Expert: Peter Gabany - 9/30/2009

Question
Hi. I have a couple of questions. Do account executives at advertising agencies do any cold calling in order to get clients? Do they work on commission? Thanks

Answer
Danielle,

The short answer is yes and yes. Some agencies have new business teams where it is part of the AEs job description. Then there are agencies (like ours) where it is everyone's responsibility to be looking for new work, but not necessarily hunting it down or pitching the work. Then there are compensation models that pay between 1% and 5% of gross billings for the first year of business. (I have heard of models paying on profitability of the account where the percentage is higher - up to 20% - bet this seems rare).

In this economic climate where new business is paramount to an agencies survival, the agency might like to look at a new business strategy where all employees can earn some sort of bonus - any compensation is appreciated and encourages others to help find new business.

One last point. If you are tasked with new business on top of your day to day duties - typically to paying agency clients and that account management would suffer as a result of the AE spending time on new business then this responsibility needs to removed from the AEs role.

On the other hand, if you suck at new business, cold calling and the like – get better at it. Turn it into a passion or count your days numbered at many agencies.

The long and the short of all this no matter what they pay or how or if they compensate and agency needs accounts to manage. You need accounts to manage. The more people pull on the oars together  the better chance you will always have a role at the agency. And one last point - if you are an AE, you will want to be a AM and eventually a Account Super. The best way up that ladder is new business procurement.

By the way, I hate working on getting new business, but we are alive because I do it - every day.

Cheers, Good questions.

Pete