Those of us that have been working with advertising agencies for many years have seen these "sequential liability" clauses being inserted into the fine print of agency contracts every recession.
There is a potential double standard here that is not being discussed. Namely that while agencies should get upfront money to cover their costs from clients, they should also in-turn allow their key vendors to bill and receive a portion of those upfront payments in order to cover their own costs for the same projects.
Otherwise ad agencies might bill and receive upfront money from their client and then go about getting critical vendors and subcontractors to serve that same client project, but tell these vendors, "sorry you don't get paid unless we are paid by the client" in sequential liability clauses.
Again, those of us that have dealt with agencies for years know the drill. Some agencies will allow key vendors and sub-contractors to bill and receive deposits which is fair, but others who shall remain nameless may squeeze their own vendors for credit even though they themseleves insisted on upfront deposits from their clients for the same project.
Buyers (insert vendors) and all that serve advertising agencies beware!
Jim Bilello
President
US Marketing, Inc.
Chicago
Ph. 312-637-9796
www.hispanicmusicmarketing.com
http://www.usmarketingchicago.blogspot.com
US Marketing is an integrated marketing communications company representing national media, promotions and consulting in important and emerging segment markets. Specialties include: youth, young adult, college, Gen X, Y, and Millennial marketing. Multicultural segments include Hispanic, African-American, and Asian
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