Mar
28
Agencies Are Getting a Free Pass
Posted in: Uncategorized
More clients are using performance-based incentives to compensate agencies, but most of them are still letting their agency partners off the hook.
According to the ANA’s Agency Compensation Survey, 61% of clients use some kind of performance incentive with their agency partners, up from 46% in 2010, when the study was last conducted.
Even more significantly, 36% of clients use a risk-reward incentive structure, in which the agency is paid more if it meets its goals, but risks losing compensation if the goals are not met. This is up from 21% of clients that used a risk-reward structure in 2010.
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