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Our small business ocassionally sells classifed advertising space on our website. An advertising agency recently approached us on behalf of one of their clients that wanted purchase advertising.

The advertising agency asked us whether or rates were gross or net. What does this mean exactly. We have one set of rates and that's how much we expect to get paid.

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Net advertising rates are the amount due to you. If you are not used to dealing with advertising agencies and have "one set of rates", these are net rates because they don't include the advertising agencies commission.

If your rates are "grossed up" by 15% to include the amount that the agency is going to take, then those are gross "rates".

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