As usual the large media houses have got the bull by the horns.
When Noah was designing the ark, the Revenue Services, as it was then, agreed with industry that agency commission per se was not allowed but anyone who fulfilled the requirements to earn this “commission” qualified.
It was then referred to as a ‘financial discount’.
Perhaps this explains why the PMA (Print Media Association) finally collapsed; these big groups could not understand the laws set by all in the industry.
So use of the word ‘collusion’ in terms of agency commission is wrong. It should be financial discount which applies to anyone that:
- Books advertising
- Provides complete material by deadline
- Pays within the specified time I.e 45 and 60 days for 16.5 and 15% respectively.
The 15 days on the 45 was allowed for when cheques used to be the main form of payment. This allowed for bank clearance and the media made this concession. So technically the first payment is 30 days. If the big boys want to mess with something it should be the payment days not the amount of commission.
Early payment is not the issue, as that is an arrangement made on a one-to-one basis.
Perhaps this is one reason why a PMA should exist but not in the hands of some, but rather the whole industry.
Publisher: Interact Media Defined
Want to continue this conversation on The Media Online platforms? Comment on Twitter @MediaTMO or on our Facebook page. Send us your suggestions, comments, contributions or tip-offs via e-mail to email@example.com.