Gross Income (advertising)

Gross Income (English for gross income ) designated at advertising agencies the net fee income (gross sales = Gross Billings) and consists of fees and commissions together.

Fees are paid by the agency's client and compensate for the agency's own work. These include B. Consulting, conception, creation, implementation and production management. The agencies earn commissions u. a. through agency discounts that are granted to them when placing advertisements in print media (so-called AE) or when purchasing print products. Commissions should not be passed on to customers and count towards the agency's turnover.

Not included in the gross income are revenues from services, which buys the Agency on behalf of the customer and then to this weiterfakturiert . These are, for example, media costs (e.g. advertisements), production costs (e.g. printing brochures) or IT services.

The following simple formula is used to calculate gross income :

Gross Billings (= consolidated total sales without discounts minus customer discounts and bonuses)

minus Net external costs (= gross external costs, consolidated, exclusive discounts less supplier discounts and bonuses)

= Gross Income (fee turnover)