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Regional media buyer/seller/broker - How much of a cut?

 3:33 am on Jan 25, 2002 (gmt 0)

I have a meeting next week with a small firm that does ad consulting within my target market. It's likely that we're going to strike a deal on having them broker my sponsorship program and other online ad space. What percentage for their cut?



 7:48 pm on Jan 25, 2002 (gmt 0)

Are they going to be supplying any technology? Are they going to handle all advertiser contact, or is this more of a finder's cut?

In my mind, 15% seems like a fair figure if they're just supplying the advertisers, going up to 30-35% depending on how much more they handle. Or maybe 40-50% for initial buys, without residuals. (No data, just gut figures here.)


 7:58 pm on Jan 25, 2002 (gmt 0)

We think alike.

Basically, I see them as outside sales staff. I'd prefer to just work directly with them and encourage them to handle the same clients year after year. I handle all of the ad delivery in-house. They'd handle contacts, creative, etc. I like the guy that runs it, very pro ...and he knows how I like to work.


 8:07 pm on Jan 25, 2002 (gmt 0)

>They'd handle contacts, creative, etc.

That alone is worth 20-25% IMO. Possibly more if they are taking any financial responsibility. (your payment is not dependent on their billing/receivables)


 8:53 pm on Jan 29, 2002 (gmt 0)

>>They'd handle contacts, creative, etc.
>That alone is worth 20-25%

Just got back... we set up a 25% agency discount, they do all the client contact, creative, BILLING, AND will handle all issues between the client and me, such as placement, ad types & sizes, renewals. Sweet!


 9:00 pm on Jan 29, 2002 (gmt 0)


Sounds like you worked that one, nice outcome. Was it much of a haggling session?


 9:23 pm on Jan 29, 2002 (gmt 0)

>Was it much of a haggling session?

No, we knew that this was a good opportunity for both firms. This fellow had done some freelance ad sales for me 3 years ago and knows I like to operate as a wholesaler.

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