TrinityP3’s Agency Remuneration and Negotiation service ensures that the way in which you pay your agency is optimal.
Why do you need this service? Read on to understand more.
Agency remuneration models have a direct bearing on agency performance
The plethora of possible agency remuneration models available can present as a minefield to the marketer. Thanks to the continued increase in complexity of what marketers need and what agencies offer, that minefield is growing.
Agencies can be compensated via various forms of commission, against retained or project based head hours, on an at-risk performance incentive component, on a cost-per-sale model, through a diversified services arrangement. Or, as is most common, via a hybrid of some, or all, of the above.
‘Cheapest’ has nothing to do with it
You want the best possible agency team, making the best possible decisions for your business. You want the agency to be continuously motivated to push harder, safe in the knowledge that what you pay it, and how you pay it, represents value. Why else would you hire any agency in the first place?
To get to what you want, it’s critical that your remuneration structure is set up to deliver representative value and mutual benefit. More than this, you need to ensure that the structures in place allow both you and the agency a level of comfort that can only come with a comprehensive, balanced approach.
What works for some, doesn’t work for others. But there are some pitfalls common to all.
We can help you create and install the best possible agency compensation model, tailored to your business needs
To get to the optimal agency compensation model for you, we can tailor our service around the following key areas.
- Interrogation of your current situation and your forward-facing requirements.
- Value-Benchmarking of your current remuneration structure against our proprietary market data.
- Evaluation of numerous alternative models for discussion.
- Assessment of potential value-gain driven by adoption of alternative model.
- Negotiation with the agency.
- Implementation of the new approach.
Our financial consultants have at least ten years of specialist experience in this field. We have collected proprietary data in the area of agency compensation, and seen the options grow, for fifteen years. The experience combined with the data makes powerfully effective recommendations possible.
Ultimately, it’s very simple. Agencies like to be paid fairly for what they provide. Marketers like to get the best value from their agency partners. Make sure you have the right structure to achieve the performance you deserve from your agency.
Contact us here to arrange an initial conversation about how much this service could change your outputs for the better. We’d love to help.
3 Questions with a TrinityP3 Agency Remuneration Expert
Here, TrinityP3 Consultant, Lyndon Brill, talks about some of the biggest issues that occur when developing an agency remuneration model and how TrinityP3 can assist with contract reviews.
The ABC of getting your agencies to collaborate
Wishing your agencies would collaborate more effectively? Here, Darren Woolley reads to you the A. B. C. of agency collaboration inspired by Dr Suess.
Getting agency negotiations right
Are your agency negotiations like this? See this “double” take as Darren Woolley replays a typical scenario.
Are you compensating your agencies or remunerating them?
It is interesting when talking about how to pay agency fees. Here, Darren Woolley talks about the difference between remuneration and compensation.