Palmer, Volney B

Definition:
Generally identified as the first advertising agent in America. Palmer began his career as an 'advertisement solicitor' selling ADVERTISEMENT SPACE for newspapers as present-day 'advertisement sales representatives' do. In 1841, he set himself up in business in Philadelphia, as a middleman between media and advertisers. Unlike Charles BARKER and other 'space brokers', he solicited advertising orders from advertisers who might otherwise have placed them direct, apparently by giving free advice on choices among rival newspapers and offering to write the advertisements at no charge. To pay for these services and meet his overheads, he demanded COMMISSION from the publishers, on the grounds that he represented a source of regular bulk orders of space and a single source to deal with in place of hundreds. He thus invented the commission system of advertising agency remuneration which is still the norm today in the USA and UK. His figure was 25 per cent. By 1850, Palmer had opened branch offices in Boston and New York and was publishing V.B. Palmer's Business-Men's Almanac. His success attracted others to follow suit, and by the time of his death a few years later the consequent competition had brought the normal rate of commission down to 15 per cent - which is the standard rate for most media, but not all, today.

Cross-References:
[commission] [advertising space] [Barker, Charles]

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