We hear this question a lot. It depends on the agency and the scope of the service that is being provided. A lot of time a flat monthly fee aligns interest with the agency and the client. When you charge a percentage of ad spend there could be incentive to simply increase budget without being focused on optimizing for conversions and sales. We feel that a flat monthly fee that scales with ad spend is the best model for both parties.
About the Author
Ryan Shank is the CEO at PhoneWagon. Ryan loves helping small businesses generate quality leads by implementing creative solutions that are proven to work.