An agency is an organization or body that performs tasks and provides services in the place of another person, company, or organization.
An agency is more or less a representative of a more prominent company or organization. It is tasked with the role of performing some particular role assigned to them by the primary company. Agencies also act as helping hands to big organizations, companies, or even individuals. An agency might be part of the main body, wholly tied to the main company, or operate independently, hired by the main company.
In business, an agency may be in charge of recruiting new workers, negotiating new deals, advertising, or even representing the company in some functions. The agencies should clearly state who they stand in for in an errand before proceeding since they are nothing more but representatives. Therefore, the other party assumes that they are dealing directly with the main organization, but in the real sense, the agency is just standing in for the main party. The agency, thereafter, reports directly to the main body and presents the results to it.
Agencies are not only hired by businesses. There are also confidential agencies for governments. In this case, they act as general agents that perform different tasks according to the aforementioned process. You can, therefore, clearly conclude that agencies are representatives of a bigger body that acts according to their instructions without question.
Example of Agency
Picture yourself as a board member in a real estate company that deals in all types of real estate properties. From apartments to villas to mansions and posh bungalows, you deal with multi-million real estate transactions. You sell houses all around your country and with time you become a large company. You now need extra hands on deck to help you sail and navigate through the waves of real estate.
To increase your work power and get as much help as you can to run the business, you hire sales and marketing agencies. These agencies are made up of special agents tasked with the role of advertising and selling the real estate property on behalf of your company. The agencies report directly to your company with every sale they make or any form of marketing they execute. With this move, you get the much-needed help in the field of marketing and sales.
A big percentage of renowned companies have agencies that perform specific tasks for them depending on the task at hand. It would have been overwhelming for the company if it did everything on its own. Some of the most popular services provided by agencies in business are advertising and sales services. The agencies are either paid by commission or by a fixed basic salary.
Types of Agency
Some types of agents include general agents, special agents, and subagents. A general agent is an agent tasked with performing a broad number of tasks on behalf of the main body. A special agent is an agent tasked with a specific task to perform in place of the organization. They might be advertising or even a sales agent. A subagent is a person who works under another agent. They report directly to the agent and don’t deal with the main employers.