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The practice of a marketing agency adding cost to a service purchased on behalf of a client; e.g. if an ad agency pays an illustrator $500 for a drawing to be used in a client’s brochure, they might bill the client $600; with the addition of a 20% mark-up. The mark-up is mainly compensation for doing the work of looking for a supplier and supervising the service being purchased for the client. It also compensates the agency for laying out their cash up front to buy the item.

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1000+ essential modern marketing concepts - combination of traditional offline marketing (branding, pricing, the 4Ps, etc)  and digital marketing concepts (web, social media, search, etc)

Related Topic: Digital Marketing


1. The practice of a marketing agency adding cost to a service purchased on behalf of a client; e.g. if an ad agency pays an illustrator $500 for a drawing to be used in a client’s brochure, they might bill the client $600; with the addition of a 20% mark-up. The mark-up is mainly compensation for doing the work of looking for a supplier and supervising the service being purchased for the client. It also compensates the agency for laying out their cash up front to buy the item.





 
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