This is a new world in which, increasingly, client Procurement and Marketing lead their own reviews and negotiate their own agency contracts often without the help of consultants. However, they usually do so without the benefit of critical agency economic benchmarks. To satisfy this need, DFP is offering a new service. Clients can now buy relevant and critical economic benchmarks so they are in a better position to negotiate fair client/agency compensation arrangements.
When negotiating a new contract, if both client and agency understand what it costs the agency to run the client’s business (pay the staff and overhead enough to cover the scope of work) and make a reasonable profit, then arriving at an equitable agreement is much easier. Of course agencies have a good idea of what that will cost, but without benchmarks, clients usually don’t. It also helps to understand what constitutes fair market value for the agency’s efforts. Only benchmarks can satisfy these needs.
To solve this problem, we are offering a new, easy to use service –
The Benchmark Store
This is a proprietary database, predicated on sixteen years of experience in negotiating agency fees. However, rather than doing the actual analyzing and assessing of salaries, overhead and profit margins, we are offering our benchmarks directly to clients for their use. The client can buy just the relevant benchmarks and, if they wish, behind-the-scenes advice on how to use them and then do the analyzing and assessing themselves.
This exchange makes benchmarks available to clients without the excess fees for analysis, so they are reasonably priced. This offering includes norms for…
- Staffing seniority and experience against scopes of work
- Salary, overhead and profit margin benchmarks
- Blended hourly rates, multiplier and cost/FTE benchmarks
- Advice on incentive norms For full service, creative, media and digital agencies in the US.
Benchmarks may be obtained by simply calling or emailing us. We also offer behind the scenes advice on how to analyze and use the benchmarks in your assessment and negotiations as part of the package. Of course, if you would like us to do the entire compensation analysis, assessment and recommendation, we will be happy to do so.