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In an age where
added value is king, whoever supplies the most value wins. We would
never encourage a higher compensation for brokerage services, but
we recognize that the broker's role has increased. As a mailer,
if you're not getting a lot of added value, you're not using the
right broker.
I don't believer
in compensating list brokers on a performance basis. We, as an industry,
have come up with a compensation model that's worked for years.
Today, mailers are benefiting because we have to throw in so much
added value service. But that's fine with us, because mailers are
happy with our service and they keep coming back. If these services
were priced on an a lacarte model, the mailers would suffer; prices
would go up.
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This is a very
competitive marketplace, and equal pricing across the board is important.It's
what you do for your commission that separates you from your competition.
The other problem
with performance-based compensation is we broker media and ideas,
but that's only part of a successful marketing program. Is the offer
good? Is the pricing right? Is the mailer reputable? Those things
are out of our control. If compensation is tied to the success of
a campaign, brokers would need to play an active role in all the
elements that make it work. Marketers aren't willing to include
brokers in decisions about the message, customer service, or fulfillment.
And brokers don't necessarily want to be in that business.
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