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What is average rating and hike you are getting?
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Is it 1985?
Commissions? OP, are you a PR firm trying to get into media??
Yes
For those accounts still working on a commission structure- there is a ton of variance depending on overall investment, regionality (I.e global) , size of the staff, and channel mix.
Might serve you better to start with the hours and staff (by level) needed to service the business properly.
(From an agency in MS, working with clients nation wide.) We work commission based for media, 15%. What is typical today for agencies in bigger cities? From these replies, it looks like commission might be old school?
Commission is considered an older and perhaps (at least in the case of larger agency clients) less used form of compensation.
At the end of the day it is revenue - wether fee or commission. What matters is that you are able to profitably hire staff to service the business with the fees/commision the client is paying. You will need an understanding of the staff needed, compensation, overhead to figure out what you need in terms of revenue.
Feel free to DM me if you need direction on how to get there.
You need to work out how many FTEs can service the account vs what the client will pay.
Commission will be worked out as a % of media or it can be converted into an ECR
Revenue has to cover salary + overheads and a profit margin
Procurement will always get involved when it comes to negotiating rates if you deal with a major corporation