Agency Compensation, Position Papers
View All Posts
The 4A's just released a position paper on Agency Compensation. This guidance is being communicated at this time because the combination of a weak economy, aggressive client procurement tactics and agency challenges associated with consistently and compellingly articulating the value of marketing services and quantifying the client business building benefits of marketing have resulted in inordinate pressure on agency compensation at a point in time when agency services have never been more in demand.
The objective of the position paper is to transform the industry's approach to agency compensation.
The "4A's Agency Compensation Transformation Doctrine--Strategic Pillars" guidance is based on 4 pillars:
1) Agency principles should lead the compensation transformation.
2) There is an opportunity to reframe marketer's value orientation.
3) Adopt principles-based approach to compensation and contract terms.
4) Management at agencies and clients organizations should be involved in important compensation discussions.
The position paper provides the details of the objective, background, considerations and detailed guidance which includes a postscript which provides illustrative principle examples.
The 4A's Agency Compensation position paper is an important guidance tool for our industry. The best practices that are discussed in the paper outline the client business benefits associated with agency value creation and call on agency leaders to lead the transformation of agency compensation by establishing and adhering to sound equitable compensation practices.
What steps will your organization take to accelerate the transformation of agency compensation?