Agency compensation has been a hot topic of debate in our industry. More so since recession has hit the industry hard. As we are all aware large MNC clients such as P & G and others are experimenting the model of "Performance Based Compensation" with some of their Agencies on certain brands/ products. In today's day and age small, medium and medium to large independent Agencies ( which our network is made of ) are all struggling to keep the margins in the face of fierce competition and undercutting. Clients are more and more demanding when it comes to ROI on ad dollars spent.

In the case of Ikon we have become very flexible. Apart from the standard retainer fee and commission on media formats, we have started working on the 'performance based revenue' model with a couple of new clients. In one case we have also roped in media. We developed a specific consumer promo for one of our clients which would be promoted through the media who are our partners in this project. Client has agreed to part with a percentage of profits which we will be sharing with the media.

Please share any new developments in your respective markets/countries on this subject .Your views are welcome.