Remuneration Negotiation

Remuneration negotiations have become more complex during the past 15 years.

Agencies are no longer remunerated through multiple income streams.

With more and more international companies coming to South Africa, they brought with them the international agency agreements that the local agencies had to adhere by.
The local companies adapted these international practices with the result being that we now see very few local companies still following the old remuneration model of time + mark-up + media agency commission.

There is a fine balance of negotiating to tightly and taking away any motivation for the agency to do their best work.

This is where benchmarking is key. How are you comparing to other clients in your spend bracket?

What remuneration model is the right one for you?

You can get very sophisticated models such as the Value Based Compensation Model right through to the fix fee, non reconcilable model. The right model for you depends on a number of factors we would be happy to discuss with you.