The PPM Model
Prestige Pro Media entered into the digital media space unable to ignore the flawed pricing system that most agencies were utilizing. The models lacked scalability and incentive for growth. So, we developed an innovative solution that benefits both businesses and agencies alike. Our method of billing clients ensures that strategy is always client-focused and structured to result in acquiring customers sustainably.
A Broken System
Some businesses like to work in definitives, preferring to pay a consistent rate for their digital media service. This makes for a predictable budget, but can ultimately impede growth for both the client and the agency. When working in flat rates, the amount of work completed and relative success generated is not necessarily apples to apples. Relative value is no longer reflected, and clients assume they are ‘paying for time’ instead of paying for results. The focus shifts to time spent and not value added, jeopardizing the client/agency relationship, and the outcomes the agency was hired to generate.
Alternatively, some agencies charge their clients a percentage of ad spend. A payment model based on the amount of ad spend solves the agency-side issue, but creates a gap when it comes to value for the client. Increased ad spend doesn’t necessarily equate to an increased ROI, and the gray area to manipulate KPIs can be taken advantage of. There is a clear lack of balance in this method.
The PPM Approach
Our two part solution for a profitable digital media partnership model consists of a minimum monthly fee and a percent of profit that scales with a campaign’s success.
- Based on the scope of work, we establish a monthly minimum to ensure both our agency and our client brand are committed to the partnership and to dedicating time and resources to reaching the brand’s goals.
- As campaigns generate profits, PPM collects a commission on sales attributed to our marketing efforts. This commission percentage scales down as monthly sales increase, enabling better and better returns for the brand the more success they have.
A Proven Method
Our model has been successfully implemented through various ecommerce businesses, subscription retail companies, social media influencers and more. Check out our case studies for more detailed examples of how our fee structure enables great partnerships.
If you want more details on this new agency billing model (including our exact base fee and performance %) and more info on how Prestige Pro Media can improve your ad campaigns. Enter your info below.