There are 1 answers for How does the advertising agencies earn money?.

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  by Dalighieri On Jan 18, 2011

  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.
  
  If they produce print work, they add a commission on to that as well. Or they may charge a flat monthly rate for creative work and sign a long term contract with a client guaranteeing X amount of work for X amount of money. (A one to three year contract is normal.)
  
  There may be fees for additional work requested by the client such as producing original market research--polling potential clients with taste tests of a product for instance. And you may be able to tie in bonuses for proof of pre-determined levels of effectiveness. Say the client is opening a new store location, and you get 500 people to show up and get a spot on the local evening news. Go to the business section of your local library. The librarian will be able to help you find shelves of books that explain this all in detail.

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