Should you take the plunge?

Traditional models of agency remuneration have fallen under scrutiny in recent times, with cost-plus and labour-based methods increasingly being seen as outmoded in the current media environment.

Should you take the plunge?

John Wolfe

The always-sensitive issue of agency compensation has fallen under the same call for radical change that is being heard throughout the rapidly evolving advertising, marketing, and media industries. Cost-plus and labor-based compensation systems – currently predominant in client/agency relationships – have been criticized as impractical and out of step with the current marketplace, while the traditional 15 percent commission is as rare as a rotary phone. As a result, adventurous advertisers seeking more value for their marketing budgets and creative ad agencies willing to take risks in order to be treated as true...

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