How does an advertising agency get paid?

I worked at a radio station selling advertising. When I would ask my supervisor and boss how a marketing / advertising agency works, the answer I would get's not worth your time or hard work. I have since quit my job due to, well, my boss was a tyrant, but that's irrelevant. I have run into a couple of my old clients that have asked me to handle their advertising, but I have no idea how to charge them or how I get paid by the advertising avenues. Can someone please tell me, how does an advertising agency get paid? Please be specific...thank you!

Asked By: These Eyes See Everything - 7/31/2008
Best Answer - Chosen by Asker
They charge a fee for creative work, and make a 15% commission on media. This means if they place media buys, such as television or radio air time, or print media space, such as newspapers, magazines, or billboards, they add the standard 15% commission on the costs of the media... More
Answered By: smallbizperson - 7/31/2008
Additional Answers (1)
I paid ad agencies two ways: either on a project basis ( the cost to complete a project) or a retainer of an agreed upon monthly amount with an agreed upon number of hours worked per month.Most companies in my industry placed their own ads to save the commission of the agency placing the ads ( easy to do since there... More
Answered By: Tom E - 7/31/2008
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