Agencies are no longer compensated on a commission basis. They must earn their fee and increasingly clients are adding in performance clauses to their fee contracts.
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Agency Compensation Fee vs Commission Performance Clauses Augustine Fou
1. Augustine Fou- 1 -
Agency Compensation
Source: Association of National Advertisers
81% is fee based; only 5% is commission
Increasingly clients add in performance clauses
2. Augustine Fou- 2 -
Dr. Augustine Fou – Digital Consigliere
“I advise clients on getting the best work
from agency partners at the best price.
We ensure that the right performance
metrics and terms are built into the
scopes of work.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
@acfou
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