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What’s the difference between ad spend and management fees, and how do PPC agencies charge?

Short answer

Ad spend is what you pay Google, Microsoft or Meta for clicks and impressions. The management fee is what you pay the person or agency who plans, builds and improves the campaigns. Agencies charge a flat monthly fee, a percentage of ad spend or a mix. Keep ad spend billed to your own account.

In this answer
  1. 01Common fee models
  2. 02What a management fee should cover
  3. 03Red flags
  4. 04How we charge

Common fee models

ModelHow it worksWatch out for
Flat monthly feeOne set price for managementClear scope, so you know what it covers
Percentage of spendThe fee grows with your ad budgetAn incentive to spend more, not better
HybridA base fee plus a smaller percentageRising cost as you scale
Performance-basedA fee per lead or a share of resultsDisputes over what counts as a lead

None of these models is wrong. What matters is that the fee covers real work and that incentives point toward your profit.

What a management fee should cover

  • Account structure, keywords and negative keywords
  • Ad copy, assets and testing
  • Landing page advice or builds
  • Conversion tracking for calls, forms and bookings
  • Weekly optimization and search term reviews
  • Clear monthly reporting on leads and cost per lead

Red flags

Be careful with agencies that bundle ad spend and fees into one number. Avoid any that keep your ads in their own account or hide Google's invoices. You should always see exactly what Google charged.

Good example. A roofing company pays Google directly for $3,000 of ad spend and pays its agency a separate flat fee. Both appear clearly in its books.

Bad example. A roofing company pays an agency $4,000 a month "for ads" and later learns only $2,000 reached Google.

How we charge

Our PPC management is a flat fee that starts at $1,000 a month, with no long contract. Your ad spend goes directly to Google or Meta from your own account. You own the account and its data.

Read who pays for PPC clicks, or see our PPC management.

Keep reading

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