Hasta La Creative!

There’s been a lot of agency talk about expanding pay-for-performance agreements, but Peet’s Coffee & Tea and its new digital shop Razorfish are putting their money where their mouths are with a compensation plan 100% reliant on Peet’s bottom line in e-commerce.

The coffee retailer, which is backed by private equity, has named Razorfish, the Publicis Groupe digital giant, to handle its growing but small e-commerce business after an informal search for an e-commerce agency of record.

Under the terms of the assignment, Razorfish will provide services in exchange for a share of Peet’s e-commerce profits. That’s a departure from the typical arrangement, in which agencies charge fees based on the full-time employees on the account, and more traditional performance-based compensation schemes, in which which agencies sometimes get bonuses tied to marketing-specific results or even sales.

Continue reading at AdAge.com