{"id":529,"date":"2025-02-14T13:43:44","date_gmt":"2025-02-14T13:43:44","guid":{"rendered":"https:\/\/productive.io\/bold\/?p=529"},"modified":"2025-02-26T12:10:32","modified_gmt":"2025-02-26T12:10:32","slug":"bold-session-recap-from-service-to-value-unlocking-real-business-model-change","status":"publish","type":"post","link":"https:\/\/productive.io\/bold\/blog\/bold-session-recap-from-service-to-value-unlocking-real-business-model-change","title":{"rendered":"Bold Session Recap – From Service to Value: Unlocking Real Business Model Change"},"content":{"rendered":"

Interviews<\/a><\/p> –

{{minutes}} min read<\/p>

Bold Session Recap – From Service to Value: Unlocking Real Business Model Change<\/strong>
<\/h1> \"\" <\/a>

Marija Kata Vla\u0161i\u0107<\/p><\/a>

February 14, 2025<\/p> \"\"

Shifting from a traditional service model to value-based pricing is one of the biggest transformations an agency can undergo. <\/p>

Yet, many agencies struggle to break free from outdated pricing structures, over-servicing clients, and competing on cost rather than value.

We spoke with Caroline Johnson<\/strong>, Co-Founder of The Business Model Company, who has spent the last two decades helping agencies and professional service businesses rethink their revenue models. With a background in corporate advisory, she has worked across markets and disciplines to help agencies scale, improve profitability, and increase their valuation.

In this session, Caroline shares why the biggest blockers to change aren\u2019t in the market but within the agency itself, the five key milestones for business model transformation, and how agencies can confidently transition to value-based pricing while minimizing client pushback.<\/p>

Can you tell us a bit about your background and how The Business Model Company came to be?<\/strong><\/h2>

My background is somewhat unusual. I\u2019ve been working in business model change for about 20 years now, with a particular focus on professional and creative service businesses. I originally came from corporate advisory, where I was a partner, and one thing we realized was that if you repackage fundamentally great service businesses into a different business model\u2014whether that\u2019s advisory, platform, product, program, or license-based\u2014they become significantly more valuable when it comes time to transact.

Typically, strong service businesses sell at a multiple of 6 to 6.5 times earnings. But when you shift to a scaled product, program, or advisory model, those multiples start at 12 and can go up to 18. So, in corporate advisory, it made sense to develop a practice around repackaging strong marketing services companies across various sectors to maximize their valuation.

Nine years ago, we established The Business Model Company with a singular focus: to run business model transformation programs specifically for the creative and professional services industry. That\u2019s how it all started, and we\u2019ve been helping businesses evolve ever since.<\/p>

What would you say, on average, are the main blockers for agencies to consider this model? What are some wrong assumptions or concerns you often hear from clients?<\/strong><\/h2>

Many agencies believe that their biggest challenge comes from the marketplace\u2014whether it’s clients exerting too much control, procurement making things difficult, or competitors undercutting them. But that\u2019s the wrong assumption. The real barriers aren\u2019t external; they\u2019re internal. It\u2019s the agency\u2019s culture, behaviors, values, and belief systems that hold them back.

A common question I hear is, \u201cWill procurement let us do this? Will clients accept it? What if we don\u2019t win?\u201d<\/em> Those concerns come from a mindset rooted in fear and external dependency. But the reality is, clients respond to confidence, clarity, and value. If an agency doesn\u2019t truly believe in its ability to control its own engagement and pricing model, it will always default to the lowest common denominator.

That\u2019s why our work isn\u2019t just about pricing models\u2014it\u2019s about cultural transformation. If you try to change your pricing structure without changing the underlying mindset and behaviors, it won\u2019t work.<\/p>

Can you walk us through the five key milestones that help creative businesses confront the essentials of whole system change and provide some detail on each?<\/strong><\/h2>

Absolutely. These five milestones form the foundation of successful transformation:<\/p>