Dumb question but can someone please explain how a consultancy is different than an agency? I understand in terms of projects vs. retainers but what’s up with the consulting firms making so much more money? Especially now when we all do the same kinda stuff? Also why is everyone trying to get into martech and agencies are calling themselves consultants? Man I’m confused haha

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Consultancies typically provide decision making support for higher level problems that affect the client's company as a whole or the business unit. Agencies execute on a small slice of that strategy - developing marketing tactics for individual products. Sometimes they set the marketing strategy, but the fees you can charge for helping to make billion dollar decisions are much larger than those you can charge for decisions over a budget several orders of magnitude less.

smarthelpful

@OgilvyConsulting - y’all good?

I started in consulting for 20 years and then spend a few years as an executive at an agency and there is no comparison. Got back to tech consulting as soon as it was feasible. I’m sorry, but agency folks are not as smart, motivated, or hard working as consultants. And the value for the work isn’t there and so clients willingness to pay was lower.

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It’s more organizational strategy and design with creative as a service. I made the shift from agency to consulting 7 years ago and focus on restructuring the clients internal operations and teams around optimized workflows and processes. Since I was an agency ECD, I know all their tricks to bloat budgets, so those are the first to go which saves the clients money and commands a higher price for the service. At the same time building their internal teams to cut all the day to day creative work out from the agency scope.

I see consultancies as bigger and more focused on tax, advisory and accounting. They overlap with agencies in digital marketing, commerce, systems integration and CX. Can be quite simiar

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