Good topic.  Last year my title changed from Director, Business Development to Director, Agency Development simply because I have a dual role... developing new buisness and promoting the agency, which in turn helps develop new business.  When we're in a review, my time is consumed with that business at hand.  When we're not in a review, it's prospecting, building relationships and letting as many people as possible know about what a terrific agency we have.  I agree with other posters that there are many variables which determine a new business win, many of which are out of the control of the new business director.  My previous position was heavily tied to wins/losses/budgets.  I prefer a bonus tied to my overall contribution to the agency and how the agency does as a whole, including organic client growth.  Our agency philosophy is that new business is everyone's responsibility, I'm just at the center of the wheel.  

I would agree with Steve Roth’s comment. I have declined commission structures in favor of a straight salary with a bonus option along with the other members of the leadership team, since the agency’s growth is a true, collaborative “all in” effort.

Too many variables are involved in executing a fair commission structure. Most are based on original sources of a lead, but in the best agencies, a lead can come from anywhere or anyone. And it can—and should—get the great follow up it deserves without prejudice to source. A great deal of effort goes into nurturing those leads and developing long-term relationships that can eventually turn into accounts.

And if you’re developing a new business program from scratch—customized research, thought leadership content, category insights, and a full marketing plan—the lag time to see any of those commissions can be a long one.

While many New Biz directors can and do play very vital strategic roles, it’s highly dependent on the size of your agency and how roles are defined within your organization. I’ve written the strategic positioning and had creative input at a small agency without a planning department, but had limited role at a big agency with a planning department of 10 and a strong, seasoned Director.

To draw an analogy with agency compensation plans: cover your “costs” with a flat salary, then use an incentive plan to deliver a bigger margin. In effect, cover your mortgage, but enjoy that nice pair of Jimmy Choos if you blow your agency’s revenue goals out of the water by X%. An incentive program for anyone in the agency who brings in a lead (X per lead that results in a meeting) would also acknowledge the reality of referral sources. Then everybody wins—except the other agencies you trounce in the finals.

At agencies, we're selling the cumulative intellectual capital of a whole team of people. No matter how hard and well a New Business/Business Development Director works, there are so many pieces of the puzzle that come together in the right way for a win, and any number of ways a pitch can be derailed. Despite the fact that I work in New Business, I’m just not that big a gambler, and I won’t risk a big chunk of my paycheck on a decision that could still pin on whether a client feels better chemistry with a competitor’s CEO sitting across the table.

Yes, but part of the point here is that New Business Directors don't have control over the win. They don't write the strategy. They don't develop the creative. Often, they're not even in the room when the presentation takes place. How can you hold someone so accountable when they're not even in the room for the pitch?



On top of this, it's completely frustrating when everyone on the pitch team doesn't always show up for the meetings, doesn't always properly prepare - and often doesn't want to rehearse. The New Business Director is doing everything they're supposed to do, but is the rest of the team always doing the same?

It's not hard not to empathize with agency CEOs. The economy has never been tougher, they're spending a lot on new business salaries (which are not billable hours), they are hiring talent that specialize in bringing business in the door... they need to see a return on this investment.