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1 February 2013
TO: Okaloosa County Officials and To Whom It May Concern:
There is an industry standard for "grossing up" a "net figure." Gross includes
the agency's commission; net is what is paid to the media. The typical agency
commission is 15%. Here's how we get it:
To gross up a net: 1. Multiply the net times 1.1765 to get the 15%.
$1,500 x 1.1765 = $1,764.75
Less the net $1,500.00
Agency's comm.= $ 264.75
OR
2. Divide the net by .85 = $1,764.71
Less the net $1,500.00
Agency's comm..= $ 264.71
To net down a gross: Multiply the gross times .85 to get the net.
$1,764.75 x .85 = $1,500.04
I am the CEO of Media Buying Academy, and have bought and taught media for over
40 years. I know the math doesn't sound logical, but trust me, it is right.
From now on, divide the net by .85 to get the gross - an easy way to understand
the 15% commission.
Sincerely,
Lee Morrow, CEO
Media Buying Academy Group, Inc.
57 West Baltimore Street
Taneytown, MD 21787
410 756 1842 phone/410 756 1844 fax
www.mediabuyingacademy.com
January 31, 2013
To Okaloosa County Directors, Officers, and Officials, and to Whom It May
Concern:
I have been in the advertising industry for over 30 years and my current position
is Vice President of Sales, LIN Media.
It has been brought to my attention that you are inquiring about agency
commissions. An advertising agency gets paid based on an iindustry
ndustry standard of a
15% commission/ mark up. We, at Lin Media, have a software program that
calculates the industry standard fee.
Here is an example:
Net amount x 1.1765 = Gross
So if an agency makes a media buy for $235 gross. They will receive an Invoice
with a $235 Gross amount minus the agency commission ($35) leaving the net amount
to pay us $200.
$1000 x .85 = $850 or $850 x 1.1765 = $1000 These commissions are automatically
calculated by our billing system.
If you have any additional questio
questions,
ns, please feel free to reach out to me
directly.
Best,
Mike Kelly
VP Sales, LIN Media
(251)-689-4558
Mike.kelly@linmedia.com<mailto:Mike.kelly@linmedia.com
Mike.kelly@linmedia.com<mailto:Mike.kelly@linmedia.com>