Re: [Image_Management] Performance based fee

Hello,The profession of advertising has already successfully faced the issue of performance based fee.Perhaps we in PR are new to it.ITV in Britain was the first one to intriduce performance based fee to Tv progs,incentivising quality production that gels with audience.At one time DD in India had examined a similar proposal but gave it up.

No remuneration can be totally based on performance.There has to be a basic retainer fee to cover basic resource deployment.

The second parameter is output in terms of clippings,activites

The third tier is outcome, sales,perception change ( initially client/agency arrive at indicators,such indicators at two levels,one at basic level and second at desirable level),costs saved (avoidance of crisis,and linking it to cost of a crisis).These are indicative.

The problems arise from client's ignorance of PR and what it can achieve and cannot achive.Also clients reluctance to change but expecting others to change.

It is wise to record clearly the performance parameters,client's responsibilities,a well defined arbitration mechanism. 

Since the concept is new to PR and the profession is not well organised,there are serious problems faced by both agency and client.Narendra

 

On 29/07/2008, sangeeta_irani <sangeeta_irani@rediffmail.com> wrote:

The time for review of a retainer arrived and I asked for an
increase for we had delivered. The client talked of performance
based fee.

I have checked with a few Pr friends and only one had heard of an
incentive - but that was over and above the basic retainer.

Has any one heard of performance based fee system only - no
retainer ? If yes some questions ?

What is performance ? The 250 clips and the 400 internet clips you
have for the year . The qualitative articles in ET, HT ,CNBC etc

How do you quatity performance - vauation of clippings, cirrus score?
What if client is too small not even listed company - you know in
cirrus he may not get good scores inspite of the work you have put
in.And that fact that client has non-metro cities news.

And just wondering if like Ekta Kapoor and Star Tv deal for Tv
shows - In Pr we have basic fee and extra fee. Star TV paid if
TVR's of serials increase. Except in our case what is the way we
judge the work?It's not as transparent or easy.

Would appreciate inputs and also gyan - is this the trend any where ?
I have never ever heard of it- may just be a cost controlling
measure by client !

Regards

Sangeeta Irani

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