Risk-Sharing Models Gain Momentum
According to the Association of National Advertisers, at least 50 percent of large advertisers have begun to offer incentive-based compensation for agency work. David Levin, founder of i33’s interactive marketing practice and leading proponent of risk-sharing ad models, will work to gain the other 50 percent’s support when he speaks on April 27th at Ad:Tech San Francisco. His topic is “Pay Your Agency on Results: Risk-Sharing Compensations Models.”
“A risk-sharing pay structure changes the relationship between agency and marketer,” Levin said in a press statement. “Clients like to know that we want to succeed as much as they do and that we work that much harder to deliver results. We’re in the trenches with them, and it allows us to work together as a real team.”
While many companies are beginning to move away from traditional agency commission and fee models to performance-based options, Levin said, there is still a significant number of marketers and agencies averse to this model.
Levin began i33’s interactive practice in 1997, and has since focused on maintaining high-volume sales and lead generation for the company. i33’s proprietary service AdMaximize(SM) is the first and most customizable ROI-reporting tool in the industry.
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