How to Deal with Marketers' March Toward Paying You Later
Posted in: Uncategorized
Now that Mars has become the latest marketer to jump on the deferred payment bandwagon, agencies are once again complaining (behind closed doors anyway) about feeling financially bullied by clients.
There’s little doubt that when the world’s biggest marketers extend payment terms to 90 and 120 days, the repercussions are felt at every level — from media agencies who have to pay for their buys, to the creative agencies who have to pay production companies and other vendors, and to the employees who may suffer deferred or canceled bonuses and raises.
The heads of the major agency holding companies have been vocal about this topic over the past year, publicly agreeing that they don’t want to be treated like banks. Unfortunately, it hasn’t stopped the forces that are driving deferred payment. So it’s time for agencies to start dealing with the issue head-on instead of acting like victims.
Post a Comment