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Subject: Re: UKNM: RE: ...Ad Agencies
From: bryan_jago
Date: Tue, 16 May 2000 08:51:50 +0100

Can't really speak for any other Agencies but, as a Global Company Policy,
Carat cannot book any advertising for a client unless we have Credit Cover
(From Trade Indemnity) or Pre-Payment for the space.

Given that most Dotcoms don't have any trading history, getting Credit
Cover is nigh on impossible. As a result, we have to ask all dotcoms to
pre-pay. Escrow is one of the options however, I know our Finance Dept
hate them! Basically, because they still have to chase the client to get
them to counter sign the cheque/transfer order. Also, there is, I believe,
some ambiguity as to who the account belongs to in the unlikely event that
they client should go bankrupt!

The favoured alternative is a contract between ourselves and our client
that they pre-pay lumps sums but that all interest gained on that sum
whilst it is sitting in our bank account is paid to the client. Works
well, since the client gets all the interest (which is at a very healthy
level) and we know that we have the cash to pay the Media Owners when they
invoice us without having to chase the client!! All clients have to
sign-off schedules/bookings so they know exactly what is being bought and a
monthly statement of the account is provided.

Biggest problem with all this is the fact that it's a *nasty* money
discussion and in effect the client is being told that they are not Credit
Worthy..........does wonders for the ego that!


Tim [dot] Hayward@jwt [dot] comatchinwag [dot] com on 12/05/2000 10:24:06

Please respond to uk-netmarketingatchinwag [dot] com

Sent by: owneratchinwag [dot] com
Subject: Re: UKNM: RE: ...Ad Agencies

I know of a few agencies (ad, mktg and PR) that say they're getting away
charging startups 100% up front. Somehow I'm not sure that's true. I'm also
sure its that healthy. Nobody should really be paying in advance for
intangible services (A debate I've recently had - fruitlessly - with my

We're looking at a new model of asking for 100% to be placed in escrow
agreed delivery point. What does anyone think of this?


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  Re: UKNM: RE: ...Ad Agencies, Sean Phelan

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