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Comparison

Flat Fee vs Percent of Ad Spend

Facebook ad agency fees usually follow one of two models, a percentage of ad spend, typically 10 to 20 percent, or a flat monthly fee. A percentage grows with your budget even when the work does not, while a flat fee stays fixed within a spend band.

Below are worked examples using a 15 percent fee as the comparison point, the honest cases where a percentage is cheaper, and how our spend bands work when your budget grows.

Percent of spend vs flat fee, at a glance
Percent of ad spend MetaAdsAgency flat fee
How the fee is set Typically 10 to 20 percent of monthly ad spend, often with a minimum fee Fixed by spend band, 3,000, 6,000 or 12,000 USD a month
When spend grows Fee grows at the same rate Fee stays the same until spend leaves the band
Incentive More spend means more fee, whether or not it is profitable Our fee does not rise when you spend more, so cutting waste costs us nothing
Budgeting Changes every month with spend Known in advance, 20 percent less on yearly billing
Setup fee Common None
Cheaper at Low spend, roughly under 20,000 USD a month Mid and high spend

Percentage ranges are typical market figures for agencies, not quotes from any specific agency.

01 · The math

Worked examples at five spend levels

The table compares a 15 percent fee with our monthly list prices. Yearly billing would lower each flat fee by 20 percent, to 2,400, 4,800 or 9,600 USD a month.

Agency fee per month, ad spend itself not included
Monthly Meta spend15 percent of spendOur flat fee, monthly billingDifference
10,000 USD 1,500 USD 3,000 USD, Growth Percentage is 1,500 USD cheaper
20,000 USD 3,000 USD 3,000 USD, Growth Equal
50,000 USD 7,500 USD 3,000 USD, Growth Flat fee is 4,500 USD cheaper
100,000 USD 15,000 USD 6,000 USD, Scale Flat fee is 9,000 USD cheaper
250,000 USD 37,500 USD 12,000 USD, Enterprise Flat fee is 25,500 USD cheaper

At 10 percent instead of 15, the break-even point with Growth moves to 30,000 USD of monthly spend. Ad spend is always billed by Meta to you and is the same in both models.

02 · Incentives

Why a percentage fee rewards the wrong thing

A percentage fee ties the agency income to how much you spend, not to how well that money works. Raising the budget is the easiest way for that agency to earn more, and cutting a wasteful campaign lowers its own fee.

With a flat fee the incentive flips. Turning off spend that does not pay back costs us nothing, so we have no reason to keep it running. That is the main reason we price this way, and it is laid out in full on our pricing page.

03 · Honest view

When a percentage of spend makes sense

If you spend less than about 20,000 USD a month, a percentage fee is often cheaper than our Growth plan, and our plans are not built for that stage. A freelancer or a smaller agency on a percentage may be the better fit until your spend grows. Our free audit still works for you at any budget.

Some agencies also combine a smaller flat retainer with a performance bonus. That can align incentives well when the bonus is tied to profit, not to spend, so read the definition carefully.

04 · Bands

What happens when your spend crosses a band

Growth covers spend up to 50,000 USD a month, Scale up to 150,000 USD and Enterprise above that. When your ad account spends above your band for two weeks in a row, the portal shows an upgrade prompt. If you upgrade, the difference for the rest of the period is charged immediately, and nothing changes on your invoice without your click.

Spend going down does not raise your fee either. You can move to a lower plan from the billing page at any time. The change applies straight away and the unused part of the period becomes credit on your next invoice.

Questions

Questions about Flat Fee vs Percent of Ad Spend

Anything else goes to [email protected], answered in writing.

Typical market pricing is either 10 to 20 percent of monthly ad spend or a flat retainer, commonly somewhere between 2,500 and 12,000 USD a month. We charge 3,000, 6,000 or 12,000 USD a month by spend band, with 20 percent off on yearly billing.

No. Below roughly 20,000 USD of monthly spend, a 15 percent fee costs less than our Growth plan. From about 20,000 USD upwards the flat fee is equal or cheaper, and the gap widens as spend grows.

No. There is no setup fee and no percentage of spend. The plan price is the whole fee, and ad spend is billed by Meta to your own payment method.

Your fee only changes if you choose a different plan. The portal suggests an upgrade after two weeks above your band, and you can move to a lower plan from the billing page whenever your spend settles lower, with the unused part of the period credited to your next invoice.

Yes. Yearly billing takes 20 percent off every plan, paid up front. Monthly billing renews month to month and cancels online. Payments are final, as our refund policy explains.

Price the work, not the budget

Run the free audit on your store, then check which spend band you are in. The fee you see on the pricing page is the fee you pay.

Plans from $2,400 a month, billed yearly

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