Comments on: Aegis Gets Pants Pulled: Is The Agency Performance Model That Far Away? http://www.adexchanger.com/agencies/aegis-gets-pants-pulled-is-the-agency-performance-model-that-far-away/ Digital media optimization news and discussion website. Fri, 10 Feb 2012 23:33:42 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: togilvie http://www.adexchanger.com/agencies/aegis-gets-pants-pulled-is-the-agency-performance-model-that-far-away/#comment-4269 togilvie Mon, 04 Jan 2010 23:50:51 +0000 http://www.adexchanger.com/?p=13172#comment-4269 Nice job pushing the thought leadership. This is one of the most interesting debates out there. That said, I have a hard time with a market where agents make money at their client's expense. I think the finance markets are a pretty good analogue for how this plays out. While there are a number of arbitrage-based pricing models that serve specific purposes (e.g. insurance & annuities), the majority of assets are invested in products that share incentives. Note, though, that there's lots of room for fuzziness within that definition and it's taken a long time for these standards to evolve. As an easy example, there are still brokerage accounts that get paid on commissions even though churning is ostensibly illegal. Nice job pushing the thought leadership. This is one of the most interesting debates out there. That said, I have a hard time with a market where agents make money at their client's expense.

I think the finance markets are a pretty good analogue for how this plays out. While there are a number of arbitrage-based pricing models that serve specific purposes (e.g. insurance & annuities), the majority of assets are invested in products that share incentives.

Note, though, that there's lots of room for fuzziness within that definition and it's taken a long time for these standards to evolve. As an easy example, there are still brokerage accounts that get paid on commissions even though churning is ostensibly illegal.

]]>