Percentage-of-spend pricing

The defining feature of percentage-of-spend is that the agency's incentive is aligned with the client's growth. When the client scales spend, the agency's fee scales. When the client pauses or cuts spend, the agency's fee drops automatically.

Compared to retainer pricing, percentage-of-spend is dramatically cheaper for clients spending under $20,000/month and slightly more expensive for clients above $30,000/month.

It works best for execution-focused services where labor scales with spend (more spend = more campaigns = more management hours) rather than for strategy-heavy engagements with fixed deliverables.

The trade-off is that the fee grows every time the client scales. A flat monthly fee, like FEXads' $700 a month on either plan (starting at your first sale), keeps the cost of management fixed while the client scales spend as far as the economics allow.