Return On Agencies

Agency Remuneration

What is Agency Remuneration?

A successful client-agency relationship is one whose goals and expectations are aligned.

That relationship requires periodic checks to make sure both parties are still aligned and to rectify any issues in a timely manner to ensure continuous improvement.

It is important that a sound compensation structure is in place – one that works to align expectations through set Key Performance Indicators and Performance-based Remuneration. Regular updates to share feedback and expectations allow agencies to be informed of their performance at an early stage so that improvements can be made accordingly.

How will it help?

Improved cost & value of agency fees through expert analysis and assessment for fair value

Clarity of expectations by evaluating contracts and agreed scope of work 

Outstanding agency performance & results driven by a performance based remuneration model and KPIs

Who does the work?

Every review is led by an R3 Principal or Senior Consultant and supported by our research team. Collaborating with more than 30 marketers and more than 200 individual fee agreements annually, we leverage our fee management expertise to assist you in identifying, reviewing, and compensating the best agency partners for your business.

How is it done?

Our scope for fee management work breaks down into two parts: remuneration review and quarterly reconciliations. In the remuneration review, we take an in-depth look at the fee negotiation process from five angles: scope index, resources, time allocation, overhead rate, and fees. We then use the quarterly reconciliation process as a platform to share feedback and facilitate timely decisions on scope and fees. Using our fine-tuned fee management process, we aim for the following outcomes:

Remuneration Review

  • Data for informed negotiation
  • Identify the right fee for the scope
  • Identify the best agency resource plan for the client
  • Pay according to performance

Quarterly Reconciliations

  • Identify major scope and resource variation and the adjustments necessary to the fee
  • Identify potential process issues and take corrective action

At R3 , we developed a proprietary software solution called CARE (Client Agency Remuneration Evaluation). 

Using CARE is easier and more efficient than using Excel.

A client can simply upload an existing Scope of Work, and easily share it with R3 and the agency.

Likewise, the agency can enter their proposal – and all versions are stored on the cloud  - in a highly password protected space.

With our experience since 2002 across more than sixty countries, we are now able to quickly evaluate and benchmark the fee proposal

- Against the client brief

- Against the country benchmarks

- And compared to previous years

For marketers and their agencies, there’s now an easy way to have access to all information, just a few clicks away.

R3 is helping more and more companies streamline their agency fee and incentive discussions.

What can we do for you?