There have been a variety of billing models used by paid advertising agencies over the last decade.
The most popular type has been the percentage of spend model. This is where the agency charges a percentage of the ad spend on the media they manage. This has become prevalent most likely as this has been how advertising agencies have often charged on advertising such as magazine, tv and radio.
We try to bill differently than most agencies.
We like to know quite a bit about a company, understand their business, then tie our fees more directly to positive metrics rather than how much of your money we are spending.
For some companies this will be a Fee based on the number of leads we produce.
For others this will be a fee based on Revenue Increase
On Brand Focused Campaigns we will work with your team to create a baseline of what Brand transactions happen normally and then charge a percentage of the increase that is directly attributable to us.
We have charged a simple percentage of spend as well and like to think we work on your goals even when it actually does not directly make us money. We think the best online ad agencies should spend your money as carefully as they would spend their own.
If you are interested in getting help running or auditing some of your online advertising please Contact Us. We will work with you to create a billing, reporting, and workflow that works for your situation.