Is performance-based billing always profitable for clients?

[sumaiyakhatun26]

Another issue worth noting is a kind of anecdotal evidence. But from conversations with agency owners or employees, I know that such a model of payment for results works.

What is it about?

On a larger scale, settling for results stops paying off for the client. portugal rcs data Because it turns out that if sales are very strongly driven, it would be much better to have a fixed percentage of the budget (decreasing with the increase in the budget), or a fixed flat fee , which is paid regardless of whether we have generated half a million or a million in sales in a given period.

So theoretically, the model of cooperation for results is a model that actually works for smaller projects. And those from an agency perspective would probably also be unprofitable.




Another point that, from my perspective, makes talking about being accountable for results a strange alternative is the approach of " either I am accountable for results or I do not deliver these results ".

Personally (and as a digital agency ) I am also paid for the result. Why? Because the approach is often as follows: if the agency does not pay for the result, but its remuneration depends on the budget or is a fixed monthly remuneration (so-called flat fee ), then this agency probably does not apply itself.