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Advertising/Net vs. Gross legalities
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Question
I have a client who is currently handling his company's media in house (my company provides the ads to the pubs). My company is transitioning to take over the placements and details of media billing, etc. Upon discussing rates with my publications, I find out my client is already receiving his ads at a NET rate, and pretty much always has. This is true of all of his current publications. Is this legal? They aren't quoting him a rate and calling it gross, they're specifically calling the rate NET. Any help you can offer would be great. Thanks!
Julie Upchurch
Unfortunately, it's legal. Few publications today adhere to their published rates. Most will grant "net" rates or lower to just about anyone. Reduced advertising budgets tend to bring out the worst in the media.
If your "transitioning" is to be profitable, you'll have no choice but to negotiate fair compensation with your client or, in the alternative, twist the arms of the publications involved to lower their rates to you.
Personal opinion: you're best off charging clients net and separately charging them for your services. I find that most appreciate the inherent honesty involved.
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Bill Brody
Expertise
What media should be used to reach a specific audience? How should media content be prepared? How can messages best best be distributed to specific demographic groups? Which media are most credible? Least credible?
Experience
I've operating a communication consulting firm for 30 years and teach mass communication in the Department of Journalism at The University of Memphis.
Organizations
Memberships: American Society for Hospital Marketing &
Public Relations
International Communication Association
International Public Relations Association
Communicators
Kappa Delta Pi honorary society
Phi Kappa Phi honorary society
Publications
Journal of Employee Communication Management, Public Relations Review, Public Relations Journal, Public Relations Quarterly, Journal of Healthcare Education & Training, Healthcare Management Review, Journalism Quarterly, Journalism Educator, Legal Management Compendium, Legal Economics, Hospital Public Relations, Modern Healthcare, Journal of the Medical Group Management Association, Southern Hospitals.
Education/Credentials
Credentials : B.A. Eastern Illinois University
M.A. California State University
Ed.D. Memphis State University
Awards and Honors
Speech Communication Association Commission on Public Relations PRide Award for Outstanding Achievement for Managing Communication Processes: From Planning to Crisis Response, Praeger, 1991.
Elected to College of Fellows, Public Relations Society of America, 1991.
President's Citation for Service to the Public Relations Society of America, November 1990.
President's Citation for Service to the Public Relations Society of America, November 1989.
President's Citation for Service to the Public Relations Society of America, November 1988.
President's Citation for service to the Public Relations Society of America, November 1987.
Elected to Fellowship, American Society for Hospital Marketing and Public Relations, September 1985.
Silver Quill Award as professional of the year, Memphis Chapter, Public Relations Society of America, 1984.
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