Commission Method of Compensation


In advertising, the commission method of compensation is the traditional compensation method whereby advertising agencies have been paid on the basis of a percentage of the cost of media time and/or space they purchased for a client. The usual commission has been 15 percent of the total cost of the media space and time purchased. Recently, clients have been moving toward the negotiation of specific fees for the services rendered by advertising agencies.[1]


  1. ^ American Marketing Association, AMA Dictionary.

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