Unless the advertiser supplies necessary credit references or submits a certified financial statement, cash with order will probably be requested. The agency charges the client only for the actual cost of the materials or services purchased from the tradesmen (typesetters, engravers, etc.) but usually adds a 15% service fee to the invoices. The bulk of the agency income comes from the 15% allowed by the various media as a commission for placing the advertising. This 15% does not increase the cost of the ad, because the advertiser, placing his ad directly, would still pay the same amount that the agency bills him. Some of the large agencies require that certain minimum monthly expenditures for advertising be made, or in lieu of this, a monthly retainer fee. The beginner should have no trouble finding a good agency that will be willing to work without these stipulations, especially if the product has large sales potentialities with corresponding advertising expenditures. How To Select a Good Agency It is not easy, especially for a beginner, to select a good agency. The practice of giving agencies by-lines in the ads seems to have died out. Here are some suggestions: Select a mail order ad or mailing piece that strikes you as very effective. Write to the publication or to the advertiser for the name of the agency. Be sure to enclose a self-addressed envelope. Even if this particular agency is not ready to serve you, it probably will suggest one more appropriate for your needs. A trip to a local newspaper will also bring recommendations.
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Direct Mail Special Report
11-30-2008
