Aldy Say

Friends of the creative industries generally complained about under paid and under appreciated, and clients are truly concerned about if they can recoup the investment in the creative and production costs. After I published "How to pay for Advertising Agency?" on my blog and I EzineArticles specifically asked if I could give an example of "pay for performance" with a marketing agency or advertising agency.

Assuming that the client has a decent agency brief and marketing / advertising / creative agency to understand perfectly, then you are actually conceived as a decent campaign, theoretically there should be a good returns. However, the market is a strange place where big changes can quickly shoot down a hot product in the bottom of the valley. Although rare, it has happened before. It is such uncertainty in the market, doubts and fears of the clients and the difficulty of quantifying the values ​​of "creative" people who are reading is the basis for heated debate.

I believe a fair price is one where the client and advertising agency dogovorene.Cijena can be arranged, but the "unfairness" will somehow still clipped. The client could not be attributed to its success in a press advertisement as there is no tracking device osnovana.Dizajner can begin to trust that paid peanuts when sales hit the roof. Even nothing is said and expressed;. Dissatisfaction can silently seep and negatively affect the otherwise cohesive working relationship

So, instead of accepting or offering a fixed price, either party may consider "pay for performance" option. To "pay on results" or "performance pay" is not as simple as it might appear. Marketing, Advertising and Communication is largely based arts, creative industries, where "products" are ideas and action taken. Just as beautiful fireworks is more when it is done, the ideas exposed can never be taken back to the reuse and recycling in its original form. I'm sure you can see the challenges of "pay for performance" program.Stvarne costs that were difficult to measure the creative market, although it is not impossible. To effectively deploy "performance pay", you would need to overcome various challenges, and they are discussed in another my article, "Do you pay for performance with the Advertising Agency ?".

After considering those factors and you still think that "performance pay" for you, you May want to consider this a working model.

1 Founded as it sunk cost, which could easily mean time (for research, analysis, brainstorming, conceptualization, copywriting, visualization, story boarding, desktop performance), materials (such as photos with the photographer, models, studio, props, or purchased photo images or databases for direct mail), travel expenses.

2 To establish the quantum of such costs. Where the cost can not be quantified, you can check with your Association accredited ad agency suggested retail prices.

3 The client must agree to supply and pay for sunk costs

4 Both sides must agree on performance measures. This involves identifying deliverables and determine expected results for each of these results. One of the most obvious and accurate, deliverable will be a response to the campaign. It is usually measured by including some kind of direct response within the campaign. It could be a reference number, e-mail or web page.

5 Payment performance level should have a clear end date. Companies should not be afraid to pay. Alternatively, they can put a cap on the quantum, assuming that they expect a runaway success for the campaign. Again, this cap should be agreed. For example, both parties can agree to a $ 50,000 or $ 5,000,000 cap on part of the performance bonus compensation agencies, depending on the size of the project.

There are, of course, many ways to spin it. The above is just one way to look at a complex arrangement. I'm sure you can come up some creative ways to do this.

Do not worry about what it costs, just concern yourself with what you do!