#general-chat
Thread
Hey, curious to hear thoughts from folks here.
If you were looking to build a portfolio of brands, would you ever let an agency build a brand from scratch for you?
They would handle the product research, supply chain, brand, landing page, creative, ads — all of it.
You just fund it and steer the ship. Especially curious about this in the context of Europe. There tends to be less competition and it's a nice hedge if you’re U.S.-heavy.
Would anyone here consider something like that?
I run an agency that can do all of the supply chain stuff. From my perspective I would advise against a completely outsourced approach for the following reasons.
- It will be difficult to unwind later on
- You leave yourself open to constant price increases regardless of how the business is doing
- Your goal in outsourcing should always be to outsource the work not the responsibility I could see something like this working if it was more of an equity partnership and the agency was putting in resources at almost no cost to the business and just sharing in the profits.
So just to clarify, Aaron would you work for a brand at almost no cost, doing all the work upfront?
Because in a setup like that, if an agency is handling everything and not getting paid, they may as well just build the brand themselves and keep 100% of the upside.
I’d argue there should at least be a base fee to cover the hours put in and any resources required to get things moving.
Obviously, how the rest is structured, whether that's equity, rev share, fixed payment, etc. can be settled contractually so there are no surprises.
yeah good question. I would be looking for a baseline level to offset some of the key costs and share in the equity upside.