1、Decoding Compensation Models&Implementing the Right ModelApril 2024Decoding Compensation Models&Implementing the Right Model|2I.The Genesis of the Task ForceII.Challenges in Transitioning to a New Compensation ModelIII.Mutually Beneficial Compensation MethodologiesIV.Categorizing and Standardizing N

2、aming Conventions of Models A.Output Models1.Fixed Price Proposals2.Pre-Negotiated Price List3.Subscription Pricing4.CommissionB.Input Models1.Hourly Rates2.Cost-Plus ModelC.Outcome Models Performance Compensation1.Incentive CompensationD.Hybrid ModelsV.Evaluating the Right Model for an EngagementVI

3、.Characteristics of a Good Compensation SystemVII.Strategies for a Successful Transition or ImplementationVIII.SummaryIX.Task Force Members3455 661014161818192222272929303132Table of ContentsDecoding Compensation Models&Implementing the Right Model|3Marketing has changed dramatically over the last d

4、ecade,but agency compensation models have predominantly remained static and often fail to align with the growing complexity of the industry or with the objectives of the marketers they serve.While agencies and advertisers are adapting and evolving how they work together,compensation structures have

5、not kept pace with the rapid industry changes.Some agencies and advertisers have fully converted to new models,others now use hybrid models.However,the majority of agencies and advertisers are only starting to consider new approaches,which incorporate input,output,and outcome-based models according

6、to the ANAs Trends in Agency Compensation,Section IV:RESPONDENTS FUTURE PLANS FOR AGENCY COMPENSATION(page 19).In response to this issue,the 4As and the ANA established a collaborative task force to share insights,establish a common nomenclature to describe the existing compensation methods,inform s