What is the best way to incentivize your agencies’ performance?
Payment By Results or Performance Based Remuneration (PBR) was all the rage for a while. But increasingly it has proven elusive in really driving performance for all but the most direct-response focused advertisers. More than a decade ago we identified the challenges to make PBR work: https://www.trinityp3.com/2010/09/reasons-why-performance-based-remuneration-or-payment-by-results-often-fail/ Either the upside for the agency has proven to be no incentive – except for the agency CFO. Or the method of calculating the payment is too complex or minimizes the rewards. Or the advertiser ends up rewarding the agency just for doing the job and maintaining a good relationship. But with an increased focus on results and growth, the topic of PBR appears to be making a comeback.
So, therefore we ask you to tell us what you think and choose between the following:
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