Fixed fee campaigns for marketing & promotions require a client (marketing manager) to pay a pre-determined amount for a whole promotional campaign but use a campaign mechanic whereby the redemption rate and cost of the promotion are subject to variations.

As a marketing manager, redemption fixed fee campaigns allows you to offer much higher value gifts to clients based on the assumption that the redemption rate is usually far lower than straight gifting. If you offer a nice/expensive product and there is a big take up from end customers it can blow your marketing budget. This is why Fixed Fee Campaign Companies offer a method to calculate these costs and ensures marketing manager against over redemption and cost overruns.

Here is a great example of a Fixed Fee Campaign:

Fixed Fee Campaign

Fixed Fee Campaign

What is the role of a Marketing Manager:

  • Fix a Budget
  • Agree on the prizes/gifts/rebate and marketing space
  • Define how much promotion will be done (Magazines, TV, Radio, On-Pack, Newspaper, POS, Internet …)
  • Decide on the starting and ending date for the promotion
  • Design your artwork
  • Launch the promotion

Role of Fixed Fee Company:

  • Agree with the client on a fixed fee for this promotion and associated mechanics/terms.
  • Make sure that all the redemptions are fulfilled according to the terms offered to end customers.
  • Manufacture the product to be redeemed and hold sufficient stocks, if applicable.
  • Logistics and fulfilment of the orders.
  • Take full responsibility for all the associated costs.
  • Maintain adequate insurance against massive cost overruns.

Services offered by a Fixed Fee Company:

1. Promotional Risk Management

The majority of high impact promotional wins owes their successes to the amplifying effect of promotional risk management. It is the outsourcing of risks to protect your campaign from the unexpected, allowing the marketer to fix their budget by having the financial risk of a prize layout underwritten by a third party.

We provide high-level advice on how to maximise your prize fund and protecting your promotional campaign budget from financial risks. Knowing this, you will be able to confidently launch bigger and bolder campaigns.

2. Fixed Fee Cover

This is a favourite among clients for good reason. Having a fixed promotional budget protects you from financial hit with over-redemption cover.

A fixed fee solution removes the entire burden of risk. The client pays the company a one off fee before a promotional goes live, which is based on a pre-agreed redemption forecast. The company then takes full responsibility for prizes and logistics. All additional costs are taken by the company and the client won’t pay a penny more.

3. Over-Redemption Cover

Over Redemption Cover gives you financial protection if redemption comes at a cost that exceeds your marketing budget. This means that clients are responsible for redemption costs up to a cost that was agreed upon, after which extra costs can be claimed under the contract.

4. Promotional Consultant 

There is a balance when it comes to creating a profitable promotional campaign. You want a attractive prize headline to drive sales but not offer unnecessary prizes.

Promotional Consultants will help you improve the ROI of your performance, ensuring the biggest returns from your marketing investment. This can involve joining the creative team in brainstorming sessions and even working with long-term advisors specialising in your brand.

5. Multi-National Bespoke Packages

Our experience with multinational companies allows us to provide you with an aerial view of promotional activity, while working alongside marketing teams to give you the best results for your marketing budget.

We work to reduce promotional risks, offer smooth prize redemption processes and drive sales for your brand through the increased efficiency of promotional activity.

What kind of products/campaigns could use a fixed fee promotion?

  • Petrol station – collect coupon every visit and customers select gifts from the catalogue.
  • Collect XX tokens on cereal packets and get a set of free kitchen bowls…
  • Select a lucky customer.  Give them get a chance to score a goal/get a hole in 1 at golf etc..  If they score they win US$1 million.
  • Lucky draw for a chance to win small to very big prizes.

Fixed Fee gives marketing managers scope to use a new level of creativity flow without having to worry about the budget.


Fixed Fee Campaign

Fixed Fee Campaign


Hedge your bets with Fixed Fee Campaigns

Quite a few companies will help you reward customers if the result of a football match goes the right way for example. Let’s assume you want to do a promotion to support your country.  Maybe you can offer to reward customers or refund part of their purchase if your country wins the world cup in 2014. This could be very expensive, but what if you are to hedge your bet with a local or international bookmaker. Then you can use internationally recognized odds and manage the cost of your campaign.

What other methods have companies used to mitigate risk? Would love to have case studies for our Promo Gift Blog.


How can ODM Help?

ODM can help you design and manufacture custom products suited for your next fixed fee campaign. Enquire @ ODM for more ways and explanation on how you can vastly improve your business. Our product designers will be able to provide you with multiple unique and interesting ideas for you to wow your audience and increase brand recognition. The specialists here are capable of assisting you throughout every process to ensure a pleasant experience. Contact ODM now!


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