It just happened again.
We are running a review for a fantastic client. A CPG firm with smart, wonderful leadership. A terrific brand, number one in their category.
And, as we reached out to the small, heavily researched and finely curated list of agencies we were inviting to participate in the review, one agency asked the following:
“In the event of a win, would the agency owe any fees to Mercer Island Group?”
Our response was straightforward and immediate: we NEVER charge an agency to participate in a Mercer Island Group review. We’ve run over 100 agency reviews over the past 5 years and hundreds during the past few decades. And we have never charged an agency a single cent to participate in one of our reviews.
Why did this fine agency ask that question? After all, there are many fine search consultants that have similar values as Mercer Island Group. Unfortunately, there are also many with questionable practices. These include:
- Charging the winning agency a “winner’s fee”
- Charging all agencies that compete a “participation fee”
- Charging agencies to be in the consultant’s database
- Charging agencies a subscription fee and then running agency reviews
None of these practices are healthy for our industry, for agencies, or even for clients.
Agencies should worry about:
- How fair is the process – will an agency that pays more have an advantage?
- What kind of client would knowingly agree to such a scheme?
- Will an agency even be hired?
Clients should reject these schemes:
- Clients should want their consultants to work for them, not for the agency
- They should be concerned they are not seeing the best agencies for their needs (instead they may be seeing the agencies willing to pay the consultant)
Oftentimes the client doesn’t even know about the financial arrangements between the consultant and the agencies. And how can a client believe they are getting a consultant’s best advice, or best list, if the agencies have to pay to participate?
The answer agencies should give to these requests is simple: just say no.
The answer clients should give to consultants that have these practices is also simple: just say no.
Steve Boehler, founder, and partner at Mercer Island Group has led consulting teams on behalf of clients as diverse as Ulta Beauty, Microsoft, UScellular, Nintendo, Kaiser Permanente, Holland America Line, Stop & Shop, Qualcomm, Brooks Running, and numerous others. He founded MIG after serving as a division president in a Fortune 100 when he was only 32. Earlier in his career, Steve Boehler cut his teeth with a decade in Brand Management at Procter & Gamble, leading brands like Tide, Pringles, and Jif.
Mercer Island Group helps marketers and agencies succeed. Company leadership is as much at home with marketers and their C-Suites as in an agency’s boardroom. With marketers, Mercer Island Group is a top 5 agency search consultancy covering all types of agency relationships (creative, media, web, PR, experiential) and assists marketers with marketing organization structure, workflow and critical skill development (briefing, creative evaluation & feedback, etc.). The company also supports leading and aspiring agencies with positioning, pitch and strategy training and pitch support.