This is a model that focuses on the value of outputs or outcomes rather than inputs (head hours), where the marketer places a pre-determined value on the agency outputs based on the impact of the outcomes and the relative importance this will have on business success. This approach overcomes the need for suppliers of different qualities / costs in the same category as suppliers are paid for the value of their outputs not the cost of their work.
- This model focuses on the value of the agency outputs or deliverables rather than inputs (resource head hours). Also known as the Pricing Model.
- The value is determined based on market pricing, strategic importance or the activity or brand and the expected ROI on the marketing activity.
- The marketer agrees a pre-determined value on the various outputs. broken down in line with service and creative output expectations for tangible and intangible outputs or deliverables.
- These pre-agreed values can be paid on an output basis, bundled into a project fee or be the basis for calculating an effective retainer.
- This can be part of a hybrid model covering some agency function only. E.g. Retainer resource to approved concept.