Expert: Peter Gabany - 3/3/2010

Question
Hello, I know you have answered a similiar question before, but we still need clarification. We are a new magazine and list our rates on our media kit. Our published rates on the media kit do not include a 15% agency discount. So this means our published rates are gross rates, right? Agencies ask us this question all the time.

Answer
If you are NOT willing to rebate the 15% commission from the published rates then the rates are net. It would then be the responsibility of the agency to take your published rates and gross them up.

I wish to add that most reputable magazines publish GROSS rates and advertising agencies or media buying agencies in good standing would be allowed a 15% commission on the published rates. Net rates are typical of community newspapers.

I hope and trust that this helps. Let me know if I can help further.

Pete Gabany