AP™ Pricing Framework
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Questions and Answers

Which of the following is NOT a potential consequence of late or non-payment from clients?

  • Disrupted financial planning and cashflow
  • Legal disputes
  • Strained client-agency relationship
  • Increased trust and rapport (correct)
  • What is one potential administrative issue that can lead to payment delays?

  • Late payment fees
  • Charging interest on overdue payments
  • Expired client cards (correct)
  • Disputes over delivered results
  • What is one potential challenge when clients question the delivered results and refuse to pay?

  • Enhanced client-agency relationship
  • Improved cash flow
  • Contentious discussions (correct)
  • Increased trust and rapport
  • Why is a lack of cash flow detrimental to marketing agencies?

    <p>All of the above</p> Signup and view all the answers

    What is one potential impact of inconsistent cash flow on mental health and team morale?

    <p>Negative impact on mental health and team morale</p> Signup and view all the answers

    What is one advantage of being an Acquisition Partner™ in terms of pricing strategy?

    <p>Multiple revenue streams</p> Signup and view all the answers

    What is one advantage of upfront payments for an Acquisition Partner™?

    <p>Consistent cash flow</p> Signup and view all the answers

    Why is it beneficial to work with cashflow positive and liquid companies as an Acquisition Partner™?

    <p>Reduced risk of non-payment</p> Signup and view all the answers

    What is one advantage of being an Acquisition Partner™ in terms of pricing potential?

    <p>Higher pricing potential</p> Signup and view all the answers

    What is one advantage of being an Acquisition Partner™ in terms of competition?

    <p>No competition</p> Signup and view all the answers

    Which pricing mechanism ensures a steady cash flow and reduces the risk of late payments?

    <p>Retainer Fee</p> Signup and view all the answers

    What is the advantage of project-based payment?

    <p>It reduces the risk of non-payment</p> Signup and view all the answers

    In performance-based payment, how can the risk be reduced?

    <p>Setting specific performance milestones</p> Signup and view all the answers

    What is the purpose of requiring clients to purchase pre-paid hours?

    <p>To reduce the risk of non-payment</p> Signup and view all the answers

    When might a marketing agency accept equity in a company as a form of payment?

    <p>When the business has cash flow issues</p> Signup and view all the answers

    What can be combined with equity payment to reduce risk?

    <p>Another payment method</p> Signup and view all the answers

    What is one of the most common issues faced when navigating the payment landscape?

    <p>Late payments</p> Signup and view all the answers

    Which pricing mechanism involves charging based on the number of hours worked?

    <p>Hourly rate</p> Signup and view all the answers

    What is the advantage of a retainer fee?

    <p>It ensures a steady cash flow</p> Signup and view all the answers

    What can be required upfront in project-based payment to reduce risk?

    <p>A minimum fee</p> Signup and view all the answers

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