When a business is considering partnering with What to Choose When Working a marketing agency, it is important to understand how their business model works.
Victor Desaga, contextualist at Completo , explained what interaction with an agency on a commission model can lead to, and why a fixed fee is the optimal choice for a business looking for a reliable partner and contractor.
Commission model: an approach that is disadvantageous to the customer
Many agencies operate on a commission vp security email lists model, which can lead to unnecessary expenses and inefficient use of the client’s resources.
It sounds harsh, but it is a given: the sales mistakes that cause companies to lose customers commission model of work implies that the customer pays a percentage of the advertising budget to the specialists who launch and run the activities.
This operating scheme has 3 significant disadvantages:
it is based on increasing the budget
not on its effective distribution. The larger the advertising budget, the higher the advertising costs, the higher the agency’s earnings. Even if this increase does not bring you any benefit;
the contractor is not interested in increasing the effectiveness of advertising campaigns and optimizing their settings, because the client does not pay for the services provided or the leads generated, but simply a percentage vietnam data of the budget spent;
with small budgets and a desire to save money, the customer runs the risk of running into a newbie contractor who will take payment, that is, set a %, much lower than the market, but will study and gain experience with your money. This can directly affect the results of activities and lead to misuse of funds.
It is important to remember that good specialists and agencies do not dump the market, but justify the value of their services with experience and relevant cases.