Should you charge a Flat Retainer or a % of Ad Spend? Compare your earnings below.
[AdSense 160x600]
[AdSense 160x600]
Flat Retainer Model:$0.00
% of Spend Model:$0.00
Hybrid Model (Retainer + 5%):$0.00
[AdSense Rectangle 300x250]
💼 Freelance Rate to Salary
Convert your hourly rate into monthly and yearly income.
Weekly Income:$0.00
Monthly Income:$0.00
Annual Income:$0.00
Agency Pricing Strategy: Which Model is Best?
One of the hardest decisions for new agencies and freelancers is how to charge. The wrong model can cap your earnings or scare away clients. Let's analyze the three industry standards.
1. The Flat Retainer Model
How it works: You charge a fixed fee (e.g., $2,000/month) regardless of the workload or results.
Pros: Predictable income. Easy to sell to small businesses who fear fluctuating costs.
Cons: "Scope Creep." Clients often demand more work over time without paying more. It also caps your upside—if you double their sales, your pay stays the same.
Best For: SEO, Content Writing, and Social Media Management.
2. The Percentage of Spend Model
How it works: You charge a management fee based on the client's ad budget (typically 10%–20%).
Pros: Scalability. If the client scales their budget from $10k to $50k because your ads are working, your fee automatically jumps from $1,500 to $7,500 without extra work.
Cons: Bad for small clients. 15% of a $500 budget is only $75, which isn't worth your time.
Best For: PPC (Google Ads) and Paid Social (Facebook Ads).
3. The Hybrid Model (The Winner)
How it works: Base Retainer + Performance Incentive.
Example: $1,500 Base + 5% of Spend. This protects your downside (you always get paid for your time) while aligning your incentives with the client (if they grow, you grow).