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Exploring the Practicality of Performance-Based Agency Models in Franchising
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In this episode of the Vera Shafiq podcast, Vera explores the concept of performance-based agency models within the franchising world. She discusses whether franchise brands can effectively compensate marketing agencies based on the tangible results they deliver.
Vera discusses the appeal of this model for greater accountability, budget-friendliness, and simplicity in communication with franchise owners. She also highlights the perspectives of agencies, covering data transparency concerns, baseline costs, and variables beyond their control.
Practical steps to implement this model, including defining KPIs, ensuring data integrity, and establishing a hybrid fee structure, are examined along with the pros and cons of adopting a performance-based model.
Vera concludes with insights into how this approach can align interests between franchisors, franchisees, and agencies when managed correctly.
00:00 Introduction to Performance-Based Agency Models
00:56 Understanding Performance-Based Compensation
02:48 Agency Perspectives on Performance-Based Models
04:54 Implementing a Performance-Based Model
09:07 Pros and Cons of Performance-Based Models
10:49 Conclusion and Final Thoughts
34 episodes
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