Negotiated commission

A method of compensating advertising agencies whereby the client and agency negotiate the commission structure rather than relying on the traditional 15% media commission. This commission system can take the form of reduced percentage rates, variable commission rates, and commission with minimum and maximum profit rates. Negotiated commission systems are designed to consider the needs of the clients (advertisers) as well as the time and effort exerted by the agency, thereby avoiding some of the problems inherent in the traditional 15% commission system.