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I'm OK with mediocre work if it pays my bills and I get to go home to my loving family at the end of the day. It doesn't have to be about ego if you don't want it to be.
No agency is ok with being mediocre. They will always prioritize something. FCB for example, amazing at client relationships. Other things may suffer, but every agency finds a niche in the marketplace for what they offer and fully exploits it.
If it’s turning a profit.