The paper lays out the most prevalent compensation models, plus hybrid models. It also adds 10 characteristics of what companies should look for in a compensation model. They can then score each characteristic and score the importance for their particular organization.
“If you think your compensation model isn’t working, this is a tool to evaluate it, and then the definitions and descriptions of the model can help you choose what might work,” said Rizzo.
Both Duggan and Rizzo hope the paper helps companies test and experiment with new compensation models that work best for them and their clients, because the models need to be fair to both agency and client, without skimping on compensation, without chasing the cheapest CPM (cost per thousand impressions) and without extended payments.
“I’m a believer that it’s about the value the agency brings, and not about the cost,” said Duggan.
The study will be available on the 4A’s website and the ANA’s site.
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