The Importance of Incentives in Advertising

The conventional 15% commission system is an anachronism. The agency is expected to give, so let me give you some, he actually got into trouble with the American Association of Advertising because they set up this fee system where it's just like, okay, you're going to pay your agency 15% commission on the advertising they buy for you. But if you factor in all your expenses, that's what he's saying. My profit is 34 cents on every $100. That's terrible. So he says, and he's describing why he was one of the first people to speak out about this. And essentially, what he's really talking about here is incentives.