Skip to content
corner-left

Remuneration Modelling

corner-right

We create new remuneration and bonus schemes and implement them, maximising return-on-agency fees and incentivising exceptional performance

Over $264billion will be spent on agency fees this year, with many ways of paying agencies, tech and data providers:

  • Agency retainer fees
  • Time-based fee models
  • Commissions & mark-ups
  • Output-based fee models
  • Outcome-based fee models
  • Performance-based models
  • License fees
  • Seats and usage
  • Alternative payment terms

Flock will guide you through the pros and cons of each remuneration style for agencies and tech & data providers. We’ll help you build the optimal agency remuneration models that drive performance and maximise value from your investment in agencies. We’ll show the latest thinking on ‘gates’, ’ratchets‘, ’variable‘ and ’demand led‘ pricing.

Flock will help you change your agency remuneration model and we’ll help to  implement effective & efficient governance of them with good contracts, technology to assist scoping, and performance appraisal.

Our 3D process to deliver your transformation

Define Blue Transparent PNG resized
  • Objectives for each type of agency relationship
  • Baseline fees and bonus
  • Risks, benefits, enablers and dependencies
Decide Blue Transparent PNG resized
  • Analysis of different remuneration models
  • Alignment on solutions by agency type and agency
  • Change plan
Do Blue Transparent PNG resized
  • Contractual work
  • Technology & data solutions to support new remuneration schemes
  • Communication and transition with agency partners
  • Evaluation of impact and effectiveness

Flock have led many world-class agencies, across holding companies independents. We know agency business models well and know what the best and fairest methods are to maximise the value advertisers receive from their agencies.

We do not believe one size fits all and we always effectively combine different remuneration ’ingredients‘ to build the most effective schemes for each of our clients.

We are supported in our work by world class tools and benchmarks.

Deliverables

  • Fair and effective remuneration agreements that motivate agency, tech and data performance
  • Best return-on-agency fee

Different "Base Systems" Suit Different Situations

Commissions

  • Data, Tech, Media, Production
  • x% on net media spend for Paid Social Medial, or $ CPM

Time-based

  • Design, Creative, PR, Media, Digital
  • Cost per FTE x FTE x OH Multiplier x Profit Multiplier

Output

  • Production, Digital, Creative, Media
  • Rate-card for deliverables e.g. Competitive analysis, or Complex 260 idea, or a GIF

Outcome

  • Performance, SEO, Affiliate, Direct, E-commerce, Promotions
  • Test drives, Page One Ranking, Completed Views, Sales

Different "Review & Bonus Systems" and KPI's Suit Different Situations

Service & Satisfaction

  • Any
  • Assessment Questions and Interviews

Quality

  • Design, Creative, PR, Media, Digital
  • Research or third party data

Shared savings

  • Media, Production
  • Evidenced savings e.g. Third Party Audit

Outcome

  • Performance, SEO, Affiliate, Direct, E-Commerce, Promotions
  • Third Party Data

Related services

Agency Ecosystem Review

Development and identification of new agency ecosystems, resizing and reshaping agency rosters to match the ever-changing needs of brands and consumers.

Find out more about Agency Ecosystem Review

Agency Pitch Management

End to end process for selection of world class agencies, pitches, evaluation/scoring, marketing team support, industry best practice, scoping, selection, transition and measurement.

Find out more about Agency Pitch Management

Agency Intervention

We run “Get Fit” programs that intervene when agency relationships or performance has faltered and get rapidly improved performance.

Find out more about Agency Intervention

Agency Appraisal Tool

The Flock Agency Appraisal Tool enables advertisers to review and optimise their agency relationships in a simple and efficient way.

Find out more about Agency Appraisal Tool

Agency Scoping Tool

Flock have identified a marketing industry need to simplify and bring efficiency to the agency scoping process.

Find out more about Agency Appraisal Tool

Our Procurement Case Studies