Freelancers are killing the agency model - finally

Issue #012

Tune in today at 12pm CST for another episode of This Week in Design Live™ - today we’re sitting down with the Lovable team to talk about their new design tools. 👀 Watch here.

A crossroads is forming in the design world. Should designers go solo, build an agency, or embed themselves in-house? The question isn’t new, but the landscape has shifted dramatically. Alongside the rise of AI tools, the explosion of subscription-based design services, and tightening startup budgets, there’s an equally notable surge in freelancing. More creative professionals are ditching the nine-to-five in favor of independent work—even if the freelance market’s double-digit growth means the competition is fiercer than ever.

Freelancing promises freedom: set your own rates, pick your clients, and work from anywhere. But even the most dazzling solo act has its limits. No matter how talented, there’s only so much work one person can handle before quality begins to slip. This natural capacity ceiling is nudging the industry toward small, 2–3 person studios that harness AI to turbocharge productivity, pool complementary talents, and manage larger projects without sacrificing creative flair.

Let’s face it: big agencies are becoming relics. Beyond serving as the security blankets for Fortune 500 procurement departments, the era of bloated agencies is over. The future belongs to nimble, multi-faceted creative studios of five people or less—teams that pivot on a dime, embrace AI’s muscle, and deliver heavy-hitting creative work without the dead weight of bureaucracy.

On the flip side, the “unlimited design subscriptions” market is bursting at the seams with promises that often turn out to be pure hot air. With a glut of freelancers and those endlessly generous (read: misleading) subscription models flooding the market, clients are spoilt for choice—and the only contest left is a brutal price war, where creativity risks being sacrificed on the altar of bargain rates.

So, what’s the endgame in this wild free-for-all? Big agencies are fast becoming museum pieces—staples only for the Fortune 500’s comfort zone—while the real creative magic is happening in lean, focused studios. These pint-sized powerhouses, with five or fewer team members, can move quicker, iterate smarter, and harness AI to deliver results that leave the competition in the dust. In my decades at the helm, I’ve seen trends come and go, but nothing beats the dynamism of a small, agile team that operates like a well-oiled machine. This is the future of design, and it’s already here.

Ultimately, design work is in flux. Traditional models are crumbling, freelancers will hit earning ceilings, and the future belongs to those small studios that embrace agility, harness AI, and work without the burden of bureaucracy. The challenge for designers today isn’t merely choosing where to work—it’s about leveraging emerging tools and innovative models to deliver design solutions in a world that refuses to stand still.

Plaid gets a beautiful new brand

This is worth scrubbing through. Love him or hate him, the man knows how to make shit happen in Figma.

The perfect synopsis for This Week in Design Live™.

Hooked watching the Lovable rebrand happen live.