- 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.
- Read more about Value Based Fees here
Very impressed, just glad I’m on the client side now, rather than the agency side!— Brett Davis, Manager, Communications Branch, NSW Office of State Revenue