Did you know consultancies charge? (Multiple Answers Allowed)(polls)
One of my spies asked me a question today that I want to pass along to you. The question: “is it common knowledge that when a brand uses a consultancy to find agencies to pitch, the sometimes agency has to pay the consultancy?”
Some call it a finder’s fee. One source said it’s sometimes called a “preferred listing” — but we want to know how often this kind of thing happens and whether you think it’s kosher, or not.
This is a management side practice that many of you may not be familiar with, but if true might explain why some agencies are always in on pitches that maybe they aren’t “right” for. We asked some folks in the biz about this, and here’s what they said:
— “No, that shouldn’t be. Usually CMOs and CEO of agencies have ‘relationships’ w/search consultancies and they’ll do shady shit to get their foot in the door of a pitch but none of that is official
and it’s a hush hush thing. Ot’s not common knowledge at all, unless you’re senior. But those aren’t things most people think/worry about,
only C-suit level people.”
— “No, agency’s usually don’t pay for the pitch itself. I have heard of fees being paid to be in their library, or listed on the consultants site. But that is a huge conflict if consultancies take fees from client and agencys in the review. [I’ve] never heard of that happening.”
— “Sort of. This is how I have been approached on it. ‘Pay us and we’ll list you better.’ Though they won’t admit it. [We] were approached a bunch of times and they wanted some sort of payment to get on their list. Or their perferred vendor list.”
— “I didnt know that but I’m not on the management side. That seems like bullshit.”
— “It’s common knowledge to those who deal in that process…but not to the creative folks. The biz dev folks know all the BS that goes on with all the consultancies…and who does what and how that doesn’t always trickle down. So if a consultancy calls up and says ‘we have reviewed your accounts and your work’ etc… and ‘so-and-so is looking for a new agency’ and they want to do a chemistry test to see if they are a fit sometimes…yes and they mask that by doing other shit
like a registration fee or something else.”
More: “Poolside Pong Elevator Pitch on Donny Deustch”