Yesterday’s business models no longer work. Once-great
retail companies have given way to even bigger newcomers applying modern ways
of doing business. On the other side of the equation, customers, once content
to go to the local store, now search online. The translation business is no
different. Two decades ago, the dominant model for connecting translation
purchasers with translators was through agencies of all different sizes. Today,
paradoxically, agencies have become global, but numerous customers are increasingly going
direct to the translators. The effect on both the service providers and
purchasers is significant.
When I began translating in 2004, the business approach
for both linguists and the purchasers of their products was quite clear and
defined the production chain. Translation agencies of varying sizes, from small
local one-person offices to regional or national companies, built up a pool of
translators to allow them to provide a specific language-combination solution
for their standard job requests. Each agency sought the best translator willing
to work at their rate level according to the market rates and chosen business
strategy, e.g., boutique and low-cost. Few translators had the skill or even
felt the need to market services directly to their potential clients,
trusting that the agencies would handle the marketing. For the translator, it
meant that finding customers involved contacting as many agencies as possible
with the hope of receiving the first job, which would prove their skill and
reliability and lead to steady work. For the customer, it was a matter of a
simple Google search for an appropriate agency and some price comparison. Life
was simple and somehow satisfactory.
Since then, both translation agencies and customers
have changed. Global LSPs (language service providers) have purchased countless
local and regional agencies and created a market of relatively few worldwide companies, some of
them publicly owned, e.g., RWS and TransPerfect. For the most part, these huge
corporations apply a high-volume, low-margin business model, driving rates down
for both the translator and customer, with the expected effect on quality. The
global translation business has become similar to Walmart, i.e., low prices for
the customers and low profit margins for the suppliers. On the other side, the
new generation of translator purchasers, both general and business, feels
comfortable directly searching for their providers, increasingly with the help
of AI. They are able to locate an appropriate translator properly situated on
the Internet. Contacting an agency is not a default choice.
This change has dramatically impacted both translators
and their customers. For translators, it creates two distinct paths for financial
success. They can either work with the large agencies at low rates and be
efficient enough to make a living. Alternatively, they can opt to invest in
marketing and attain direct, higher-paying customers. Admittedly, it is not an
all-or-nothing situation. Most professional translator shave clients of both
types, but one type dominates. As for the purchasers, those customers with
specific quality or certification requirements now invest their time in finding
qualified providers. They seek those that choose to bypass the agencies, i.e., they
prefer direct sales. The two business dialogues differ greatly.
To be clear, change is never total. Older business
models continue to exist and sometimes even thrive long after a new one has
supposedly superseded it. In translation, given that the quantity of paid translation
continues to increase (despite AI), working with agencies remains a viable
option on condition that the translator can produce sufficient volume at the demanded
quality. On the other hand, the search for deep-pocketed customers is
relentless and challenging in terms of the effort required to find and retain
them as they demand value, quite justifiably. Translators choosing this path
must legitimately believe in themselves. In the meantime, these are the two
major options for linguists and their companies. Of course, for complicated
multi-language projects, agencies will remain the best option. Still, how many
agencies will exist in twenty years is an open question.










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