PPC agency fees explained

PPC fees are separate from your ad spend. You pay the platform for clicks, and the agency for managing the account. Make sure you know which is which.

Common fee models

Model	How it works	Watch for
Flat monthly fee	A set amount for a defined scope	Check hours or deliverables included
Percentage of ad spend	A share of what you spend, often with a minimum	The agency earns more when you spend more
Hybrid	A base fee plus a smaller percentage	Check how the percentage scales
Setup fee	A one-time charge to build the account	Make sure the account is yours afterward

Minimum spend

Many agencies require a minimum monthly ad budget. That is reasonable, because very small budgets give little data to learn from. Ask what result they expect at your budget.

Where the ad spend goes

Ask whether you pay the platform directly or through the agency, and whether there is a markup. Paying directly is the clearest.

Questions to ask

What is included in the fee, and what costs extra?
Is there a contract, and how do I leave?
Who owns the ad account?
How is ad spend billed?
What will I see in reports?

Compare two quotes fairly

Ask each agency to write the monthly management fee and every other charge.
Add the ad spend you expect to pay the platform.
Divide the total by the number of leads you hope to get to find a cost per lead you can compare.
Ask what happens if results fall short of that.

What a fee should buy

Regular reviews of search terms, bids and budgets.
Testing of ads and pages, not set-and-forget campaigns.
Reporting in leads and cost per customer.
Someone you can ask questions.

Fee questions that reveal a lot

Is the fee the same if I double my ad spend?
Are there extra charges for new campaigns, reports or calls?
Who owns the creative, the data and the accounts if we part ways?

Compare other models in a general guide such as marketing agency pricing models explained.

Want an audit? We review Google Ads accounts at no cost. Get in touch or call (510) 857-7838.