THATFAKEAGENCY
Industry Truths
January 6, 2025
7 min read
ThatFakeAgency Team

What Most Branding Agencies Won't Tell You (and Why It Costs You Thousands)

The hidden costs, ownership traps, and timeline lies that traditional agencies use to lock you into expensive, slow contracts. Here's what they don't want you to know—and how to avoid it.

Hidden Agency Costs Exposed

After working with hundreds of startups and seeing the damage traditional agencies cause, I'm breaking the silence. Here are the dirty secrets agencies don't want you to know—and how they're costing you thousands.

This isn't about bashing agencies. It's about transparency. When you know the truth, you can make informed decisions about your marketing budget and timeline.

The Hidden Costs They Don't Mention

"Small" Revisions That Cost Thousands

Agencies quote $15,000 for a brand identity, but "small changes" like adjusting a logo color or tweaking a font can cost $500-2,000 each. Most clients end up paying 40-60% more than the original quote.

Real Example: A client paid $8,000 in "revision fees" on a $20,000 project. The "small changes" included adjusting logo spacing and updating brand colors.

You Don't Own Your Own Brand

Most agencies retain ownership of your brand assets. You get usage rights, but they own the source files, fonts, and even the brand strategy. If you want to switch agencies or work with freelancers, you're stuck.

Real Example: A startup had to pay $15,000 to "buy back" their own logo files when they wanted to work with a different designer.

Timeline Lies and Scope Creep

Agencies promise 6-8 week delivery, but most projects take 4-6 months. They blame "scope creep" and "unexpected complexity," but it's often poor project management and overpromising.

Real Example: A client waited 8 months for a website that was promised in 6 weeks. The agency blamed "additional requirements" that were actually in the original scope.

The Real Cost Breakdown

What a $25,000 Agency Project Really Costs

Quoted Costs

  • • Brand identity: $15,000
  • • Website design: $10,000
  • Total: $25,000

Hidden Costs

  • • Revision fees: $8,000
  • • Rush charges: $3,000
  • • "Additional scope": $5,000
  • • Asset ownership: $7,000
  • Hidden Total: $23,000

Real Total: $48,000 (92% more than quoted)

This isn't an outlier—it's the norm. Most clients pay 50-100% more than the original quote due to hidden fees, scope creep, and ownership issues.

Why Agencies Do This

The Agency Business Model

Traditional agencies are built on a flawed business model that incentivizes slow delivery and hidden costs:

How They Make Money

  • Hourly billing: More time = more money
  • Revision fees: Every change is billable
  • Asset licensing: Ongoing revenue from your brand
  • Scope creep: "Small additions" at premium rates
  • Rush charges: 50-100% markup for "urgent" work

Why It's Broken

  • Misaligned incentives: They profit from delays
  • No ownership transfer: You're locked in forever
  • Inconsistent quality: Different designers, different results
  • No accountability: Hard to measure ROI
  • High overhead: 60-70% of fees go to overhead

The Transparent Alternative

AI + Human Hybrid Model

What You Get

  • Transparent pricing: $1,650-6,600/month
  • Fast delivery: 24-48 hours
  • Unlimited revisions: No extra charges
  • 100% ownership: You own everything
  • Pause anytime: No long-term contracts

What You Save

  • 70% cost reduction: vs traditional agencies
  • 90% time savings: Days vs months
  • No hidden fees: What you see is what you pay
  • No ownership issues: Everything is yours
  • Consistent quality: AI + human oversight

Transparent Pricing

Fixed monthly rates with no hidden fees. What you see is what you pay, every month.

Full Ownership

You own 100% of everything I create—designs, code, assets, and style guides.

No Contracts

Pause anytime, no long-term commitments. Your business, your timeline.

The Real Comparison

FeatureTraditional AgencyAI + Human Hybrid
Initial Cost$15,000-50,000$1,650-6,600/month
Hidden Fees$8,000-25,000$0
Timeline3-6 months24-48 hours
RevisionsLimited (extra cost)Unlimited (included)
OwnershipAgency retains rights100% yours
Contracts6-12 months minimumMonth-to-month

Stop Paying Hidden Fees

Join 200+ businesses who chose transparency over hidden costs. Get better results, faster delivery, and full ownership for a fraction of traditional agency prices.

The Bottom Line

Traditional agencies profit from your confusion, delays, and lack of ownership. The AI + human hybrid model delivers better results, faster delivery, and transparent pricing. The choice is yours: continue paying hidden fees and waiting months, or get transparent, fast, high-quality marketing that you actually own.