Dive Brief:

• Peet's Coffee & Tea has named Razorfish as its e-commerce agency of record. 
• The deal is on a pay-per-performance basis that rests 100% on the growth of Peet's e-commerce bottom line. 
• Razorfish believes it will break even within six months and double Peet's e-commerce business soon after. 

Dive Insight: 

This kind of deal is great for brand marketers who don't have to pay upfront for agencies' costs and can have the peace of mind that the agency is truly invested in their growth. It's a huge risk for agencies, however, who are betting on profit against a wide variety of factors outside of their control. Razorfish making to this type of agreement could set a precedent that forces other agencies to consider pay-per-performance deals to stay competitive.