Pitch IP Is NOT Free
There is an RFI from a large CPG company that has been released to agencies this week. The company is offering no compensation for pitch IP… AND stipulating that they own the work.
Pitch IP is NOT free
After managing reviews for almost two decades, AAR Partners makes it clear to all its clients that pitch assignments are acceptable but all intellectual property presented belongs to the agency presenting until paid appropriately.
There is a very simple argument that financial capital fundamentally relies on intellectual capital. And if you give away that intellectual capital, what happens to the financial capital? This doesn’t mean that you cannot allow prospects to “sample” your thinking by sharing solutions to similar problems you’ve solved. Share relevant case studies and dive into as much detail as possible.
Here are a couple of suggestions to curb free IP:
1. State that there is a fee for your time. There is a big difference between some simple advice and providing (almost) actionable solutions. If the prospect wants to “pick your brain,” indicate that you will happily charge an hourly or flat rate for your time, insights and semi-solutions. If they decide to work with you on an ongoing basis, you can always offer to deduct some of the upfront costs in exchange for an AOR-type of relationship. If they do not move forward, then they appropriately paid for some topline thinking.
2. Depending on the situation, ask for a piece of the action in exchange for your IP… A simple agreement detailing a percentage of revenue in exchange for help is fair and helps offset upfront costs for the prospect.
Bottom line? Don’t devalue and worse, commoditize yourself, your services and your years of hard work that led to your wisdom and knowledge. That is NOT for free.
Pitch with Passion, Lisa
