Fixed-cost working: a better way to pay for agency services
John Orsmond, ARM, outlines a disciplined, transparent approach to costing and charging for the full range of agency services
John Orsmond
Agency remuneration used to be something of a lottery for the agency and a mystery for the client. The agency was financed out of the commission paid it by the media, potentially yielding earnings out of all proportion to the costs incurred by the agency in servicing the account. Smaller, more labour-intensive budgets were usually topped up with some form of service fee. In either case, the itemised accounting...