Agency Remuneration Models: Which Is Best For You?

Posted by Callum Broderick on November 6, 2015

Agency Remuneration Models: Which Is Best For You?

Which Agency Remuneration Models Work Best Today?

Over the coming weeks, I and other professionals from the creative industry are looking at how agencies can maximise margins. We’re exploring many of the business challenges you face, and we’ll be sharing opinions, advice and guides ̶ all designed to offer you a different perspective to help you overcome them. Here, I look at various pricing and remuneration models that agencies and clients can choose from.

Choosing the right pricing model can make a big difference to your profitability and to the relationships with your clients. Agencies and clients are increasingly choosing to collaborate and invest in one another’s success. Both performance-based and value-based remuneration (PBR and VBR) models are becoming more popular as they offer both parties the chance to evaluate their ongoing relationships.

Risk And Reward: Getting The Balance Right

Many agencies are becoming more entrepreneurial in one way or another. And although these pricing models offer agencies the chance to make greater margins, project costs need to be accurate to maximise the opportunity. Using historical data on similar projects can help agencies plan and manage resources effectively. And it can raise expectations with clients as to the value being delivered.

Comparing PBR vs VBR

Our eGuide looks at both these collaborative models, how they compare and which you should choose. Whilst the PBR model measures an agency’s performance, the VBR model measures the value that an agency’s output brings to their clients.

eGuide: Choosing The Right Pricing Model

No matter which model you choose, you can optimise your costs, maximise your profitability and build a longer-lasting relationship with your clients by utilising ERP, CRM and project management applications.

Join me and other professionals from the agency industry during the coming weeks as we ask the question What if? We’ll be sharing articles, insights, eGuides and opinions for download on how, with total clarity of your costs and resources, you can maximise your margins.

In the meantime, why not tell us which remuneration models your agency prefers and how they help you build strong client relationships?