Progency
Over the past months, I’ve been developing Progency (products + agents + agency)—a revolutionary marketing approach that perfectly embodies outcome-based pricing principles. Through extensive discussions with CMOs and marketing leaders, a clear picture has emerged: they desperately need partners who win only when they win.
I need results. Now. My team’s overwhelmed, my CRM data’s a mess, and retention is tanking. I’m spending a fortune on reacquisition and still losing customers I’ve already paid to acquire. I don’t want a vendor. I want a growth partner who knows what’s working, who’ll do it for me, and who’ll win only if I win. This is a typical quote encapsulates the frustration driving CMOs towards outcome-based models.
Progency addresses this by fundamentally inverting traditional marketing economics. Instead of charging for inputs—hours worked, messages sent, or monthly active users—it operates on pure performance models tied directly to measurable business outcomes. This represents a seismic shift from the $500 billion AdWaste crisis plaguing brands globally, where 70% of marketing spend goes towards reacquiring customers already in their databases.
The Progency Pricing Revolution
There could be multiple distinct outcome-based pricing frameworks for Progency, each addressing different risk profiles and market segments:
The Pure Performance-Based (RevShare) model represents the boldest approach—no fixed fees whatsoever. Progency earns only through a percentage of incremental revenue or lifetime value uplift, benchmarked against historical baselines. For instance, 15% of net incremental revenue, measured quarterly and reconciled monthly. This model particularly appeals to early adopters and challenger brands willing to embrace radical change.
The Tiered Revenue Share model scales compensation with value delivered: 5% share on 0-10% uplift, 10% on 10-20% uplift, and 15% on 20-30% uplift. This creates perfect alignment—the more value Progency generates, the higher its compensation. It’s particularly effective for brands with seasonal volatility or enterprise-level growth ambitions.
For more cautious organisations, the Fixed + Performance Tiered model provides predictability through a base fee covering platform deployment and Marketing Growth Engineers, plus performance bonuses tied to uplift. A typical structure might include $10,000 monthly base fee with 10% of revenue uplift above baseline.
Most compelling is the 30-Day Outcomes-First Pilot—a risk-mitigated entry point requiring no long-term commitment. At $50,000 with clear targets like improving customer reactivation rates, Progency only earns bonuses when it hits those targets. This lets CMOs test results before making bigger commitments.
The Hedge Fund Parallel
Like quantitative hedge funds that generate alpha through systematic market inefficiencies, Progency creates Marketing Alpha—growth uplift beyond historical baselines (Beta). The model mirrors financial services’ most successful structure: management fees covering infrastructure plus performance carry sharing upside. [Think of this as Alpha-Beta-Carry.]
This transformation addresses the fundamental misalignment in marketing: while adtech captures 90% of spend through outcomes-based pricing (cost-per-click, cost-per-acquisition), martech remains trapped in input-based models despite delivering superior long-term value. Progency bridges this gap, applying outcome-based economics to retention-focused marketing.
The result transforms marketing from cost centre to measurable profit engine, creating self-reinforcing cycles where success funds further innovation. Unlike traditional marketing spends that disappear regardless of results, outcome-based models ensure every pound invested generates measurable returns—precisely what modern CMOs desperately need.
