It’s true, foregoing potential revenues can be risky for both agency and client. That’s why it’s so important for an agency to take the time to understand specifically what the brand is trying to achieve, whether that is increased sales or improved brand awareness connected to the launch of a new product or service. The agency then commits or guarantees to help its client achieve the predefined results.When executed successfully, this model also paves the way for a more trusting relationship between client and agency, more innovative thinking and a budgeting method defined by market share opportunity rather than hard costs. Value-based performance is not about bonuses or short-term reward. It’s about sharing in the clients’ expenses as well as their revenue. Those agencies that play a part in their clients’ success are invested – literally - in the success of the concept and the execution.
It’s true, foregoing potential revenues can be risky for both agency and client. That’s why it’s so important for an agency to take the time to understand specifically what the brand is trying to achieve, whether that is increased sales or improved brand awareness connected to the launch of a new product or service. The agency then commits or guarantees to help its client achieve the predefined results.When executed successfully, this model also paves the way for a more trusting relationship between client and agency, more innovative thinking and a budgeting method defined by market share opportunity rather than hard costs. Value-based performance is not about bonuses or short-term reward. It’s about sharing in the clients’ expenses as well as their revenue. Those agencies that play a part in their clients’ success are invested – literally - in the success of the concept and the execution.