Methods of agency compensation include but are not limited toA. Commissions methodsB. Cost-plus…

➤ When is a percentage-of-ad-spend or percentage charge model appropriate?
Use a percentage-of-ad-spend model for media buying, programmatic campaigns, or large advertising budgets. It scales with spend and simplifies billing. This approach aligns fees with budget size but can create incentives to increase spending, so include spend thresholds, performance KPIs, and audit clauses to manage conflicts of interest.