A small Midwest agency agrees to a fixed fee, or contract, with a new client.What is the downside for an agency like this when it uses the fixed-fee system?

Question

Quizplus · Accepted Answer

The downside for an agency like this when it uses the fixed-fee system is that more work may be needed than is originally predicted, which can lead to the agency doing more work than it's being paid for. This can result in reduced profitability and potentially strained client relationships if the agency must request additional payment or renegotiate the contract.

A Small Midwest Agency Agrees to a Fixed Fee, or Contract