Agency Newsletters

"In advance of participating in a marketer search, agencies and the marketer should agree on what level of remuneration will be paid to the agency for participating in the review, as well as what costs of participation in the search will be reimbursed. Advertiser payment to agencies should specify that payment is solely intended to offset agency cost of participation in the review and does not alter the agency's ownership of agency-developed presentation concepts and materials." The paper is in the New Business Tool Kit at: http://www.aaaagencysearch.com/

Most would agree that no agency should be expected to produce speculative creative unless there is compensation. But the challenge there is to set a level of remuneration to actually compensate for the value of the work. Sample agreement language also stipulates "to reimburse our actual direct out-of-pocket (travel, research, production, etc.) costs associated with these activities ..."

How much would an agency declare to be "out-of-pocket?" If one contender were to conduct extensive market research and bill it through, but another already had the data and didn't, is the first entitled to reimbursement? How about this - since it's not uncommon for agencies to hire third-party new business consultants to help prepare and assemble the pitch itself, yet that consultant won't be around later to work the account, is that expense covered? Would a competing agency divulge all their new business weapons and show the extent of their "outsourcing" and then ask to get paid for using them?

We'll test the waters going forward to see what clients and agencies are thinking. What's your input?

P.S. - Where did this concept originate? What other industry contenders get reimbursed?

TOP 10 LIES PR FIRMS TELL THEIR CLIENTS

Our registered business friend Steve Blinn at BlinnPR recently posted the following at his blog. With his permission, and for our other pr agencies, hope you enjoy.

"Doing any sort of business requires the spewing of some polite falsehoods to lubricate the wheels of commerce. But there are fabrications that are particular to the PR business. You see them lurking, again and again, in the latest cut and paste press release announcing a new client win. You read them on agency blogs or hear about them from disillusioned clients.

And now, here they are, neatly organized into a list that will help you and your company spot the most common PR ploys.

1. "This is such a terrific product/service!

Part of public relations is managing clients' expectations. Not all products and services are newsworthy; some will appeal only to a niche market.