Ad Age is reporting on GSD&M’s new World Market account win. It wouldn’t be much of a story, but the novel compensation agreement makes it one.
“This is a partnership based on collaboration at the highest levels of both organizations,” World Market CEO Barry Feld said. “Both GSD&M and World Market are fully invested in this relationship and are both working toward the mutual goal of strong results for our customers and shareholders.”
In other words, compensation will be tied to performance. A concept most industries have long practiced.
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This really isn’t all that uncommon in the ad business any more. A lot of agencies build in bonuses on top of their hard-cost fees, and that’s all this arangement is, a fee-plus deal. Smart business, since GSDM doesn’t stand to do any worse than break even, and that’s worst-case.
I hope you’ll see even more innovative arrangements in the future, like Crispin’s ownership stake in their client Haggar.