The oldest and still relatively common approach to supplier remuneration in marketing based on the media commission but extended to almost all marketing services provisions. It is simply an agreed commission or mark up service fee on costs to cover agency remuneration. Typically only applied to external and third party costs but this is become more complex with suppliers often integrating these traditional third party costs into their service offering either directly of with equity in these third parties.
- This is the most traditional agency fee model and is based on the media commission paid by media providers.
- With the increase and diversity of media channels these commissions of services fees are often variable by channel.
- If the non-media services are a significant part of the services offered you may need to consider a hybrid model.