What’s fair in brand-agency negotiations?
Are agencies being cheated in their negotiations for compensation with brands? Are brands being treated unfairly? Are pay-for-performance models fair?
In this iMedia Connection article, Adam Broitman does a good job of highlighting the issues that agencies and brands should consider when entering negotiations. His survey points out some interesting results about how both sides of this equation view the issue.
An interesting part of this article, aside from the content, is the way Adam has used Twitter and Google Docs (for a survey) to help him gain input and community outreach with this article. It’s a very up-to-the-minute model and use of technology, I think. We can all get ideas from this. One of the best things about Google Docs is the way it allows multiple users across several locations to edit and share a document online simultaneously. This can be a useful and even essential tool for agencies working across multiple offices and continents. Plus it offers an array of templates with everything from project management schedulers to Powerpoint presentations to surveys. Perhaps I should make a blog post just on the benefits of Google Docs!
One problem I’ve encountered, especially when dealing with small business owners or entrepreneurial start-ups as I do often, is the lack of understanding about what is really involved in creating an idea or concept. There is a tendency among virgin marketers or business owners to equate value with time (as you would when paying a day-laborer). Paying on a per-hour (or per-minute) basis isn’t equitable when it comes to idea-generation. It’s the idea that is valuable, not the time it took to generate it.
What’s you’re opinion about the agency/brand negotiation process?
Filed under: Advertising Management, Branding, Creative | 3 Comments
Tags: agency compensation, agency negotiations, Branding