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Hiring an agency

How much does a marketing agency cost per month?

Short answer

It depends on what the agency does each month, so compare scopes rather than headline prices. A monthly marketing bill usually combines a management or retainer fee with costs paid to others, such as an ad budget paid to Google, software and hosting. Ask for an itemized quote that lists every service, every outside cost, the minimum term and the cancellation notice, then compare the total with the jobs it needs to produce.

What a monthly marketing bill is made of

Most monthly agency costs fall into a few buckets, laid out line by line in the table at the end of this page. Knowing which bucket a charge belongs to is the quickest way to compare two proposals that look nothing alike.

  • Management or retainer fee: the agency's time for planning, running campaigns, writing, reporting and meetings.
  • Ad budgets: money paid to Google or other platforms for the ads themselves.
  • Production: website pages, photos, video or written content, sometimes billed per piece.
  • Tools: call tracking, reporting dashboards, hosting and software licenses.
  • One-time costs: setup, audits, a website build or a rebrand, which shouldn't keep recurring.

What makes the monthly fee higher or lower

Two agencies can quote very different numbers for what sounds like the same job. These are usually the reasons.

  • Number of channels. Running Google Ads, SEO and social media together is more work than running one of them.
  • Number of services and locations. Each one needs its own campaign, page or plan.
  • Production volume. Monthly pages, posts, photos or videos add up quickly.
  • Tracking depth. Connecting calls and forms to booked jobs takes setup and upkeep.
  • Reporting and meetings. A monthly call and a written report take time to do well.
  • Who does the work. Ask who will actually touch your account, and how senior they are.

Pricing models you will see

Agencies package their fee in a handful of ways: a flat monthly retainer for a defined scope, hourly billing, a project price for one-time work, a percentage of ad spend for ad management, or a fee tied to leads or sales. Any of these can be fair. A percentage of ad spend links the agency's pay to how much you spend rather than to what you get, so if you see one, ask for a cap and measure it against booked jobs.

Two rules from Google help here. Its advertising policies require agencies to disclose management fees in writing before your first purchase and to list them on every invoice. Its Business Profile guidance warns that some third parties charge more than the agreed price, and advises getting an official copy of your agreement that clearly details the services and their costs.

How to judge whether a monthly cost makes sense

Don't judge an agency fee on its own. Add the fee, the ad spend and any tools to get the full monthly cost of the plan, then ask how many booked jobs it has to produce to pay for itself at your margins. Google's guide for advertisers recommends knowing your total advertising cost, partner fees included, as the basis for measuring return.

Then check that the plan fits the size of your business. A one-truck operation in a single county rarely needs a retainer covering five channels. A focused scope done well, often one channel plus solid tracking, gives you clearer numbers and a fairer test than a broad plan spread thin.

Our pricing, for comparison

We quote a flat monthly fee for the scope you need, whether that is Google Ads, SEO, your website or a combination. It is never a percentage of ad spend, and there is no setup fee. Google Ads budgets are paid directly to Google, with $1,200 a month as our recommended minimum. Websites are hand coded, and you own the site, the domain and the ad account.

Management has a 6-month initial commitment, then runs month to month with 30 days written notice. The free 30-minute call with Nick ends with an itemized quote within 24 hours, so every line is visible before you decide.

Typical line items on a monthly marketing bill and what to ask about each
Line itemPaid toHow oftenWhat to ask
Management or retainer feeThe agencyMonthlyWhat exactly is included each month?
Ad budgetGoogle or another platform, directly or through the agencyMonthly, variableCan I see the platform's own billing?
Website buildThe agency or a designerUsually one-timeDo I own the site and the domain?
Hosting and upkeepThe agency or a hostMonthly or yearlyWhat happens to the site if I leave?
Content and creativeThe agency or freelancersPer piece or monthlyHow many pieces, and who approves them?
Tools and softwareVendors, often through the agencyMonthlyIs the tool account in my name?

Related questions

Why don't more agencies publish their prices?

Some do, but many quote to scope because the work varies so much between businesses. One service in one county is a different job from several services across a region. A good agency explains how it prices, even if it doesn't post a single number.

Is a cheaper agency a better deal?

Only if the scope is the same. A lower fee that skips tracking, reporting or search term review can cost more in wasted spend than it saves. Compare line by line, then compare total cost against the jobs each plan should produce.

Should my ad budget be paid to the agency or to Google?

Either can be legitimate, but paying Google directly from an account in your name keeps the numbers clean and the account yours. If the agency handles billing, Google's rules require it to report the exact amount Google charged, separate from its own fees.

Do I have to sign a long contract?

Terms vary. Some agencies run month to month; others ask for an initial commitment to cover setup and the time campaigns need to learn. Whatever the term, get the notice period and exit terms in writing, including what you keep when you leave.

Sources

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