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 discovered 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 produce high ROIs.
A Broken System
Some businesses like to work in definitives, preferring to pay a consistent rate for their digital media service. However, this model ultimately impedes growth for both the client and agency. When working in flat rates, the amount of work completed and relative success generated is not echoed in financial compensation. Relative value is no longer reflected, thereby reducing agency motivation to run a successful campaign with a competitive ROI.
Alternatively, some agencies charge their clients a percent of ad spend. A payment model based on the amount of ad spend solves the agency issue, but creates a gap when it comes to value for the client. Increased ad spend doesn’t necessarily equate to an increased ROI. 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 flat rate and a percent of profit that scales with a campaign’s success.
- Based on the number of ads and size of the business we charge a flat rate to cover costs and ongoing optimization.
- As campaigns evolve and begin to generate profits, PPM charges a percent of the return that we bring in through attributable sales.
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 creates blooming partnerships.