Monday, March 9, 2009

New Agency Production Contracts ? Re-examine the agency role as "agent" for their clients

I have been following the "buzz" regarding this latest move by Omnicom.......While this has been a "practice" by agencies for many years, (norm in the US Hispanic market). I have often heard, "we haven't gotten paid by the client, therefore we can't pay you yet", and this has happened to me with BIG clients, no one except the agency is supposed to bankroll their clients - frankly I never had deep enough pockets to do so.....

If agencies that are part of well bankrolled Groups such as Omnicom will not assume liability, then the role of the agency when it comes to production needs to be re-examined. Perhaps the
AICP should propose that the client hire the production company directly, therefore eliminating the agencies exposure, and therefore their role as an agent on behalf of their client. Many agencies don't get a mark-up when it comes to production anyway, and frankly with "hybrid" Producer's like myself (adept & able to work both sides), who needs to hire both a traditional Agency Producer or Line Producer..... And if the client hires the Production Company directly, it would at least ensures a collection "position" if the worst case scenario where to occur - a bankruptcy.
Agencies like to have good relationships with their vendors, it benefits everyone in the end, and I don't believe that anyone wants to leave anyone "holding the bag" - but that is exactly what this verbiage allows for....... time to rethink this....

Check out the article that started all of this buzz Omnicom Enforces production Contracts

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