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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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