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  1. 1

    Ryan Williams

    Ginny,
    Just a thought – for smaller agencies, there’s nothing to stop them from having a commission agreement with their bigger buying partner if ratecards move to net. The buying systems are already geared to process different commission levels per client, and the splits out to the different agencies in the process, so surely it would be a case of those two players agreeing their arrangement, and the smaller agency communicating/agreeing the cost of media buying services to the client?
    The situation with regards cash flow for the smaller player would then be the same as it currently is.
    In other words, net rate cards and the current 16,5% commission is independent of what the smaller agency arrangement is with a bigger buying house – they can still agree a commission, it’s just not carried in the ratecards, and it would vary based on either a client negotiation or the small agency negotiating a flat comm with their buying partner?
    Ryan

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