The industry has reported an anomaly in that agencies’ profits seem to be rising and yet agencies claim their negotiated fees are falling. Agencies and their parent groups are continually looking at new ways to earn additional revenue over and above the client fees.

 

To this end our remuneration review work ensures that the agency has:

 

• Charged remuneration in line with the agreed contractual terms, whether:

o   an agreed retainer amounts, or

o   a commission % on the agreed supplier cost base (gross/net).

 

• Calculated fees in line with the agreed FTE resource structure

o   Reconciling the agency timesheets back to the agreed structure in terms of both the time and value of staffing provided.

o   Ensuring staffing mixes provided, between both service categories and pay grades, are consistent with those agreed between client and agency.

o   With approvals for all out of scope fees and have been charged according to agreed rate cards, ensuring no duplication of income between in scope and out of scope services.

 

• Not obtained additional income from non-compliant revenue streams such as, for example:

o   Hidden digital mark-ups, (including ad-serving).

o   Related party commissions, fees or mark-ups.

 

• Charged incentives or bonuses per the agreed mechanics and any calculations are accurate.