Which agency compensation method is closely aligned with the advertiser's sales?
A) Media-commission system
B) Labor-based fee system
C) Outcome-based programs
D) Investment-based programs
E) Equity-based programs

Question

Which agency compensation method is closely aligned with the advertiser's sales? 
A) Media-commission system 
B) Labor-based fee system 
C) Outcome-based programs 
D) Investment-based programs 
E) Equity-based programs

Quizplus · Accepted Answer

Outcome-based programs tie the agency's compensation directly to the advertiser's sales, making it closely aligned with their business objectives. This method incentivizes the agency to achieve measurable results for the client, which contributes to building a strong and long-lasting relationship between the two parties. The other options listed do not have such a direct correlation with sales, although media-commission system and investment-based programs may indirectly contribute to sales growth.

Which Agency Compensation Method Is Closely Aligned with the Advertiser's