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Is it normal for an agency to be able to charge much less in management fees? Friends proposal is $400/mo fees, $600 spend minimum.
I was pretty surprised to see a price this low, with ad spend this low. They’re an industry specific niche agency. Typically I’ve seen a minimum of $1k in fees + ad spend for freelancers and agency’s usually are more expensive.
But their webinar demonstrated some good results for their clients.
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1 Reply
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Normal is relative. An agency can charge whatever they want. Lots of agencies in this price range I would say. Makes it an easy yes for the client.
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Sounds like a high volume model. It works. Lots of different things go into deciding price.
Pretty easy to get people to say yes at $400/mo – so if that’s your goal *shrug*
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Depending on the complexity and size of the account I charge around $450/month + a set up fee as the base. Normally these are small businesses that only require a few hours of management a month.
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Something else to consider with a low spend and low fee model is how often are they in the account optimizing it? It is it all automations and scripts with the occasional human interaction?
Usually a low fee means less interaction from them in the account and with reporting.
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I start at just $300 a month min ad spend of $1k.
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depends on the agency model. Agency I used to work at did % management fees but also had other pricing models along the lines of fees based on growth. I’ve used those growth models with freelancing and it’s able to benefit in the long run massively in comparison to a flat fee. Growth schemes are all ill use nowadays when I have availability for freelance work. Things like that may appear cheap initially, but over time can grow a lot based on how much work goes into it. Check the 400, it could come with an additional payment of growth as well, I have seen some agency’s across the UK and EU doing the tactic of cheap onboarding fee and then putting clients into ridiculous growth based models which end up sky high.
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Most accounts are easy to handle especially if their budget is less than $3000 a month. The hard part is setting it up, but once it’s set up they might spend few hours a month on it.
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Depends how much work really. However you need to keep in mind $400 a month is $100 a week. Thats barely 1 or 2 hours of work. I guess if its maintenance its fine, but what about the first month when you building things out. 2 hours is not enough—shoot the client call is 45 min to an hour. Unless the client expects that as non-billable. I hope this is Search or Meta only and not both.
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