We’ve had a look at several different compensation structure models. Some clients prefer to work under a retainer model, which allows for long-term strategic planning and an ongoing partnership that works in a proactive capacity. However, if not carefully prioritized by the client, this can also lead to liberally requested assignments that often eat up hours. We also looked at fixed-fee project estimates. With the downturn economy, clients who don’t feel comfortable with long term commitments are choosing this route.
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Monthly Archive
for: ‘May, 2010’
Which Advertising Agency Compensation Structure Is Better For Me? Part 3 of 3 (Production Costs)
Which Advertising Agency Compensation Structure Is Better For Me? Part 2 of 3 (Media Commission)
There are a myriad of ways in which advertising agencies can be compensated. For full-service shops, it typically consists of some form of hourly billing for creative services, media commission and/or production commission. While there are standard industry norms, it is common practice to engage in negotiations specifically tailored to the unique needs of each client. Finding an agreement that is fair and mutually beneficial is the foundation to building a successful long-term partnership.
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Which Advertising Agency Compensation Structure Is Better For Me? Part 1 of 3
There are a myriad of ways in which advertising agencies can be compensated. For full-service shops, it typically consists of some form of hourly billing, media commission and/or production commission. While there are standard industry norms, it is common practice to engage in negotiations specifically tailored to the unique needs of each client. Finding an agreement that is fair and mutually beneficial is the foundation to building a successful long-term partnership.
Read More