Performance Fee Model
At Space66 we understand that marketing is perhaps the most important activity in your business – activity that has a direct effect on profitability and sales.
Agencies often lose sight of the fundamental importance of your need to generate demand, and ultimately sell profitable products and services into your target market. Too much time is lost on unsuitable solutions delivered in response to your brief, often compounded by a lack of awareness of the more commercial aspects of your role.
As Space66 we believe this is largely due to a lack of alignment in the commercial relationship between brand and agency, which is why we offer our clients a unique commercial solution that aligns the fee you pay to our ability to deliver against your objectives. Delivered to market in combination with our colocated production offering, we are the only agency in the UK that offers clients the ability to integrate in-house delivery with a value based remuneration model.
So how does it work?
Clients work with Space66 with a contracted commitment being made to set up and embed a team of four or more people into your marketing department. The relationship between both parties is structured this way to recognise the fact that performance takes time to optimise and that an ongoing commitment from both parties to new ways of working and building knowledge and insight is essential to achieving your long term goals. We ask our clients to agree to this retained relationship for a minimum of one year, committing to a minimum number of full time equivalent positions, with the exact casting being flexible and adjusted based upon changing requirements.
With every client, we initially focus on adopting and implementing Agile Marketing ways of working, as well as defining, baselining and measuring metrics relevant to the marketing channels in which we are actively participating. KPIs are then identified and agreed with support from Actionable Insight – a third party consultancy we work with during the initial ‘Diagnostic’ stage of the relationship, which we anticipate lasting between one and three months.
With the KPIs agreed, the day rate payable for each team member is then calculated based upon the actual performance of an agreed matrix of KPIs. Some are simple, quantitative and immediately measurable, such as click-through rate. Others are more complex, qualitative and requiring modeling, such as Net Promoter Score. We will review performance with you on a weekly, monthly and quarterly basis, and adjust the makeup of the team, deliver training where required and support the team with all relevant technologies and communications tools to ensure a long term successful working relationship.
For more information or to speak to one of the team, contact us today.