Why does an agency charge a monthly fee on top of my ad budget?

Two different costs

• Ad spend: paid to Google or Meta. This buys clicks and views.
• Agency fee: paid to the agency for strategy, creative, setup, management and reporting.

What the fee should cover

• Campaign planning and audience targeting.
• Ad designs, videos and copy, or editing your content.
• Tracking set-up for calls, WhatsApp and forms.
• Daily or weekly checks and changes.
• Monthly reports and a review call.

Common fee models

• A fixed monthly retainer.
• A percentage of ad spend.
• A mix: a base fee plus a performance bonus.

Protect yourself

• Keep the ad account in your business name with your card.
• Ask whether the agency adds a markup on ad spend.
• Check the ad platform’s own billing to confirm spend.
• Agree what results and reports you will see each month.

Is the fee worth it?

Compare your results before and after. If the agency lowers your cost per customer or brings more customers for the same ad spend, the fee is paying for itself. If you can’t see that within a few months, ask why.