Paying the piper
The information, provided in the pamphlet Agency Remuneration: A best practice guide on how to pay agencies ñ published by the IPA, ISBA, MCCA AND PRCA ñ looks at all the ways an agency can be rewarded for its work, and their advantages and disadvantages. It concludes with 10 steps for clients and agencies to agree on the scope of the agency's work and the best methods of payment. This guide should be on a mandatory reading list for both clients and agencies because ñ as it succinctly points out ñ it is in everybody's interests for an agency to be rewarded properly for its work and for a client to pay the right amount for what it hires an agency to do.
The origin of the production of this guide lies in the fact that the old commission basis for agency remuneration has gradually withered as media independents have sprung up, and as the marketing mix and role of the agency has widened.