I once worked with an Art Director who had just arrived in the UK from a stint at Leo Burnett in Venezuela. As well as alarming tales of armed guards outside his office, he told me this: when pitching, it was usual practice for  agencies involved to be paid their expenses and for the winning agency to pay the others a gratuity. A parachute payment, in the modern parlance.

In London, he had a rude awakening. It was the nineties recession and I explained to him that the prevailing climate meant competition was so fierce, and agencies were so hungry to pitch, they wouldn’t dream of asking for any payment from the potential client, let alone expect a consolation fee from the winner. But I conceded the Caracas model was appealing and made everyone’s efforts more worthwhile. I even fancifully hoped such a routine could be established once the economy recovered.

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