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The industry standard
for advertising
commission is 15% on all media placed
in a publication.
Any more would be too much.
Any less and you should be suspicious.
We hope the following questions and answers will clear up some
common misunderstandings.

What if my agency sells me
the ads at "cost?"

Advertising agencies depend
on their commissions to stay in business.
If an Advertising Agency claims to be "foregoing its commission"
there are important things you need to know:
a) The agency is making up the difference in some other way.
Make sure you know what that way is.
Make sure, for instance, they aren't selling to your competition.
b) The agency is cutting corners.
Make sure that your agency is serving your properly.
Make sure, for instance, that you are getting original, quality
work and not "stock" service.
c) The agency will soon be out of business, taking your ad program,
marketing momentum, and trust along with it.

Why would a publication sell
advertising space directly, discounting the commission?

Publications come in all
shapes and sizes,
and so do the people who sell space for them.
Most of the time the account executive selling the space is given
a commission on that space.
Occasionally, in their eagerness to sell, start-up publications
or new account executives may offer to sell space directly to
you, intentionally or not, by-passing the advertising agency.
Occasionally, in an effort to be helpful or simply to close a
deal, a publication will tell you they can create an ad for you
if you buy space with them.
It sounds good.

What's wrong with this?

Nothing, as long as you realize
the following:
a) When you buy directly from a publication, most of the time
you're buying SPACE, not advertising.
Keep in mind that space can be sold to anyone, even, and often,
your competition.
b) The person who creates the ad for you is more than likely
also creating ads for other advertisers.
It's up to you to make sure that this creative service which
you are getting at a bargain is going to be effective for you.
Successful companies rely on their advertising agencies because
their agencies are looking out for their interests and their
interests alone.
They are not put in a position where they have to play favorites.
c) When a publication creates an ad for you, it's up to you to
confirm the rights to the artwork.
Determine first if the publication is willing to place the ad
it creates for you into another (possibly competitive) publication,
if you want them to.
We hope the next time
you receive a bill from your advertising agency, you'll realize
the value of their 15%.
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