The 4A’s and ANA have issued a new report on agency compensation models.  

According to a recent survey by the 4As in 2024, Fixed Fee emerged as the most utilized compensation model among those polled.  

The report, titled Decoding Compensation Models & Implementing the Right Model, examines various models in detail including fixed fee, hourly rate, commission, performance, subscription and others.  

Laura Forcett, director of global marketing sourcing services at the WFA is quoted in the report:  

“Ultimately the chosen remuneration model will dictate the type of relationships clients want to have with their agencies,” Forcett states. “A focus on outcomes instead of input enables agencies to become integral partners to a client’s growth and performance. That’s why it’s great to see that more clients want to reward not just performance but also quality through sustainability, diversity, and talent.”  

“One caveat,” she added, “is that too often we focus on the model being used and the fee being paid. What matters is the whole remuneration ecosystem, including the speed of issuing POs and payment terms. Some advertisers have very complex systems and even if the remuneration model is attractive, it can be a real struggle for agencies to see the money in their bank account.”  

Find the full report here.