Agency Compensation


Most advertisers aren’t concerned about how much profit their agency is making.

Until they find out.

Like most advertisers you may be under the impression that your agency is making 10%-15% profit on your business. While that may be a reasonable assumption, it could be a costly one. In fact, every one of our clients were surprised to learn that their agencies’ profit margins were much higher. Several in excess of 40%! Why didn’t they know? For the same reason you probably don’t know either: agencies rarely provide clients with complete operating data on their accounts. And, even if they do, advertisers don’t interpret these financials correctly.

That’s where we come in. Using our knowledge of agency cost accounting systems, combined with ad industry “norms” and our proprietary data base of more than 300 agencies’ operating costs, staffing and profitability levels, we can determine that for you. And, if you’re paying more than you should for your agency’s services, we’ll show you what you can and should do about it.

We know that all successful client/agency partnerships are based on mutual trust. We also know that comfort in the knowledge that your agency is making a fair, but reasonable profit on your business is fundamental to that trust. But, financial accountability is just one requirement for a successful client/agency partnership. Another is that agency compensation be tied to program and business results. For that reason, we provide each of our clients a set of custom-designed program targets and metrics to encourage and reward superior agency performance. These will ignite and motivate your agency to recommit itself to providing new business-building ideas and even more effective programs.

Making agencies accountable for results and building stronger client/agency partnerships is what we do. And, based on our long list of successful, satisfied clients, we do it well. We can make a difference for your organization, too. Even if you think you’ve got a handle on your agency’s costs and profitability. After all, every one of our clients were convinced they knew how profitable their business was to their agency. Until they hired us.