Agency fees and commercial arrangements are essential to get right. But what is the right agency fee model? How much should be paid? And how do you manage and negotiate these fees effectively? While there is common practice in agency fee models, there is no best practice, with each fee model dependent on the discipline, services, volume, and more.
The objective of our agency fee advisory is to create fair, sustainable and mutually equitable models that are easy to manage, and which drive the desired outcomes.
We approach this challenging area from a number of angles, tailored in each project to fit specific need. You can explore them here:
Find more information on agency commercials arrangements here or explore more details and insights below.
Who should really be paying for advertising agency pitches?
The first point I have to make is “Why are you pitching any way?” But the fact is that pitching ...
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Beware the dangers of the cookie cutter approach to benchmarking agency remuneration
One of the topics that regularly occupies conversations with marketing services and procurement teams is benchmarking their existing agency arrangements ...
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The flawed economics of falling agency salaries and falling overhead rates
It is interesting that when you listen to some marketing procurement and consultants there appears to be a consistent story ...
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Five common traps when assessing or defending agency value
Benjamin Graham famously wrote ‘Price is what you pay. Value is what you get.’ He was a smart guy, and ...
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What is the best agency remuneration model for every advertiser?
It is interesting that according to the ANA the most common agency compensation model is still the resource retainer approach ...
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Why adjusting an agency scope of work requires careful consideration
An advertiser recently called with an issue that had lead to a dispute with their agency. The advertiser had a ...
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How Value Based Compensation can support Zero Based Budgeting
We are increasingly enjoying discussions with a range of advertisers and marketers on the implementation of Zero Based Budgeting (ZBB) ...
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Before you move forward with agency remuneration, make sure you look back
For more than a decade, we have been helping advertisers to benchmark and improve their agency remuneration arrangements. We do ...
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7 essential considerations when moving from agency retainer to project fees
There is a distinct market trend occurring in the way marketers and advertisers are compensating their agencies and suppliers. Along ...
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What to do if you think you are being overcharged by an agency
It was an interesting conversation recently, with the head of a digital agency that had found themselves in a dispute ...
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The latest trends in agency remuneration
This is the first in the series of TrinityP3 Webinars. Today we're talking about the latest trends in agency remuneration and ...
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Why agency negotiations are never as straightforward as you think
Negotiations can be difficult things, especially when either party is speaking a different language. And believe it or not, marketers ...
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How smart marketers are moving beyond the agency remuneration stalemate
Suspend disbelief for a moment. Imagine a world where agencies are paid solely on the basis of commercial results. An ...
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How the Verificom Agency Fee Calculator helps agencies and advertisers agree agency fees
Recently we were presenting the results of an agency remuneration-benchmarking project to an advertiser and members of the team asked ...
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5 issues you need to overcome to make agency incentive payments work
For the past ten years we have been working with advertisers to move their agency compensation from the popular cost-based ...
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5 reasons why advertisers paying for pitches will not work
Recently the new CEO of the Communications Council, Tony Hale, announced in a Mumbrella Google Hangout that he believed advertisers ...
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Can an agency win a media pitch without discounting rates?
In a market place obsessed with prices and rates, it appears that unless you can win the race to zero ...
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What is the best way to benchmark agency compensation?
Due to the constant updates to the operating systems of the iOS requiring updates to the app, we have discontinued ...
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Why lower agency retainers lead to higher production costs
It is common to have creative agency, and increasingly digital agency fees, broken into two component parts. First is the ...
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What should my advertising agency cost be?
We have been benchmarking advertising agency costs for more than a decade. This is usually undertaken with an historical focus, looking ...
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How to develop a price based remuneration model for your agencies
We have been working with value based remuneration (VBR) or compensation (VBC) models since 2007 and have implemented these in ...
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How much agency financial transparency do marketers really need?
It is common for a tender or RFP to require the respondents to provide details about their financial circumstances. These ...
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How long does it take to create a big advertising idea?
As agencies largely charge fees related to resource hours, it got me thinking about how much a big idea costs ...
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Are you compensating your agencies or remunerating them?
Now you may think that Compensation is Remuneration, there is really no difference between the two. But it is not ...
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Why paying your agency for being nice to you is flawed
It is fairly common for Agency Relationship consultants to recommend that agency fees, and especially performance fees should be linked to the ...
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Using resource benchmarking to measure and improve marketing efficiency
We get a lot of requests for providing benchmarks. In most cases it is for hourly rates. "How much does ...
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The important differences between scope of work and schedule of work
This post was updated on October 25, 2018 to note the significant development of the scope of work approach for ...
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Risk vs reward in value and performance based agency compensation
The current resource based model is low risk for both agencies and advertisers, which is possibly why it is so ...
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Agency remuneration benchmarking is more than just rates
Last year I was contacted by a major advertiser's global procurement team asking if I would tender to provide them ...
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Have marketers forgotten the Golden Rule for agency performance?
In China they have the Golden Rule: The man with the gold makes the rules. This is an interesting principle ...
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