Payment by results is just one option

14 January 2010

Mark Blaylock’s letter ‘Payment by results is just good marketing’ (nma 5 November 2009) makes sense if every client had the brand clout and spend of P&G. However, payment by results can also be used as a lazy form of marketing that puts all the responsibility on the agency’s shoulders and none on the client.

An agency relationship should also be a partnership, with both client and agency working towards the same goal. Leaving the hard work to one party or one business model won’t always equal success.

When cost per click arrived, many clients and agencies jumped on it as the only buying model. Now the arrival of cost per action (although in the grand scheme, CPA as a model isn’t new) means many clients will flock to it to avoid risk. But avoiding risk means missing opportunities. A smart brand, client or agency will be the one that takes a multi-model approach and optimises accordingly.

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