When hiring an agency or looking for a way to outsource your marketing, it may not be top-of-mind to check how they’re compensated. Historically, many ad agencies receive a majority of their compensation based on advertising spends. For years, a 15 percent commission has been the standard that will go back to the agency.
No one would argue that agencies deserve compensation for the work they do, but while the method described above is the typical way agencies get compensated, it isn’t the only way. A more recent option is based on a straight fee for services.
Clients don’t have to worry that recommendations are being swayed by profit potential.
With profit variables removed from the equation by a model not based on commission, the recommendations made and communication methods used are driven by sound strategy. With money concerns put to rest, everyone can focus solely on how to meet your goals.