Being stuck in a "we're so cool" industry mindset
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Kicking ad agency "kickbacks" to the curb

Over the years, I've been involved in several media buying negotiations for clients. In almost every instance the people trying to sell advertising to clients want to (figuratively & probably literally) strangle me.

Why? Because most of my work is performance-based. If clients don't make any money, I don't get paid.

Furthermore, I openly advocate that clients adopt the savvy mindset of, "only paying for results." And results-based media buys make most ad agencies and those trying to sell you advertising, very uncomfortable.

In a time that predated my existence, many ad agencies received a "kickback" for spending your money on advertising. The practice has been going on since at least the 1950s and probably well before that.

Here's a simplified explanation. If you contracted with a media buyer or ad agency to buy advertising for your event and they purchased USD 50K of online, television, print ads, etc. That company/person buying your media would be paid by the advertiser about 15% of your USD 50K ad spend. Regardless of that advertising selling a single ticket to your event!

If you utilize an agency or media buyer for your event, I encourage you to carefully read through your contract. Specifically look for agreement verbiage related to rebates, fees, commissions, or mark ups.

You can eliminate any "fees" by doing your own media buys. It's not that difficult if you know two essential items ... CPL & CPS.

Most business owners and event organizers have no idea how much it costs in advertising to generate a lead or a sale. You need to have your Cost Per Lead (CPL) and Cost Per Sale (CPS) numbers down cold. Knowing those numbers dictates what you can afford to spend on advertising and marketing.

Years ago, a friend of mine Orest Hrywnak gave an informal interview about media buying to clients. Before his passing, Orest spent 30 years in the radio business selling advertising. During the interview with Orest, he pointed out that it is nearly impossible to negotiate against someone who knows their adverting/marketing math.

When you know your advertising/marketing math, you are in full control to receive the best advertising and marketing deals possible. Plus, you keep that 15% of the money you spend on advertising in your pocket!

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