Skip to content
TrinityP3 Global Marketing Management Consultants
  • Home
  • Why
    • Why We Do What We Do
    • Frequently Asked Questions
  • What
    • What We Do
    • Challenges We Solve
      • Marketing Transformation
      • Procurement Advisory
      • Production Consultancy
      • Agency Search and Selection Services
      • Agency Roster
      • Agency Commercial
      • High Performing Teams
        • Operational Review
        • Evalu8ing
      • Media Value & Issues
        • Media Value Operational Review
        • Media Industry Advisory
        • Media Agency Selection
        • Media Agency Commercial
      • Agency Growth
        • Agency Credentials & Positioning Consultation
        • Agency Pitching Review Services
        • Other Agency Tools & Resources
  • Who
    • Who We Are
    • Our People
    • Our Clients
    • Work with Us
    • Speakers
    • Publicity
  • How
    • How We Do Marketing Management
    • How We Are Different
    • Our Case Studies
    • Our Client Testimonials
    • Agency Testimonials
    • Verificom Toolkit
  • Insights
    • Insights & Wisdom
    • Agency Fee Decision Tree
    • Agency Register
    • Verificom Calculators
    • Downloads
    • Knowledge Centre
    • Marketing Books
    • Newsletters
    • Podcasts
    • Subscribe
  • Where
Search
TrinityP3 Global Marketing Management Consultants
Close menu
  • Home
  • Why
    • Why We Do What We Do
    • Frequently Asked Questions
  • What
    • What We Do
    • Challenges We Solve
      • Marketing Transformation
      • Procurement Advisory
      • Production Consultancy
      • Agency Search and Selection Services
      • Agency Roster
      • Agency Commercial
      • High Performing Teams
        • Operational Review
        • Evalu8ing
      • Media Value & Issues
        • Media Value Operational Review
        • Media Industry Advisory
        • Media Agency Selection
        • Media Agency Commercial
      • Agency Growth
        • Agency Credentials & Positioning Consultation
        • Agency Pitching Review Services
        • Other Agency Tools & Resources
  • Who
    • Who We Are
    • Our People
    • Our Clients
    • Work with Us
    • Speakers
    • Publicity
  • How
    • How We Do Marketing Management
    • How We Are Different
    • Our Case Studies
    • Our Client Testimonials
    • Agency Testimonials
    • Verificom Toolkit
  • Insights
    • Insights & Wisdom
    • Agency Fee Decision Tree
    • Agency Register
    • Verificom Calculators
    • Downloads
    • Knowledge Centre
    • Marketing Books
    • Newsletters
    • Podcasts
    • Subscribe
  • Where
TrinityP3 Global Marketing Management Consultants
Search Toggle menu

Agency title promotion and the impact on retainers and fees

By Darren WoolleyQual QuantJune 24, 2010November 25, 2022
Tweet
Share
Share
Buffer
Pin

You are a recent graduate and land your first job in an advertising agency. You start at the agency on $32,000 and the title of Account Manager. Within 12 months you get promoted to Senior Account Manager and get a $8,000 extra per annum, ten months later you get another promotion to Account Director and an $8,000 rise, and then 9 months later you get another promotion to Senior Account Director with another $12,000 a year pay rise. Total salary now is $60,000 per annum.

You are either the most talented account management practitioner in the industry or the luckiest. You can say to your friends you are a Senior Account Director, which is pretty cool.

Does this sound fantastic?

Believe me, we see this happening. It is called the “Title Promotion”.

The fact is that with agencies often using industry salary rates, a few agencies have found a way to increase their revenue without increasing their costs.

This is not wide spread – yet.

You see, our Senior Account Director above is getting paid $60,000 per annum, but the agency is billing them out at $120,000 per annum. Then add a 2.2 overhead and profit multiple and the Senior Account Director is a $264,000 revenue source at a cost of $60,000 per annum in direct salary costs.

(Even wondered why Account Executives are almost non-existient these days?)

Certainly a good reason for using actual salary costs and checking the resumes of the team on your retainer to make sure you are getting what you paid for.

Why are a few agencies doing this?

Because with the increasing downward pressure on remuneration, agencies are having to be more “creative” with their compensation models.

The old say “You get what you pay for” is true.

Just make sure you are getting what you paid for.

Account DirectorAccount ExecutiveAccount ManagerAgency SalariesAnnual SalariesCompensationJob TitlesMarginPromotionremunerationsalary benchmarks

By Darren Woolley

This post is by Darren Woolley, Founder and Global CEO of TrinityP3. With his background as an analytical scientist and creative problem solver, Darren brings unique insights and learnings to the marketing process. He is considered a global thought leader in optimizing marketing productivity and performance across marketing agencies and supplier rosters.

See all posts by Darren Woolley

You might also like:

Marketing priorities
February 1, 2017November 25, 2022

The importance of financial analysis in determining marketing priorities

February 14, 2014November 25, 2022

Lies, damn lies and marketing pseudo-statistics and their impact

TrinityP3 Marketing Management Book

The Ultimate Guide to Digital Marketing in a Data-driven World

Darren Woolley
Founder & Global CEO, TrinityP3

Bio / Twitter / LinkedIn
YouTube / Facebook
Subscribe

Blog Categories

  • Agency Contracts
  • Agency Fees
  • Agency Fees Negotiation
  • Agency New Business
  • Agency Performance
  • Agency Register
  • Agency Selection
  • Benchmarking Resources
  • Bespoke Solutions
  • Case Studies
  • Contract Negotiation
  • Data and Opinion
  • Designing Solutions
  • Ethics in Marketing
  • Evalu8ing
  • Evalu8ing – Relationship Performance Monitoring
  • Fee Benchmarking
  • Fee Models
  • Fee Models Hybrid
  • Fee Models Performance
  • Fee Models Project
  • Fee Models Retainer
  • Fee Models Value
  • Fee Negotiation
  • Fee Scope of Work
  • Fee Scope of Work How
  • Fee Scope of Work What
  • How to Pitch
  • Marketing Alignment
  • Marketing Alignment Capability
  • Marketing Alignment Process
  • Marketing Alignment Strategy
  • Marketing Alignment Structure
  • Marketing Management
  • Marketing Performance
  • Marketing Process Engagement
  • Marketing Processes
  • Marketing Procurement
  • Marketing Solutions
  • Marketing Technology
  • Media Adtech
  • Media Buying
  • Media Data
  • Media Industry
  • Media Optimisation
  • Media Strategy
  • Media Structure
  • Media Transparency
  • Media Value
  • Our Beliefs
  • Performance Measurement
  • Pitching Capability
  • Pitching Credentials
  • Pitching Search
  • Pitching Strategy
  • Pitching Support
  • Podcasts
  • Procurement Benchmarking
  • Procurement Negotiation
  • Procurement Performance
  • Procurement Support
  • Procurement Value
  • Production Assessments
  • Production Assessments Broadcast
  • Production Assessments Print
  • Production Consulting
  • Production Models
  • Production Models Hybrid
  • Production Models Outsourced
  • Production Technology
  • Qual Quant
  • Rate Benchmarking
  • Retainer Models
  • Roster Alignment
  • Roster Definition
  • Roster Management
  • Roster Models
  • Should We Pitch
  • Sustainable Marketing
  • Switching Agencies
  • Team Alignment
  • Team Collaboration
  • Team Structure
  • Team Structure Agency
  • Team Structure Marketing
  • Team Structure Organisation
  • Why Not to Pitch
  • Why to Pitch

Blog Archives

Recent Blog Posts

  • Managing Marketing: Building Purpose Inside The Business
  • Managing Marketing: Uniting Brand Channels and Content
  • Why marketers will continue to use a pitch to select agencies
  • Managing Marketing: Marketing To The Chinese Market
  • Privacy Policy
  • Terms of Use
  • Subscribe
  • Contact Us
  • Email us: people@trinityp3.com
© 2023 TrinityP3 Global Marketing Management Consultants.
https://www.linkedin.com/company/trinityp3/https://www.facebook.com/TrinityP3.GlobalMarketingManagementConsultantshttps://www.youtube.com/@Trinity_P3https://twitter.com/trinityp3https://www.instagram.com/_trinityp3_/
Tweet
Share
Share
Buffer
Pin