FAQs

1. What can you do for my organization?
Save you money. By educating you and your staff on agency compensation, you can negotiate or renegotiate better, more efficient, more effective, more complete agreements that will benefit your organization/company.

For advertising agency reviews, we can advise effective procedures, conduct the review itself or provide suggestions and guidelines for your review.

2. Who benefits from your advice?
Advertisers, ad agencies, public relations firms. Our principal customers are advertisers (clients, if you prefer). We help them select their new agencies and PR firms. We help make their ad agency compensation agreements fair for them. But that also means that the ad agencies and public relations firms are treated fairly in the reviews and the agreements.

3. Do you work for ad agencies and P.R. firms?

Sometimes. One agency told us that they wanted to make their agreements more in line with agreements used by very large, U.S. and international companies. In doing so, they felt they could show their “clients” that they are current, fair-minded and should be considered for larger portions of their advertising spending.
7. How involved do you get in helping to negotiate or renegotiate compensation agreements?
We advise the people at your company who are involved in contract negotiations. We make suggestions for new provisions, for changes and even draft language for agreements. However, we are never present in negotiations and never directly negotiate for a company. We help to make agreements fair (including fairly priced), complete and open. We help to protect companies from excess compensation, uncommon provisions and other elements that cost a company more money than necessary or put a company a greater risk/exposure than necessary.

4. How did you get so smart about agency compensation agreements?
From 32 years of working for advertisers and advertising agencies, including my own. From observing and understanding the needs and elements of ad agency agreements for all types of relationships and for all types of service. From keeping up-to-date with what national and international advertisers are doing in their agreements.

5. Which is better for compensation agreements: a fee structure, a commission structure or labor-based agreements? What about incentive agreements?
While there are preferred methods of compensation, it really depends on your company’s particular needs and situation. Sorry, if you expected a simple answer; there isn’t one. However, many national advertisers have a widely preferred approach to compensation agreements. Here’s an idea: send Phil your current agency or PR agreement (in confidence, of course) and he’ll review and advise where potential savings maybe.

6. How can I reach you to have a phone conversation or in-person meeting?
Please send Phil Schwartz an email including your name, company, position or area of responsibility and phone number. He will respond promptly. Email Phil at phil@schwartzcom.com

7. Can you help with media-only compensation agreements? With creative-only compensation agreements?
Yes. And we are aware of the current market rates for these types of compensation. Are you paying too much for media or creative work? I can help determine if you are or are not.


     
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