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Agency clients have changed the way they pay their agencies over the last three years, mostly to labor-based arrangements, according to a survey from the Association of National Advertisers. The ANA's 12th triennial Trends in Agency Compensation study also found that for those still paying billings-based commissions, half pay 10% or less-not the mythical 15%.

Compensation type 2000 1997

Labor-based fees 68% 53%

Billings-based commissions 21% 35%

Other* 11% 12%

*Fixed-fee or labor/billing combinations

Incentive compensation was included in 35% of the arrangements, up from 30% in 1997.

Incentive type % of incentive agreements

Sales goals 73%

Agency performance review 58%

Brand/advertising awareness goals 50%

Source: Survey of 136 corporations by Jones Lundin Beals, Chicago

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