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Paying Your Agency

The steps to a successful agreement

1. Both parties should agree to, and be satisfied with, the remuneration model chosen. Both parties should also be happy with the fee structure.
2. It is vital to establish the territory covering the appointment: which countries, regions and territories?
3. Agency assesses its likely costs and prepares a work plan based on people-hours, and shares with client.
4. Client refers back to marketing budget and relates people-hours cost to agency cost-provision in the budget.
5. Both sides agree level of agency remuneration (including the profit margin) at the point where cost provision and the cost of people-hours intersect.
6. If applicable, the client and agency agree goals/KPIs as the basis for PRIP.
7. At this point, client and agency have to come to terms on how much the client is going to pay the agency, how performance is going to be evaluated and remuneration reviewed in a year's time.
8. Provision should be made to revisit the agreement at an agreed date in the future, to ensure that both parties are still happy with the method.
9. As a final step - definitive discussions on the form of contract to be used.

Contact IAPI

12 Clanwilliam Square, Grand Canal Quay,
Dublin 2, Ireland.
T: 01 676 5991
www.iapi.ie
Hours are 9am - 1pm and 2pm till 5:30pm
(Mon - Thurs) and 5pm (Friday)

Endorsed by

Marketing Institute
ADFX Book