Payment by results
Posted Friday, January 23rd, 2009 by Neil Edwards
I was asked at a recent networking event if I knew of a telemarketing agency that would be prepared to work on an exclusively payment-by-results basis. The same question has been asked directly of me in the past: the 'put-your-money-where-your-mouth-is' challenge.
Agencies willing to work on this basis undoubtedly exist (try peopleperhour.com), but I don't think it is a good idea for the client or the supplier.
The client is asking the agency to take all the risk - the risk that the product or service is saleable and that there is a market. If the client believes there is a market for the product or service, then it should be prepared to make the investment required to promote it: it is not for the agency to finance the hopes of the client on the promise of later riches.
For the client, the risk is that the agency is inappropriately motivated to deliver results. This can result in poor quality leads, unduly aggressive tactics to achieve sales or other forms of corner cutting to accelerate the cash-flow.
The whole scenario is a recipe for blame and the relationship to breakdown.
Any choice of agency (or client) should be based on trust. The client needs to be discerning in the choice of agency and the agency must convince the client of its credentials and competence. If the client has doubts that the agency can deliver the service they want, then the agency shouldn't be employed in the first place.
I don't object to agencies being accountable for their performance: on the contrary, they should be. Clear objectives should be agreed and under-performance dealt with through termination of the contract or pre-agreed non-payment conditions. If the agency has done all the work, but the results are slower than expected, then it should be a matter of partnership to work out the next steps. This makes for a much more satisfactory and ultimately successful relationship for both sides.
Posted Friday, January 23rd, 2009 by Neil Edwards
Other Articles In This Category
- The ultimate definition of marketing
Many people have tried to define marketing and yet few have succeeded. To some, of course, it is just promotion, or more narrowly still, advertising. To others it... read more
19th of December 2011 by Neil Edwards
- The 4 P's of marketing - as relevant today as they ever were
David Meerman Scott, author of The New Rules of Marketing and PR and responsible for turning half of the planet’s marketers onto social media, me included,... read more
3rd of August 2011 by Neil Edwards
- Is it better to be different than it is to be better?
Australian marketing and business strategist, Barry Urquahart, once said 'It is better to be different than it is to be better'. But is this the case? A... read more
26th of May 2011 by Neil Edwards
- What price a price cut?
A KPMG report out today says that UK firms are paying the true cost of inflation and slashing prices to an unsustainable level in an attempt to maintain customers... read more
28th of February 2011 by Neil Edwards
- Is there a role for branded websites in the social media age?
Matt White examines the growing trend for businesses to market their Facebook presence in preference to their website.A recent article in Brand Republic concerning... read more
16th of February 2011 by Neil Edwards
- In search of the ‘real’ digital native
We live in a digital world, but are we natives or immigrants?In the summer I wrote a blog post about Digital Natives and Digital Immigrants, explaining the theory... read more
14th of January 2011 by Neil Edwards
- Forget digital domicile, it's social domicile that counts
Earlier this month Matt White posted on the topic of digital natives and digital immigrants and sparked some lively discussion from people born on both sides of... read more
29th of July 2010 by Neil Edwards
- Are you a digital native or a digital immigrant?
This post is written by Marketing Executive, Matthew White.It wasn’t like that in my day is something often said by the older generation to the new one. There is... read more
17th of June 2010 by Neil Edwards
- Demand Generation - the theory and practise. #1 Gaining acceptance
Over the last few months, we have been immersing ourselves in the concept and application of B2B demand generation. For those unfamiliar with the term, Demand... read more
13th of May 2010 by Neil Edwards
- Marketing Myth #1: Advertising and marketing is the same thing
This is the first in a series of 7 posts by guest blogger and associate of The Marketing Eye, Sharon Wilding, owner and founder of The Purple Edge.Of course... read more
3rd of March 2010 by Neil Edwards
- Why most marketing fails
If I had a pound for every time I’d heard someone say: "we tried marketing once and it didn’t work", I could have retired long ago.Not only does the... read more
13th of February 2010 by Neil Edwards
- Integrated marketing
Marketing a product or service has many challenges. First, there is a need to raise awareness of the brand and promote it's promise; second, the marketing... read more
23rd of November 2009 by Neil Edwards
- An Indecent Proposal - or how to get your way with Finance
Having put the relationship with Sales right, it is time to turn attention to Marketing’s other tormentor-in-chief, Finance.We all know that accountants are... read more
27th of October 2009 by Neil Edwards
- Connecting Sales and Marketing in B2B
The following post is a transcript of my responses to a set of questions put to me recently by Adam Needles, Field Marketing Director with US marketing automation... read more
18th of October 2009 by Neil Edwards
- Identify the issue and own the conversation - effective engagement in B2B marketing
The nature of the B2B buyer is changing - the evidence is in our pipelines. The decision making process, which has always been slow and complicated, is now even... read more
10th of October 2009 by Neil Edwards
- I wanna be a rock star - a new model for marketing
In his post ‘Will 10% unemployment be the new full employment?’, Charles Besondy predicts that permanent marketing employees will soon be a thing of the past.He... read more
29th of August 2009 by Neil Edwards
- Leave Auntie AIDA alone - understanding consumer buying behaviour
The esteemed consultants at McKinsey have been burning the midnight oil to come up with the startling revelation that consumer purchases are, wait for it, needs and... read more
22nd of July 2009 by Neil Edwards
- When the tail wags the dog the great sales versus marketing debate
How can you tell if a salesperson is lying?His lips are moving.Don’t you just love the arguments between salespeople and marketing? Ali v Foreman was nothing... read more
11th of July 2009 by Neil Edwards
- B2B vs B2C - more than just a letter
A friend asked me in the week to explain the difference between marketing to businesses and marketing to consumers. Unprepared, I fumbled my way to an answer, but... read more
10th of April 2009 by Neil Edwards
- I'll scream and scream and scream
This week I went to a Chartered Institute of Marketing event to hear the results of a study on the role of marketing in large organisations. Carried out with... read more
3rd of April 2009 by Neil Edwards
- If you can't measure it, should you do it?
There is a famous marketing saying: ‘Half of my advertising is wasted; the trouble is, I don’t know which half’. The internet has brought great... read more
21st of March 2009 by Neil Edwards
- Finding your niche
This guest post is by Sharon Wilding, Chartered Marketer and an associate of The Marketing Eye One of the most important factors in any business, and... read more
10th of March 2009 by Neil Edwards
- Judgment time
One of the great things about blogging is that you can read back over your own posts and remind yourself how you were feeling at any point in time. Looking back... read more
27th of February 2009 by Neil Edwards
- It's OK to cut the budget
The adage that the businesses which maintain their marketing expenditure during a down-turn will be the ones that prosper in the end is backed by evidence. As a... read more
16th of February 2009 by Neil Edwards
- Segmentation - divide and conquer
We will shortly be starting a segmentation project for one our clients. Locked inside the firm's client records will be a wealth of information about its... read more
30th of January 2009 by Neil Edwards