Re: Where are the media buyers?

From: Richard Keeves <richard_at_ibc.com.au>
Date: Tue 23 Nov 1999 15:12:57 +0800

JEREMY LEWIS SAID:
> My question is why does the seller have to incur
> the 15% commission rather than the buyer...When
> $1000 worth of advertising is sold, why does the
> seller only get $850 and the agency gets $150?
> Does this appear to anyone else besides myself,
> that the seller is paying for the agency work?

Jeremy, you also need to be aware that many (or most)
ad agencies also charge their client an extra loading -
say 7.5% on top of the fee paid for the ad. ie in the
example above, the agency pays the seller $850 but
actually charges the ad buyer $1,075 - not just the
$1,000. This is a service fee - and is normal. Is it
too much? Let the market decide...

Richard Keeves,
Internet Business Centre
www.ibc.com.au







Received on Tue Nov 23 1999 - 01:12:57 CST