Managing agency fee models
This article describes how to manage contractual fee agreements with agencies using categories.
Introduction
Percentage-based remuneration is calculated based on agency fee models as defined in client contracts and shown in Mercury.
To avoid errors, fee models can only be managed by a defined user group.
They are then available to be used by the planner or are automatically applied to newly created plan items.
If additional fee models have been assigned to a sub-category, additional fee models can be added to the list of fee models inherited from the root category.
In general, fees are agreed with the client level and shown in Mercury Media as client categories (see Typing categories).
Fee model types
Agency fees on media cost
Agency fees on media cost are calculated by multiplying the media cost determined for a plan item by the agreed fee rate. Depending on the contractual agreement, discounts, agency commission and cash discounts are deducted beforehand.
Agency fees on discount-in-kind
Agency fees on discount-in-kind are calculated by multiplying the monetary value of the granted discount-in-kind by the contractually stipulated fee rate. Depending on the contractual agreement, discounts, agency commission and cash discounts are deducted beforehand.
Agency fees on discounts qualifying as non-standard discounts
Agency fees on discounts qualifying as non-standard discounts are calculated based on the monetary value of granted discounts qualifying as non-standard discounts. Discounts qualifying as non-standard discounts are defined as discounts marked non-standard in the plan item.
The original value is multiplied by the contractually stipulated fee rate. Agency commission and cash discounts are deducted as contractually agreed.
Capping
Agency fee models can be capped at a percentage of a definable cost basis (e.g. 10% of gross cost).
Caps can be set when defining agency fee models.
Standard fees
The pre-defined fee model to be used when creating plan items can be defined at category level for each of the three types of fee models. This setting will be inherited by subcategories and campaigns but can be overwritten at each level.
The settings for standard fees do not impact existing plan items.
Deleting and modifying agency fee models
Changes to existing agency fee models affects all plan items using that fee, i.e. existing plans are also affected by modification of the agency fee model. Please exercise caution when modifying agency fee models.
Agency fee models can be deleted at any time without affecting existing plan items. However, deleted agency fee models won’t be available for new plan items.
Instructions
Creating agency fee models
Navigate to the relevant category in the category tree.
Click on the gear icon to open the category’s details page.
Click on the “Agency fee model” tab.
Click “Create agency fee model” next to the name of the desired fee model type.
Enter a percentage for the fee.
Select the deductible discounts.
Activate and configure a cap if required.
Specify a unique, descriptive name.
Add a description of the fee to distinguish it from other fees. This description will only be visible in the administration interface.
Click “OK” to save the agency fee model.
Specifying standard fees
Navigate to the relevant category in the category tree.
Click on the gear icon to open the category’s details page.
Click on the “Agency fee model” tab.
Click on the fee you want to specify as a standard fee. It will now be flagged as “preferred”.
Click again if you no longer want to use the fee as a standard fee.
Modifying fees
Navigate to the relevant category in the category tree.
Click on the gear icon to open the category’s details page.
Click on the “Agency fee model” tab.
Click the pen icon next to the name of the desired fee model type.
Make the desired changes (see above).
Click “OK” to save the agency fee model.
Deleting fees
- Navigate to the relevant category in the category tree.
- Click on the gear icon to open the category’s details page.
- Click on the “Agency fee model” tab.
- Click the pen icon next to the name of the fee model type.
- Click “Delete” to delete the fee model.