Mark Up, Commission, Rebate and Markup + Commission

Agencies might charge their clients a markup when media is purchased from media suppliers. Some suppliers (usually traditional suppliers like TV, radio, print) also pay agencies a commission when media is purchased. Other suppliers (typically digital suppliers like Facebook or Google) do not give commission.

JobBag has 4 Media modes that can be applied to your booking in the column called. Media mode describes the basis used to calculate the amount you wish to invoice the client, for example the amount of commission you keep, or the markup on the net supplier amount or gross supplier amount. JobBag then calculates the “Bill to Client” amount.

4 Media modes are available, see location 1:-

  • Markup
  • Commission
  • Markup + Commission
  • Rebate

In addition to these, booking lines can be marked as Free of charge (location 2) or Do Not Bill (location 3).

The Bill to client field is editable.

Markup

The Markup option is calculated on top of the Net amount payable to the supplier. It can be adjusted by percentage (%) or dollar amount ($).


Commission

The Commission option is calculated as part of the Net supplier amount. The percentage commission comes either from the default supplier commission amount in the Address book record, or manually input.


Markup + Commission

The Markup + Commission option calculates both Commission and Markup, where the markup is applied to the gross supplier amount.

Changes to the Bill to Client amount only updates the markup (amount and %), and will not change commission relating to the supplier amount.


Rebate

The Rebate option allows for a part of the Bill to Client amount to show as returned to the client.

It can be input as a percentage or as a dollar amount. Rebates do not affect Commission amounts.


Worked examples:

Example 1: Markup only

Your client agrees to pay a set fee of $10,000.00 for an internet campaign, and your agreed markup is 20%.

  • Start with a new line with no values in any of the cells.
  • Input the set fee of $10,000.00 in the Bill to Client column.
  • Then, set mode to Markup and input 20% in the Markup/rebate column.
  • This will populate all the other values for you.

Example 2: Markup only

Your client wants an internet campaign. The supplier costs the plan at $8,300. Your agency will charge a 20% markup for this.

  • Start with a new line with no values in any of the cells.
  • Input the supplier amount of $8,300.00 in the Supplier Amount column.
  • Then, set mode to Markup and input 20% in the Markup/rebate column.
  • This will populate all the other values for you, including the Bill to Client amount.

Example 3: 10% Commission, and a 3% Rebate

Your client agrees to spend $10,000.00 on an internet campaign, and you earn a commission of 10%.

As this is a long term client, they also receives a rebate of 3%.

Example 4: Special markup for client when a particular supplier is used

Your client agrees to spend $10,000.00 on an internet campaign on Facebook. This client has a special markup of 7.5% for when the supplier 'Facebook' is used.

Client has a special markup of 7.5% for Kind 'Facebook'. This value is input via:

JobBag menu > Address Book > Client: Tesla Australia > Client tab > Markups

Example 5: Commission amount to be the same as markup amount

In some cases, agencies want commission amounts to be the same as markup amounts.

Go to :

JobBag menu > Address Book > Open the Supplier > Edit

Select the checkbox called Commission is markup.


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