How do agencies bill clients

How do agencies bill clients - HOW DO AGENCIES BILL CLIENTS...

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HOW DO AGENCIES BILL CLIENTS • This will be an oversimplification of the process, but I do think it starts to illustrate the odd relationship we often have between people within our work environment (cre- ative department and account executives in this example) and the relationship we have with outside entities such as our clients and vendors (in this case a media one, such as Texas Monthly). • Here are the actors in our play: • Angela (our art director) • Chuck (our client) • Ellen (our account executive, AE, account coordinator, etc.) • Tom (a sales rep at our magazine, Texas Monthly). • Chuck want sot run an ad in Texas Monthly. They will charge him $10,000. • However, if Chuck goes and hires Ellen’s agency, they can buy that same ad from Tom for generally a 15% discount, so it would cost $8,500. • Why does Tom give Ellen the discount? Well Chuck doesn’t know much about advertising, so Tom would have to hold his hand a lot. Plus, Tom would have to keep pitching Chuck with why magazine advertising is important and how TM is the perfect magazine for him. Constantly. • Ellen is an expert and her staff (Angela) rarely makes mis- takes. Plus, since Ellen is the rep for multiple accounts, her agency probably buys space in TM for multiple accounts every month. She needs less hand holding than Chuck. Chuck can probably sit back and just let Ellen bring lots of
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This note was uploaded on 08/09/2011 for the course ADV 3361 taught by Professor Curtismatthews during the Summer '11 term at Texas Tech.

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