There has been a lot of industry discussion of agency performance incentive compensation and payment by results. However, there is little recent agency information on the prevalence of such arrangements, their structure, and their economic impact.
Recent publicity related to client payment terms prompted the Association to conduct a member survey on existing agency billing practices and client payment terms as a means to provide a factual foundation for marketplace consideration.
This presentation on the effective compensation and agency performance measurements in digital media was originally presented by Bryan Wiener, Chairman & CEO, 360i Chairman, 4As Digital Board.
4A’s finance committee task group advocates compensation negotiation best practice suggestions for agency leaders A cross-industry task group, comprised of senior agency executives, has developed guidance and is advocating best practices that will help marketing services agencies interact more productively with client procurement groups and industry compensation consultants. The task group’s recommendations, which carry the […]
This presentation discusses the power of pricing and moving from labor-based pricing principals to performance-based pricing; as well as the fundamentals, components, execution, and obstacles to effective pricing strategies.
Candice Kersh from Frankfurt Kurnit Klein & Selz presents this paper discussing the new basics for agencies to consider when revisiting agency-client agreements
A battle-tested panel of agency pros talks about negotiating compensation and the importance of having a negotiating strategy, internal alignment and an experienced “deal team.” The panelists also share proven tips for reaching mutually beneficial compensation arrangements.
Dana Perry, BBDO, and David Weiss, Interpublic, discuss profit and ad worth in this 2014 4A’s presentation.
In this presentation paper by Darren Norkett, discusses “getting paid what we are worth” and touches on the unfortunate conversations we as an industry currently find ourselves having on the topic of Talent & Labor Based Compensation.
The 4A’s offers the following document to assist agencies in identifying and working successfully through compensation challenges and opportunities.
For a sample alternative compensation model, please refer to the following simple template in which you can drop in your agencies own compensation information.
Current SOW practices are diverse, and can be problematic as a result. This paper explores the challenges and some possible solutions to help make SOWs more streamlined and successful.
A panel of experts discusses the do’s and don’ts of performance compensation. They share the views on what performance compensation arrangements work, discuss lessons learned and the importance of client motives and culture.
Tom Finneran, EVP, 4A’s urges agencies to develop compensation principles, communicate the principles broadly and then adhere to the principles.
Ogilvy’s Worldwide CEO Miles Young urges the industry to get back to basics by starting with the client’s business goals; taking a team-based approach to compensation; challenging inappropriate client and consultant mandates; and believing in your value proposition and leveraging your precious talent.
A cross-industry panel discusses the importance of value-added metrics and cautions against the inappropriate use of metrics that focus primarily on cost rather than on the benefits that clients/brands derive from agency work.
TBWA’s President and CEO Tom Carroll provides a call to action and urges the industry to become more confident and capable pricers.
Rick Brook, SVP, Global Client Operations, WPP identifies myths about efficiency metrics–notably the invalid use of overhead as an efficiency metric. Rick suggests a hierarchy of metrics that are appropriate and should be used in compensation discussions. >>>Download presentation: Overhead and the Truth About Efficiency Metrics
Susan Gianinno, Chairman & CEO of Publicis suggests an innovative three-tier compensation approach.
Creative icon Lee Clow (Chairman and CCO, TBWA Worldwide) shares his thoughts on agency compensation and the value that agencies provide by building brands.
Tom Finneran, 4A’s Executive Vice President, discusses the industry’s compensation challenges and reviews the “Agency Compensation: 4A’s Agency Compensation Transformation Doctrine–Strategic Pillars” position paper guidance which serves as a foundation for much of the summit program’s content.
Industry icons share their thoughts on “How to Get Paid What You Are Worth–Now”
The “Pricing Continuum” ranges from classic/true cost-plus arrangements at one end of the spectrum to pure value added/results based methodologies at the other end of the spectrum.
The 4A’s outlines a logical, bi-partisan process for evolving dialogue between marketer and agency that can add credibility to compensation discussions, demystify compensation parameters and restore confidence in working relationships between marketers and their agencies.