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Accountability: Agencies Get a Cut of Clients' Revenues

NY Times: "Sugartown Creative is responsible for the packaging and marketing of the line, named Il Palagio, as well as subsequent advertising campaigns for the products. Rather than being compensated through commissions or fees, Sugartown Creative will earn a percentage of the revenue that the products generate at specialty food stores.

The deal is indicative of efforts that agencies are making to broaden their scope - and their revenue sources - as the industry undergoes wrenching changes. Not only are client relationships growing increasingly volatile, but marketers are seeking to reduce the sums they spend on advertising by cutting budgets or assigning procurement departments to handle agency payments."

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