What are the commission levels for the agencys preferred suppliers?
How much of those commissions do they pass on to you? What’s their fee structure? What are some of the potentially hidden costs? Do you have to pay extra for a website and maintenance of that site? You also have to look at the host agency’s clout, which is something that can’t be ignored-the relationships that a host has over and above the commission levels. As for the future, we’re already seeing that some of our new members are coming over from smaller hosts. In order to stay profitable, those hosts are reducing their service capabilities. I do think mega-agencies will dominate, while the smaller agencies, whether they are a brick-and-mortar or a host, are going to have a more difficult time. Andi McClure-Mysza: The host agency market is proliferating at a very rapid rate. I did a pretty big analysis of the industry two years ago, and it’s already a different set of players today. A lot of brick-and-mortar agencies are seeing what’s happening in the industry, and they have decided to
