Remuneration Models & Bonus/Malus Schemes
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
- Objectives for each type of agency relationship
- Baseline fees and bonus
- Risks, benefits, enablers and dependencies
- Analysis of different remuneration models
- Alignment on solutions by agency type and agency
- Change plan
- 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
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