It's especially bad as it is basically saying the industry isn't competent to evaluate properly. It devalues what we do and makes us look decidedly amateurish vis-a-vis other marketing disciplines and the business world, where 'gain share' models are becoming the norm.
Trying to dismiss the PBR model because of outdated evaluation techniques is a fallacy. If clients are increasingly requesting payment by results, which they are, consultancies must step up and adapt.
Rather than dismiss the model out of hand, what the PRCA should be calling for is specific PBR-based evaluation guidelines that can be set against realistic fees which can be levied.
As a consultancy it is important that you are able to put your money where your mouth is and achieve return on investment for both you and your client.
Buffalo has found payment by results to be a successful method among most clients, allowing them to see exactly what they are getting for their money based on pre-planned and agreed metrics that we can realistically impact.
Kerry Hallard, MD, Buffalo Communications