Agency Fee Models – Insights

TrinityP3’s agency fee modelling is dedicated to helping businesses understand the different ways in which marketing agencies charge for their services. With a range of fee models available, from hourly rates and fixed fees to commission-based models and performance-based pricing, it can be difficult for businesses to know which model is right for them.

The page provides a range of resources to help businesses navigate this complex landscape, whether you are looking to better understand the pros and cons of different fee models, or you are considering changing your agency fee structure. Our resources cover a range of topics including how different models work, which models are most commonly used, and how to choose the right model for your business.

Find more information on agency commercials arrangements here or explore more details and insights below.

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Risk vs reward in value and performance based agency compensation

The resource (FTE) based remuneration model is low risk for both agencies and advertisers, which is possibly why it is ...
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How many KPIs are optimal to drive agency performance?

The concept of performance-based remuneration or payment by results appears to be universally embraced. After all, according to the ANA ...
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Why marketers should stop paying agencies for ideas

As more people are jumping on the bandwagon and declaring the current agency remuneration model broken, there are those who ...
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A step by step approach to calculating ad agency resource rates and head hour costs

With the increased application of AI in generativing content and automating workflows, and the corresponding call for the application of ...
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Is your advertising agency a supplier or a partner?

While many people in the industry talk about partnering with their agency or with their client, the majority of agency ...
Balancing Risk Reward

Balancing risk and reward in value based advertising agency compensation

Last week in NYC I was speaking at the WFA COMPAG group about Value Based Compensation (VBC). During the discussion ...
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Defining Value Based Agency Compensation

A few weeks ago in NYC I presented the results on a survey undertaken by the WFA on Value Based ...
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How your agency compensation method can add value

I was recently participating in a discussion in the ANA Advertising Financial Conference LinkedIn Group when Bob Cauley from Beekman ...
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Reasons why performance based agency fees or payment by results often fail

When assessing, reassessing or creating new agency contracts, many marketers ask about structuring some pay-for-performance terms as part of their ...
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What is value based remuneration for advertising and media agencies?

Retainers are still the most common form of remuneration for advertising agencies in the major markets. These retainers are based ...
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Rate cards versus retainers: evaluating the best model for advertising

With media commissions becoming virtually non-existent, the two main remuneration models for advertising service providers are retainers or project fees ...
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How many billable hours are there in a year?

Since this post was last updated at the end of 2018, the world has gone through a significant upheaval in ...