It's about cashflows. The Indian Internet Industry has been plagued for long by issues of delayed payments, with payment cycles going well beyond the usual 60 day period. For online publishers, a minimum of 90 days has been a given, though in the brutal year that 2009 was, we're told (by publishers, of course) that payments from certain digital agencies have taken as much as a year after the campaign finished. In this context, an agreement signed in December between the Advertising Agencies Association of India (AAAI) and the Internet and Mobile Association of India (IAMAI) that defines payment terms between agencies and online publishers is of great significance, particularly for small publishers that cannot afford having a large number in their 'accounts receivables' column. It's about cashflows, and this is a game-changing agreement if enforced. Some of the largest publishers from the Indian Internet Industry, 8-12 of them, are on board, including Rediff.com, Yahoo India, Indiatimes.com, Web18, NDTV Convergence, Livemint.com and Hindustantimes.com. Publishers had held a meeting on 12th January to discuss the agreement, which is, well, quid pro quo, and takes into account concerns of both agencies and publishers. According to a copy of the agreement that MediaNama received from sources (the IAMAI declined to share a copy), key terms of the agreement are as follows: -- Commission: Agencies shall receive a minimum commission of 15% on the gross rates for all advertising placed by AAAI members with publisher members of IAMAI. 15% commission on the gross rates is an…
