copernica dm summit - the future of agencies: keynote wim andrea

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Non-traditional

remuneration models

A confession from the trenches

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Contents

• What forms of „non-traditional‟ models are

there (roughly)?

• What restrictions do we encounter when

adapting these models?

• How do clients often (re)act on non-

traditional models?

• What traps? Shame on me…

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What forms?

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co-shareholder:In exchange of difference in commercial hourly

rates/cost-rate a shareholdership is acquired

example: The Voice

What forms?

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What forms?

co-makership:negotiated definition of performance-based

component vs regular rates (bonus/malus)

example: ING forms

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What forms?

performance/volume-based:rather conventional and not really non-traditional

remuneration-model, relevant nontheless

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What restrictions?

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Restrictions

• Non-traditional remunerations are often

not supported by corporates (accounting

barriers);

• Financial outcome for client is more

expensive than traditional model (makes

you wonder…);

• Your pipeline;

• Measure of influence on outcome.

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Clients reaction?

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Client‟s reaction

Depends completely on culture:

• Corporates: “Interesting. But...”;

• Start-ups: “YES, PLEASE!!”;

• Entrepreneurial: “OK, let‟s talk”.

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What traps?

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What traps?

• Client‟s cooperation is less than expected:agree upon mutual actions and time spent/invested.

• No clearly defined framework on which

remuneration is granted:write down agreement

• Client abuses proposal as „regular discount‟:hard to beat… one lesson is enough.

• No back-up/alternative when things go

astray:part of the plan must be an alternative (regular billing).

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Thank you very much

for your attention

Wim Andréa

director strategy & creative