A good relationship boosts the balance sheet

This article argues that, far from being economically inefficient, being loyal to your agency can boost the balance sheet.

A good relationship boosts the balance sheet

Rory SutherlandOgilvyOne London and Ogilvy Group UK

Far from being economically inefficient, being loyal to your agency is worth the effort, writes Rory Sutherland.

For years, there has been a recurring topic in agency remuneration – 'payment by results'. How can you reward an agency for better, more effective work, and punish them for work which fails?

As some old hands occasionally remind us, the old commission system crudely obtained something along these lines. If your campaign was effective and long-lived, the agency would make much more money over time than...

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