works with networked agencies, points out that the work/life balance that many freelancers experience is conducive to a much more productive system. “I think we are seeing a real change in the way people work in general, not just in the digital fields,” he says.
“If we look at some of the Scandinavian countries that have been pursuing this lifestyle for some time, we see much happier people who perhaps work shorter days and are much more energised as a result. It’s not that people don’t want to work, or are lazy – I think people still have ambition and drive. You only need to look at the number of start ups in London to see that.”
So is this what the future looks like? In the world of digital marketing, Nick Hoskin thinks it is. “It’s no secret the agency model has been broken for a while now,” he says, “and we continually see big agencies making acquisitions in an attempt to stay relevant and adapt to the new expectations.
However we also see, time and time again, that that ‘big’ agency expects the ‘smaller one’ to integrate into their processes, which in turn limits the smaller agency’s ability to continue working in a way that enabled them to create what made them desirable as an acquisition in the first place.”
Does that mean that the days of the traditional marketing agency are on the wain? Hoskin is firm in his answer. “I think you would be hard pressed to find anyone that doesn’t think so.”
And with a 22% rise in the number of people now in freelance work in the UK since 2011, you’d be hard pressed to find anyone who doesn’t think change is afoot across multiple industries nationwide. The gig economy, or so the figures would suggest, is truly in the ascendant.
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.
