RFPs are still evil
May 21st, 2007
It’s no secret that I think RFPs are evil. Well my friends, Kraft has gone and just added fuel to that fire. AdAge reports (annoying registration required) that the Oscar Mayer, Kraft Singles, Ritz, Triscuit and Grey Poupon brands are all up for grabs. And not only is Kraft demanding “that the shops give up ownership of ideas presented in the review – but accept legal liability should the marketer end up using those ideas at some later date.”
Go on, read that last sentence again. And let it sink in.
Not only do the agencies get to give away their time (and we know in this world time = money), they also get to give up their ideas (for a measly $25K) – whether they win or not – and THEN, if Kraft decides to use their ideas down the road and somewhere, sometime there are some legal ramifications, they’ll (the agency) will be held responsible.
You gotta be kidding me.
The article also mentions that back in 2005, Hilton Hotels demanded agencies sign over the rights to their ideas even if they didn’t win. And this happens all the time. With all kinds of companies with all kinds of budgets.
Sure, it’s shame on them. But even more, it’s shame on the agencies that agree to participate in the first place. How dare you complain after you’ve already put yourself in a position to give away the farm? And, by the way, American Association of Advertising Agencies (of which we are not a member), as long as you’re doling out advice to your members when it comes to this Kraft fiasco, how about uniting your members and getting rid of this archaic RFP practice altogether? That would be a powerful statement. And a giant step in reshaping – dare I say reforming – the agency-client relationship.
Other posts by Spike.
Christy says:
Wow. You’re actually calm about this. Bravo for stating this so clearly, and without venom.
We have a long way to go.
May 21st, 2007 at 7:47 amBryan says:
Amazing that these degrading practices are still around! Even more amazing that there are still agencies accepting them and taking part. Sad. Very Sad.
May 21st, 2007 at 7:57 amRoger Anderson says:
The same thing happens when you don’t sign the paper. It happens all the time. At least Kraft is trying to be upfront about it. “We’re going to steal your idea. Please sigh here.” IS that worse than a CDA or NDA that is violated before you leave the premises?
Ethics is a class that few take, fewer pass, and even fewer seem to recall later in life.
This kind of burn and churn behavior is even easier today because they have a whole world of potential applicants.
The solution: Learn to say no before it’s too late.
May 21st, 2007 at 7:00 pmDanny G says:
So how do y’all at BOF handle it when clients (or prospective clients) make unreasonable demands like that?
May 22nd, 2007 at 3:18 amSpike says:
Good question, Danny.
The long and short of it is that we don’t answer RFPs. And we’ve set up similar policies that help us maintain our own respect and integrity. Sometimes it’s hard to turn down an invite from a Fortune 50, but in the long run, it’s worth it.
When a potential client makes an unreasonable demand, we try to get to the reason they are making that demand and then offer an alternative. If one can’t be reached, then it’s a nice, big red flag early on in the relationship that tells us that pursuing that account or project isn’t going to be worth it - no matter the name or the payday attached to it.
May 22nd, 2007 at 4:57 amJono Fisher - Photographer (blog pages) » RFP’s and competitive bids… says:
[...] RFP’s are bad. I agree with Spike’s post. Could not help thinking of some of the competitive bids that I refused to get involved in (almost an extension of the RFP process as if by way of passing on the disrespect to the photographer). This is interesting stuff, because a lot of this is changing, or has changed already, and organizations are using smarter methods to build business relationships with their marketing and advertising professionals. My guess is that some of the big brands that Spike mentions in his post behave in this deplorable manner out of desperation. The times have changed and they have perhaps not changed with it. [...]
May 29th, 2007 at 1:04 pm