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AdLand Speaks Up
By: Dwayne W. Waite Jr.
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This month the news of the awful delayed payment idea being pioneered by brands like Mondelez and P&G has reached the media and advertising powers, and thankfully it received negative reviews.

Seriously, this idea of delaying agency payment up to 120 days is a pretty bad one.

In the beginning of the month, Nancy Hill, president and CEO of the 4A's, spoke out with an editorial published in AdAge, calling the idea a "wimpy approach to payment."

Now let's make something clear: does the financial compensation model between brands and agencies require some update? Absolutely. But to offer such a one-sided, short-sighted approach does neither industry justice. Hill in her letter made that clear. Several professionals in the comments agreed. 

Just a few days ago Mary Collins, the president and CEO of the Media Financial Management Association, the parent organization of the BCCA (the media's credit association), also voiced her opinion against this revenue model. Mary even likened this action to a perverse Golden Rule: "he who has the gold makes the rule." She also went on to say that this type of "aggressive cash flow management," which is exactly what it is, is insidious.

Major kudos to Hill and Collins for taking a stand against such blatantly unfair practices. We've seen some professionals in other industries exclaim that this is what they face on a regular basis. 

But it's not AdLand's norm. So we're fighting it. Just because it's happening in other industries doesn't make it fair, and doesn't mean that shops should just roll over and accept it. 

So what's next? 

The opinions on both sides have been shared; now our colleagues have to practice what's been preached. We are only as strong as our weakest vessel, so any agency or network that agrees to these terms pokes holes in our argument.

Don't be that guy.


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About the Author
Dwayne W. Waite Jr. is partner and principal at JDW: The Charlotte Agency, a marketing and advertising shop in Charlotte, NC. He enjoys consumer behavior, economics, and football.
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