The four common fee models
Each model can be done honestly. The real questions are what the fee rewards and whether you can see what you are paying for. The table below compares them.
A percentage of ad spend deserves the closest look. It is simple, but it pays the agency more whenever you spend more, whether or not the extra spend brings in jobs. A flat fee tied to scope removes that pull.
What the fee should cover
Comparing prices only works when you compare the same work. A complete management scope for a local service business usually includes the items below. If a cheaper quote leaves several of them out, it isn't cheaper.
Scope is also what should move a fair price. One service in one county with call tracking is a lighter job than five services across several counties, each with its own landing page, budget and busy season. Expect a quote to change with the number of campaigns, areas and conversion actions to maintain, not with how much you hand to Google.
- An account in your business's name, with you holding admin access.
- Conversion tracking for calls and forms, and ideally for booked jobs.
- Campaigns split by service and aimed at the areas you actually serve.
- Regular search terms review and negative keywords.
- Ad writing and testing, plus assets such as the call button.
- Landing page recommendations, or pages built as part of the scope.
- Reporting that shows Google's exact cost next to calls, forms and jobs.
What Google requires of agencies
Google's third-party policies give you a checklist before you sign. Agencies must use a separate Google Ads account for each advertiser they manage. If they charge a management fee, they must tell new customers in writing before the first purchase and show the fee on every invoice. When they share cost data, they must report the exact amount Google charged, without their own fees mixed in, and they must give you your account's customer ID on request so you can contact Google directly.
Google also prohibits agencies from false or unrealistic claims, such as promising top placement, saying ads will appear at all times, offering unlimited clicks, or misrepresenting how Google's costs are calculated. If a pitch includes any of those, it tells you how the rest of the relationship will go.
Costs beyond the monthly number
The headline fee is only part of the price. Ask about each of these before you compare totals.
- Setup or onboarding fees charged before any work begins.
- Minimum terms, and how much notice you must give to leave.
- Separate charges for landing pages, call tracking software or reporting dashboards.
- Markups hidden inside the ad budget. Check Google's own billing page in your account.
- Exit costs: whether you keep the account, its history and the landing pages when you leave.
How we price it
Our terms are public. Management is a flat monthly fee quoted to your scope, never a percentage of ad spend, with no setup fee. We recommend at least $1,200 a month in ad budget, paid directly to Google and separate from our fee. You own the ad account. Management starts with a 6-month initial commitment, then runs month to month with 30 days written notice.
After a free 30-minute call with Nick you get an itemized quote within 24 hours, so you can compare it line by line with anyone else's. Google's own guide for advertisers makes the same point: understand the total cost of your advertising, including any partner's fees, because that total is what you need to work out your return.
| Model | How it works | Watch for |
|---|---|---|
| Flat monthly fee | A set price for an agreed scope of campaigns and services | Whether the scope is written down and what changes the price |
| Percentage of ad spend | The fee rises and falls with your ad budget | Pay rises with spend whether or not results do |
| Hourly | You pay for time worked | An estimate, a cap and time logs |
| Performance-based | Fees tied to leads, calls or sales | How a lead is defined and who verifies it |
Related questions
Is a percentage of ad spend a bad deal?
Not always, but it builds in a conflict: the agency earns more when you spend more, regardless of whether the extra spend brings in jobs. If you accept it, ask for a cap and judge the agency on cost per booked job rather than on spend.
Should I pay a setup fee for Google Ads management?
If you pay one, get the deliverables in writing, including tracking, the campaign build and any landing pages, and confirm everything is created inside your own account, so the work stays with you if you leave.
Who should own the Google Ads account?
You should. Google requires a separate account for each advertiser, and agencies must give you your customer ID when asked. Keep admin access in your own name so the account, its history and its data stay with you if you change agencies.
How do I compare two agency quotes?
Line them up by scope: campaigns and services, tracking, reporting, landing pages, term and notice period. Then compare total cost, including the ad budget, against the jobs each plan expects to produce. The lowest fee on a thinner scope often costs more.
Sources
- Google Advertising Policies Help: About Google third-party policies
- Google Advertising Policies Help: Transparency requirements for third parties
- Google Advertising Policies Help: False, misleading, or unrealistic claims (third parties)
- Google Advertising Policies Help: Advertiser guide to working with third parties
- Google Ads Help: About access levels in your Google Ads account
- Google Ads: Work with a Google Partner